Mortgage and Moving Question (Chicago, Peoria: appointed, real estate, apartment)

[jenniferborders]

My husband and I will be moving to Illinois this summer. We rent a house right now and want to buy a house in IL. I have secured employment already, but that's only because I teach and I can get a job now that does not start until August. My husband on the other hand does not have employment lined up. Most people that have vacancies want them filled now, not 2 months from now. So, he'll have to wait until closer to time to actually move before finding a job.

Our problem is, what do we do about qualifying for a mortgage? I know that they can probably take my employment contract with the school but what about his job? It's just so hard to move state to state, having to do everything at one time. He cannot start working until we live there, and we can't live there until we have a place to live. We REALLY don't want to have to rent a house or apartment for 6 months then move again. We have two children ages 10 months and 22 months. I only want to have to move them one time. They could use just my income, but we all know how much teachers make and I don't know how much we would qualify for on a $37000 salary.

Anyone have any knowledge about this that could help us out, I'd really appreciate it. The mortgage officer we're working with is "looking into it" and is going to get back to us, but I know we're not the only people who have ever been in this position. Thank you.

[jlawrence01]

Originally Posted by jenniferborders

Our problem is, what do we do about qualifying for a mortgage? I know that they can probably take my employment contract with the school but what about his job? It's just so hard to move state to state, having to do everything at one time. He cannot start working until we live there, and we can't live there until we have a place to live. We REALLY don't want to have to rent a house or apartment for 6 months then move again. We have two children ages 10 months and 22 months. I only want to have to move them one time. They could use just my income, but we all know how much teachers make and I don't know how much we would qualify for on a $37000 salary. .

You have to realize that in the current credit situation, no one can really answer that with a lot of certainty. Some lenders may only count the $37k as your income. Some others will assume that you can find employment at a similar amount.

If you are in the position of making a large downpayment, you might be more lucky.

Three years ago, this answer would be a no-brainer.

[linicx]

You are beating a dead horse. Unless you are an Illinois teacher that meets IL continuing education requirements, you will receive a provisional license and continue to work toward licensure. Whether or not your income is X or Z dependends upon a number of things including skills and tenure.

To be fair I CAN NOT SEE red fonts to read the whole post. So I am going to guess. USE black text if you want a reply.

You have a family and at least one adult is working. You are going to move to Illinois. You need a place to live.

IL is the fifth largest state with 15M people and schools in every one of its 102 counties. The county where you live dictates where you are able to apply for a loan. Generally speaking banks do not loan on property located more than fifty miles from the bank.

There are three types of lenders and mortgages: Bank, credit union and private; FHA, VA, RD and 20%. If either is ex-military the VA loan is the way to go. Credit Union has the lowest interest rates. You'll need 10-20% down plus closing costs - which avg about $2000 on an $60k house. Rural Development has some excellent terms for first time buyers that cannot secure a first mortgage elsewhere, but, you will not be living in any town of appreciable size.

The person telling you they are "working on it" is a liar. Any lender in the US can tell you in five minutes whether or not you qualify for any loan.

Your FICO score is the first and most important report bankers read. If your FICO is anywhere near 800 you can go to any bank and get loan approval in 30 minutes. I did it in three states and I closed in two weeks three times. At one time I had a credit union loan on property located 1000 miles from it. FHA and VA loans can take anywhere from 30-90 days to close. Another thing to expect. An owner occupied house may not be available for you to move into for upto 45 after closing. If you cannot get the keys at closing, don't buy it.

You should come to Illinois as soon as school is out, find your house and apply for a loan. You have children. You new house absolutely MUST PASS a home inspection and a MOLD test. And it needs to be written as a contingency in your contract. In other words you contract needs to say in plain English that it must pass both tests or you do not buy it. Realtors are sneaky.

If you do not have the written contingency, and the house fails the inspections, guess who buys the house??? YOU DO. Mold will keep your kids sick until you move. It affects lungs. BTW, all states have mold; its in the soil. You do not want 24/7 exposure. The tests will reveal it inside and on the outside of the house and in/on the garage and other out buildings. Rental units have the same problems. Mold removal is extremely expensive. $40k for a paneled basement. If mold is in the basement, you can be assured it is elsewhere i the house too. The tests can cost up to $1000 - depending upon where you are going to live.

Almost every empty house on the market has mold. Why? Because the heat and air conditioningg is not on and has not been on since the house was vacated. You can go to the local utility company with the address and ask the date for the final service billing. If it is more than three months there is a potential problem.

You did not say where you will be teaching or what your housing needs are or a price range.

Your house payment is 25-1/4% of your net income or 1.25 weeks of a monthly salary.
Divide your annual net by 12 and then again by 4. Your monthly house payment cannot exceed this amount. Yours is the stable income and yours is what the loan will be based on.

Real estate taxes are based on age, type of housing, and location. If you buy new in a new a sub you can expect 5-8K yearly taxes. You are better off tax wise to buy an older property in the county. The county can tell you the last tax assessed. If the house is in an estate, you can expect your taxes to be much higher. I did that. The taxes jumped from $400 to $2200 on a 60 year old house in a city.

Illinois teachers pay into SS voluntarily as there is a mandatory retirement fund. IRA is better than a 401k as it is static. It is low interest, but you can't lose value. And you can add x number of dollars per year up to the age cap.

Il grocery tax is 1%. It costs $75 for license plates and title transfer. If you are around Chicago or Central Illinois there is a lot of neat stuff for kids. Otherwise unless you are near St. Louis you won't find much too much.

Welcome home!

[jlawrence01]

Originally Posted by linicx

Real estate taxes are based on age, type of housing, and location. If you buy new in a new a sub you can expect 5-8K yearly taxes. You are better off tax wise to buy an older property in the county. The county can tell you the last tax assessed. If the house is in an estate, you can expect your taxes to be much higher. I did that. The taxes jumped from $400 to $2200 on a 60 year old house in a city.
!

You are making the assumption that the OP will be relocating in the Chicago or collar counties where the RE taxes are high. If they are moving to Moultrie or Douglas Co. downstate, you are not going to pay more than $2k on a typical home.

Even in the collar counties surrounding Chicago, you will not be paying anything close to $5-8k on the type of house that you can afford on a $40k income.

[linicx]

I am not assuming anything. My sister lives in Peoria in the same house she bought on a teachers salary nearly 50 years ago. Her taxes are over four grand. County taxes are always cheaper.

[AnimalLover]

If you are making less than $37,000/year and can qualify for a mortgage, you may also qualify for $4000 in first time buyer grant funds in addition to the federal tax credit of up to $8000. There are rural housing programs available that offer 102% financing with no PMI, FHA loans that require only 3.5% down. You need to be working with a lender that has these programs available and is willing to explain them to you. It can get complicated and frustrating. If you're in my area (Springfield), I can help you find one. You also need an agent you are comfortable with. As a buyer, it costs you nothing to work with an agent. Taxes vary by location, some towns/cities/counties have different rates in different areas. I'm rather tired of the comments about realtors from linicx, as I work my you know what off for my clients.

You may be better off qualifying for the loan on just your salary - with a combined salary you may have too much income to qualify for the grants or the rural housing programs. Really depends on where you're looking - this is a big state. If I can help you, just let me know.

[GolfLover2]

Originally Posted by jenniferborders

My husband and I will be moving to Illinois this summer. We rent a house right now and want to buy a house in IL. I have secured employment already, but that's only because I teach and I can get a job now that does not start until August. My husband on the other hand does not have employment lined up. Most people that have vacancies want them filled now, not 2 months from now. So, he'll have to wait until closer to time to actually move before finding a job.

Our problem is, what do we do about qualifying for a mortgage? I know that they can probably take my employment contract with the school but what about his job? It's just so hard to move state to state, having to do everything at one time. He cannot start working until we live there, and we can't live there until we have a place to live. We REALLY don't want to have to rent a house or apartment for 6 months then move again. We have two children ages 10 months and 22 months. I only want to have to move them one time. They could use just my income, but we all know how much teachers make and I don't know how much we would qualify for on a $37000 salary.

Anyone have any knowledge about this that could help us out, I'd really appreciate it. The mortgage officer we're working with is "looking into it" and is going to get back to us, but I know we're not the only people who have ever been in this position. Thank you.

Jennifer: There are so many questions that I have regarding your present work status and upcoming employment(s) within our state. Also, some of the decisions you are contemplating will come down to your personal taste in homes and what your goals are in housing. Obviously, the more income you have to work with, the more home you can buy. It also will matter what portion of the state and the areas you are going to be residing in, as to what you can buy and the costs involved. As you give no clue as to where that may be in your post, it is hard to give hard numbers or opinions on the costs involved in a housing and lending move. Rural areas do open up some possibilities for you financing-wise, (as do 1st-time home-buying, VA, being employed as a teacher possibly), but without knowing directly where you are wanting to live it is hard for any mortgage officer to give you definitive answers.
I would need to inquire about many more particulars to give you reliable answers and would hesitate to suggest anything until I knew more about your situation. My suggestion as to how to move forward? Speak with an Illinois licensed mortgage professional, one that will provide you the information you need as soon as possible. (Right now, it sounds as though you feel somewhat disappointed in the reaction you have received from the lender you are dealing with so far.) If you are not receiving the answers and assistance you need, move on. Through the information and input you provide, a professional mortgage officer will be able to inform and then assist you towards your best financial options for the present and your future. With two little ones involved, you want to take the future into consideration, as well as the present challenges you are facing.
I know that this information must all sound vague to you, but be cautious about receiving information from someone that does not have all the facts surrounding your personal situation. Do not base your opinion or decision on anything short of professional advice gathered from a personal knowledge of YOUR finances and personal goals. Best of luck to you in Illinois and let me know if I can help in any way further.