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Published at 2:57pm
The Lyric Opera's The Pearl Fishers transcends its source....
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HOUSE HUNTERS
GREG KOLAKOSKI AND SHAWN MORAN
Kolakoski, 25, and Moran, 37, have been dating for two and a half years and living together for one, but they’re feeling the itch to upgrade.
“I just really feel it’s time,” Moran says. “With my age and the money I make, I’ve been putting it off too long.” Despite earning a six-figure income, though, she admits she’s “scared to death” of the mortgage. Kolakoski is less queasy. “We’ll just have to manage our money better, but on our income there’s no reason we shouldn’t be able to afford it.”
Their ideal abode is a single-family home in the West Loop or near United Center. They’re willing to settle for a townhouse or condo, but a garage and a yard for their two dogs are musts.
Kolakoski makes $60,000 a year as a union carpenter, and Moran earns more than $150,000 as an Internet sales director. Her credit score is excellent, but Kolakoski’s is just shy of what most lenders consider “fair.” Their joint debt includes a $2,000 credit-card balance and a $38,000 boat loan. They have no money for a down payment.
Expert opinions
Chaz Walters
“With no money down, they could qualify for the maximum FHA loan of $417,000 and even more if they put down five to ten percent. Single-family homes around United Center are around $649,000, but there’s no way they can’t find a townhouse for $500,000 there.”
Gisella Tomasio
“It’s possible, but they need a plan. Though they make great incomes, they’re spending everything they have. Some mortgage brokers say they can do zero down payment, but I don’t advise it.”
Judge Mathis
“If they do decide to go into this joint venture, they need to decide what name is going to be on the title. If for some reason the couple separates, the name on the title will become very important.”
VERDICT:
Alex
Mon, Mar 24, at 10:44am
I'm a Realtor and find myself embarrassed by Chaz's advice. Low income? Buy. Huge debt? Buy. No savings? Buy. Seriously, Chaz, step away from the kool aid.
jswede
Fri, Mar 21, at 12:31pm
hey about telling the whole story Chaz? "With 100% financing he/she could afford a $_____ house. Of course, he/she would also a have to pay huge sums in yearly property taxes, monthly assessments, take on market risk that may bottom out down another 10-15% from here, leaving the buyer in $25-100k of debt should they be forced to sell. Which they likely will have to, because they have no savings. It's all good though, because I got paid a commission." ****ing sick slimeball
jswede
Fri, Mar 21, at 10:45am
Lastly, in case anyone else was still listening to these idiots: Let's look at a 30yr amortizing loan. Which is what most people will get into (after this interest-only debacle anyway): lets say a 30yr 6% loan for $500k. You'll pay $3k monthly. $36k a year. After 5 years, you've paid about $180k. Of that $180, ~85% has been interest. You've paid off only about $30k of the house. Great way to become a home "owner", huh?
jswede
Fri, Mar 21, at 10:37am
and Gisella -- as an advisor -- how about levelling with people? Why not tell them the difference between renting and "buying" (with no/little money down using a mortgage)? It's about as simple as this: when you rent, you pay someone for the use of their property; when you "buy" with a mortgage, you pay some one for the use of their money. You're not an "owner" with no money down. Not even with 20% down. Oh, and also, when you buy you take market risk and pay huge taxes/assessments
jswede
Thu, Mar 20, at 09:09pm
Chaz says: "With 100% financing, he/she could afford a $______ house"
jswede
Thu, Mar 20, at 09:03pm
let's see.... "no money down" is a recommendation - with no disclaimer - just as long as Chaz gets paid. if your subjects take that advice there's a chance each of them will not get out of debt for decades.
jswede
Thu, Mar 20, at 08:59pm
It's nice to see that TimeOut has learned nothing in the last few years. (and that Chaz from the billboards is as big of a slime-ball as I always thought he'd be)
benjamin
Thu, Mar 20, at 12:00pm
Great - ask a real estate agent (who makes something like 5% of the purchase price) if someone should buy or rent - no chance of a bias there!
