Thomas was a recent
graduate from the University of Illinois. He
had just gained employment at a marketing
firm in Champaign. He was making about
$40,000 per year and wanted to buy a house,
however his 550 credit score wasn't quite
enough for a mortgage loan. Thomas wasn't
too responsible in regards to managing his
credit
during his college years and it is now
catching up to him. He had attempted to
obtain loans through various lenders, but
was turned down by each. They had explained
that he made enough money to qualify for
financing for a great percentage of homes,
but he would need to improve his credit
score and try again after a few months.
Thomas didn't want to wait any longer to
stop paying rent and to become a homeowner.
He then turned to Schwaps for an answer. He
informed Schwaps, which house he wanted to
purchase. Schwaps was then able to provide
financing for him.
The house was $115,000 and Thomas had $5,000
saved up for a down-payment. Schwaps was
able to provide financing for his house at
an an interest rate of 9% for a period of 30
years, making $925 his monthly payment.
The monthly payment for his house was near
his monthly rent payment of $850. As a new
homeowner, Thomas now new found freedoms
regarding his living situation. He also, is
more financially sound, as with an average
appreciation of 5% in Champaign County, in
just 3 years his house that was once worth
$115,000 will have a value of $133,127. That
is over $18,000 in equity that he never
would've achieved had he kept renting.
* The
story above is just one example of the many
ways Schwaps may serve your Real Estate
Needs |