"I’m a single mom who wants to buy my first piece of real estate, but my credit isn’t all that good. I currently have my own business and work as a teacher’s assistant, and I’m cleaning my debt up slowly. I want to buy a house or brownstone, but my friends tell me to invest in a coop or condo which have fewer responsibilities than a house. Which one should I buy? And should I even contact a Realtor now with my not so good credit?"
Your friends mean well but they don’t know what’s best for you. Start by speaking to a loan officer or a mortgage broker to find out how much you can borrow based on your income and credit history. Then give your Realtor a realistic budget so she can lay out your options – townhouse, condo, coop, or even keep renting! But act fast because first time buyers can receive an $8,000 tax credit as part of President Obama’s new stimulus plan, but you have to buy before the end of 2009.
