Ask Terry Questions Buying a condo

Buying a condo

By Terry Savage on July 01, 2018 | Housing / Real Estate

Hello Terry,

I am considering purchasing a condo in Chicago. I am 1st time home buyer with a fair credit score and trying to determine my best path. Should I:
A – Move quickly toward a purchase with my ok credit rating, knowing that interest rates will continue to rise.
B – Hold off until I can boost my credit score to get the best rate possible.

I have no debt. I have no credit cards. I figure I could get a credit card, paying it off responsibly, with the goal of raising my credit score over the next year or so.

Any advise would be greatly appreciated.

Thank you.

Terry Says

There are three issues inherent in your question:
1. Interest rates: yes, I think they will move higher. That makes this a good time to get a mortgage.
2. Real estate prices: iffy — higher property taxes loom, which might weaken the condo market. But if Amazon relocates — or as other employers like Walgreens and McDonalds move to city center, condo prices could rise.
3. Your future: It’s a good idea to increase your credit score. Getting a card, charging and paying in full each month will help you do that. But the real question in this segment is why you feel the need to buy? Is it just a real estate speculation? Is this the condo you want to live in if you get married? Would it limit you in moving for your job?

I’m asking that third question because nowhere in your post did I see any kind of urgent need or desire to move into a condo —
And finally, let’s not jump to conclusions about the impact of your credit score, since there’s nothing negative on your credit report, I presume. Here’s a good contact to find out the impact of a slightly higher score. Contact my buddy and mortgage expert Leslie Struthers at GuaranteedRate. Her email is



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