Need some advice for purchasing a house/condo for the first time

I currently am sitting on a bit of money, more than enough for a down payment, and have no idea what to do with it. Out of curiosity I was looking at the Condo prices around here (Chicago, Lakeview) and was pretty stunned. I'm pretty sure I can find a place with a mortgage for not much more than I'm paying now, and I want to jump on this.

So, here are some questions:

1. Can someone please point me to a good book/guide that lays out everything I have to know? Are there any large fees besides Tax and Condo Association fee above mortgage?

2. There seem to be two sorts of places for sale. Higher initial price ($200-$300K) with low association fee and tax ($30/mo. + $2500 taxes), and dirt cheap initial price ($135K) with a very high association fee ($400/mo. + $4600 taxes). Is there a warning sign buried in here somewhere?

3. How hard is it to get a Mortgage right now? I have perfect credit (a lot of it thanks to this forum) and work in a fairly stable industry (software engineer in the trading industry), but I'm under 30.

4. What's a good guide for how to shop for a mortgage?

5. What exactly is a "short sale foreclosure" property? A lot of the nicer properties are labeled as such, and their prices are noticeably cheaper. Are you essentially taking over their Mortgage, are you dealing with the owner or the bank, or is this something else entirely?

Chuu said: 1. Can someone please point me to a good book/guide that lays out everything I have to know? Are there any large fees besides Tax and Condo Association fee above mortgage?

Insurance, but for a condo, that's usually inexpensive because the association covers the building, so you're only insuring your things, it's not much more than a renter's policy.

Chuu said: 2. There seem to be two sorts of places for sale. Higher initial price ($200-$300K) with low association fee and tax ($30/mo. + $2500 taxes), and dirt cheap initial price ($135K) with a very high association fee ($400/mo. + $4600 taxes). Is there a warning sign buried in here somewhere?

Are the first brand new? That fee sounds incredibly low, so I'd guess it's what a developer set, which is usually too low and ends up jumping within a year or two. The other type is likely an older building that has lots of ongoing maintenance. I'm in Lakeview as well, and I've seen some really low prices for huge units in some of the big old buildings on Lake Shore, but with monthly fees over $1k a month.

Chuu said: 3. How hard is it to get a Mortgage right now? I have perfect credit (a lot of it thanks to this forum) and work in a fairly stable industry (software engineer in the trading industry), but I'm under 30.

I was looking back in March when things were supposedly at their worst in the mortgage market and I didn't have any trouble (with perfect credit and income to support the mortgage).

Chuu said: 4. What's a good guide for how to shop for a mortgage?

Just find a good mortgage broker, check with your friends or have your agent recommend someone.

Chuu said: 5. What exactly is a "short sale foreclosure" property? A lot of the nicer properties are labeled as such, and their prices are noticeably cheaper. Are you essentially taking over their Mortgage, are you dealing with the owner or the bank, or is this something else entirely?

search the forum just for short sale. short answer, it's a property that isn't in foreclosure yet, that the seller is trying to sell for less than they owe. requires that the bank approve taking less, so can take extra time and patience. Don't expect to see much in the way of foreclosures in Lakeview. Short sales, yes, foreclosures no.

I'd be happy to recommend my agent as well, send me a PM if you're interested.

$30/mo fee is far too low to be realistic for Lakeview. Keep in mind that the fee can be raised by the Board. I don't understand why a unit selling for $135k would have taxes of $4600 unless there is a big looming liability somewhere--is there a big special assessment planned? Check the minutes of recent Board meetings, association budget & property reports.

I'm in Lakeview as well. I have no idea where you are seeing $30 dues. In my 15 unit building which is all one-bedrooms dues are about $250/mth which covers heat, insurance, water, maintenance, and reserves. Most small buildings will probably run $150-300 and hi-rise will be $300 on up, probably average $400-500 for a one bedroom. A $200k one bedroom in a walk-up is going to be similarly priced in a hi-rise. Then your hi-rise might have an elevator, pool, doorman, exercise room, etc that your high association dues will cover.

If you are seriously interested in a place your agent should be able to get you the condo president's contact information and talk to them. Ask questions about past special assessments, planned assessments, when the last time the roof/boiler was replaced, etc. You should be able to get copies of the declaration, bylaws, budget, and past meeting minutes.