Buying a home for the first time is fun, but it can also be frustrating and stressful, especially if you do not have enough money. Luckily, thanks to the many banks offering mortgages at low interest rates in Chicago, you can apply for a home loan to help you in your quest for owning a new home.
Whether you are purchasing your first home, moving to a different city, or just looking for a lucrative commercial building in Chicago, it is important to know that the process of buying a house is just as important as that of deciding to settle for a particular property. Make sure you make the right choices when selecting the bank to use and even the mortgage to sign.
As a first time buyer, there are a couple of things you should know to avoid making a decision you will regret. Below is a checklist that can guarantee you a smooth home buying process.
1. Get pre-approved for Your Home Loan–
First-time home buyer pre-approval is the first step towards getting your dream house. Your chance of buying your new home depends on your ability to borrow a loan. You should make sure you prequalify for a home loan before you start your search, because qualifying for a pre-approval as a first-time home buyer will give you a competitive advantage over other buyers in the market.
2. Decide on the location before you start searching for a house–
Keep in mind that you are not the only person in the sellers’ market. For this reason, it is important you make a decision as soon as possible. Given that making a decision on the location versus the space is always difficult for most people, make sure you decide early so you don’t miss your dream house just because you cannot decide.
3. Decide on the mortgage –
Different banks offer mortgages that require different rates of down payments. There are those offering a 20% down payment and there are those requiring less than 20% down payment. The type of down payment you choose will determine the chance you have of getting a mortgage. Down payments of more than 20% are more likely to increase your chances.
4. Select a good and experienced mortgage broker –
In the process of looking for a house, you will be in contact with your realtor most of the time. Make sure you choose someone you can easily relate to. In addition, get someone who is experienced in the real estate field. He or she will not only help you find a house, but also give you advice on the state of the real estate market, as well as issues relating to your new property’s taxes.
5. Research the neighboring areas –
A home is a place where you go for consolation or to get peace after a long day of work. You do not want to get a house in a place full of nosy neighbors who are always looking to see your next step. Also, you should look for a house close to what is important to you, such as shopping, recreation, schools and houses of worship.
6. Be flexible while searching the house –
Having an open mind is important when searching for a house. There is no perfect home. You will always find something you don’t like about a house but you can always renovate it after moving in. Failing to buy a house just because it’s not perfect will make you miss out on almost all the good homes.
Additionally, even when deciding on the mortgage, you can either get a mortgage by visiting a bank physically or applying online. Online mortgage applications are easy as long as you are computer literate.
7. Look at the landscaping and the state of the house –
To avoid getting a house that will need so many renovations, you should get a professional to help you inspect the house. You can have a look at the landscaping of the home as well as its interior in order to note all areas that need renovations.
8. Do your budget before buying the house –
In most cases, first time home buyers only put into consideration the mortgage cost and they end up forgetting other costs that come after buying the house. You need to do a budget of all the expenses involved in maintaining and running the house. For example, if the house has a pool, make sure you can afford its energy and maintenance costs.
9. Prepare your paperwork –
There are times when one gets excited about buying a new house and they forget about the necessary paperwork. Before signing a contract, make sure you include all the necessary clauses in your purchase contracts. For example, make it clear who pays for any additional fees involved in the process of buying the house.
Since most people cannot afford to buy a house through their own savings, most people resort to mortgages. It is good that you look for a company or a bank that can give you a mortgage at a good rate. Alternatively, you can obtain online mortgages through our online mortgage application.
Do research on the online mortgage pre-approval process to help you get started on your search for a house. For more information on getting mortgages, please contact A and N Mortgage today or call us at (312) 793-3000 for a consultation.