Did you know that there are more than one million housing units in Chicago? For first-time Chicago home buyers, this is exciting news!
With so many units to go through, your chances of finding the house of your dreams are high. However, the home buying process may be difficult for first-time buyers. Don’t worry, we have you covered.
Read on to learn five things you should know when buying a house in Chicago.
- Save Early
Chicago home buyers should start by considering what they can afford. Keep in mind that low down payments come with a bit of risk.
You can search for an affordability calculator that can help you come up with a down payment. If your down payment is less than 20%, you will need private mortgage insurance (PMI).
You may also need a Federal Housing Administration (FHA) loan. Read more here about how these loans are approved by lenders.
As a first-time homebuyer, you may be unaware of prices in Chicago. After calculating what you can afford, you can begin saving right away.
- Get Pre-Approved
It’s in the best interest of any first-time home buyer to get pre-approved through a professional lender.
A lender can go through your finances, credit, savings, and debt-to-income ratio in about an hour. They will then provide you with a pre-approval letter based on their findings.
You can show a broker this letter to prove what you can afford. Generally, this makes the home buying process quicker.
If your credit score is not great, a lender may recommend getting your score up before buying a home.
- Consider the Type of Home
Even as a first-time buyer, you may have an idea of the type of home you want. However, it is always a good idea to check out different options for your first home.
Your dream home may not be kind to your pockets. Don’t forget to consider utility cost, closing cost, maintenance, and more.
- Visit Open Houses
Open houses are a great way to visualize your life in different types of homes. Take notes, pictures, or whatever you need to compare your options and reflect on the ones you liked and why.
Visiting an open house is also a great way to have any of your questions answered. Listing agents are knowledgeable on every aspect of the home you are considering.
- Prepare for Compromise
If we are being honest, the odds of getting everything you want in a first-time home are slim. In Chicago, you may not be able to check every box.
Because of this, we want to emphasize how important compromise will be. Consider the factors you care most about to make the right choice.
Chicago Home Buyers: Are You Ready to Find Your First-Time Home?
There are a lot of steps to go through during the home buying process. For Chicago home buyers, you need to understand the current housing market before saving for a down payment and mortgage.
When you consider these tips, the home buying process won’t be so hard. What are you waiting for?
For more interesting articles, check out the other posts on our blog.
