Like most aspiring home buyers, you’ve been searching for homes online, and you’ve even found some properties that look promising. So…now what? You may have decided you are ready to buy a home, but getting there can seem like a mystery. Relax – we’ve done this before and we are here to help you every step of the way. Here’s how it works:
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STEP 1: It ALL Begins Here: Mortgage Preapproval
As you prepare to apply for a mortgage, you’ll come across terms like “prequalification” and “preapproval.” It’s essential to understand what these terms mean – they’ll guide your home search and help you focus on homes you can afford. When the time comes, they can also help you decide how much to offer and show the seller that you’re a serious buyer.
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STEP 2: Are You Ready to Buy A Home?
Buying a house is a major commitment. Before you begin shopping for properties or comparing mortgage options, you need to make sure you’re ready to be a homeowner.
Wondering if you should buy a house? Let’s look at some of the factors that lenders and homeowners alike should consider.
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STEP 3: Schedule Your Free Home Buyer Consultation!
We’ll sit down with you at our office in the West Loop, a coffee shop, or even over Zoom to discuss your vision and goals for homeownership. We’ll figure out exactly what you’re looking for and offer advice about your search and the home buying process in general.
Then we’ll lay out a plan to make that happen on your terms within your timeframe.
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STEP 4: How Much Down Payment Do I Need?
Unless you’re paying cash for your home, you’ll need to talk to a good local lender about how much you can afford to pay for a home. And don’t take your bank’s website’s word for it – talk to a pro who knows Chicago and is willing to get to know you.
We’re happy to put you in touch with someone. In fact, many of our buyers speak with a lender six, 12 or even 18 months before they plan to buy so they know they’re saving enough money.
A relationship with a great local lender will give you confidence in your buying ability and make the process much easier down the line.
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STEP 5: The 20% Down Payment Myth...
If you’re considering buying a house, you might be wondering how much money you’ll need for a down payment. Here are the must-knows about down payments to help you decide what makes sense for your situation.
Do You Need A 20% Down Payment On A House?
What Are The Pros And Cons Of Putting 20% Down?
Can You Buy A House Without A Down Payment?
What Are The Minimum Down Payment Requirements?
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Where Can I Find the Money to Buy A Home?
If you’re considering buying a house, you might be wondering how much money you’ll need for a down payment. Here are the must-knows about down payments to help you decide what makes sense for your situation.
There’s no better time to receive a large cash gift than when you’re house hunting. Traditionally, down payments on a first home were made with monetary wedding gifts, including relatively hefty ones from the parents of the bride and groom. Today, gifts are still welcome, but the rules about how they can be used are a bit more stringent.
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Step 6: Choosing A Mortgage
Unless you can buy your home entirely in cash, finding the right property is only half the battle. The other half is choosing the best type of mortgage. You’ll likely be paying back your mortgage over a long period of time, so it’s important to find a loan that meets your needs and budget. When you borrow money from a lender, you’re making a legal agreement to repay that loan over a set amount of time (albeit with interest).
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Are All Interest Rates the Same?
Interest rates are the cost of borrowing money. They represent what creditors/banks/lenders earn for lending you money. These rates are constantly changing, and differ based on the lender, as well as your creditworthiness.
When you get a loan pre approval ask your lender for a breakdown of all costs. So when you see a lower APR it doesn’t mean it is the cheapest or best option.
