Post By homes4sale in Chicago Home Buying
Purchasing a home for the first time is a big deal for most and can be a bit overwhelming, as well. Of course, the best advice anyone can give is: get the help of a professional real estate agent, who you are comfortable with, to assist you. The home buying process is complicated, with many legalities and steps along the way that can make it near impossible for someone to handle on their own!
So, in addition to hiring a Realtor, here is a list of five very basic, but very important things you should be aware of when looking to buy a home in Chicago.
1.) Plan to stay in the home you buy for three to five years minimum. This is typically the shortest amount of time you need to recoup purchase/moving expenses. Otherwise you may end up loosing money on the deal! Especially when the housing market is slow, you should plan to remain in your property for the long term.
2.) Location, location, location. This is the one factor that allows a property to always hold its value. The better the location, the more the home is worth because you can always remodel a house to be whatever you want, but you can never change where it is. So scout out Chicago homes for sale in sought-after neighborhoods, near public transportation, or with good schools in the area to ensure you buy a house or condo with prime location.
3.) Review your credit score well in advance of applying for home loans. This is important because your mortgage rate is based on your credit score. So get a copy and go over it with a fine-tooth comb for errors or discrepancies. And, if your score is on the low side (under 650), you should try raise it before meeting with lenders.
4.) Get a preapproval letter from your lender. This helps you determine what a realistic purchase price is for your individual financial situation and shows sellers that you are serious about buying a home.
5.) It is great if you can put 20% down on a home purchase, but you can still buy property if you don’t have that much saved up. There are all kinds of government, public and private lending groups that offer loans with much lower down payment requirements. Depending on your credit score and qualifications, you may be able to find financing for up to 97% of the sale price.
Post By homes4sale in Chicago Home Buying
Before delving into the wonderful world of homeownership, first-time buyers should be familiar with the steps you need to take to prepare for the home purchasing process.
Prior to even looking at properties for sale in Chicago, buyers need to figure out how much house you can afford and the amount of mortgage loan you are qualified to receive. To do this, this first step is getting prequalified. Find a lender – this can be your bank, the local credit union, a mortgage company, or other financial lending service. The lender will then use your social security number to run a credit score report, which produces a general idea of how much you can spend on a Chicago home. Your lender will also give you a prequalification letter, which is useful later on when you want to make an offer on property. A word from the wise: you can usually get prequalified for free, so shop around.
The next step is preapproval. This is more official than prequalification and takes a deeper look into your financial standing. To get preapproved, your lender will need the previous year’s W-2 tax form, your most recent payment stub and bank account statement, plus additional documentation if you own your own business, have alimony payments and investments, or are originally from another country, etc. As in prequalification, you will also get a letter from your lender saying you are preapproved for a certain loan amount. The letter makes you more appealing to sellers because you are already preapproved for a mortgage and it gives you good negotiating power.
Post By homes4sale in Chicago Home Buying
You may have noticed, much of the new construction housing in Chicago boasts energy efficiency and green designs or materials. This trend of properties for sale in Chicago reflects a movement towards sustainable living and reducing utility costs. With gas prices shooting through the roof, the expense of heating a home in winter is becoming astronomical and even electricity and water usage is costing homeowners more than ever before. So now, home buyers want to know the house or condo they are about to purchase is outfitted with the most energy-efficient materials and appliances.
Here are a few things to look for when searching for a condo or house to buy in Chicago:
Proper insulation is key! We’re talking attic and wall insulation and double-pane windows with really good seals. This will ensure heat stays in during cold weather months and air conditioned air stays in during those sweltering Chicago summer days. Tinted or treated window panes can also help deflect harsh sun rays and keep your home cooler. Basically, the better the insulation, the less your heater and AC have to work to maintain a comfortable climate. And, in the long run, you save money on gas and electricity bills.
Speaking of electricity, there are specially made appliances that use less power to run and have energy-saving modes, which will also reduce utility costs. Low-flow shower and toilets can reduce water consumption, and many manufacturers make eco-dishwashers and washing machines that use much less water than the traditional models. Even plumbing fixtures and sink faucets are designed with water-conserving features these days.
So when thinking about buying a house in Chicago, research what types of energy-saving characteristics the homes have, or talk with developers about adding energy-efficient elements to your floor plan.
Post By homes4sale in Chicago Home Buying
Say your budget for a home in Chicago is $200,000… Exactly what type of property can you buy for that price? Let’s just see…
There isn’t much in the Loop for $200,000 right now, but for the most part you’ll find studios and one-bedroom condos or lofts with one bathroom listed in the $200,000 price range (give or take $5K). Square footage ranges from 550 to 800, and the building type could be high-rise condominiums or rehabbed lofts. Assessments generally cost between $200 and $380 per month. Street parking may be available, but a unit with garage space is hard to come by and would most likely cost extra.
Rogers Park has a lot more properties for sale in the $200,000 price range than in downtown. This northern most Chicago neighborhood is dotted with two-bedroom condos listed for $200,000 (plus or minus $5,000). These $200K Chicago homes for sale in Rogers Park include newly renovated loft spaces and condo conversions (equipped with modern upgrades like granite kitchen countertops and natural hardwood floors throughout). Many of the properties are located in older courtyard complexes or low-rise brick buildings. Assessments hover around $150 and parking is limited to mostly street spaces.
On Chicago’s south side, in the Morgan Park neighborhood, you can find a refurbished four-bedroom bungalow or two-story, sided house for $200,000. These private Chicago houses are a great deal for families because the properties also include your own backyard.