Chicago home buying tips
Whether you’re a first time buyer or not, you could use some of the following tips, to ensure your experience goes as smoothly as possible.
Purchasing a new home can be quite the experience, but working with an experienced and industry leading company like YUB Realty, you’ll be guaranteed excellent service, and be provided with 24/7 support to make the process an enjoyable one.
GET PRE APPROVED, BEFORE YOU START YOUR SEARCH
Pre-Approval and Pre-Qualification are not the same thing,
Just because you Pre-Qualify for a loan, doesn’t guarantee you’ll be approved.
Pre-Qualification simply informs you on how much you’re able to pay for a home.
In order to get Pre-Approved, a lender will take your credit and financial situation into
consideration, then they will provide you an exact loan amount, and your monthly payment
amount.
Your chances of getting Pre-Approved will increase after you’ve Pre-Qualified.
Take the steps below beforehand to get familiar with your finances.
- Take your entire gross income, and that of those who will be living with you, salaries, Tips, bonuses, any income coming in and calculate your total gross income per month.
- Calculate your total debt per month. This includes, insurance, car payments, savings, or any other fixed expenses you have per month.
- After calculating your monthly debt and monthly gross income, you can start plugging in percentages your lender will look at. One of the most common percentages a lender will use is 28/36. This means that you must take your monthly income, and multiply it by 28 percent, this will give lenders a good idea of what you can afford to pay for a mortgage, including insurance and taxes. After doing that, take your total monthly debt and multiply it by 36 percent. This will give lenders a good idea of how much you can afford to pay for monthly debt.
Keep in mind that this total is only an approximate estimate. It can be used to give you a good, and general idea of what your financial situation is like, but is not a definite amount. Once you’ve completed the steps above, you can start talking to a lender about all your available options.
EXPLORE YOUR OPTIONS
Depending on where you’re at financially, your fees and rates will vary from lender to lender. Each lender will most likely have different loan options for you. Lucky for you, we have some agents that have been rated in the top 1% by the Chicago Association of Realtors, we have experience with lenders that work, and lenders that don’t. So we will guarantee to get you connected with a lender that not only is fair, but will work with you to find the perfect loan.
TAKE A LOOK AT YOUR CREDIT
Your credit can be one of the biggest factors in your approval. While perfect or good credit isn’t exactly needed, your loans, interest rates, and fees can be heavily affected by it. You can find out where your credit currently stands at any of the links below. It’s best to try and fix your credit of any blemishes before consulting a lender, as it will work in your favor financially.
THINK ABOUT WORKING WITH A YUB REALTY AGENT
More often than not, the buyer’s agent’s commission and fees are taken care of by the seller. This means that working with one of our expert agents usually comes with no cost to you.
A buyer’s agent is required by law to work in your interest as the buyer. This means that a YUB Agent will always put you and your preferences first. So you can be assured they’re not just selling you any house, but selling you a house that fits your needs, and accommodates you the best.
Take advantage of those buyer services available to you, Your YUB Agent can also provide you with additional details about the property, meaning you’ll know all the ins and outs of your new home.
TAKE RESALE VALUE INTO CONSIDERATION
Many factors go into determining a home’s resale value. It’s not always determined solely on the condition of the home. The amenities and location play a big role in it as well. With the help of your YUB Realty agent, you can determine what features will help your home hold, or even increase its resale value.
TAKE NOTES
With the help of your YUB Agent, you’ll tour various homes. It’s best to keep track of different properties, and features by taking notes during the visits. Keeping track of everything in your head won’t be very easy, and you can always refer back to your notes to compare properties. Making a list of all your desirable features and locations, will help determine which property you’ll decide to call home.
CONSIDERING STARTING FROM SCRATCH?
Maybe you found a home for an amazing price, only one problem though, It needs repairs. If you’re considering buying a home that needs repairs, make sure you have an extensive knowledge and the skills required if you’re thinking about rehabbing it yourself. When hiring a professional, take into consideration what the fees and costs of hiring someone to do the work will be. Make sure to bring by a contractor, architect, or engineer to properly give you an estimate on what it would cost to do the repairs.
INSPECTIONS
Home inspections are highly recommended, not only for older homes, but for newer developments as well. Home owners aren’t always aware of the inner workings and conditions of their homes, so by having a professional come out, it can help located, problems or potential hazards. You would think newer homes wouldn’t need or require an inspection, but there are instances of missing insulation, or even the use of incorrect materials around the home.
It is important to hire a professional to do the inspection, simply because any ordinary person can overlook certain issues, that might become bigger problems in the future, causing even more damage and making you spend money on repairs that could have been avoided.
NEGOTIATIONS
Now that you’ve finally found your new home, the negotiation process begins. Luckily, you have a YUB Agent who will have your best interests in mind and guide you through the process. You must trust that your agent will do anything they can to get you the absolute best deal possible for both you and the seller.
Take these factors into consideration while writing your offer:
- The condition of the home
- How motivated the seller is to sell the home
- Prices of homes that are similar in size and condition
- Prices of neighboring homes of equal or similar size
Your offer will contain the following:
- The closing date
- Your total down payment
- Any repairs that need to be made, if any
- Closing costs, and which party will pay which fees
- Details regarding your lender
- Which party will pay for needed repairs, if any
Many more factors and details will be included in your offer, and it’s your agents job to ensure you fully understand all the details going into it. The majority of the time, the seller will come back with a counter offer. It is now time for your agent and the sellers agent, if they have one, to try and meet at a happy medium , that will benefit both parties and close a fair deal.