Helpful Hints for First-Time Homebuyers

Posted by Andreas Holder on Wednesday, March 9th, 2016 at 2:50pm.

Are you first-time home buyer eager to take advantage of the hot Spring market? Here are some helpful tips to decide if you are ready for the commitment of home ownership. 

1. Compare prices of comparable homes in your area

2. Find out what your total monthly expenses would be including mortgage payments, taxes and homeowners association fees.

3. Check with your realtor what your likely closing cots would be . These include origination fees charged by your lender, title and closing fees, transfer stamps, and pre-paid taxes or homeowners association fees. 

4. Examine your financial situation and determine how much housing expense you can afford. Fannie Mae recommends that buyers spend no more than 28 percent of their income on housing costs

5. Find a reputable real estate agent to discuss the housing inventory and the recent pricing history of houses. Ask their opinion of market trends in your area.

6. Look at the overall experience of homeownership. While owning a home can be a great way to build equity, it also comes with responsibilities and expenses, such as maintenance, taxes  and HOA fees. 

7. Find out what your credit score is. Bad credit history or the inability to make a substantial down payment could delay the process to buy a home. It's a good idea to know your FICO score before you start house hunting. 

8. Have all your files in order. You will need bank account statements, pay stubs , W-2's and tax returns for the last two years, as well as statements from current loans and credit lines, and names of landlords. 

9. Talk to a lender and get pre-approved. Getting pre-approved for a mortgage before you even start looking at houses puts you in a strong position when you are ready to make an offer on the house of your dreams. Mortgage brokers can usually get you the best products as they can shop around with different lenders on your behalf. 

10. Taking these steps before you start with your home search can save you time, money and aggravation. For more informations, see the information for first time buyers here. 

 

Andreas Holder, Chicago Real Estate AgentAre you thinking about buying a home this year in Chicago? Andreas Holder can help! Let him be your guide to the downtown Chicago real estate market and help you find a home that not only matches your needs, but your lifestyle too.
Learn more about Andreas or start your home search now.

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