2. Building Good Credit- Credit scores are moving to the forefront of being approved for a home loan. Most lenders are expecting a credit score of 600+ even for FHA loans. A good credit score will not only help you qualify for a home loan, but can lower your interest rate, which can save you thousands of dollars in the long run.
3. Creating a Home-Buying Budget- If you’ve taken the time to create a home-buying budget chances are you’re serious about buying a home and want to go about it in the best way possible. It’s imperative to establish your budget prior to talking with lenders. Just because you are approved for a certain amount on the loan, does not mean that’s what you can actually afford. Lenders don’t take your extended finances into consideration, but will look at your income. Be sure to stick within your budget to avoid foreclosure and heartache in the future.
4. Researching Mortgage Options- It’s important to research which type of mortgage is best for your financial situation. Getting a fixed or adjustable-rate mortgage will depend a lot of your long term goals. Your Chicago Real Estate agent will also be able to help you determine which option is better for you and can walk you through the pros and cons of both.
5. Getting Pre-Approved for a Mortgage- Getting pre-approved before you meet with a lender can save you time and will be a good indicator of any financial issues that need to be addressed. Things such as credit or income problems are items you want to take care of before trying to get approved for a home loan. Sellers will also take you more seriously if you have your financials in order.
We’re excited that you’re considering buying a home in Chicago soon and we would love to help you throughout the home buying process. If you still have questions about buying and the current Chicago Real Estate market, we would be happy to answer your questions so you’re completely comfortable with moving forward.