We hope you had a great Christmas and holiday season with friends and family! While it can be hard to believe the holidays are behind us, it’s fun to anticipate all that the new year will bring!
For some of you, 2013 is when you decided to begin your Chicago home search, and so we’re glad you’ve taken the time to stop by our blog. Our goal as Chicago Real Estate agents and advisors here at Shoreline Property Advisors is to provide you with current Chicago Real Estate market news and advice. Today, we wanted to highlight why now is a great time to buy and what you can do to prepare for the home buying process.
Reports in the past few months have shown the national housing market is continuing its’ road to recovery with home prices expected to remain on the rise for 2013. Recently the S&P/Case-Schiller Report showed that home prices posted the largest percentage gain in more than two years, with prices up 4.3% in October compared to last year.
This is great news for those looking to sell this coming year, and gives buyers who were on the fence the encouragement needed to begin their Chicago home search now. With more buyers flooding the market, the competition will be more heated and buyers will need to act quickly.
If you have been considering buying a home in 2013; don’t delay. You’ll want to get ahead of the competition of the spring market and cash in on those still low home prices before they continue to increase. Here are just a few tips on how to prepare to buy a home in Chicago.
1. Saving & Paying off Debt- This seems like a very basic point, but a very essential one. The days of “no money down mortgages” are gone and most lenders require at 5% down. You will also make sure that you have additional money for things like closing costs, as well as money in the bank when all is said and done. Lenders are becoming more strict and want to know you can back up the purchase of a home. You’ll want to be sure to have as little debt as possible since lenders will take this into consideration as well.
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.
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.
Please feel free to contact us anytime to get started! We’re looking forward to helping you find your dream home in Chicago!
Happy New Year!
Shoreline Property Advisors
@ Prudential Rubloff
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