As we head into the springtime sales season in Chicago, I thought you would be interested in these five steps to help you prepare to purchase a home.
If you are thinking about buying a home in Chicago, now is a great time to start the conversation.
Step 1: Connect with Your Real Estate Agent and Conduct a Buyer’s Consultation
A buyer’s consultation helps clarify the home buying process, sets the expectations on both sides, and lays the foundation for a happy client/agent relationship.
Step 2: Get Pre-Approved by a Lender
A mortgage pre-approval means that a lender has looked into your credit history, income stability, and current finances and is tentatively prepared to loan you money for a house. A mortgage pre-approval is usually good for up to 90 days.
Step 3: Start Gathering for a Down Payment
Historically, 20% was the benchmark for most individuals, but down payments are currently as low as 3% are common. Determine how much you can afford before you start your home search, and remember to consider how much your monthly payments will be.
In addition to the down payment, there are a few other costs associated with closing on your home, so be prepared to pay a few thousand dollars more to cover lawyer, mortgage, inspection, transfer, and a few other fees.
Step 4: Find the Right Partners
Your real estate broker will be your lifeline. So ask a lot of questions. Your broker will also have professional relationships in place for lenders, lawyers, inspectors, and other professionals who will all be there to make the home buying process as smooth as possible.
Step 5: Consider Your Timeline
It can take up to 30-60 days after you go under contract to close if you are securing a mortgage. Make sure your timeline for moving considers this timing.
Searching for a home or condo to buy in Chicago? Our team has access to all types of listings throughout every neighborhood in the city. From new construction to fixer-uppers, we’re ready to guide you through the home-buying process and find the perfect new home that fits all of your search criteria. Our trained and licensed agents specialize in the downtown Chicago area real estate market and are prepared to find the right home and get the best price.
Work with Luxury Living Chicago.
