Welcome to the wonderful world of real estate! There is much to learn on your first journey of buying a new home. You’ll get to enjoy imagining a bright future in your new town, and working through the features you’d like in your new home. However, there are many financial aspects in this process about which you’ll need to learn. We recommend hiring a qualified real estate agent to help. For the essentials, include in your journey this financial checklist from professional Homer Glen IL Realtor Chris Budz.
Save to Spend
The best place to start with the financial aspects of buying a house is to have a substantial down payment. Try to put down twenty percent of the total price of the house you want, if possible. If you can accomplish this feat, you won’t have to pay mortgage insurance. This can be up to 2% of the value of the loan, so you’d be saving a good amount in the long run. Serving as a real estate agent in Homer Glen IL includes helping buyer save as much as they can.
Your credit score will be a significant factor when trying to get financing for your new home. Get rid of as much debt as you can before applying. If you can at least get loans down to under 30% of the total amount, it will look good to lenders. Experience as a Homer Glen IL real estate agent has shown that without good credit, you run the risk of high-interest rates at best or not getting a loan at worst. To improve your credit, pay off credit cards and pay your bills on time. Try to get your score up to around 750 if possible.
Determining what you are able to afford on a monthly basis is very important before buying a house. You are looking at a financial commitment that lasts for many years. Make sure you can make the payments. You will also have to cover property taxes, insurance, and many maintenance issues along the way. Are there any homeowner association fees involved? Get a realistic picture of what your new budget will look like with a house. For help in buying your first home in the Chicago suburbs, contact experienced Homer Glen IL real estate agent Chris Budz today!