Whether you are a first-time home buyer, or ready to move to a new house, if you are planning to buy soon, preparing your finances before you begin your search will help save you a lot of time and stress. A little bit of preparation can go a long way towards making the home buying process a better one.
First you want to have your down payment ready. While this may seem daunting, it is not impossible. If you already own a home, provided you sell at a profit, chances are you will have your down payment available from the proceeds of selling your property. If you are a new buyer, there are a variety of loan programs which work with low to no down payments. There are also different programs around where qualified buyers can get a grant to put towards a down payment. The Illinois Housing Authority has a 1st Home Illinois program for example.
If you know you are planning to buy a home, often the largest investment anyone will make, hold off purchasing any other big ticket items until after you close on a home. This will help towards getting a better deal for your mortgage. When seeking a home loan, lenders want to see reliable and consistent credit and payment history. If you spring for a big cruise to the Bahamas, it may hurt your chances at getting a lower mortgage rate.
It is also ideal to get pre-approved for your mortgage before you begin searching for properties. If you find the home of your dreams, you will be greatly disappointed if you make an offer, only to have it fall through because you can’t get financing. By having a pre-approved mortgage amount, you will know what your price range is, and know that you can follow through with your offer.
If you are a first-time home-buyer, be prepared for the extra costs it takes to maintain a home. As a renter, you don’t have property taxes to pay, and you can call your landlord to get repairs completed. As a home owner, these financial expenditures come from your pocket directly. If you are already a home owner, it still pays to keep maintenance costs in mind, it is easy to get wrapped up in the mortgage payment and forget about incidentals. To set an annual maintenance budget for your home, the Illinois Association of Realtors suggests to plan on 1-3% of your mortgage. If you buy a home for $200,000 for example, you will want to have $2,000- $6,000 set aside.
Preparing your financial situation before you begin searching for a home will pay off big with less stress when it comes to buying a home. When it comes to helping my clients, I aim to make a positive impact towards all their real estate needs. When you are ready to sell, or buy a home, you want to work with a Realtor® who cares and is ready to put their expertise to work for you. Learn more at our website, DriscollProperty.com, then contact the Driscoll Properties Team at 847-533-6786 to help you discover the home of your dreams.
Are you searching for that perfect home? If yes, then come see this beautiful Colonial! We are having an Open House on Saturday February 25th!
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