Am I ready to buy? 7 things to consider before buying your first home
Have you asked yourself the most important question before you buy? The “Am I ready to buy” question and the items you should consider before buying. Here is our checklist of what to consider before you dive head first into your home search.
Many buyers find themselves ready to settle down and purchase. They may know that their plan consists of at least 5-7 years and have had time to prepare for the long haul. However, with millennials being 34% of the current buying market several haven’t considered the long haul or haven’t been in their career long enough to be settled. No need to fear this small detail as Chicago tends to be a market that can make for a great investment.
Unless you miraculously fell into money and can purchase the home in full then you will have to consider your income and how long you have been at your job. In order to obtain a mortgage, they will often request two years of salary history and if you work on commission or own your business then the longer and more consistent the better. If you have questions about this feel free to check with our preferred lender.
Here in the United States we like to keep track of individuals ability to pay and we do this by assigning a credit score to individuals based on several factors; their credit utilization, their payment history, their length of history, and their inquiries. In most cases the higher the credit score the better rates you’d be able to get when obtaining a mortgage.
As mentioned prior unless you miraculously fell into money then the odds are you will need to save for a down payment and also, we like to prepare our clients to have additional money saved for maintenance and monthly costs. With that being said it is great to have 20% of purchase price saved however nowadays there are several programs that allow for smaller down payments. It is best to talk to a lender and determine what program or loans are best suited for your needs.
Don’t just consider you in the now but also the future. A reminder that it is best to consider a place that will fit your needs for 5-7 years. Of course, at a minimum 3 year and this is more acceptable if you plan to use your property as an investment in the future. Think of the areas you spend the most time and where you can picture yourself for the long haul. There are several neighborhoods that may not fit your price point however if you contact us we may be able to find you a place that fits in your price range but still has the vibe that you find yourself desiring.
Of course, here at Chicago Lofts we are partial to lofts however we do help clients buy all types of homes; lofts, single family, new construction, townhomes, and high rises. There are so many factors to consider again think present and future. There are so many styles here in Chicago and we’d be happy to help you navigate the neighborhoods and styles that exist in our every changing city.
There are so many moving parts to the home buying process from inspection, securing a contract, and attorney reviews, it is best to hire professionals that can help you along the way. Here at Chicago Lofts we have a great network of individuals that will help you along the way. We love and are confident in referring our clients to several of our preferred business partners.
Please let us know when the time is right and we will help you answer all of these “AM I READY TO BUY” questions you may have. We look forward to showing you what a loft in Chicago has to offer, but are open to helping with a bungalow on the north side as well.