Buying a home is not an easy task. In fact, for first time buyers, there are few things more confusing than the process of buying a house from start to finish, and many first timers don’t know exactly where the start of the process actually is. Here are a few tips that will make life easier for the first time home buyer.
Say, for example, that you are interested in investing in Illinois real estate. You either are looking for a new home for yourself and your family, or you just like the investment potential. The very first thing you need to do before looking for the right Illinois real estate investment is take a look at your finances and determine how much you can afford to spend.
There are several resources available to help you calculate your mortgage and figure out what you can afford to spend on your Illinois real estate investment, but for simplicity sake we’ll stick with the formula of three times your annual income. Of course other factors can affect this formula enabling you to afford more or less, but it is a general rule.
You should also meet with your chosen lending institution to research interest rates on mortgages, find the best rate available, and try to get pre-approved for a loan. Getting pre-approved for a loan is one on the best things you can do going into the house purchasing process, it gives you and your seller confidence knowing you can pay exactly what you say you can.
Once you have determined how much you can afford to spend on a house, you should hire an Illinois real estate agent. Some people chose not to hire a Realtor, believing their services cost too much, and end up struggling through the house searching and purchasing process all by themselves. This is unfortunate because it is not the buyer, but the seller who pays a real estate agent, so there is really no drawback to getting an agent working for you, and you also get the benefit of their expert Illinois real estate advice.