Chicago Real Estate Attorney Michael V. Favia Offers Tips for Buying a House
Buying a house is one of the most exciting things we do in life. Beautiful new homes with curb appeal and all the bells and whistles bring joy to our hearts as we grow our families. Counterbalancing our excitement, the nerves that come along with buying a house can also be daunting. Investing in a home or any piece of real estate is a major decision. Your house is often your most valuable asset and the purchase and sale of a property is nothing to take lightly.
Whether you are a first time home buyer, upgrading, downgrading, or investing in an income property, you can benefit from having real estate professionals and attorneys help you make sure you do not get into a deal that goes south. Benefit from the wisdom and counsel of others.
Chicago commercial and residential real estate attorney Michael V. Favia works not only with his healthcare industry clients and connections but also with anyone who needs experienced eyes to review their purchase and sale agreements and handle anything else that comes up and may require a real estate lawyer. Call Michael V. Favia & Associates in Chicago and Rolling Meadows for help at (312) 609-6666.
Learn from the Mistakes of Others Buying Homes They Could Not Afford
Coronavirus teaches us all some important lessons. No matter how well we plan and how hard we work, anyone can be sidelined by life circumstances beyond our control. With so many people experiencing unprecedented economic problems, some families might lose their homes because they were financing more than they could afford.
Financial experts recommend keeping three to six months of mortgage and bill payments set aside for emergencies including job loss, injury, or anything that prevents earning income.
Spending less than you can afford also allows a home buyer to pay more than the scheduled mortgage payment to save money on interest. The sooner you can pay off your home in full, the sooner you can take that mortgage payment money and build your retirement nest egg.
How Much Do You Need to Save for a Down Payment?
People buying a house want to sign and move in as soon as possible because they are excited and rightly so. But if they can wait a little longer and save up to a larger down payment, their mortgage payments will be lower, and they will be further ahead of the game.
When you talk to your mortgage professional they can show you different options for buying a home at conventional rates and figures and through special programs backed by the government. It is great to buy with 20 percent down but you can also get into a home with 3 percent and private mortgage insurance. Learn about no money down loans backed by the government such as FHA loans, VA loans, and USDA loans in rural areas.
Spend some time clicking around and learning at USA.gov to learn more about no money down mortgages.
Checking and Improving Your Credit Rating and FICO Score to Qualify for a Mortgage
Nervous about your credit score? You should be. Your credit rating and FICO score affect your interest rates and that can add up to lots of money over time. What you should not be nervous about is fixing your credit score because it is easier than you think. People with terrible scores can raise them within a year or two and be pre-approved for a mortgage.
The key to a good credit score is having credit but not using it all. Make sure you pay your credit card bills at the right time so when the credit rating bureaus take a snapshot, you are only using 10 to 20 percent of your available credit. Living on maxed-out credit cards is not the way to boost your scores.
Read more about credit improvement with this information from Experian.
Mortgage Options and Pre-Approval for Buying a House for Your Family
Want real estate agents to take you seriously and help you make that offer on the new home you love? Get your mortgage pre-approved before you start looking at houses. Don’t fall in love until you know where you stand. The mortgage calculators on real estate websites like Realtor.com Mortgage Calculator are helpful but they do not tell you for what amount you will be approved.
Remember that you might need to be buying a house that needs upgrades and some work, so do not spend the maximum amount you can borrow. Just because you can borrow $500k does not mean you need to buy a house for that amount. Be happy you might be able to borrow more later if necessary.
Real Estate Agents Know the Best Neighborhoods for Your Family
Choosing the right neighborhood for your family can be challenging, especially if you are looking in a different part of town or a suburb you do not know well, which often happens when people move to be closer to work. Location matters when it is a function of work and schools. Ask your friends for personal referrals to real estate agents who are going to give your great service because they want to continue to receive referrals from happy people.
Make an Offer and Negotiate the Best Price to Buy Your Home
Savvy real estate agents know how to negotiate and set the pace to wheel and deal on the best price on a home purchase. Some sellers are more motivated than others and an experienced agent knows how to best set your expectations, so you are realistic in your negotiations.
Home Inspectors and Home Inspections
Do not fall in love until you get an inspection. The home and property might look great online and from the curb, but underneath it all, especially with vintage homes, there can be problems hiding. Paying for a professional home inspector from a reliable individual or company is important. If there is something wrong with the home that can be repaired reasonably, that becomes part of the negotiation up and until the actual closing date and time you sign your name.