Purchasing your dream house on Michigan Avenue might be your most significant financial decision. It may be considered a symbol of independence. In fact, it’s the embodiment of living the American dream. However, buying a house in Michigan Avenue, Chicago, might seem daunting for first-time home buyers. Thankfully, NB Elite Realty is here to help. We have put together this blog to help all first-time home buyers purchase their dream property in Michigan Avenue, Chicago.
Start With Your Credit Score!
Your credit score will be essential in determining whether you will be approved for a real estate mortgage. It will also determine the final rate you will have to pay on your mortgages. So, it’s always better to check your credit score and take a few measures to improve it. Homebuyers with high credit scores tend to get access to much better rates. If you wish to get a conventional real estate mortgage, you will require a credit score of 620 or more. In the case of FHA loans, the minimum credit score you need is 580. Our NB Elite Realty experts can help you find the best loan terms and rates on your mortgage.
Saving For a Down Payment
When we talk about the down payment, the general rule says you should be ready to put down at least 20% of your home’s overall value. It will help you avoid any extra fees like mortgage insurance. However, if you can’t put down 20%, a mortgage down payment can go as low as five or even 0 percent for particular mortgages like USDA loans or VA loans. In addition to the down payment, you must also save some money for your closing costs. These include the fees related to processing your loan. Your closing costs can range from 3% to 6% of your purchase price.
Calculate Your Budget
- Your real estate lender will tell you how much you can qualify. However, before you speak with a lender, we suggest you calculate how much you can afford to ensure you don’t overspend. When calculating your budget for buying a house in Michigan Avenue, Chicago, we recommend you use the 28/36 percent rule. It says:
- Don’t spend more than 28% of your total monthly income on housing expenses (your salary before taxes)
- Only spend up to 36% of your monthly income on monthly debt payments (credit cards, subscription services, car payments, mortgage, etc.)
- The calculations are as follows:
- Max monthly housing expenses = (total monthly income x 28) / 100
- Max monthly debt payments = (total monthly income x 36) / 100
Finding the Right Real Estate Agent
When you partner with the right real estate agent, they can help you relieve the stress of buying a house in Michigan Avenue, Chicago. Your real estate agent will act as your chief advocate and confidante, so ensure you find the perfect fit. Our real estate agents from NB Elite Realty can provide you with a deep knowledge of the local housing market. Moreover, having dealt with hundreds of home sellers, our team has also developed excellent skills when it comes to negotiation.
We will represent you throughout the home-buying process to ensure you find the best property, ask the right questions, and get the best possible offer. Remember, real estate agents are only paid a commission if you successfully close a deal. The commission agents receive is ideally paid by the seller through the property’s purchasing price.
Finding a Property
As you look for houses, you will notice that the more properties you visit, the more they will start to blend. Therefore, you must try your best to stay organized. Ensure you speak with your agent and tell them your likes and dislikes about each property. During your visits, ensure you pay attention to its neighborhood as well. Stroll around the area for a bit. Consider what your daily commute will be like. Please find out the schools your children can attend and figure out how long it will take to get there. Look for the closest gas station, grocery store, and pharmacy. Ensure the area fits your style.
Contact NB Elite Realty for More Information!
At NB Elite Realty, our team specializes in helping first-time home buyers in Michigan Avenue navigate the home-buying process confidently. Our experts have been trained under the professional guidance of Nebo Bandovic, an experienced broker and investor with a massive portfolio of real estate properties. Our brokerage has over 700 real estate agents who can show you the top listings in your preferred neighborhoods. Call our team at 844-444-6237 for more information!