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[title]You’ve been saving for years and you’re ready to take the plunge into homeownership—congrats! But where do you start? Chicago is a relatively affordable city compared to the coastal metros, but that doesn’t make the buying process any easier for first-timers. Whether you’re searching for a sleek River North pad or a cozy Chicago-style bungalow or just want a whole lot of lawn, the sheer thought of the home-buying process can be intimidating. But don’t worry, we’ve got your back. Before you start touring properties, make sure you’ve done these four things and you’ll be ahead of the game.
1. Visualize your dream house.
It’s fun to browse online real-estate sites, but tough decisions must be made beyond aesthetics and curb appeal. Are you interested in becoming a live-in landlord, or are you seeking something more hands-off? Are amenities such as parks, schools and proximity to transit important to you? Are you handy enough to rehabilitate your own fixer-upper, or do you even have the budget for renovations? Make sure you think through all the options.
2. Yes, you need an agent.
Your broker will play a few roles in your first home purchase: coach, fixer and therapist. It’s crucial to connect with an agent who not only helps to guide the process but also truly understands what’s best for your budget and needs. Good brokers generally help line up other key players, such as a home inspector, mortgage lender or lawyer. Neighborhood associations and online community pages are great places to start looking for a broker.
3. Get your finances in order.
In the wake of the housing crash and recession, the underwriting process for homeownership has become more stringent. This means it’s important that you don’t make any big moves at least three to four months before shopping for a home, including opening new lines of credit, making large deposits or withdrawals and changing jobs.
4. Prepare to be surprised.
There are a lot of moving parts and unknown variables during the home-buying process, so expect the unexpected. For example, in the competitive spring and summer markets, anticipate stressful multiple-offer situations. If red flags surface in the course of underwriting, have all your records handy for bank review. And if possible, follow along with your home inspector to get an idea of how much work the property will need.
The ultimate goal is to get the front-door keys, but don’t forget to have fun along the way. A house is one of the biggest purchases many of us will make—good luck!