Did you know that Chicago produces the third-largest Gross Domestic Product (GDP) in the United States? According to New Capital Management, the city's economic output is roughly $765 billion per year.
There is so much economic opportunity in and around the city. Many people choose to live in Chicago suburbs, like Schaumburg, to lower their cost of living while accessing the city's high-paying jobs.
Read on for home-buying tips in Schaumburg, IL. Explore this first-time home buyer guide to help with your search.
Get a Mortgage Pre-Approval
If you are searching for your first home, you will likely need a mortgage. The first step in the mortgage process is to get a pre-approval letter from a lender.
A mortgage lender reviews your income, credit history, and other factors. This review allows the lender to recommend a mortgage value they believe you will qualify for. The seller's real estate agent may not take you seriously without a mortgage pre-approval letter.
Set a Budget
Many first-time home buyers bite off more than they can chew. They confuse the mortgage pre-approval amount with a personal budget.
There are many other costs in the real estate process. You have to consider home insurance, property taxes, utilities, and maintenance costs. If you fail to consider these items, you may struggle to make ends meet.
We recommend using a mortgage calculator to estimate your monthly payment. Variables like mortgage terms and interest rates can drive the monthly payment up or down. Try to find a principal amount and monthly mortgage payment that fits within your lifestyle.
Monitor Interest Rates
Mortgage rates are one of the biggest stories in the United States. Every month, millions of people wait on the U.S. Federal Reserve hoping that they will lower rates.
Right now, rates continue to hover around 7%. Historically, this is an average rate, but it is significantly higher than it has been in the past decade. The rate that you ultimately secure will have a major impact on your monthly payment.
Ask a Real Estate Professional for Home-Buying Tips
It is important to hear from a professional for Schaumburg real estate advice. An experienced agent can give you Illinois home-buying strategies to direct your search.
They have knowledge about the topics and factors that matter most to you. For example, your agent will know about the local Schaumburg school system.
They will tailor a home search that meets your specific needs like the number of bedrooms, square footage, or whether it has an inground pool.
A real estate professional will also give you home-buying process tips. They will help you navigate the home inspection process, negotiations, and closing.
Buying Your First Home Tips
You are now ready to start shopping for a new home in Schaumburg, IL. It is not an easy time to be a first-time home buyer. It is important that you seek professional help to navigate record-high home prices and 7% mortgage rates.
The professionals at PMI Chi-Town can help you find your dream home. We are a full-service real estate asset management company with over 20 years of experience. If you need more home-buying tips, contact us today at PMI Chi-Town to get started.
