Top Tips for First-Time Homebuyers in Illinois

 Posted on August 20, 2021 in Real Estate

Homeownership is an important goal for many people, and if you are considering buying a home, you will be looking to make one of the most significant and important investments of your lifetime. However, there are many complex financial factors involved in a home purchase, as well as a variety of legal issues that may arise during a transaction. If you are a first-time homebuyer, you will want to consider the following tips:

• Build and maintain a good credit score - Your credit score will affect your ability to obtain a mortgage as well as the interest rate on your loan. You can increase your credit score by paying bills on time and avoiding large credit card balances. You will also want to avoid doing anything that may decrease your credit score during the process of buying a home, such as closing credit card accounts, making major purchases, or taking out new loans or lines of credit.

• Get preapproval for a loan - By working with a lender to determine the amount of a loan that you will qualify for, you can understand what you will be able to afford, ensuring that you will be able to make an appropriate offer on a home. Preapproval will also show a seller that you have the financial means to buy a home, making it more likely that they will accept your offer.

• Be aware of closing costs and other expenses - In addition to making a down payment, you will also need to pay a variety of other costs during the home closing process. These include fees related to obtaining a mortgage, title inspection fees, and attorney’s fees, and they often total around two to five percent of the amount of your home loan. You will want to make sure you will be able to afford these costs, as well as other costs that may apply during or after you complete the transaction, such as homeowner’s insurance, property taxes, homeowners association fees, and moving expenses.

• Negotiate a purchase agreement - When you make an offer on a home, and the seller accepts your offer, you will enter into a purchase contract that details the rights and requirements that both parties will need to meet, as well as the date of closing and any other important dates during the transaction. You will want to make sure you understand the details of this agreement, and you may be able to negotiate favorable terms, such as asking the seller to cover some of your closing costs or including contingencies related to your ability to obtain financing.

• Get a home inspection - After signing a purchase agreement and before your closing date, you will need to perform an inspection of the home to identify any safety issues, defects, or repairs that will need to be made. Depending on the terms of your purchase contract, the seller may be required to perform or pay for certain types of repairs, and if major problems are uncovered, you may be able to back out of the purchase.

Contact Our Elgin Residential Real Estate Lawyers

When buying a home, an experienced attorney can help you make sure your rights will be protected. At Ariano Hardy Ritt Nyuli Richmond Lytle & Goettel, P.C., we can help you negotiate a purchase agreement, address contingencies, and ensure all requirements are met during the closing process. To learn more about how we can help you buy your first home, contact our Kane County real estate attorneys at 847-695-2400 and schedule a free consultation.

Sources:

https://www.nerdwallet.com/article/mortgages/tips-for-first-time-home-buyers

https://www.rocketmortgage.com/learn/first-time-home-buyer-tips

https://www.credible.com/blog/mortgages/first-time-homebuyer-tips/