4 Mortgage Shopping Tips for Chicago Homebuyers
Here are four mortgage shopping tips you can use to ensure you find the right type of loan for your home purchase.
First, get pre-approved before shopping for a home in earnest. Even if you’re not sure you qualify for a mortgage, talk to a lender — you’d be surprised at what you might be able to afford in the current market. Any seller will require you to be pre-approved before they negotiate with you.
Second, match your priorities with the various loan programs available out there. This kind of thing takes time — there are conventional loans, FHA loans, purchase renovations loans, etc. There are also down payment assistance programs available that allow you to purchase with as little as $1,000 out of pocket. Whether it’s getting the best rate and the lowest fees or getting into a home as soon as possible, know what your priorities are and match them with what loans are available to you.
Third, match your finances with the type of home you’re looking for. Some loans, for example, work best for condo purchases. There are a whole host of options, and just like matching your priorities with your loan program, it takes time to match your finances with the type of home you’re looking for.
Additionally, make sure you hire a loan officer and mortgage company who offer the kind of financing you seek. This is especially important if you’ve had past challenges with your credit or you seek a down payment assistance program. Not every loan officer offers the full array of loan programs available — some just specialize in one or two areas. Getting a referral from a Realtor is the best way to get in touch with the right loan officer.
Lastly, make sure you’re familiar with current market conditions and the latest news in mortgage lending. It’s no secret that interest rates have dipped this year, but there are other changes to be aware of. The Federal Housing Administration, for instance, has made it possible to buy a condo using FHA financing in buildings that aren’t FHA-approved. This change has the potential to help buyers and sellers, and if you tried using an FHA loan in the past and were frustrated by the limited options available as far as condos go, you’re facing a different reality now. It’s time to get back out there.
If you have any more questions about mortgage lending or have any other real estate needs, don’t hesitate to give me a call or send me an email. I’d love to help you.
