If you live in Illinois and are thinking about purchasing your first home, you probably have lots to consider. Maybe your primary objective is to find a home in a neighborhood with great schools, or maybe your biggest goal is to shorten your commute. Regardless of your reasoning for starting the house hunt, knowing what to expect – and what to avoid – can streamline the process and save you some serious money. At Mockaitis Law, we recognize that many first-time homebuyers make similar errors, and we have helped many people navigate Illinois’ housing market and find solutions that meet their needs.
Per CNN Money, one common first-time homebuyer mistake you can easily avoid is to wait on the mortgage preapproval process. While a mortgage preapproval does not automatically mean you will get a loan, it should give you a realistic idea of what type of budget you are working with, which can help steer your home search in the right direction.
Another common first-time homebuyer error involves failing to shop around for a mortgage lender. The interest rate and associated fees one mortgage lender may offer can differ substantially from the next one’s offer, so speak with a few different companies to make sure you land the best deal. Once you decide on a particular lender, keep in mind that, just because they offer to loan you a particular amount, that does not mean you should necessarily borrow all of it. If your mortgage ends up taking up too much of your monthly income, you could land in serious trouble if you lose your job or otherwise experience a change in circumstances.
As a first-time homebuyer, you also want to avoid doing anything that will alter your credit score during the homebuying process. Even if you receive a mortgage preapproval, the lender can rescind its offer if your financial situation changes. Find more about Illinois real estate on our web page.