First Time Home Buyer Programs in Chicago, Illinois: FHA, VA and Conventional

Oct. 11, 2009 - PRLog -- The challenge of buying a home for the first time in Chicago, Illinois can seem so daunting that it's tempting to just go with the first house that falls in your price range or continue to rent. To help you demystify the process and get the most out of the purchase, we'll examine what you'll need to consider before you buy, what you can expect from the buying process itself, and some handy tips to make life easier after you purchase your first home.

Considerations Before You Buy Your Chicago Home

The first thing you'll need to determine is what your long-term goals are and then how home ownership fits in with those plans. It could be that you're simply looking to transform all those "wasted" rent payments into mortgage payments that actually give you something tangible. Others see home ownership as a sign of their independence and enjoy the idea of being their own landlord. Narrowing down your big-picture home ownership goals will point you in the right direction.

Visit our website for program details and rates: http://www.MadisonMortgageguys.com

Here are five questions to ask yourself:

1. What type of home best suits your needs?

You have several options when purchasing a residential property: a traditional single-family home, a townhouse, a condo, or a multi-family building with two to four units. Each option has its pros and cons, depending on your home ownership goals, so you need to decide which type of property will help you reach those goals. You can also save on the purchase price in any category by choosing a fixer-upper, though the amount of time, sweat equity and money involved to turn a fixer-upper into your dream home might be much more than you bargained for.

2. What specific features will your ideal home have?

While it's good to retain some flexibility in this list, you're making perhaps the biggest purchase of your life, and you deserve to have that purchase fit both your needs and wants as closely as possible. Your list should include basic desires, like neighborhood and size, all the way down to smaller details like bathroom layout and a kitchen that comes with trust-worthy appliances.

3. How much mortgage do you qualify for?

Before you start shopping, it's important to get an idea of how much a lender will actually be willing to give you to purchase your first home. You may think you can afford a $300,000 home, but lenders may think you're only good for $200,000 depending on factors like how much other debt you have, your monthly income and how long you've been at your current job.

4. How much home can you actually afford?

On the other hand, sometimes a bank will give you a loan for more house than you really want to pay for. Just like with the purchase of a new car, you'll want to look at the house's total cost, not just the monthly payment. Of course, looking at the monthly payment is also important, along with how much down payment you can afford, how high the property taxes are in your chosen neighborhood, how much insurance will cost, how much you anticipate spending to maintain or improve the house, and how much your closing costs will be.

5. Who will help you find a home and guide you through the purchase?

Your loan officer can help you find a qualified real estate agent who can help you locate homes that meet your needs and are in your price range, then meet with you to view those homes. Once you've chosen a home to buy, your agent can assist you in negotiating the purchase price. One you have an accepted offer let your loan officer know so that the rest of your loan paperwork can be completed.

Please feel free to call me to discuss your mortgage options. I would be happy to answer your questions.

Dennis Hardy
Toll Free: 877-240-5810 x104
dennis.hardy@madisonmortgageguys.com
http://www.Madisonmortgageguys.com

Visit my blog at http://www.madisonmortgageguys.com/blog/








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FHA first time home buyer mortgage loans

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