Chicago is the culture and entertainment hub of the Midwest. From the over 250 music venues and world-renowned Art Institute to the scenic West Loop and rich culinary scene, the Windy City is teeming with big energy. This is why it draws hundreds of homebuyers every year looking to tap into the chic and vibrant vibe. Unfortunately, this means that real estate marketing is often competitive. Here are a few pointers on how to buy a home in Chicago like a pro, even if you are a first-timer.
Consider the Costs
While competitive, the Chicago real estate market is relatively low priced, especially compared to similar major cities. According to Chicago real estate agent Michael Maier, home prices in the area often vary depending on the size and location. But the median home sale price is $334,000 within the city limits and $310,000 in the greater metro area. This is several thousand dollars below the national median. That aside, also consider the cost of living, which again is lower than many major cities but higher than many towns in the Midwest, including Minneapolis (23%) and Indianapolis (30%).
Organize a Down Payment
Although your mortgage will handle most of the payment for your new home, you need to set aside a down payment. The average down payment in Chicago is about $35,000 but the exact amount will depend on the price of the home and the type of mortgage you get. As a rule of thumb, make sure you have at least 10 percent of the value of the home you would like to buy. Also, try to improve your credit. With a good score, you may end up paying as little as 3 percent of the selling price.
Explore Financing Options for First-Time Buyers
The next step is to get pre-approved for a mortgage, which involves shopping around for a lender who will run your credit and give you a figure. However, as a first-time buyer, don’t go for the first lender you see. Consider the many loan options available in the city, including the programs offered by the Illinois Housing Development Authority. Review the different loan options and qualifications to see if you qualify. You may also consider the Micro Market Recovery Program or the Chicago MMRP.
Pick a Neighborhood
The Chicago housing market is rich and varied. The same amount of money will avail different options in the different Chicagoan neighborhoods. So after you set your financial affairs in order, explore the over 77 communities in Windy City and what they have to offer. You have city-limit options and suburbs with a more family-friendly vibe. You also need to determine what you need in a home. Are you looking for a townhouse, condo, or detached property? Do you mind a long commute? Are you planning to have a family? Set down a list of ‘musts’ for your new home.
Most Importantly, Hire a Real Estate Expert Like Michael Maier
A lot goes into buying a home, especially in Chicago where the options are endless. Before you start looking at homes for sale in Chicago, the most crucial thing you can do is hire an experienced real estate agent like Michael Maier. Michael has helped thousands of buyers like you move to Chicago and will help you find your dream home and purchase it with minimal fuss. Call today to learn more.