Buying a home is undoubtedly one of the most exciting events in a person’s life, so it’s important to go about it in the right way. Being prepared and getting pre-approved before you even start looking is a very good idea. It is probably the most important thing you can do if you are a Chicago first time home buyer.

Eventually you are going to have to go through the approval process anyway, so you might as well do it before you start house hunting. That way you will know exactly what you can afford and that way you can confidently concentrate on finding what’s right for you.

Getting pre-approved will give you peace of mind as well while you are exploring your options. What most people don’t realize is the best thing about pre-approval is that it doesn’t cost anything and you aren’t obligated in any way.

Your local lending institution can give you a written pre-approval with no obligation on your part. Being pre-approved means that you have a guarantee of obtaining a mortgage up to a specified level. Getting pre-approved is like money in the bank.

Every Chicago 1st time home buyer should carefully consider the level of monthly payment they can handle. The pre-approval process will give you a very clear idea of how much you can borrow. You won’t always want to go for the maximum amount available to you.

Determine what you are comfortable with and then stick to that amount. That will determine the price range of home you should be looking for.

Select the type of mortgage that will best suit you. Not everyone will want the same type of mortgage. There are several factors to consider which have a bearing on how much you want to pay on a monthly basis.

Ask yourself how long you expect to stay in your new house and whether your current earnings might change in the near future. These things will have a bearing on how you should structure your mortgage.

You should also consider the frequency of your regular mortgage payments because this can have a direct bearing on the overall cost of your mortgage. Over the long term making bi-weekly or even weekly payments can save thousands of dollars in interest.

Every little bit extra you pay against the principal will reduce the interest you pay. If you use a bi-weekly plan, for example, by the end of the first year you will have actually made 13 payments and the 13th will essentially be put against principal.

If you are a Chicago first time home buyer you need mortgage advice you can count on. Call 773-305-LOAN for a free quotation without obligation on a Chicago 1st time home buyer mortgage or mortgage refinance.

[tags]Chicago First Time Home Buyer, Chicago 1st Time Home Buyer[/tags]