This is our fourth entry in our ‘Now What?’ blog series designed to help those people that want to become a Chicago homeowner, but have no idea what to do.
You Are Pre-Approved To Become A Chicago Homeowner! Now What?
Once you have executed your plan and everything is up to snuff, your mortgage lender will issue a pre-approval letter. This means they have analyzed your income, your assets, your credit history and such and have deemed you good to go!
My Pre-Approval Letter Says I Am Pre-Approved Up To $250,000!
Does that mean that you can look at every single $250,000 home out there? You can look at all of them of course, but most likely you wouldn’t be pre-approved to purchase all of them. When your lender pre-approves you they have to assume certain things – ie property taxes.
Let’s paint with a broad brush – property taxes for a $250,000 home in Ashburn (a neighborhood of Chicago) are going to be different than the property taxes for a $250,000 home in Uptown (a neighborhood of Chicago) which are going to be different than a $250,000 home in Naperville (a Far West suburb of Chicago). So, when your lender pre-approves you for your purchase price limit it’s vital that your Realtor also finds out what figure they are using for property taxes.
Can We Look At Properties Already?
Yes, so once your Realtor knows what the estimate is for the property taxes as well as your purchase price limit they will send you properties that fit your criteria:
- Number of Bedrooms
- Number of Bathrooms
- Recent Rehabbed Home
- Other Criteria
You identify those homes that you want to see and your Realtor schedules the appointments for you. Sometimes people look at just a few homes, and sometimes people look at a ton of homes – everyone is different and that’s ok!
Eventually you find ‘the one’ and it’s time to make an offer and become a Chicago homeowner!