The housing market is in the midst of a significant rebound, and as such, Chicago property is in great demand. Prospective homeowners, eager to find wonderful homes for sale in Chicago, are currently willing to take on mortgages that, as of a few years ago, would have been summarily rejected. Although the desire to score that dream home is understandable, it is important to take care while negotiating a mortgage. The following three tips will make it easy to avoid overpaying for a mortgage:
1. Consider how long you plan on sticking around.
Discount points are not ideal for short-term property investments. However, this approach allows long-term buyers to enjoy significant savings through reduced interest rates.
2. Compare APR rates and fees.
It is definitely not a good idea to automatically opt for the first lender that comes to mind. Instead, prospective homeowners are advised to shop around, paying careful attention to each lender’s APR rates and associated fees. After examining all good faith estimates, consider negotiating with preferred lenders to score lower rates and fees.
3. Be careful when making a first offer.
The art of negotiating a mortgage is complex, but if there is one move that should be avoided at all costs, it’s revealing exactly how much you are willing to pay for a given home. Ideally, multiple offers should take place — and the first offer should be significantly lower than the final offer.
This is an exciting time to look for homes for sale in Chicago. Feel free to contact us to learn how a Chicago real estate agent can help you as you hunt for your dream home.