Last Updated: August 2024
For those who long for easy access to the bright culture and vibrancy of Chicago, with the peaceful seclusion of suburban life, Burr Ridge is an ideal choice. Ranked as one of the most luxurious neighborhoods in the county, this cozy hamlet draws countless individuals eager to put down roots. Perhaps you’ve already found the home of your dreams? Now is the time to prepare to be a first-time home buyer in Burr Ridge, IL.
Educate yourself on homeownership
Education is power, especially for those who are dipping their toes in the Burr Ridge real estate market. Ask questions, do your research, and connect with friends or family who recently bought a home to share their experiences. Be sure to look at resources such as the National Association of Realtors, Forbes, and other reputable sources of information for statistics on the real estate market.
There are programs available to inform first-time buyers, as well as experts who can break down information charting market trends. Don’t hesitate to ask your Realtor for books, YouTube channels, websites, and other aids to build your knowledge going into the buying process. This will allow greater confidence moving forward, assured that you have done everything possible to make the best decision for your first home.
Understand the Local Market Trends
Before diving into the home-buying process, it's crucial to familiarize yourself with the local real estate market in Burr Ridge. Understanding whether it's a buyer's or seller's market will significantly impact your approach. In a seller's market, homes sell quickly, and you might need to act fast and be ready to make a strong offer. Conversely, in a buyer's market, you might have more room for negotiation on price and contingencies.
Research recent home sales, price trends, and how long homes are staying on the market. Pay attention to the neighborhoods within Burr Ridge that are appreciating in value, as these can offer better long-term investments. Knowing the market trends will also help you set realistic expectations and avoid overpaying for a property.
Get Pre-Approved for a Mortgage
Securing a pre-approval for a mortgage is an essential step that should be completed early in your home-buying journey. A mortgage pre-approval not only gives you a clear idea of how much you can afford but also makes you a more attractive buyer in the eyes of sellers. It demonstrates that you're serious and financially prepared, which can be a deciding factor in a competitive market like Burr Ridge.
When seeking pre-approval, shop around with different lenders to find the best interest rates and terms. Be prepared to provide financial documentation, including proof of income, tax returns, and information about your assets and debts. Remember, a pre-approval is not a final loan commitment, but it does put you one step closer to closing on your dream home.
Prioritize Your Must-Haves and Dealbreakers
When looking for a home, it’s important to clearly distinguish between your must-haves and nice-to-haves. Make a list of features that are non-negotiable, such as the number of bedrooms, proximity to schools, or having a backyard. Similarly, identify any dealbreakers that would immediately disqualify a property, such as being too close to a busy road or requiring extensive repairs.
Having these priorities in place will help you stay focused during your search and prevent you from getting swayed by properties that look appealing but don’t meet your essential criteria. In a desirable area like Burr Ridge, it's easy to get caught up in the excitement of home tours, but staying true to your priorities will ensure you find a home that truly fits your needs.
Partner with an experienced Realtor
This is arguably the most important step in the whole process. Though it is possible to find a home on your own, having an experienced real estate agent by your side will always be advantageous. An experienced agent has a keen insight into the local real estate markets due to their knowledge of the area. They also provide resources, such as reliable mortgage lenders, external assistance, and in-office guidance. In addition, having an agent who knows their craft will uphold your criteria for your dream home by asking pertinent questions.
During final negotiations, reliable real estate agents will always be your advocate, working on your behalf to land a final offer working in your favor. An agent of this caliber will make the process effective and effortless.
Jeff Salhani embodies these traits and then some.
Previous clients all attest to his impressive knowledge of the area, using it to educate and assist future homeowners. Known for his detailed efficiency and patient demeanor,
Jeff goes above and beyond, ensuring the process of buying a home in Burr Ridge is as seamless as possible.
Stand out
Homes do not often go for sale in Burr Ridge, so when a gorgeous home or an upscale condominium hits the market, it draws attention and potential buyers. A way to set yourself apart in the feeding frenzy is by going above and beyond in preparedness. This preparedness is best shown by having all your ducks in a row when it comes to paperwork and finances. Not only does it display proper business etiquette, but it also aids in efficiency and legitimacy.
When a seller is comparing two offers and one buyer could delay the closing due to not having pre-approval for the mortgage loan, the buyer with pre-approval will always be the more attractive option. Proof of financial stability through pre-approval, and a stable mortgage loan will provide a step up, however, an additional detail that may be to your benefit is a handwritten offer to the seller.
In a barrage of seemingly good offers, stand out by providing a level of humanity to your offer by introducing yourself on a person-to-person level, leaving room to detail why you love the home. Consider it an admissions letter, allowing this human element to remind buyers and sellers that the sale includes one family passing home to another family.
Don’t assume a down payment percentage
A casual stroll through the internet would suggest a set down payment between 16% to 20% is the standard. Indeed, as many as 35% of first-time buyers believe that range is required to qualify, causing limitless confusion, stress, and potential delay in purchasing for fear of financial unpreparedness. However, this is not always the case. The size of the down payment often varies on the local real estate market as well as personal finance.
A survey conducted by the National Association of Realtors shows the
average requirement for first-time homeowners within the last three years is a payment ranging between 6% and 7% of the purchase price. The conventional loan minimum is 3%, with the Federal Housing Administration requiring a loan minimum of 3.5%. On the other hand, if the purchase of a home has been a main part of your financial planning for the last few years, saving diligently for a larger payment, lean into it. However, a buffer for external and surprise fees should also be considered, which leads us to the next tip.
Be prepared for buyer’s fees
First-time homeowners often feel blindsided by the seemingly endless buyer’s fees when purchasing a home. Most often, only mortgage loans, monthly payments, and the initial offer are discussed. However, remaining aware of other costs can prepare first-time buyers mentally and financially for upcoming costs. Property taxes, state taxes, paperwork processing fees, insurance fees, application fees, home inspection fees, appraisal fees, and other closing costs should be considered. An experienced realtor will help you keep on top of the costs and provide an outline of what fees to expect. These will help you to budget accordingly.
Be open to external assistance
One of the benefits of having a Realtor in your corner is the list of resources available. A quality real estate agent usually refers buyers to a reliable mortgage lender, offering quality assurance and helpful guidance. On top of benefiting from the helpful aid of an experienced agent, there are programs in place to assist in the organization and tracking of your buying process, noting the milestones of each step and allowing you to see the journey from start to finish.
Certain forms of assistance are in place to help first-time home buyers, like the First Homeowners’ Assistance (FHA) program incentives offered through the Illinois Housing Development Authority. These forms of assistance are offered through multiple banks within Illinois, as well as webinars for homeowners to learn about their options and the requirements for the program.
Plan for Long-Term Maintenance and Costs
Homeownership is a long-term commitment that comes with ongoing maintenance and costs. It’s important to budget not only for your mortgage but also for property taxes, insurance, utilities, and maintenance. Burr Ridge, with its beautiful properties, often requires more upkeep, especially if you purchase an older home or a property with extensive landscaping.
Consider the potential costs of repairs, renovations, and general upkeep, and set aside a portion of your income for these expenses. Additionally, familiarize yourself with the local ordinances and homeowner association (HOA) rules if applicable, as these can influence your maintenance responsibilities and costs. Planning for these expenses will help you avoid financial stress down the road and keep your home in excellent condition for years to come.
Jeff Salhani enjoys working with first-time homebuyers and has the experience to make it a fun and smooth process. When you’re ready to start searching for
your perfect home, give him a call to schedule your consultation. He looks forward to assisting you in your journey.
