With the drop in home prices, it's been a buyer's market for some time now. Things seem to be starting to stabilize a bit and the amount you'll pay for a house in Glenview may be about at it's lowest point by now.
Many lessons have been learned from this and a few rules that were golden in days gone by are being brought back. They were a good thing to do several years ago, and time has proven that they're a good thing to do now.
Here are five of these rules to help home buyers in Wilmette, Northbrook or anywhere, succeed with the American dream of owning your own home:
1. Make a larger down payment if possible. Much of the problems the last few years has come from low or no down payment deals. If you can make a down payment of 15% to 20%, you'll get the benefit of lower monthly payments and better interest rates, more equity in the house, plus easier refinancing in the future.
2. Don't borrow more than you can afford. Even though you may be approved for a high-value loan, it's much better to buy a house you can afford. The old rule of thumb has been that you should only buy a home that is no more than three times your family's annual income.
3. Don't buy with the idea of a quick sale. Only buy if you plan to make this a long-term investment. The market may be stabilizing but it's not there yet, so be careful.
4. Judge your local market. Although national housing trends may be improving, you need to look at your local market for sound decision making. There are other factors to consider when buying a house. Is the local job market doing well, are there a lot of local foreclosures, how are prices - going up or still going down, how long are houses remaining on the market, and what are houses in the area selling for?
5. Beware of warning signs in home prices. If you notice prices going up year after year as they did from 2000 to 2005, be careful. In those years prices increased on average 53% and in several states 90% or more.
Buying a home in Glenview or Wilmette can be a scary undertaking. Get all the help you'll need from the Marla Schneider Team. See how they can help find the right Illinois real estate for you.
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