Common Chicago Homebuying Myths

If you're currently looking to buy a home in Chicago, you might have heard some of these common myths that have been circulating for years. These myths can be misleading and may prevent you from making an informed decision about your home purchase. In this article, we'll explore some of the most common Chicago homebuying myths so that you can be better prepared for your home search.

Myth #1: You Need to Have a 20% Down Payment

One of the most common homebuying myths is that you need to have a 20% down payment to purchase a home. While a large down payment can be beneficial, it's not always necessary. Many lenders offer loans with down payments as low as 3%, making homeownership more accessible to a wider range of people. Additionally, some loan programs, such as FHA and VA loans, require lower down payments.

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Myth #2: You Can't Buy a Home with Bad Credit

Another common misconception is that you need perfect credit to qualify for a mortgage. While good credit is important, it's not the only factor that lenders will consider when deciding whether or not to approve a loan. Even if you have a credit score that is on the lower end, you might still be eligible for a home mortgage; but it's possible that you may have to pay a higher interest rate or provide a larger down payment.

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Myth #3: You Should Only Work with the Listing Agent

When you're searching for a home, it might seem natural to reach out to the seller's agent who listed the property. Some buyers assume that they should work with the listing agent because they know the home best. However, it's important to remember that the listing agent is working for the seller, not the buyer. You might want to consider finding a buyer's agent who can represent your interests and negotiate on your behalf.

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Myth #4: You Can't Buy a Home in a Good Neighborhood on a Tight Budget

It's easy to assume that you have to spend a lot of money to live in a desirable neighborhood. However, there are many up-and-coming neighborhoods in Chicago that offer great amenities and are more affordable than their established counterparts. Additionally, there may be opportunities to purchase fixer-upper homes in good neighborhoods at a lower price point.

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In conclusion, buying a home in Chicago doesn't have to be a daunting task. Hopefully, this article has helped you understand and debunk some common homebuying myths, so you can be better prepared to navigate the real estate market and find the home of your dreams. Remember to do your research, work with a trusted real estate professional, and keep an open mind when it comes to the type of home and neighborhood that will best suit your needs and budget.

If you’d like to get preapproved for a mortgage or meet some experienced, local Realtors, please reach out to us; we’re always happy to help.