We’ve all read the articles about how bad the national real estate market is. And we have had conversations about Chicago real estate and this being a great time to buy. While I see both sides, I lean towards the “great time to buy side.” And though there are some great deals to be had, the wild card now seems to be the lenders. In the past, buyers were able to tell the lenders what they were willing to put down – 5%, 10%, even 0% + throw in the closing costs and go for a 103% loan! Or to make it even more interesting, “let’s do an interest only loan.”

Oh how the times have changed! Now the loan criteria seems to be a moving target. As I have been telling my buyers looking for Chicago real estate over the past few months, we are no longer in a market where you can say “here’s the loan I want,” or “here’s what I’m willing to put as a down payment.” The ability to get a loan is now pretty much dictated by the lender…they will tell you how much of a down payment you will have to come up with in order to get a loan.

So before you go out and find the home of your dreams, make sure that you can get a loan. Mortgage calculators will give you a sense of what you can afford, but it is up to the lenders to make it happen.