Britta Rivera Venture

CHICAGO REAL ESTATE NEWS & MORE

CHICAGO: TIPS ON BUYING A HOME IN TODAY’S MARKET; FOLLOW THESE BASIC STEPS TO SAVE TIME

Important Steps to Buying a New Home 

Get pre-approved for a mortgage with a professional lender.  It is important to have a pre-approval letter in advance of search; it will be required when submitting a contract.

Inform your realtor of the features important to you in your new home.

  • Price Range
  • Preferred location
  • Square footage/ Amount of Bedrooms/Baths
  • Proximity to public transportation
  • Parking or garage space
  • In-home Washer/Dryer
  • Preferred style of home
  • Your real estate agent will send a list of homes for your review.  Select your top choices by marking them as “interested”.
  •  BEGIN YOUR HOME SEARCH!
  • Once you find a property, discuss with your agent the price you would like to offer the seller.  Your agent will provide area comps so that you can make an educated decision.
  • Remember, if you are purchasing a short sale they can take 60-120 days from start to closing.  It is a long process, but if you have time to wait and are extremely patient, great deals are available.  They are typically sold “as is” so buyer is responsible for repairs.
  • If you are purchasing a foreclosed property, make sure to read the notes carefully.   Many need a lot of work, may have code violations and are sold “as is”.  Buyer is responsible for repairs in most cases.
  • Your agent will then present the offer to the seller’s agent. The seller will either accept or respond with a counteroffer.  Be prepared to counter multiple times.
  • CONTRACT IS APPROVED!
  • After you have agreed on a final price, the seller will ask that you write an earnest money deposit check (initial down payment) typically for $1,000 to $5,000 to hold the property.  It is in the form of a Cashier’s Check and your agent will inform you of the exact figure.
  • Be sure to make a copy of the earnest money check for your lender in advance of submitting.
  • It is strongly recommended that you hire a real estate attorney to assist with negotiations.  Your attorney will review the purchase contract and review the final documents at closing.  Their fees vary and are paid at closing, ask them in advance.
  • The purchase contract is signed by you and the seller.  Your agent will fax it to your lender and attorney for review.
  • The “Attorney Review” period now begins.  Typically the contract has to be reviewed and approved within 5-7 business days of accepted contract date.
  • During attorney review, it is recommended that home inspection by a certified inspector be performed.  This should be ordered immediately after the initial contract is signed.
  • HOME INSPECTIONS
  • If the home inspection uncovers any issues with the property, your attorney can try to negotiate the contract to ensure any necessary repairs are made or credits for repairs are given.  Unless home is sold “as is”.
  • If you are buying a brand new property it will typically come with a 1-year warranty therefore a home inspection is optional.
  • Meet with your  Loan Officer to sign a loan application and review the mortgage approval process.
  • Do not make any major purchases, apply for credit cards, etc. until AFTER CLOSING.  This additional activity may lead to your credit report being pulled which will lower your credit score.
  • Once your attorney approves the purchase contract and inspection is complete, your lender will order an appraisal.
  • Per the Purchase Contract, additional earnest money may or may not be required by the purchase contract (ask your agent).  If you do provide additional earnest money, be sure to make a copy of the check and fax it to your lender.
  • When the purchase contract is signed a “Financing Commitment Contingency” date is approximately 30-45 days and must be met. If your loan approval needs additional time, make certain to inform your attorney so he may request an extension.
  • The mortgage commitment will be sent to your attorney who will work with the seller’s attorney to schedule the closing date, time and location.
  • GETTING READY FOR CLOSING
  • Prior to closing, you will need to obtain the necessary homeowners insurance.  Contact a professional insurance company and obtain several quotes, prior to securing.
  • Typically the day before your closing your lender or attorney will advise you of how much money you will need to bring to the closing.
  • Once you know the dollar amount, you will need to obtain a cashier’s check made payable to the Title Company.  A wire transfer of funds is also required in some circumstances.
  • At the closing you will need to bring the following:
  • Cashier’s check (unless you process via wire transfer)
  • Valid driver’s license or state ID
  • Personal Checkbook (just in case the figures are slightly off which is common)
  • Your attorney will be at the closing and will review all the closing documents with you.
  • YOUR KEYS ARE PROVIDED AT CLOSING AND IT IS TIME TO MOVE IN!

IF YOU NEED ASSISTANCE WITH BUYING A HOME IN CHICAGO, CONTACT BRITTA RIVERA VENTURE GROUP AT 312.806.3297.  

February 25, 2012 Posted by | CHICAGO REAL ESTATE, REAL ESTATE NEWS | , , , , , , , , , , , | Leave a comment

   

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