Purchasing a home intimidates many people, but with a little planning ahead of time, it's not that difficult. So you'll know exactly what to expect, we like to supply our buyers with an outline of the whole deal. Here are our nine steps to purchasing a home.
Step 1 – Get ready to purchase a home
Before you begin searching for a home, there are many things you need to do. You'll most likely want to put together a list of items you need to have, get an idea of what neighborhoods you'd like to live in, and begin planning your budget. A good guideline to adhere to is that your mortgage payment should be less than or close to a third of your net monthly income.
Step 2 – Get in touch with a real estate agent
This is where we can help. We'll plan a time to get together so we can talk about why you want to buy a home and get an idea of your future plans. We'll discuss the mortgage and housing industries, other economic factors that could affect your buying decision today or in the future, as well as neighborhoods and schools in the Chicago area.
We'll also help you facilitate the loan process. There are some great mortgage professionals in Chicagoland, and we partner with a lot of them, so you can rest assured that you're in great hands. They'll help you choose which type of loan is best for you, as well as help you get qualified.
Step 3 – Start your home search
Following our first meeting, we'll begin finding available homes on the market that meet your needs. We'll preview most of the homes and reject the bad ones, and then we'll set up appointments to tour the homes whenever it's convenient for you.
As we view the homes, we'll call attention to positive features, as well as bad ones. And we'll ask you what things you like and don't like. Frequently, buyers change their list of must-haves as we view homes and some things become more essential than others. If that happens, we'll search all the listings another time and trim it down to the house of your dreams.
Step 4 – Understand the market
Our knowledge of the Chicagoland home market is an indispensable asset in your search. We're mindful of all the schools and neighborhoods, and will communicate certain areas are "hot" and demand immediate action and the ones that are "cold" and allow for more consideration.
When we tour homes, we'll let you know when the seller's list price has room for negotiation and also when we trust the home is "priced to sell." Be on guard and make sure you ask a lot of questions, as every REALTOR® will claim to know the home market. If things don't add up, call us at 312-733-9100 or e-mail us at abe@thereobroker.com, and we'd be more than happy to answer any questions you have. Our understanding of the market will help you stay a step above the rest throughout the entire process.
Step 5 – Find the home of your dreams
We're sure we'll find the home of your dreams in Chicago, and when that happens, we'll meticulously create your home purchase offer. The offer will be tailored keeping your needs in mind. Whenever necessary, we never forget to make contracts contingent upon items like your ability to secure financing and the results of the home inspection.
Upon submitting your offer, you'll need to submit "earnest money." This is a cash deposit given to the seller to secure the offer to purchase the property. The amount is often put towards the closing costs. If the seller accepts the offer, we should close about 30 to 60 days after. This allows ample time for your mortgage financing.
Step 6 – Negotiate the deal
Most contracts aren't closed on the initial offer – it's extremely common to receive a counter offer. Don't let it intimidate you. We'll discuss whether or not to consent to the counter offer, submit our own counter offer, or refuse the seller's offer and go on.
Market circumstances will play a vital role in how aggressively we negotiate the deal. In addition, we'll work within your financing budget. And at the end of the day, we'll put together a deal that works well for you.
Step 7 – Get financing
Once we sign the final contract, you'll begin working with your lender to close the loan. If you're already pre-qualified, this won't take much time at all. However, you'll want to keep in close contact with your mortgage lender. And we'll deal with all the property information your mortgage lender will need to close the loan.
Step 8 – Close the deal
Your lender will furnish you with a Good Faith Estimate (GFE) outlining closing costs within three days of taking your application. You'll get a Good Faith Estimate (GFE) outlining your closing costs from your lender within three days of getting your application. This estimate is formed from the loan amount, and RESPA requirements require that it has to contain all closing costs and be within a strict range of accuracy. We'll go over the estimate and let you know if it all looks good.
Then we'll close on your home. This will probably occur at a title company or escrow office and is often a smooth and peaceful occasion.
Step 9 – Move in
Congratulations! It's time to move into your new home. Enjoy it. And if you have any questions, make sure you contact us at 312-733-9100.
