STEPS TO BUYING A HOME
Understanding the process of buying a home can help make the whole experience much less stressful and help you make informed educated decisions.
Save for Down Payment
Typical down payment for a home purchase can range from 0-20% of the purchase price depending on your lender and what programs are available to you. The more you have for a down payment typically the lower your monthly payments will be. There may be home buying assistance programs available to you. Check out this link and see if you qualify https://www.hud.gov/states/illinois/homeownership/buyingprgms
Determine how much house you can afford
Do some research and figure out how much of a monthly payment would be affordable to you. Lenders will typically recommend that your monthly payment be equal to 36% of your monthly earnings.
Get a pre-approval letter from your lender, not a pre-qualification. I would recommend shopping a couple of lenders, as not all have the same fees and rates. Shop for the best deal. You typically will need W-2 statements, paycheck stubs, and bank account statements. These are needed so the lender can verify your financial status and credit. If you need recommendations for lenders please contact me, I can provide a few options for you to talk to.
Find the neighborhood that's right for you
Narrow down your search by what is important to you. Do you want to be close to work? Schools? Shopping? Knowing what areas are of interest to you will help make the home search much faster and less stressful.
What kind of home is your dream home?
Determine what style of home you like for example Ranch, or 2- story? How many bedrooms you need? How many bathrooms? Do you need a garage? Make a list of the must haves, then make a list of things that you would like, but maybe could live without. Then make a list of things that you absolutely don't want. Then, forward that list to me so I can start the search for your dream home.
Decide when to make the move
When do you want to start looking? Do you have a home you need to sell first? ( I will help you with that) Do you have a lease that needs to expire? What time of year do you want to move? Let me know what your plans are and we can address your needs accordingly so you can get into your Dream Home at just the right time.
Know your rights
Know your rights. Click on this link to learn the fair housing law https://www.hud.gov/sites/documents/FHEO_BOOKLET_ENG.PDF
Let's go look for your dream home
Once I have your criteria of where, when, and what type of house you like, I will set appointments for us to go look at homes you like. This is the fun part. It is important that you give me feedback on the homes we see, so I can narrow our search and find the perfect home for you.
Make an offer
So we found the perfect home. Now is the time to make an offer. I am here to help you through this process and will provide statistics and data to help you make an educated and informed offer to help you get the best price for your new dream home.
Once we make an offer and it is accepted, the next step is to get the home inspected. Your offer will be contingent on the home passing the home inspection. I will arrange to have this done within a few days of your offer being accepted. I will provide you with options for home inspectors or you can find one on your own. The contingency protects you by giving you a chance to address any defects the home may have and gives you the opportunity to negotiate to have those addressed or if you chose, to walk away from the deal without any penalty.
Hire an attorney
Now is the time you will want to hire a real estate attorney. I can provide recommendations or you can use your own attorney. Once again, it is a good idea to shop around. Your attorney will make sure that everything is handled through the closing.
Keep in contact with your lender
Your lender will be in contact with you and will help you select your loan and monthly payments. I will be here to help you through the entire process if you have any questions. Your lender, myself, your attorney, and sellers agent and seller will coordinate together and prepare the date for closing.
Your lender will arrange for an appraisal to provide an independent estimate of the value of the home. The appraiser will let everyone involved that you are paying a fair price for the home.
Keeping the paperwork together
There is alot of paperwork involved. Your lender will arrange for a title company to handle all the paperwork and research that the seller of the home is the rightful owner. I will also be keeping track of your paperwork in case anyone needs any copies.
Shop for home owners insurance
Now is the time to look for homeowners insurance policies. Shop around again. Many different companies offer different policies and prices.
Close the sale
Called a closing. It is where you will sign all the paperwork needed to complete the purchase including loan documents. This is typically held at a title company or attorney's office. Once all checks are cleared and paperwork is signed you will get the keys to your new home.
Time to celebrate and move in!!!
As your local Real Estate Expert, I will help you along the way with all these decisions, including finding the perfect neighborhood, establishing a realistic house budget, finding you the perfect new home, negotiating the best price, and being there for you through the closing. Need to sell your existing home? I can help you with that process as well. I look forward to helping you on this exciting new journey.