Buyers

Must Know Steps To Buying A Home

So, you’ve decided to purchase a new home. You’ve started looking on Realtor.com and have been saving properties that pique your interest. It’s all fun and games, right? Yes AND no. Buying a house is very fun, I admit it, I love my job, but it can be a jungle out there.

When buying a home, it is imperative that you understand the process and ask for a professionals advice when you need it. As well as a lot of paperwork, and no doubt some steely negotiation tactics from the seller, purchasing a home can be stressful - it is my job to ensure that all transactions are as seamless and enjoyable as possible.

Work Out Your Budget

Getting prequalified and finding out what your spending power is, is the first step toward owning your own home. When you work with an agent, they can provide a valuable resource of contacts such as lenders and real estate attorneys- so ask them! Your lender will look at your income, credit scores, revolving debts, as well as the type of loan you choose. Another factor that impacts your budget is the amount of down payment you have available, for example, smaller down payments mean higher monthly payments. Lastly, the interest rate and terms (30-year, fixed or adjustable rate) will determine what you can afford in monthly payments. Here are my top tips for purchasing a home in the current market.

Location, Location, Location.

One of the most challenging decisions to make when buying a house is deciding where it should be located. Sometimes you may have to sacrifice house size/condition to be in the area you want. This is worth it if it saves you considerably on your commute, or if you require a particular school zone, amongst other reasons. Location is something that you should try to pin down before you start your search. By using an agent with considerable knowledge of the local market, you can be confident that the location you decide on is the right one for you.

Understand Your Lifestyle Needs

If you don't want to do yard work or maintenance, consider a condominium. A condominium offers shared amenities, with little responsibility. If however, you value space and privacy above all else, a single-family home would probably suit you more. Having an idea on all of these aspects will streamline your search considerably. As a real estate professional, I pride myself on giving my clients the information they need so that they can find the perfect house for them!

Make An Offer

Your offer depends on the current market. In a seller's market, the pressure to come with your best offer, first time, is on, so it is essential to seek your agent's advice when deciding what to offer. There are certain situations which can be beneficial to a buyer, such as if a home has been on the market for a long time, you can ask the seller for a price reduction. If the house has only recently come onto the market, a seller is unlikely to accept a low offer. All circumstances should be considered with your agent.

Order An Inspection & Appraisal

A home inspection is a professional third-party opinion of the home’s condition. The inspector will point out the age of systems, and large and small repairs that are needed, so you’ll know what you’re facing as the next owner. It is important to note that licensed inspectors although very knowledgeable, are not infallible. An inspection is a snapshot of the house at that particular time. Your lender will organize the homes appraisal with a licensed appraiser, and this is a crucial part of the mortgage process. The appraisal determines market value. If the home doesn’t appraise for the purchase price, the bank will refuse to make the loan unless you and your agent successfully negotiate with the seller to reduce the asking price. If it appraises, the lender will move towards closing.

Close On Your New Home

Once final negotiations are complete, the transaction is ready to close.  Both parties sign all required paperwork on the agreed closing day and transfer the deed of the property over to the buyer. The lender pays the seller, minus any liens against the home such as the seller’s mortgage. Once all the disbursements have been made, you get the keys to your new home according to your agreement, and this is when we pop the champagne!

If you are considering buying a home in the Chicagoland area and need an experienced agent, I would love to assist you.