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A Buyer’s Guide compliments of The Livingston Team - Serving you in Illinois and Wisconsin. Call us for all your Real Estate needs! 815-363-2834
Lay the Foundation for a Successful Purchase
Meet with your mortgage lender to get a pre-approval or conditional mortgage. Find out what your monthly mortgage payment will be to make sure you are comfortable with the price of your new home. Sellers appreciate financially responsible buyers; your contract will stand a better chance of acceptance if a letter accompanies it from your lender stating that you are likely to get the financing to purchase the home.
Read over a blank Offer to Purchase Contract or Real Estate Sales Contract (WI or IL, respectively) and related documents. Note your questions – it’s easier to understand these contracts now than it will be when the excitement of making an offer is at hand!
Rank your priorities and realize that they may change as you narrow your search. Here are some common considerations: Price, Age of Home, Size of Rooms, Size of Lot, Luxury Features, Basement, Number of Bedrooms/Bathrooms/Garages, Community Amenities, Distance to . . . (work?)(shopping?), School District, and Specific Neighborhood.
House Hunting... Now the Fun Starts!
The listing sheets for homes on the market will give you the details on each home and are the first tools to use to match the homes to your criteria. If you notice a home for sale in an advertisement or from a real estate sales sign, write the address down for me and I will make the appointment or get information about the home for you. I am at your service to be “information central”. Please resist the temptation to call the phone number on the sign or attend an open house without me. Our loyalty to each other as Realtor and Client assures you a high level of service from me and assures me compensation at the closing of your new home.
We will view the homes as much as possible during daylight hours, looking at 5 or fewer houses per outing. Each home’s unique features are important to recall; too many viewings in one day can confuse anyone! Wear comfortable shoes that are easy to remove, so you can slip them off if you need to.
Property Disclosure Reports are available about each home. We will get copies of the reports for the homes that make your final cut. The disclosure report is the owner’s declaration of material defects of which he or she is aware.
Some people walk in a house and know immediately that it’s THE ONE and others mull over the pros and cons of each and come up with a winner. Either way, this is an exciting moment and you are ready to offer to purchase.
Writing the Contract
The contract will specify the type of mortgage you plan to accept, dates for contingencies, possession and closing and list the inspections that you and/or your lender require.
An amount of earnest money is specified. Earnest money is deposited in a Real Estate Broker’s Trust Account and then returned to you on the day of closing to be applied toward the purchase.
I will work up a brief market analysis of your chosen home to verify that the listed price is in line with others in the neighborhood and to see the history of the listed price to sales price of comparable homes. You can use this information to help set the price in your offer.
The seller is given a time period to respond to your offer and will respond with an acceptance, rejection or counter-offer. Some points that are often countered are dates, price and/or amount of earnest money.
From Contract to Closing
Congratulations! You are on the way to owning your next home! Timing now becomes important. If you are using an attorney to handle the paperwork (and I encourage you to do so) both your attorney and I will keep track of deadlines for you. Once your contract has been negotiated to your satisfaction, your attorney will need a copy.
If you are having a professional home inspection, call and set the appointment as soon as possible. An inspection will take about 2 hours and will help to clarify the condition of the roof, mechanicals, etc. The cost can be high but it is usually worth the peace of mind. You will attend the inspection and pay the inspector on that day. It is not a closing cost. If there are significant defects that become apparent through the inspection and are not listed on the property disclosure report, these defects could become points of negotiation – your attorney will guide you through this process if necessary.
Meet again with your lender, if needed, to finalize the mortgage application. There are usually 30 days between acceptance of the contract and closing if you are diligent about applying for the mortgage. It could be much more if you have a house to sell, first.
A day before or on the day of closing, we will take another look at your new home. The condition should be at least as good as on the day you wrote the contract.
Closing will take place at a Realtors office, an attorney’s office or a title company.
Purchasing your new home is one of the most significant decisions you will make during this time of your life.
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