For many people, purchasing a home can be an intimidating event. However, with some up-front planning, it isn't all that complicated.
So you'll understand exactly what to expect, I like to give my buyers an overview of the whole deal.
Below are my nine steps to buying a home.
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Should you have questions about this information or if you're prepared to get started, you can contact me here or e-mail me at mark@markmalave.com.
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Step 1 – Prepare to buy a home
There are several things you'll want to take into account before starting your home search.
When you begin your search, you'll probably want to assemble an index of items you need to have, get an idea of what school districts you want to live in, and begin planning around your budget.
A good principle to follow is that your mortgage payment should be around a third of your net monthly income.
Step 2 – Get in touch with a real estate agent in Chicago
That's where I can help.
We can schedule a time to meet so we can talk about why you want to buy a home and get an idea of your plans for the future.
We'll discuss the mortgage and housing industries, other economic factors that might affect your purchase today or in the future, as well as neighborhoods and schools in the Chicago area.
I can also help you get started on your loan.
There are some great mortgage professionals in Chicago, and I work with a lot of them, so you'll be in great hands.
They'll help you figure out which type of loan is best for you, as well as help you get approved.
Step 3 – Start house-hunting
After we meet for the first time, I'll begin looking for houses on the market that are good for you.
I'll research many of the homes and throw out the duds, and then we'll schedule appointments to view the homes whenever it's convenient for you.
As we view the houses, I'll identify positive features, as well as negative ones. I'll even ask you about things you like and don't like.
Most often, buyers amend their must-have list as we view homes and some features become far more essential than others.
If that's the situation, I'll look through the listings one more time and narrow it down to the house you've been wishing for.
Step 4 – Understand the housing market
My knowledge of the Chicago market is an essential benefit in your home search. I am informed of all the neighborhoods and school districts, and I can let you know certain districts are "hot" and call for prompt action and the ones that are "cool" and allow for thoughtful consideration.
When we tour homes, I'll make sure to communicate when the asking price has room for negotiation and when I know the house is "priced to sell."
When working with an agent, trust your instincts and be sure to ask plenty of questions. Any real estate agent will tell you they truly know the market.
If things don't add up, just call me at (773) 435-1605 or e-mail me at mark@markmalave.com, and I'll be more than happy to answer any questions you have. My understanding of the market will help you stay a step ahead through the entire deal.
Step 5 – Find your dream home
We'll find the house of your dreams in the Chicago area, and when that happens, I'll carefully develop your home purchase offer. The offer will be tailored exactly to your needs. Whenever necessary, I never forget to make contracts contingent upon items like obtaining financing and the results of the home inspection.
Upon submitting your purchase offer, you'll probably want to present "earnest money." This is a cash deposit made to a home seller to secure the offer to buy the property, and it's typically applied to the cost of closing. If the seller accepts your offer, we should close on the home about 30 to 60 days afterward. This allows plenty of time for your mortgage financing.
Step 6 – Negotiate
A lot of deals aren't closed on the beginning offer, and it's widely common to receive a counter offer. Don't let it alarm you. We'll figure out whether or not to accept the counter offer, propose our own counter offer, or refuse the seller's offer and go on.
The state of the market determines how aggressively we negotiate the contract.
We'll also work within your financing limits. And when it's all said and done, we'll create a contract that works well for you.
Step 7 – Secure financing
Once the deal is finalized, you'll start working with your lender to close the loan.
This won't be a long process at all if you're already pre-qualified, but you should to keep in close contact with your mortgage lender.
And I'll care for all the property information your mortgage lender will need to close the loan.
Step 8 – Close the deal
You'll get a Good Faith Estimate (GFE) detailing your closing costs from your lender within three days of accepting your application.
The estimate is based on the loan amount, and RESPA requirements dictate that it has to involve all closing costs and fall within a strict range of accuracy. I'll study the estimate and let you know if everything looks okay.
Then it's time to close on your house. This will most often happen at a title company or escrow office and should be a smooth and relaxing affair.
Step 9 – Move in
Success! Now you can move into your new home. Enjoy it. And if you have any questions, simply call me at (773) 435-1605 or send me an e-mail.
