The home-buying process can be simple or complex depending on the circumstances. While interest rates are at historic lows, new financing requirements can be challenging. All-cash transactions or those with higher down payments are easier to close than those requiring a heavy amount of financing. Those relying on financing need to thoroughly prepare prior to selecting a property or submitting an offer, & need to be prepared that new appraisal guidelines have made it more difficult for banks to lend based on agreed-upon prices. That said, preparation & perseverance will lead to a successful purchase!
The Purchase Process in 9 Steps:
1. Secure Monies / Financing
Make sure that your credit score is high, debt levels are low, deposit monies are available, & income documentation is ready. Interview several bankers & work with the ones who you feel confident can close the deal. Unprepared buyers, constrained/uncreative bankers (particularly those who make lofty promises that cannot follow-through), & low appraisals are the primary reasons sales fall through. You should at minimum get a Prequalification Letter prior to shopping for a property. Better yet, you will get a Pre-Approval, Conditional Approval, or Approval Letter. The most attractive offers come from buyers who either pay with verified cash or show a Pre-Approval, Conditional Approval, or Approval Letter when the contract is signed.
2. Select the Property
This is the fun part! Pick the home with the location, age, size, maintenance level, appreciation potential, & amenities that are ideal for you & within your budget. I recommend steering clear of co-ops, selecting a newer property if you don't have time to rehab, & making sure that any home-owners association is well/professionally-managed & solvent.
3. Write / Negotiate a Purchase Offer
This should be done with a standard real estate contract. These are readily available online, and provided by us.
4. Hire a Real Estate Attorney / Make Earnest Money Deposit
Illinois is an attorney state, so any contract would need to survive "attorney review" by both attorneys (buyer's & seller's) in order to be executed.
5. Conduct Home Inspection (optional)
You are welcome to do this. Keep in mind that all Hyde Park Luxury purchases come with a Home Warranty.
6. Open Escrow / Order Appraisal / Comply with Lender Requirements / Get Insurance
This is coordinated between the buyer & their bank.
7. Conduct Final Walk-Through (optional)
Sign Loan / Deposit Funds / Close Escrow / Receive Title & Keys
9. Enjoy your new home!
This is the easiest step of all! The home buying process can be temporarily nerve-wracking & stressful, but you will likely end up with a home you can enjoy as well as a solid investment for years to come!