Like most aspiring home buyers, you’ve been searching for homes online, and you’ve even found some properties that look promising. So…now what? You may have decided you are ready to buy a home, but getting there can seem like a mystery. Relax – we’ve done this before. Here’s how it works:
Step 1 – Buyer Consultation
We’ll sit down with you at our office in Wicker Park. We’ll discuss your vision and goals for homeownership. We’ll figure out exactly what you’re looking for and offer advice about your search. We’ll educate you on the home buying process. Then we’ll lay out a plan to make that happen on your terms within your timeframe. By the end, you’ll feel confident about buying a home, and we’ll even have a few showings scheduled. We’re off and running!
Step 2 – Mortgage pre-approval
Unless you’re paying cash for your home, you’ll need to talk to a good local lender about how much you can afford to pay for a home. And don’t take your bank’s website’s word for it – talk to a pro who knows Chicago and is willing to get to know you. We’re happy to put you in touch with someone. In fact, many of our buyers speak with a lender 6, 12 or even 18 months before they plan to buy so they know they’re saving enough money. A relationship with a great local lender will give you confidence in your buying ability and make the process much easier down the line.
Step 3 – Home Search
Right now there are thousands and thousands homes for sale just in the areas Center Coast Realty services. Our agents are experts at helping you prioritize your wants and needs. We’ll whittle that mountain of listings down to a manageable list of potential future homes. We’ll help you evaluate each property carefully, then arrange all the showings for you. We’ll take videos of your favorites, and organize them all on a map so you can see what groceries, gyms, CTA stops and other important neighborhood amenities are nearby.
Step 4 – Make an offer
You’ve found it! Your dream home! Now what? Your agent will interview the listing agent, review the market, research the property’s history, and assemble an enticing offer package. Negotiations may sound intimidating, but your Center Coast Agent is a pro. Your agent will guide you through the contract, then present it to the listing agent. The seller will likely counter your first offer, and your agent will help you evaluate and respond to each counter-offer. After some give and take, both parties will agree on a price and terms. You’ve got a deal!
Step 5 – Inspection
Before you close on your new home, you’ll hire a professional inspector to make sure you aren’t buying a lemon. Ask your Center Coast agent for a recommendation on who to hire. Your inspector will thoroughly examine the furnace, air conditioner, water heater, appliances, interior walls and floors, electrical panel, and many other items. Remember though, your inspector can’t inspect anything he can’t see, like plumbing behind walls or condo common areas we don’t have access to. If your inspector uncovers serious problems that we didn’t know about when you made the offer, you can either a) ask the seller to fix them prior to closing, or b) request the seller pay you a credit at closing so you can make the repairs yourself.
Step 6 – Attorney Review
Because real estate agents are prohibited by law from providing legal advice or modifying contracts, your attorney will review your contract and make any adjustments after it has been accepted. In the offer, we will specify a timeframe for this, typically 5-7 business days. Your attorney will make sure you receive important condo documents, if applicable, and formalize any repairs or credits the sellers agrees to after the inspection.
Step 7 – Loan Application & Appraisal
Once you feel confident your home purchase is moving forward, you’ll fill out a formal mortgage application. Get ready to chase some paper. It comes with the mortgage territory today, but a good lender will keep you organized. Be ready to spend some time on your bank’s website downloading a few month’s worth of statements for each of your accounts.
Step 8 – Clear Mortgage Contingencies
Once your application is submitted along with the appraisal, your bank’s underwriter will review it. Nearly always, the underwriting team will request additional information or documentation. They may want a letter of explanation for a large deposit in your savings account, or the seller’s condo association may need to provide some documents. Expect to get quite familiar with your bank’s website and your company’s scanner before this step is over. You may find it tedious, but it’s a normal part of the process. Ask your agent for tips on how to make the paperwork easier.
Step 9 – Final Walk-Through
Before we head to the closing table, we’ll take one last spin through your future home. This is our chance to make sure the sellers made all the repairs you requested and didn’t accidentally put any holes in the wall moving out.
It’s been a long trip, but you’re almost home! You and your Center Coast agent will meet your attorney and the sellers attorney at the office of the seller’s title company (usually downtown in the Loop). Get ready to sign some paper. Lots of it. Your attorney will explain each form to you to make the process move faster. When it’s all over, you’ll get the keys to your new home. Way to go, you did it! Let’s celebrate.