Ten Step Home Buying Process

As an ABR® (Accredited Buyer's Representative), here's a quick overview of the steps I recommend for my clients:

STEP 1 - Wants vs. Needs
Make a list of the top 5 features you absolutely have to have in your new place. This will help both us find the home of your dreams. If you're the analytical type, use my excel based decision model that weights each criteria so you can see which properties score the best. Note, if you are shopping with a life partner, husband, wife etc. then you should each independently make your own lists then negotiate with each other until you agree on your top 5 features.

STEP 2 - Pre-approval vs. Pre-qualification
Knowing how much you can afford will help to streamline your home buying process. Pre-qualification is a relatively short process where your mortgage provider takes into account basic financial information and qualifies you for a certain amount. Pre-approval is generally conducted after pre-qualification. Your mortgage provider conducts a more thorough investigation on your current financial status and provides a pre-approval letter. Having a pre-approval letter to accompany your offer puts you in a stronger negotiating position.

STEP 3 - Neighborhood Information
In your "needs vs. wants" list, list the neighborhood(s) you would be willing to consider. This will again streamline your searching and will allow your agent to conduct thorough searches using all available resources.

STEP 4 - Home search
Search the entire Chicago area MLS for Free. Select homes you are interested in seeing and I'll do the rest! Or, ask me to do a custom search for you...that's what I'm hear to do! I do all the leg work including previewing the property for you if you'd like. Then we go see the finalists.

STEP 5 - Making an Offer
Once you have found the ideal home, it's time to make an offer. I'll do a comparative market analysis of the property and help you determine the terms of your initial offer. Initial earnest money is offered to the seller at this time.

STEP 6 - Negotiating to Buy
Negotiating until a final price is agreed upon is common practice in real estate. Anything is negotiable including price, earnest money, time allowed for attorney review and inspections, as well as the closing date. My years of negotiating experience will be a great advantage for you.

STEP 7 - Vendors & Attorney Review
Once your offer has been accepted, you'll need a real estate attorney to review the contract right away. If the property has a homeowners association, I'll help to get declarations, by-laws, and budgets for you to review with your attorney. Many associations require a move-in packet to be completed for their management company as well. I recommend you have an independent home inspection completed prior to the expiration of the attorney approval period. A new Illinois statute requires that home inspectors be licensed by the state and I can provide you a list of qualified inspectors. Your lender will also need a copy of the contract and will conduct an appraisal to insure that your investment is sound. Again, I can provide you with referrals and I'll coordinate with the different vendors to make sure that everything necessary is completed in a timely and legal manner.

STEP 8 - Pre-Closing
Once the seller and buyer attorneys approve the contract and the balance of earnest money has been paid, the attorneys will be ordering all of the documents needed to complete the transaction and schedule a closing with the title company. During this time your lender will be completing the underwriting process to finalize the loan as well. If you're purchasing a property with a homeowners association, the association will provide proof of hazard insurance for the building to your lender and attorney. If there is no association, your lender will require that you provide an insurance binder showing that you have secured hazard insurance for the property at this time. Here again my assistance in providing referrals and coordinating the activity to insure a timely closing is invaluable.

STEP 9 - Closing
This is the process where transfer of ownership takes place, from the seller to the buyer. Your attorney will guide you through every step and I will be there to answer any questions that arise regarding the property.

STEP 10 - Post-closing
Congratulations, you are now a new homeowner. You will need to set up local utilities and I'll provide you with a list of local utility vendors.