So you’ve found that perfect home after searching for a week, a month, or a year. So what’s next?
So you’ve found that perfect home after searching for a week, a month, or a year. So what’s next? Most likely you’ve already done your pre-approval and financially qualified the home to make sure it’s in your budget. The next steps will show in detail of how to make that perfect home yours.
1. Ask for the Home owner’s disclosures such as “lead paint”, “Radon”, and the Seller’s disclosure that lists about 20 items that are critical to a well functioning home. If you are buying a foreclosure the seller will not provide disclosures. So a home inspection is crucial.
2. Next a CMA or Comparative Market Analysis prepared by gathering at least 3 sold homes with in close proximity and similar features will help determine value and offer price. If a home is asking 200k and the comparable sales are 195k, the home is well priced.
3. Making the offer: These are the 5 negotiable parts of the contract.
4. After the contract is negotiated it’s time to get busy. A home inspection should be scheduled in the 1st 5 days after acceptance. The inspection will help determine if there are any defective parts of the home and issues that need to be repaired.
5. An attorney should be contact as well to review the contract and get in writing home inspection issues that the seller agreed to fix or give as cash credits. (with in 10 business days after contract acceptance)
6. Contact your mortgage lender and let them know you have an accepted contract. They will take a mortgage application and start your loan processing. They will ask for additional documentation such as bank statements, pay stubs, w22s and tax returns.
7. Many of the next steps take place behind the scenes. The underwriting your loan will begin to make sure all documentation is place and the appraisal will be order to verify the properties value meets the loan amount.
8. A mortgage commitment will be issued stating that funds are approved and awaiting the closing.
9. You will want to do a final walk through of the home usually the day before or morning of closing to make sure no damage was done to the home when the seller moved out and that all agreed upon items have been left in place.
10. And finally the Closing. Your mortgage funds will be wired to the title company where the closing is taking place and loan documents will be signed. Items needed: A cashier check for down payment, & closing costs made out to the title company and Identification like drivers license or passport.
Congratulations!!! You’re now the proud owner of a home. Search for a Chicago Home
Building Financial Freedom Through Real Estate Investing
"Many people believe accumulating wealth & belongings is the central sign of success: others are happy to have their health and retirement security. Consider this; success may be defined as achieving complete financial and personal freedom. That allows you to do as you please while maintaining complete control over how you spend your time.” Michael ThomsettWhat’s the Difference Between Short Sales, Foreclosures and Traditional Real Estate
Residential real estate has been turned upside-down in the last 4 years. Purchasing a home was a fairly simple process. A buyer could find a home they like, make an offer directly to the owner, negotiate price and terms, then close within thirty days. Today real estate is a completely different world and the market is dominated by short sales and foreclosures ( up to 50% of all sales in some areas).Real Estate Short Sale Deadline Nears
IRS. Govhttp://www.irs.gov/individuals/article/0,,id=179414,00.htm