First Time Hombuyers Guide
The journey to homeownership can be complex, filled with unfamiliar terms, decisions, and potential pitfalls. That's where this First-Time Home Buyers Guide comes in. Whether you're a recent graduate, a young professional, a newlywed, or simply someone looking to transition from renting to owning, this guide is designed to provide you with a comprehensive roadmap for the home buying process. From preparing your finances and understanding mortgage options to searching for the perfect property and navigating the closing process.
Mortgage pre-approval is an important step in the real estate process that helps you understand how much money a lender is willing to loan you for the purchase of a home. It also demonstrates to sellers that you are a serious and qualified buyer. Peter Georgitsis, our lender, will be responsible for conducting a thorough study to assess your creditworthiness and provide detailed information on products that best suit your needs. In addition, Peter will offer personalized advice, highlighting areas for improvement in your credit history and providing strategies to optimize it. After pre-approval, the best combination of mortgage types and benefits is determined to help you achieve your goals.
1. pre-approval
documents needed for the pre-approval meeting
1. bank
statements
Statements from the two most recent months for all current and/or savings bank accounts. (Include all numbered pages from all bank statements and do not erase any information).
3. tax returns
The two most recent years of tax returns, including all attachments.
5. paycheck stubs
Most recent month worth of pay check stubs.
2. investment account statements
The last two months of statements. (Include all numbered pages from all investment statements and do not erase any information). *If you have them.
4. W2’s
Most recent 2 years from all employers.
6. identification card
Legible state-issued driver's license or ID.
* At The Stoic Team we are committed to ensuring a seamless real estate journey for everyone. Whether you have specific
document needs due to a disability or any unique requirement, our dedicated team is here to assist you every step of the way.
2. getting set up with an MLS search
The client takes advantage of how they want to proceed; there is a meeting, they provide us with the documents, and there is a conversation with our real estate agent to outline your criteria for a new home. This includes your budget, desired location, the type of property (e.g., single-family home, condo, townhouse), the number of bedrooms and bathrooms, and any specific features or amenities you're looking for. To access our property search map click here. According to the agreement, we will schedule the search.
MLS is a comprehensive database that real estate professionals use to list, search, and share information about properties for sale. As a prospective buyer, accessing the MLS allows you to explore available properties and stay informed about the real estate market.
You will start receiving a list of properties based on your criteria through your email, and there you can indicate whether you are interested or not. It is important to note that if there are properties of interest to you, you can send them to us, and we will verify the availability for you.
3. beginning the home search
Let us know when you are available to view places, and we will schedule the visits for you. We will accompany you as you go out and look at all the properties that interest you. Additionally, our team in Costa Rica will stay in constant communication with you to schedule visits, search for properties, coordinate appointments with the lender, and conduct a comparative market analysis. Join Zenlist to save properties that interest you, including exclusive properties that are not available in popular apps, and we will schedule the showings for you.
3. placing an offer
When making an offer, three things are presented to the selling agent:
A security deposit that is handed over when the client accepts the offer. They then have 24 hours to make this deposit.
The written offer.
The pre-approval letter indicating that you are pre-approved for the amount of the offer.
3. due diligence period
It is a critical 72-hour period during which potential buyers have the opportunity to conduct a thorough review of all legal and physical aspects associated with a specific property. This period is established as a strategic window for buyers to demonstrate their seriousness and commitment to the real estate transaction, allowing them to carry out detailed inspections. During these 72 hours, buyers have the authority to cancel the contract without penalties, and any deposit made at the beginning of the purchase process will be fully refunded to the buyer.
disclosures
These are disclosures or statements provided by the seller to potential buyers, revealing important information about the property. In the state of Illinois, during the inspection period, the seller is obligated to provide three specific disclosures:
It refers to the presence of radon gas on the property. Radon is a radioactive gas that can seep from the ground and accumulate in buildings. Its presence can pose health risks. The disclosure related to radon gas will inform buyers whether radon tests have been conducted on the property and what the results were.
Illinois Radon Disclosure Requirement
Federal Law Requiring Lead Disclosure
It is related to the presence of lead paint on the property, especially in older homes. Lead exposure can have harmful effects on health, especially in young children. The seller must disclose any knowledge of the presence of lead paint on the property and provide information about any mitigation or remediation efforts undertaken.
This disclosure provides details about various features and conditions of the property. It includes information about the structure, systems, land, and any other relevant aspect. The seller discloses what they know about the condition of the property, including any known issues.
Residential Real Property Report
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Attorneys
Their main role is to conduct a thorough review of the legal documentation associated with the property, ensuring that there are no municipal violations, legal issues with entities, or other obstacles that may affect the transfer of the property.
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Inspection
Chicagoland Home Inspectors, who are part of The Stoic Team, ensure that the inspection process is backed by professionals experienced in the field. During the inspection period, the team conducts a thorough review of the property, addressing key aspects such as the structure, electrical and plumbing systems, as well as other relevant physical elements.
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Title Company
We work with Strategic Title, and their main function is to provide title insurance services and conduct the necessary research to ensure that the property is free of legal or financial issues before closing the transaction.
Once both parties have reached an agreement and the due diligence period has closed, the mortgage finalization process begins. At this stage, Peter, our lender, enters the pre-approval information into the bank's system. A crucial part of this process is the appraisal, for which Peter submits a request.
The appraiser, an expert in property valuation, determines the current value of the property in question. If the appraisal reveals that the value is lower than the agreed-upon offer, the bank approves the set price. On the other hand, if the determined value is higher, the bank may not grant the loan in full, requiring additional negotiation.
This self-protective system is implemented to prevent potential errors in overvaluing a property. By establishing this mechanism, it ensures that buyers do not overpay for a property, as the bank verifies that the loan amount aligns with the actual value of the real estate.
6. appraisal
In this part of the process, we ensure that all crucial elements are in order to move towards a successful closing. Once clients have collaborated effectively with Elle García, who serves as the primary transaction coordinator and maintains seamless communication with all involved parties, the gathering of necessary information for the bank is completed. This process involves the verification and fulfillment of all requirements, both internal to the bank and possibly those imposed by the municipal government. At times, it may be necessary to address specific repairs or ensure that certain records are in order. Clients play a crucial role at this point, as they must maintain active communication with Elle to provide any additional documentation required by the bank or the attorney.
7. clear to close
8. the closing
On the closing day, we will conduct a final walkthrough of the unit to ensure that there were no damages to the property since the seller moved out. After the final walkthrough, we will proceed to the closing. You must bring identification and have already sent the funds to the title company. Closings typically take place at the title company's office and may take approximately 2 hours.