The real estate market can be tough to navigate. Here is a list of our most commonly asked questions by first time home buyers. We hope you find this helpful.
FAQ
Typically you can estimate about 3 times your annual salary. Depending on the loan type, your other monthly expenses get factored into a debt to income ratio. The lender will adjust purchase price based on your other monthly expenses, ie. a car payment, student loans, and monthly credit card minimums.
The most efficient way to search for properties is knowing exactly where you are in regards to how much you qualify for. Once a pre-approval or pre- qualifying letter is obtained we can set up house tours. Some list agents request to see the letter when I schedule a showing to ensure only qualified applicants tour the property, no lookie lous.
Most lenders will require a full credit check, to get a full accounting of your debts.
- 2 mos of check stubs from employer and 2 years of income tax returns
- 2 mos of bank statements- proof of down payment funds and lender fees submit all accounts to be accounted for as your assets.
- Keep in mind the lender doesn’t include any overtime/bonus towards your income. So if hourly make sure you only supply the annual figure of $15/hr * 2080 hours in a year (40hrs *52wks).
- Select a lender if financing, if not purchasing cash.
- Ask the lender about what home loans best fit your financial needs.
- Contract submission once home is found.
- Select an attorney. The attorney review period and negotiations thru closing date.
- Select a home inspector. Property to be inspected within 5-7 days of offer acceptance.
- Bank Appraisal- lender sends a representative to the ensure the valuation is correct and no repairs or safety hazards present.
- Shop for Homeowner Insurance policy.
- Closing- sign mortgage docs with your attorney at the title company and enjoy your new home!
This is an IL license law violation for brokers. Some agents may disclose the number of offers submitted, but will never tell you an amount to offer. Highest and Best is a common phrase and means exactly what it states, What is the highest and best amount you can offer on the property. I call it the how bad do you have to it number. This must coincide with the pre-approval letter the lender provides. There are other ways to make an offer stand out.
Q & A Selling/List Agent
I complete a CMA (Competitive Market Analysis) report, to submit to a homeowner interested in selling to give a guideline price point. Ultimately the homeowner sets the price, should be based on the figures provided to them and not on sentimental value.
Exclusive Broker Listing Agreement – determines price and length of contract etc.
Property Disclosures – RADON, REAL PROPERTY, & LEAD PAINT provided by agent and to buyer agent and client.
Multi units: RENT ROLL, EXPENSES, LEASES, etc.
Condos: Management Company will provide at attorney request: Meeting Mins, Approved Annual Budget, 22.1 disclosure, Paid Assessment Letter, Move forms and directions, Bldg Rules & Regulations, and Decs and Bylaws- last 3 docs come PDF lots to read.
De-clutter and limit personal items i.e religious/political items.
Notice is provided for showings, so it should always be maintained and tidy. No dishes in sink, clothes on floor, no odors, etc.
Any broken glass or panes?
Any chipping paint?
Stairs over 3 steps require a hand rail.
No water marks any old leaks that have been remedied but cosmetic update not finished should be completed before listing is made public.
These above items are especially for a FHA loan buyer. The appraiser will stop the loan funding process, if any of the above items are present.