When buying a home for the first time in Illinois, there are certain items to consider and steps to take to ensure you’re prepared. Learn more about what to expect and how to approach the buying process, with some helpful tips for first-time homebuyers.
Steps in the Illinois Homebuying Process
Before you begin buying a home, there are some critical steps to take to prepare you for your next purchase.
These steps in the Illinois homebuying checklist include:
- Knowing Your Credit Score — The first item to think about is your credit score. This will help you determine what kind of difficulty you might have when financing a home. If possible, pay down the balances in your credit accounts to help raise your credit score. Doing so can make obtaining a mortgage easier.
- Calculating Your Budget — The next step is to determine your homebuying budget. Be sure to include your expected monthly expenses and the payments you currently owe, and include a cushion for unexpected costs that may crop up as well. Examples include emergency repairs, HVAC replacement, and unanticipated maintenance costs.
- Deciding on the Right Type of Home — Once you know what your financial situation is and what you can afford, consider the type of home you want, and what will best suit your needs. Consider whether you’re in the market for a newly built home or a fixer-upper, proximity to your job, local restaurants, stores, and schools, and features you want and those you can’t (or won’t) live without.
- Getting Preapproved — Obtaining a preapproval from a lender serves multiple purposes. It tells you how much you can spend on a home and how much your payments will likely be. A preapproval also lets the seller know that you are qualified to purchase the home. In such a competitive market, your offer may not be taken seriously without a preapproval.
- Comparing Lenders — Shop around with various lenders. Compare mortgage rates, down payment requirements, and fees. Your attorney can help you better understand any unfamiliar language, and the terms and conditions that accompany your loan.
- Considering Extra Costs — In addition to your mortgage, think about any extra costs that could come with your home. These expenses could include fees for legal services, real estate agent fees, home inspections, and title inspections, among others. Estimating these beforehand will enable you to better gauge whether your purchase is truly within your budget.
Pitfalls to Avoid When Buying a Home
In addition to taking the above steps, there are certain mistakes that first-time homebuyers often make and which you should avoid.
These pitfalls include:
- Focusing on the Property Over the Area — Homebuyers often make the mistake of focusing too much on the cosmetics of the home they want to buy and not enough on the location. Consider crime rates, school ratings, traffic, and nearby amenities.
- Buying a Home Based on an Emotional Decision — When you’re excited about buying a home for the first time, it’s easy to get overly emotional and make decisions based on these emotions. However, you should try to keep a level head and make sound decisions, as buying a home is one of the largest purchases most people will ever make.
- Skipping the Home Inspection — Although many homebuyers forego inspections because of the cost, a few hundred dollars is a small price to pay for the protection an inspection may provide. A home inspection can help identify issues that could turn into costly repairs later.
What Is the Role of the Attorney Throughout the Homebuying Process?
To make sure your purchase goes according to plan, you should consider working with an experienced real estate lawyer in Illinois. An attorney performs a vital function in the homebuying process, helping you with critical tasks such as:
Negotiating and Reviewing Contracts
Your attorney will examine the purchase agreement, ensuring it protects your interests. He or she will clarify contingencies, inspection clauses, and closing details, negotiating adjustments if needed. Additionally, your real estate lawyer may review your mortgage contract to ensure it complies with regulations.
Other Roles
In addition, an attorney may be able to help you overcome title challenges, enable inspections, give you information about all documentation you encounter, identify home equity, and review appraisals.
Knowing what kinds of questions to ask when hiring a real estate lawyer can help you determine whether the attorney is a good fit for you.
How Does the Closing Process Work in Illinois?
Buying a home in Illinois involves a multistep closing process, and having a real estate attorney by your side can make it smoother and more secure. Here’s an overview:
Contract & Disclosures: After a signed agreement, the seller provides disclosures about the property’s condition and history. Your attorney reviews these documents and negotiates any needed repairs or adjustments.
Financing & Title Search: The lender finalizes your loan, and a title search ensures the property is free from liens or ownership disputes. Your attorney oversees these processes and flags any potential issues.
Closing Day: You and the seller meet to sign final documents, transferring ownership and finalizing the sale. Your attorney explains each document and ensures everything is in order before you sign.
How Your Attorney Can Assist in the Closing Process
Your real estate attorney will review all documents, ensuring they align with the agreed-upon terms. He or she will decipher complex legal jargon and explain each document’s significance before you sign, acting as your legal advocate throughout the process to ensure your rights are protected.
Ready to Take the Next Step in Your Homebuying Journey?
If you’re a first-time homebuyer in Arlington Heights, IL, contact real estate lawyer call Roger W. Stelk to help safeguard your investment and ensure a smooth transition into your new home. Call 847-506-7330.
