2235 W. North Ave Chicago, IL Your Guide To The Home-Buying Process

Mike Cuevas Direct Efax REALTOR ® PROFILE

The Home Buying Process from Start to Finish Choose a Real Estate Agent: Search for someone who is a good listener and who keeps your best interests in mind. Obtain Pre-Approval for Loan: Speak with several mortgage brokers and compare rates. They want your business, so don ’ t be intimidated, you ’ re the customer. Ask about the current mortgage rates, closing fees, and different mortgage options/products. Property Search: Begin to look for properties in your area of interest with the guidance of your Realtor. Submitting an Offer: Once you find a home you want to purchase you will submit your OFFER. The Real Estate Agent ’ s job is to get you the RIGHT PLACE, for the RIGHT PRICE. I will prepare the contract and negotiate the deal. As your agent, I will show you comparable sales so a fair offer is made. Deposit Initial Earnest Money with Listing Agent.

Hire an Attorney: Once an offer has been accepted, it ’ s time to retain Legal Counsel. If you don ’ t already have a Real Estate Attorney I can refer you to ours. Home Inspection: I only use licensed professional Home Inspectors. Problems are usually not apparent to the naked, untrained eye. A qualified and trained Home Inspector ’ s job is to identify any issues regarding the condition of the property. During the first 5 business days of your contract you will have the Attorney Approval Period. If any serious problems are found by the Home Inspector or Attorney this is the time to address these concerns. At this stage you can negotiate who will fix the problem. This is considered a counter offer and would be presented by the Attorney. If an agreement is not made between Buyer and Seller then in this stage the contract can be legally cancelled. The Home Buying Process from Start to Finish (cont.)

Earnest Money: Per your contract you will increase the amount of your earnest money at this point. Homeowners Insurance: Before closing you will be required to obtain Homeowners Insurance. Final Walk-Through: We will conduct a final Walk-Through of the property 24 hours before you close. Determine Monies Needed At Closing: We will estimate your total closing costs and you will bring these monies in a Certified Check to closing made out to yourself. A lot of times the amount is unknown until the morning of closing so you will bring an estimated amount. To determine the estimated amount we will consult with your attorney and your lender. Any excess monies brought to closing will be cut back to you at closing. Close on the Property and Move-In The Home Buying Process from Start to Finish (cont.)

Why Work With A Real Estate Agent When Buying? My Services are FREE to you, and will NOT Cost you a Penny: I am compensated by the seller of the home, NOT the buyer. A Realtor Can Help You Understand the Home Buying Process: There will be many different contracts, forms, and addendum's that you will need to sign. A Realtor will make sense of these for you. The process can be somewhat of a complicated process to those unfamiliar to purchasing a home. A Realtor Can Help You Determine Your Purchasing Power: By directing you towards mortgage brokers, you get a better sense of what fits your budget.

Why Work With A Real Estate Agent When Buying? I Save You Time and Energy!!! Looking for a house can be a full time job. There is a lot of research to be done and I will do all of that for you. I research properties, their surrounding neighborhoods and features, I set up appointments with other agents to view homes, and I report back to you. All you have to do is choose the home you like. A Realtor can Help Negotiate: Sometimes negotiating can be intimidating, but know that a seller ’ s ultimate goal is to sell the house. This works towards your advantage. I will help to negotiate prices, and make sure that you are putting in a proper offer. Your Time is Valuable as well as A Realtors Time: If I do not help you find the home that you are looking for, then I do not eat. It ’ s that simple! This means that I have no time to slack off. I will work efficiently, and with your best interests in mind to help you find the right home. Ultimately, one day you will call us to sell your home and we want to be able to successfully do that, when the time is right.

Breakdown of your Mortgage Payment PRINCIPAL The amount of money you borrow. Each month, you pay back a portion of that principal. Over time, interest becomes a smaller part of your monthly mortgage and more of your payment goes towards reducing the principal you owe. INTEREST The cost of borrowing money. Usually expressed as an annual percentage of the loan amount. Example 6%. PROPERTY TAXES Taxes you pay to local governments usually charged as a percentage of your property value. Your lender usually collects the taxes through your monthly payments. The amount of tax will vary by where your property is located. This process is also known as escrowing wish may not always be required but recommended.

Breakdown of your Mortgage Payment (cont.) PROPERTY INSURANCE: An insurance policy that protects you from Financial Losses on your property as a result of Fire, Flooding, etc… PRIVATE MORTGAGE INSURANCE (PMI): An insurance policy for down payments of less than 20% of the cost of the home. This allows the mortgage lender to recover losses if the borrower fails to fully repay the loan. PMI makes it possible to buy a home with a low down payment. You can also avoid PMI by breaking your loan up into 2 loans. For example: 1 st loan for 80% and 2 nd for 10% vs. one loan for 90% and paying the PMI.

Interest Paid & Principle Paid Graphs Ex. 30-Year Fixed Mortgage for $250,000 at 6% Interest

Buyers Triangle

Closing Costs Title Fees Attorney Fees Home Inspection City Transfer Tax Lender Fees Appraisal Pre-Paid Interest