Buyer’s Frequently Asked Questions

What is a pre-qualification/pre-approval letter?

A pre-qualification letter is a rough estimate of what loan amount you will be able to afford. It is based primarily on your gross income and does not consider your debts and expenses. A serious buyer should ask for a pre-approval letter, which is a far more realistic expectation of what you can afford, so you are not in the middle of the home buying process and then find out a week before closing you cannot get your home. A pre-approval letter is a document that you receive from a lender that considers both your income and your expenses. Having a pre-approval letter from a specific lender does NOT obligate you to obtain your loan from that lender. Another benefit of a pre-approval letter is it may make your offer stronger to a potential seller, even from someone who may have offered more money, because it can make the seller feel more secure the deal will go through.

Do I have to pay a realtor to purchase a home that is in the MLS?

No. In the state of Illinois, the home seller pays the commission to both realtors involved in the transaction.

What is the MLS?

MLS is an acronym that realtors use when referring to the Multiple Listing Service. The Multiple Listing Service is the central database that realtors use to find out about properties that are currently for sale, properties that are pending, and properties that have sold.

Should I offer a lower price on the home to leave room for negotiation?
The answer to this question is not cut and dry; however, in today’s market, that answer is typically NO. Homes are often being sold for over asking price due to lack of inventory. In some cases, the listing agent (the real estate broker representing the seller) may have put an unrealistic price on the home expecting buyers to over pay. This is why it is so important to have an agent who knows the market and will inform you of the market value of the home you’re looking at and give his or her expert opinion. 

How long does the home buying process take?
The process begins by meeting with a trusted agent. You want to ask them questions on their availability to show you homes and their knowledge of the area. They need to listen to your wants and desires and then discuss the absolutes of the must haves. Once you make an offer that is accepted, there are still things that need to be done: the home inspection, the appraisal of the property that a lender will require, and any paperwork the mortgage company may not have. The whole process from contract to close can take between 30 to 45 days.

Should I get a home inspection?

Yes! A professional home inspection is at the buyer’s cost and can range in price between $300.00 to $500.00 depending on the size of the home. It is well worth the price. The inspector will look at the whole property from the top to the bottom including the roof condition, attic, interior of the home, basement, and outside foundation to let you know if everything is safe. They check that all appliances are in working order and will look at the condition of the mechanicals. This is not an opportunity to request a light bulb in the closet be installed. A home inspection can be a reason to break a contract if there are safety and habitability issues. 

For a detailed Buyer’s Guide, please click on the link under the Buyer tab to supply your email address, and I will be happy to send it to you. Please feel free to call me to set up an appointment to go over any questions in more detail. I am happy to sit with you over a cup of coffee and have a face-to-face meeting or have a video meeting if you are more comfortable with that option.