Buying a Home

• Property Search
• Do I Need an Agent when buying a Home?
• Checklist for Buying a Home
• Costs Associated with Buying a Home
• New Resident Information

Do I Need an Agent When Buying a Home?

Your Sudler Sotheby’s International Realty agent is your advocate. There are many invaluable services that a professional real estate agent can provide. Consider these critical points when asking yourself whether you will benefit from the assistance of a real estate professional:

1. Do I have time to research the residential housing market?
2. Do I have the knowledge to analyze and understand the information available to me?
3. Can I integrate the information available on the real estate internet sites into useful date that can help me accomplish my goal of home ownership?
4. Do I have the expertise to negotiate on my own behalf?
5. Do I have the resources to find a qualified home inspector and real estate attorney?
6. Do I have the time to research the home loan programs available in the market?
7. Do I have time to interview mortgage loan officers?
8. Do I have the time and expertise to target market, if necessary, for the type of property I want to purchase?
9. Do I know the zoning regulations and building codes pertaining to residential real estate in my area of interest?

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Checklist for Buying a Home

The Search

• Find out as much as you can about Chicago's neighborhoods. Make a list of what is most important to you: schools, transportation, shopping, etc..
• Make a list of what you need/want in your new home.
• Yes, you can negotiate on price...but start with a realistic idea of your limits.
• Use a qualified, professional real estate agent. They will work with you through the entire Buying Process.
• Go back to properties you like more than once, at different times of the day, so you can see the neighborhood and the property in "a different light."

The Purchase

• Forward a copy of the Contract to Purchase to your attorney immediately following acceptance. If you do not have an attorney, we will be happy to recommend several from which you can choose.
• Act immediately on any contingencies which you must satisfy. Any testing or inspections required on your part should be scheduled as soon as possible.
• Be certain to apply for your mortgage in a timely manner. We will assist you with your selection of a mortgage to ensure you find the best available financing to meet you're needs.
• Do not wait until the last minute to obtain Homeowners Insurance. YOU MUST BRING A COPY OF THE ACTUAL POLICY TO THE CLOSING WITH A RECEIPT. Remember, your mortgagee must be named as the primary beneficiary.
• All funds necessary to close must be brought to closing in the form of CASHIERS OR CERTIFIED CHECKS. Personal checks are not acceptable.
• A walk-through will be scheduled for you in accordance with the terms contained in the Purchase Contract. Your real estate agent will accompany you to verify that all items included in your Contract to Purchase are present.
• Your attorney or closing agent will contact you with closing figures. Remember that the exact amount of money you will need often will not be determined until your closing is scheduled.
• Usually, the closing is held at a title company or an attorney's office. Set aside two hours for closing. Generally, possession is transferred at closing unless your contract calls for another arrangement.

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Costs Associated with Buying a Home

Avoid unwelcome surprises by knowing what costs are the responsibility of the buyer. Check with your mortgage company before the closing since they might vary. Here are some estimated closing costs that are the buyers' responsibility.

• Loan Application Fee: Paid to mortgage company to cover appraisal and credit report - $350-$550
• Final Inspection/Recertification of Value: $75-$100
• Points: Paid to lender at closing, calculated as a percentage of loan amount (i.e. 1 point equal 1% of loan amount). May be disclosed as either discount points used to buy the rate down, or organization points.
• Private Mortgage Insurance (PMI:) Required when loan is greater than 80% - approximately .52% of loan amount annually - higher premiums required for loan-to-value greater than 90%.
• Prepaid Interest: Paid to lender from the date of the closing through the end of the month.
• Underwriting Fee: Charged by lender - $175-$250
• Processing Fee: Paid to mortgage broker to process loan and reimburse miscellaneous expenses - $150-$200
• Document Preparation Fee: Charged by lender to cover the cost to prepare closing documents - $100-$150
• Tax Service Fee: Charged by lender to obtain real estate tax bills and monitor payments of real estate taxes, $60-$98
• Flood Certification Fee: Charged by lender in order to ascertain if property is in an area of flood hazard - $25-$30
• Lender's Title Insurance Policy: Required by lender and paid to the title company to insure lender's interest in property - $150-$400
• Settlement/Escrow Closing Fee: Paid to title company to act as lenders' agent in handling closing - $100-$350
• Transfer Taxes: Varied by local ordinance - $7.50 per $1,000 (Chicago)
• Escrow/Reserves: Varies by month of closing
• Tax Reserve Fund: A minimum of two months of estimated taxes put into escrow, if required by lender
• Survey: For purchases, typically provided by seller. For refinances, new survey required unless previous is less than five years old and no new improvements. Not required for condominiums. $120-$300
• Attorney Fees: Fees vary by attorney. Generally $400-$700 or by hourly rate.
• Recording Charges: Charge by recorder's office to record mortgages and assign mortgage and deed or release - $60-$130
• Property Inspection: Optional - $250-$500
• Lead Paint Inspection: Optional - $200-$350
• Homeowner's Insurance: Cost varies.
• Condominium Charges: Condominium associations may charge an application fee, move-in fee, etc.
• Service Release : Compensation paid by lender to mortgage broker, average is 1.0-1.5% of loan.

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New Resident Information

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