Buyer's Guide
Owning a Home in Chicago
Chicago is one of the most diverse and competitive real estate markets in the country, and we understand that making the decision to buy a home here can feel overwhelming. From understanding the nuances between single-family homes, condos, and townhouses to preparing for closing costs and navigating the local market, there’s a lot to consider.
That’s why New Birth Realty Group, LLC has created this comprehensive buyer’s guide—to set you on the right path toward owning your dream home in Chicago.
STEP 1:
FIND AN AGENT
Look for a licensed real estate agent who is knowledgeable about the neighborhoods you’re considering and can help guide your search.
STEP 2:
GET PRE-QUALIFIED
Before starting your home search, the first step is to get pre-approved for a mortgage loan (unless you plan to pay the full price of your home in cash).
At New Birth Realty Group, LLC, we can connect you with trusted mortgage brokers who will assess your income and credit history. They’ll help you determine how much financing the bank will provide, allowing you to establish a clear price range for your home search.
STEP 3:
VISIT PROPERTIES
Attend viewings and open houses spanning a range of areas and property types. Now is the time to consider your ideal home’s accessibility and amenities.
STEP 4:
NEGOTIATE
Reach an agreement with the seller on price and terms. Once you find a home you love, New Birth Realty Group, LLC can submit an offer on your behalf. This offer is a non-binding agreement to purchase the home at a specified price. If your offer is lower than the list price, the seller may respond with a “counter offer,” which you can choose to accept, reject, or counter again. Our team will guide you through the negotiation process, offering expert advice on pricing and strategy at every step.
Our goal is to provide you with the most personalized service that is designed to help you buy your dream home.
STEP 5:
REVIEW
Analyze the contract of sale, property financials, and any relevant documents with your attorney. It’s essential to work with an attorney who specializes in real estate transactions, especially in the Chicago market. Your attorney plays a vital role in protecting your interests by thoroughly reviewing all the paperwork on your behalf. Selecting an experienced attorney who understands the intricacies of local real estate transactions is key to ensuring a smooth and secure process.
STEP 6:
GO TO CONTRACT
Sign the contract and put down a deposit. The deposit is normally 10% of the purchase price.
STEP 7:
COMPLETE LOAN APPLICATION
Bank organizes an appraisal with the agents who will provide comps to show the property’s value.
STEP 8:
PREPARE YOUR BOARD PACKAGE
(If you are purchasing a single-family home, skip ahead to Step 10.) For condos and co-ops in Chicago, it’s important to understand the specific requirements. Co-ops are typically managed by a board of directors, who will require a board package for approval. This package generally includes financial documents such as tax returns, bank statements, a mortgage commitment, and letters of reference. After reviewing your package, the board will schedule an interview. At New Birth Realty Group, LLC, we will assist you in preparing your board package and interview.
While condos generally don’t require board packages or interviews, you will need to submit a purchase application to show your financial qualifications. Our team will guide you through each step of this process to ensure a smooth transaction.
STEP 9: BOARD APPROVES THE PURCHASE
STEP 10: BANK ISSUES The CLEARANCE TO CLOSE
STEP 11: CLOSING SCHEDULED BY ATTORNEYS
STEP 12: FINAL WALK-THROUGH WITH YOUR AGENT
STEP 13:
CLOSING Congratulations!
Congratulations, You are now a home owner!