Congratulations, you are on your way to owning your very own home! Follow these suggestions (and your Realtor's advice) so that escrow and settlement with go as smooth as possible.
You will be asked for a down payment on the home you are purchasing. You can choose to put down as much or as little as you want (depending on your mortgage), but remember, the more you put down toward the total price of your home, the less time it will take you to pay off and the less your mortgage payments will be every month.
During this period of purchasing your home, you will hire a real estate attorney to act as an independent third party so that you know when and who to give your money to get the deed to your new home. We have great recommendations! The attorney will work with you on your inspection requests and will coordinate much of the activity that goes on during the escrow period. After the contract is executed (signed by both parties), your Realtor will tell you where to drop off the earnest money check. This check is cashed immediately so make sure you have sufficient funds available! At closing, the earnest money is applied as a credit toward your closing costs.
Assuming the sale goes through, this money will be applied to the purchase price of the home. If for any reason the sale is not consummated, you may be entitled to receive all of your deposit back, less standard cancellation fees. In certain instances, the seller may be able to retain this money as liquidated damages. Prior to executing a purchase contract, it would be wise to speak with your counsel regarding whether or not it is your best interest to have a liquidated damages clause as part of the contract.
You've made it! Once the sale has closed, you're the proud owner of a new home. Congratulations!
Licensed in Illinois and Wisconsin
The Hering Homes Team of @properties
170 Center St. Suite 2
Grayslake, IL 60030
jamie@realtorjamie.com
If you are ready to start your buying or selling process
give us a call. We're happy to answer all your questions.