Ed Watts

Get pre-approved for your mortgage. Pre-approval means that you have actually made application to a lender and have been approved, usually subject to the appraisal of the property.   A pre-qualification is not as strong.  Pre-qualification simply means that you have spoken to a lender and you should be able to qualify for a certain loan amount subject to verification of the information that you have supplied.  Pre-approval will not only help you determine the appropriate price range for you, but it will also make your offer more attractive to the seller if you accompany the offer with a pre-approval letter.  In some cases, this can actually save you money as the seller may be more motivated to negotiate with you as opposed to a buyer who has not be pre-approved, or only pre-qualified.  When a seller receives an offer contingent upon the buyer obtaining financing, their main concern is the buyer’s qualifications. The seller does not want to have to put their home back on the market after 30 or 40 days if the buyer should not be able to obtain the financing specified in the mortgage contingency.  A letter Pre-approval will alleviate some of the seller’s concerns. 

Educate yourself on the market by going to Sunday open houses. This is an easy way to see a lot of properties in a short amount of time.  You can view the property as quickly or for as long as you like.  It is very important however, to tell the hosting agent that you are working with me.  Give the hosting agent my card,  simply tell him or her that you are working with me, or write my name on the sign in sheet.

Because I am compensated only in the event of a successful transaction I would greatly appreciate your cooperation and loyalty.  I can provide information on any property available and would appreciate it if you would make inquiries only through me.  If you contact an agent from another firm on a particular property, no matter how insignificant it may seem to you, I may not be able to represent you on that property.  Again, when you attend open houses, please tell the hosting agent that you are working with me.

There is no fee to you, the buyer, for my services.  The commission is usually divided four ways: between the seller’s agent and firm, and the buyer’s agent and firm. The seller pays a commission to their real estate company, who pays my company, who pays me.  Though I will represent you exclusively and I will be working in your best interest, my fee will be paid indirectly by the seller.
 

Choosing a lender.
 
Call two or three lenders and ask to be "pre-qualified."  They will ask you a series of questions, and in a few minutes, they will give you an estimate of how much you can borrow.  Ask questions about interest rates and mortgage products too.

Select one lender, and take the next step, which is to meet with the lender and make formal loan application to get "pre-approved."  A pre-approved mortgage can be helpful when you are ready to make an offer on a home.  Do not select the based entirely on the interest rate and product, as this could change by the time that you are ready to lock-in your rate and product.  Generally, you are not able to lock-in to a rate and product until you have a signed sales contract and are within 60 days of closing.  On the day that you’re ready to lock-in, you might want to call one or two other lenders to make sure that you are getting a competitive rate.

John Mathy, Market Sales Manager  - The Private Bank
    70 W Madison, Suite 200
    Chicago, IL 60602
    312-564-1984 Direct      312-961-7332 Cell 
    JMathy@theprivatebank.com

     Click here for website

The Contractor’s Inspection.

A contractor’s inspection is a visual analysis of the building and its internal components to find potential problems.  An inspection is different from an appraisal.  An appraisal is used by a lender to determine the market value of the property.   An inspection is an in depth look at the structure and mechanical components of the property.  The inspection starts with the roof and goes through the entire home, covering plumbing, electrical and heating systems, checking for structural soundness.

The inspection should be done by a qualified contractor, builder, or professional home inspector who can spot potential problems that would not be apparent to the non-professional.  The buyer hires the inspector.  Remember that you are buying used housing and it is to be expected that some components show signs of daily wear.

 If the inspector finds some problem areas, the contractor will usually be able to give you a rough estimate of the cost of repairs.  The inspector can also advise you about the life expectancy of specific items so you can be prepared to cover replacement or repair costs, even though they may be months or years down the road.  You should accompany the inspector in order to learn more about your new home. 

Ask friends or family for inspector recommendations, or feel free to call and ask questions to any of the inspectors below.  These are inspectors that past clients of mine have hired for their home inspections. 

Tips on choosing an inspector.

Interview several inspectors by phone.  Do you like the way they talk on the phone? Do they handle your questions well?  What services do they offer that make them different from other inspectors?  What is the anticipated cost of an inspection for the type of home?

Check on the inspector.  Ask for the inspector’s credentials including references, and then verify them.

Determine what will be and what will not be included in the inspection.

Make sure you are present for the entire inspection and participate. The purpose of a home inspection is to educate the homebuyer about the property.  What better way than to be there for the entire inspection process?  Do not bring children, the electrician or friends who may distract your attention from the inspection process.  The inspection is a learning experience and by fully participating, you will learn and remember more about the property than by just reading the final report.

Be sure the inspector provides a written report, not just a verbal walk-through.  Home inspection reports come in basically three styles:  narrative, checklist and a combination.  Some are prepared on the spot and others are written and delivered later.  Because time is usually of the essence in a real estate transaction, the one delivered on the spot is probably the better choice.