(847) 714-2866 lauren@lejlaw.com

Purchasing Real Estate

A step-by-step guide to purchasing real estate

Whether you’re purchasing your first home or are a real estate investor, the purchasing of real estate is a process wherein specific benchmarks must be met before the transaction can be completed.  Below is a summary of the standard purchase process:

  1. You draft and sign a real estate contract and send it to the seller (owner) for their review and signature:
    1. Once the initial terms are agreed upon and the seller sends back a signed real estate contract, you are now in the attorney review period.
    2. The attorney review period lasts for five business days (unless an extension is granted).  Send the signed real estate contract to us as soon as possible.  You do not want to have your attorney review deadline expire before we can review it.
  2. At this point, you pay your earnest money.  The seller’s real estate agent or attorney needs to receive it, either by check or wire transfer by the deadline listed in the contract.
  3. Inspection of property and modification phase:
    1. Order to have the property inspected by a certified home inspector.  Contact us or your real estate agent if you need a referral.
    2. Once we have the home inspectors report, we will discuss the report together.
    3. We will then draft a letter proposing repairs and changes that we want to be completed before the closing of the property and send it to the seller’s attorney.
    4. We wait for a response from the seller’s attorney.  Once we come to an agreement on what items will be fixed, the process moves forward.  At this point, if both sides can’t come to an agreement on repairs or credit for repairs, either party can cancel the contract, and you will get your earnest money back.
  4. Loan Approval Phase:
    1. If this is not a cash deal, you should be working closely with your mortgage loan originator.  For things to go smoothly, pay attention to your email and get all the documents needed to them as soon as possible.
    2. We wait for the lender to issue loan approval.
    3. We wait for the lender to mark your file “Clear to Close” (this is usually the biggest hold-up in the transaction).
    4. We schedule a closing time and place with your lender and seller’s attorney at a nearby title company.
  5. Pre-Closing Phase:
    1. The seller makes all the agreed upon changes to the property.
    2. The day of, or the day before the scheduled closing, you do the final walk-through of the property with your real estate agent to make sure the property is in good condition and any agreed-upon repairs completed.
  6. Closing:
    1. We all attend the closing and finalize the transaction.

 

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