CheekyChicago

Rockstar Realtor here – continued from last week:

Okay…still not convinced that the time is right to buy?  Well, let’s focus on something that will play a huge part in your decision to buy a home.  I am talking about mortgage rates.  At the time that I am writing this article, mortgage rates are at 4.26% for the basic type of 30-year fixed when the amount being borrowed is not considered a “jumbo loan.”  The banks and brokers are still considering these well-under 5% rates as “record lows!”  And to give you young Cheekies some perspective, I can remember my parents getting excited when mortgage rates dipped below 14% back in the day – that is before you were born!  So, while we’ve become pretty complacent in the recent past, it has never cost this little to borrow money to buy a home.

You are worried about qualifying for the mortgage, you say?  Or you are worried about making such a big decision attached to a seemingly even bigger commitment for the first time?  Well, you are in luck!  There are a whole stable of people I work with who are willing and ready to help you through the process this first time and make sure you are supported happily-ever-after with all of your future real estate purchases!  Yep, you guessed it…time for the next installment of the Rockstar Realtor Real Estate Glossary:  Terms That Most People Never Need to Know Except When They are Buying or Selling a Home…

Following are descriptions of the people who you’ll need to help you through the buying process: the Realtor, the Mortgage Broker-Mortgage Banker-Loan Officer type of person, the Real Estate Attorney, and the Inspector.

Realtor: In this case, your realtor will be your Buying Agent.  She will listen to your hopes and dreams for what kind of new home you want and find it for you.  Then she will refer you to other professionals who can help with specific parts of the process.

Mortgage Broker / Mortgage Banker / Loan Officer: You may end up using only a Loan Officer to secure your mortgage if you go through your own bank.  Or, you may end up using a Mortgage Broker or a Mortgage Banker and then a Loan Officer to secure the loan.  Either way, your realtor will also know several of these and can explain the process to you before you even call one of them.  However, your Realtor should only give you the basic outline of the process and let your “mortgage gal” give you the details since the loan is her domain and you will be her customer.  I will leave the “mortgage process” for a later article since I can get “lengthy” on this topic even when I am just touching on the basics!

Real Estate Attorney: This is a lawyer who specializes in real estate.  You should not use a general practice attorney or an attorney who specializes in a different type of law for your real estate transactions (buying or selling).  Why?  Because going to your dermatologist to have your teeth cleaned could have catastrophic consequences!  So could using an attorney who doesn’t have real real estate experience to support you at your closing.  If you don’t know a good attorney, your realtor will know several and allow you to make your own choice.

Inspector: This is the licensed professional who will inspect the home you wish to buy for compliance with all codes.  She will also look over the roof, foundation, all windows and doors, appliances and even check the concrete pad you’ll be parking on! Inspections used to take a long time because a report needed to be written up and copies had to be distributed.  But, like everything else in real estate, the electronic age means same day reports delivered as PDF files.  Now the buyer has more time to look over the report and discuss any concerns or issues with her attorney.

Of course, there are lots of other people who you will meet during the buying process…but these folks are the ones you should know about before you ever begin.

Well, thanks for reading and please let me know if you have questions.  Next time I’ll be writing about how to decide where you want to live (which Chicago neighborhood) as part of the buying process.  Until then, feel free to contact me at phyllis@cheekychicago.com.