Buying a Home Know to Need You What

costs. your out Figure home. new your Enjoy Home inspection ; and insurance; taxes for payments Escrow and ; Attorney’s and new mortgage. for fees Recording Closing fee; fees; Loan application/origination on loan; Points policy; insurance Lender’s » Appraisal fee; » » » » » » » » an effort the to settle outstanding mattersMake before a problem is to discover want The last thing you closing. issue delay an unresolved and have at the closing table the transfer of ownership. in preparing for the home-buying take you The care even it pays but is important the sale, before process attention to the legal and Your later. greater dividends you the peace of mind that comes financial details allows investment Your home is protected. your with knowing home your to enjoy be able means you’ll of time now to come. for years what documents are to be recorded at or after closing, after closing, at or recorded to be are documents what a keep As a general rule, to keep. need and what you and any signature your document with of any copy informationthat contains specific document about permanent address, property such as the property, your legal description. and (PIN), index number partyinform will the responsible Prior to the closing, (usually in the needed the amount of money of you form of a cashier or certified transfer) to check or wire typically include charges Buyer’s costs. closing your cover not limited to the following: are but

for plan and Schedule closing. the Consult your attorney attorney your Consult insurance. title about the new owner’s responsibility. responsibility. the new owner’s Mistakes in the public records; records; Mistakes in the public a disgruntled spouse or heir); documents (by Forged and insufficient ; Legally become the property or the seller that Liens against » » » » legal implications. Before you walk into the closing, into the closing, walk you Before legal implications. a clear understanding of have important that you it’s role. your and the financial obligations, the documents, attorney of this information. best source is the Your the financial aspects of In addition to reviewing understand you sure make attorney, closing with your on the home inspection, all the information revealed forms. disclosure and lead paint hazard seller disclosure, Clear up questions and outstanding issues with your the settlement Review the closing. seller before review (if any); and survey termite report, statement, Ownership transferred is officially of the property at the their sellers, a meeting that includes buyers, closing, and a attorneys estate salespeople, and real respective who acts as the closing agent (typically representative of the company). an agent or employee with documents and fees associated many are There serious financial and all of which have this transfer, events of the past that may have led to defects in the have of the past that may events title by of risks Examples typically covered that are title. following: insurance include the defects that against hidden Title insurance also protects Examples include in a title search. not be revealed would parties and amounts required from missing signatures Your on the property. to contractors who worked owed attorney will examine the status of title and negotiate need. you the type of coverage There are two types of title insurance, owner’s and owner’s types of title insurance, two are There buyers coverage, for owner’s Sellers pay typically lender’s. coverage. for lender’s typically pay only insurance that looks back in Title insurance is the loss based on against financial it protects is, That time.

800.252.0402 www.atgf.com 800.252.0402 Offices throughout the Chicago area, Champaign Champaign area, Chicago the throughout Offices and Belleville, Illinois, and Waukesha, Wisconsin. Waukesha, and Illinois, Belleville, and ©ATG (REV. 3/17) (REV. ©ATG ATG FORM 6021 ATG This information was provided by the following following the by provided was information This Inc.: Fund, Guaranty Title Attorneys’ of agent Determine your price range Create a “wish list” of Determine what services the Getting Started and timetable for purchase. what you’re looking for attorney will provide and Owning a home is part of the American Before you begin looking for a home, it’s important to in a new home. what the charges will be. dream. Along with the dream comes the examine your personal finances. What can you afford? Are you interested in new construction or an existing Once you’ve selected an attorney, set up a preliminary reality of how that purchase will affect What are your present financial obligations? Are there home? How much room do you need? Do you have meeting or phone call to discuss exactly what services future or past financial considerations that impact when a special neighborhood or a specific school district in he or she will provide and the fee structure for those your financial future. you should make a purchase? As you examine your mind? What features of a home are most important to services. Some attorneys charge an hourly rate, while financial position, look for ways to eliminate personal you? As you develop your list, consider which options others establish set fees for real estate transactions. There are many complex issues debt. Check your credit rating so you have no surprises are available within your price range. Remember: A good can save you many times during the loan approval process. There are many online his or her fee by protecting your investment and surrounding the home-buying process. tools and affordability calculators available to help with negotiating terms that are favorable to you. The more you Knowing what those issues are and how this step. Don’t forget to include real estate taxes and Select an experienced, know about what services and fees to expect, the more to address them is vitally important insurance when determining your price range. knowledgeable real likely your will be a smooth one. to ensuring a successful transaction— estate attorney. one that results in a comfortable home Pre-apply for a . Having your legal representation lined up ahead of time Consult your attorney before and a financial commitment that fits is a really good idea. There are several ways to find a you make an offer or sign a your lifestyle. qualified attorney: If you have been pre-approved for a loan before you contract. begin looking for a home, you have more control over » Ask for recommendations from friends, business Once you find your dream home, ask your attorney the home-buying process. Sellers know you are a serious contacts, and others in your area; to review the contract before you sign it. The attorney buyer, and you have the peace of mind of having an » Check with the state or local bar association to is your legal advocate and will examine the contract important hurdle behind you. see if it offers a referral service; or with your best interests in mind. Address concerns When selecting a mortgage product, seek your attorney’s regarding home inspection contingencies and contents » Contact a bar-related® title company like ATG. advice. There are many financing options available, your of the seller disclosure form at this time to avoid delays attorney can explain the terms of each and help evaluate Timing is key, and it’s in your best interest to engage and misunderstandings later. Remember, the contract which one is best for you. One of the most traditional the services of an attorney before you get too far along for sale becomes the blueprint for the entire real estate loan types is a fixed-rate mortgage. It provides a fixed in the process. Your attorney can explain the terms transaction. Once it is signed by all parties, it is monthly rate, guaranteed to remain the same throughout and legal consequences of each aspect of the transaction legally binding. the duration of the loan. These are the two most common: and can make suggestions that will protect you and

your investment » 30-Year Fixed-Rate Mortgage — Ideal if you’re Inside: looking for a predictable monthly payment and you plan Finalize your mortgage to remain in your home for a long time. financing. - When to pre-apply for Choose a competent, » 15-Year Fixed-Rate Mortgage — A good option if reputable . If you have been pre-approved for a loan, consult with a mortgage loan you plan to stay in your home at least five years and can your lender to determine what steps to take to complete afford payments that are slightly higher than those for a An experienced real estate agent brings a wealth of the financing process. Your lender may require that your - How to select an experienced 30-year mortgage. It costs you only about 20% more per information to the home-buying process. Be sure you monthly payments include the estimated costs of real month to reduce the length of your loan by half. understand the real estate agent’s role so that your estate taxes and insurance. real estate attorney interests can be protected. Ask your real estate agent

There are other types of mortgage loans: to disclose in writing his or her role and method of - How to choose a competent, » Adjustable Rate » Balloon compensation. Think about contacting a real estate agent who’s active in the neighborhood you’re investing in. reputable real estate agent » Interest-only » Reverse - Why it’s wise to estimate your » FHA closing costs Note that certain restrictions apply. Ask your lawyer to help you determine which option is best for you.