6 - Home Buyer Checklist
Steps and Timelines For a Home Purchase
Created and Presented By:
Richard J. Freedkin, eXp Realty, LLC
Looking for a new home is both exciting and can, at sometimes, be a bit nerve-wracking if you don’t have experienced professionals helping you navigate the countless issues that can come up. There can literally be over 100 steps and issues to deal with in a simple real estate transaction, so you want to make sure you are being represented by competent, experienced professionals.
NOTE: If you are currently renting and your intention is to purchase a new home before your lease expires, you need to check with your landlord to find out whether they will allow you to break your lease early. I can’t tell you how many buyers I work with who tell me they won’t have a problem and they are sure they can get out of their lease early only to find out they can’t. We have even entered into contracts to purchase a home only to have to break the contract (fortunately during the 5-day attorney approval period has expired so they didn’t end up in breach of contract). This is a critical step before even going out to look at homes.
Your first step should be to get pre-approved (not just pre-qualified – there is a difference) for a mortgage, so we know what price range we need to stay within. For example, we wouldn’t want to spend time looking at $500,000.00 homes if you only qualify for $300,000.00. You may also think you qualify for more than you do, so it is vital to get pre-approved first. As I was in the mortgage industry for over 25 years, I can tell you countless stories of clients who thought they could qualify for much more than they actually got approved for. Pre-approval typically only takes 2-3 days provided you get the lender all the documents they ask for such as paystubs, W-2’s etc. (look at a sample list by clicking here)
We may look at just a few or many homes until you find the perfect home to make an offer on. Once we find that perfect home, the first thing I will do is analyze the property and recent sales of similar properties and make recommendations of an appropriate offer. I will prepare a detailed report on this information and go through it with you so you will better understand the recommendations I am making. While I will consult with you and offer my opinion and reasons behind those opinions on the many parts of an offer, you will have the final say on how much you want to offer, amount of earnest money, closing date etc.
Once we have nailed down all the parts of the offer, I will prepare the contract and send to you. We will go over each part of the contract so you will understand all the details before signing it.
They may be minor items or major items we will need to negotiate, and these can take a single day or many days to finalize, but once all terms are agreed upon and signed, the transaction can then move forward.
The first step after the initial contact is agreed to is the Attorney approval period. This is usually a 5-day period to perform home and radon inspections and deal with any issues that arise from those inspections (unless home is being sold “as-is”)
The below list and timeline are a basic guide to keep on hand and to help keep you on track with some important steps you should be aware of and to help make your home purchase go smoothly. There are many more items that both your Attorney and I will handle “behind the scenes” to keep things on track. This list does not take into consideration if you have a property to sell as that will also add items to the list and I can also help you navigate that transaction smoothly as well.
Closing Costs / Fees
In addition to standard closing costs that you will pay at closing, (as well as the balance of the down payment) you may be required to come up with some fees up front or at closing that the mortgage company will not calculate into the numbers they estimate you need for closing. These are not required but highly suggested. Ask me for the reasons behind each. Keep in mind that there are some loan programs (for first time homebuyers or some programs for existing homebuyers moving up) where you are actually borrowing or being given most of the down payment and when seller credits get factored in at closing, you may not have to come in to closing with any cash or very little cash.
Typical Costs: The costs shown below are not closing costs that are itemized by your lender. These are in addition to the closing costs you will pay and are typically paid before closing. Costs could be higher depending on other issues that may arise.
Home Inspection $350 - $650 (can be higher for larger homes)
Radon Test $200 - $400 (can be higher for larger homes)
Radon is the #2 cause of lung cancer. All homes have some level of Radon which is why I always recommend getting a Radon test performed.
Attorney’s Fees $550 - $650 (higher depending on type of property or situation)
Loan Application Fee $395 (higher depending on size of home or type of property)
Homeowners Insurance First Year Premium Must be Paid 2 weeks Before Closing
STEPS TO CHECK OFF AS WE GO!
- Get Pre-Approved for a home purchase price and loan amount so you know range of home prices and taxes to look at. I can recommend very good lenders.
- DO NOT HOLD ANYTHING BACK or HIDE ANYTHING ABOUT YOUR FINANCES – They Will Find Out and your deal can blow up day of closing!
- During and after you get pre-approved and all the way through closing, please make sure you incur NO NEW CREDIT or DEBTS or CHANGE JOBS. Basically, anything that would affect your qualification as they may check these all again just before closing.
- Do not borrow money or make any large deposits to your bank accounts as they will be questioned as to whether the deposit came from borrowed money or even a gift from a relative. If you get commission checks make sure you save them to prove any large deposits. Document all transfers between accounts to prove large deposits are not borrowed.
- If you are getting a gift, it has to come from a family member. Also, please make sure your loan officer is made aware of it ahead of time and that your loan program will allow it. There will be paperwork required to document the gift such as the bank account statement the money is coming from, a signed and notarized gift affidavit from the donor. A copy of the check from the donor’s bank and a corresponding deposit to your back account with deposit slip. Just remember the words “Paper Trail”
- Have an attorney in mind that you will want to use for the transaction (typical price around $500) - I can recommend very good attorney’s
- TIME TO GO LOOK FOR A NEW HOME YOU WILL LOVE!
- After finding a home that meets your needs and wants, I will analyze Comparable Sales to Establish its real value. Just because a seller has a price listed, doesn’t mean the home is actually worth that amount.
- Determine a Price to Offer and Negotiation Strategy
- Review Seller Disclosures for Lead, Radon and Home Condition
- Draw up offer, sign offer and sign Disclosures
- Upon contract acceptance, earnest money payment is due. Depending on price of home, this amount can be anywhere between $500 to as high as $20,000 or more. Typically for homes in the price range of $250K – 300K, a decent amount of earnest money can be anywhere between $1,000 to $5,000. The more you are willing to put up, the more seriously your offer will be looked at.
- 5 Day Attorney Approval time begins. (you have this time to perform all inspections or even back out of the deal and get your earnest money back). This is also when some renegotiation may be done for issues that come up during inspections.
- Look into Homeowners Insurance If you are purchasing a single-family home or townhome where assessments do not cover building insurance. You will need a HO-3 or equivalent policy at standard premium insurance rates and you must pay the first-year premium and provide paid receipt 2 weeks before closing and bring original policy and paid receipt to closing.
- Order Home and Radon Inspections (I assist with this)
- Home Inspection takes about 2 hours to complete. I am always at home inspection and buyer(s) should also be at inspection if possible, to speak with inspector about condition issues that may arise during the inspection or to learn how nice the home has been maintained as well.
- Radon Inspection may be performed by the same company or a different company. Radon test equipment is left at the home for 48 hours to take readings at different times to analyze radon levels. There is always some ambient radon in a home, but you want values to not exceed mid 4’s pCi/L (picocuries per liter) Weather can also affect the readings slightly.
- (Cost ranges for Home Inspection between $350 - $500) (Based on Square Footage)
- (Cost Ranges for Radon Test between $200 - $400) (Based on Square Footage)
- Attend Home Inspection and review findings with Inspector
- Discuss findings with your Realtor and Attorney.
- Determine items and/or dollars to negotiate based on those findings.
- Negotiations can take place between Realtors as well as Attorneys
- Once all items are agreed to and signed off, contact the lender to get the loan process moving and appraisal ordered. Appraisals take between a few days to a few weeks depending on how busy the lender and appraisers are. Appraisers are independent companies hired by the lender. They are not employees and do not work for the lender. They are involved to provide a non-biased 3rd party estimate of value so the lender will know if the price you are paying (and they are lending against) is accurate.
- Find a Moving Company and get a Moving time scheduled based on agreed upon closing date.
- Appraisal / Application Fee needs to be paid - $395 - $895 depending on type of property.
- Submit any paperwork to your mortgage lender in a timely and accurate method.
- Shop for, order and pay for your homeowner’s insurance policy. You will need evidence of insurance provided by your insurance company within 10 days after contact acceptance.
- After all loan paperwork is received and appraisal is in, the loan file goes to underwriting for final approval. There may be some additional items requested at this time to complete the loan approval.
- Loan Gets Signed off and CLEAR TO CLOSE is Issued.
- Closing Gets Scheduled
- 2 Weeks before closing, get the utilities transferred out of your name for closing day for your current home and into your name for the new home. (I will provide info)
- Final Walk thru Scheduled for day before or day of closing.
- Closing Day - Any funds needed to close must be in the form of a certified or cashier’s check payable to the title company. Unfortunately, you typically find out the amount until a day or so before closing so make sure your funds are available and in the account you will get the check from.
You can always make the check out for a little more than what is expected (your mortgage representative or attorney should be able to calculate for you before closing) and then the title company will cut a check back to you for the difference.
As always, if you have any questions on these or any other real estate issues, feel free to call me. I am happy to help and answer any questions you may have.
Richard “RJ” Freedkin, RENE, SRS, ABR
(847) 922-8423
Copyright 2021, 2022 - Richard J. Freedkin - All Rights Reserved
Testimonials
- Steve Tripp - Success Lending Schaumburg, IL
- Ray Rodriguez - Pingree Grove, IL
- John Griffin - Geneva, IL
- Jeremiah Stephens - Gilberts, IL
- Debra Horton - Deer Park, IL
- Chuck Cutler - Buffalo Grove, IL
- Mary Lou Garcia - Sale of Home in Waukegan, IL
- Ricardo Martins - Vernon Hills - (purchase)
- Chris Thompson - Elk Grove Village
- Stephen Macfarlan - Avon, IN
- Jake Eisenwasser - Lincolnshire, IL
- William Genzler, Elgin IL
- Mark and Joyce Sherman - Palatine, IL
- Christian Kisereu - Schaumburg, IL
- Katie and Jason Fulford - Inverness, IL
- Michael and Eunice Chang - Schaumburg (purchase)
- Shelah Hoblin - Woodstock IL
- Christina Hoblin-Lamorena - Algonquin, IL
- Semir Jaganjac - Schaumburg, IL
- Jeremy M D Jaeger - Lake In The Hills, IL
- Gloria Salazar - Waukegan, IL
- Ronald and Lillian Fowler
- Cheryl Jacobs Lewin - Skokie, IL
- Mary Lou Garcia - Purchase of Home in McHenry
- Greg Gault - Des Plaines, IL
- Warren and Regina Coler - Algonquin, IL - (sellers)
- Audry Starzyk - Aurora, IL
- Margo Pelak - Hawthorn Woods, IL
- Michael and Judy Jacobazzi - Roselle, IL
- Susan Yon Hansen - 20 Year Realtor - Century 21 (by text message)
- Tim and Lela Wong - Algonquin IL
- Sandy Krc - Geneva, IL
- Ana Martins - Vernon Hills - (purchase)
- Patricia Hoffman - Schaumburg, IL
- Joyce Doma - Streamwood, IL
- James and Michelle Gonzales - Elburn, IL
- Evelina D. - Orland Park, IL
- Mary Christoff - Lake Barrington Shores - (purchase)
- Tashuna Rodriguez - Pingree Grove, IL
- Michael and Judy Jacobazzi - Chicago, IL
- Melissa Broughton - Wonder Lake, IL
- Abdessettar Ibourki - Hoffman Estates, IL
- Douglas Comption - Sycamore, IL
- Brennan Burchill - Elgin, IL
- Marisa Roach, Elgin, IL
- Jake Sherman - Palatine, IL
- Mike McInerney - Hawthorn Woods Country Club - Hawthorn Woods IL
- Raj kaur - Chicago, IL
- Adriana Laura Cook - Winnetka, IL
- Jason Fulford - Inverness, IL
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Data is updated as of September 21, 2026 7:41 PM UTC