Glossary

Meet The Team Helping You Navigate Your Next Real Estate Decision Daniel Walus Designated Managing Broker (E) Daniel@PadScouts.com (P) 773-551-4990 Lic. 471.019463 Miguel Aranda Buyer & Seller Specialist Lic. 475.181657 Aneta Korzec Buyer & Seller Specialist Lic. 475.124896 Araceli Flores Buyer & Seller Specialist Lic. 475.202929 What We Do We understand that buying or selling a home is more than just a transaction: it’s a life-changing experience. That’s why our team of highly-seasoned real estate professionals is dedicated to providing exceptional, personalized service for all of our clients. We take great pride in the relationships we build and always work relentlessly on the client’s behalf to help them achieve their real estate goals. We also diligently work to educate everyone on the home buying and selling process. We understand that buying or selling a home is unlike the day-to-day transactions we are used to. We pride ourselves in educating our clients to make sure the whole process is transparent so there are no surprises. Lastly, there is never an obligation to work with us. You can always contact us to learn more without committing to working with our team. We believe in educating everyone regardless if they are our client. We wish you the best on your next real estate decision!

Final Walk-Through Final walk-throughs are not home inspections . It is not a time to begin negotiations with the seller to do repairs or a contingency of sale . The primary purpose of a final walk-through is to make certain that the property is in the condition in which you agreed to buy it. Agreed-upon repairs, if any, were made, and nothing has gone wrong with the home since you last looked at it. A final walk-through is performed before settlement of the home buying transaction. Buyers are often pressed for time as the transaction closing date draws near, so they might be tempted to pass on this opportunity. But many issues can come up, and it's never a good idea to skip the final walk-through. The walk-through serves as a final check for any remaining, unresolved issues with the home. Follow this checklist to ensure you don't overlook any steps. Turn on and off every light fixture. Run water and check for leaks under sinks. Test all appliances. Check garage door openers. Open and close all doors. Flush toilets. Inspect ceilings, wall, and floors. Run the garbage disposal and exhaust fans. Test the heating and air conditioning. Open and close windows. Make sure all debris is removed from the home.

Title Search A buyer should always obtain a title search from a title company before purchasing a home. The company searches public records and other sources for any liens, easements (such as the utility company’s right to access part of the property), or other encumbrances or title restrictions that may affect ownership or use of the property. Under the Illinois purchase contract, the seller is expected to correct those problems as a condition to closing. If your mortgage lender doesn’t already require it, you should also consider purchasing a title insurance policy to protect your title to the property against adverse claims by third parties, or any clouds on the title missed by the title search.

Title Insurance Once the title is found to be valid, the title company will likely issue a title insurance policy, which protects lenders or owners against claims or legal fees that may arise from disputes over the ownership of the property. There are two main types of title insurance: owner’s title insurance, which protects the property owner from title issues, and lender’s title insurance, which protects the mortgage company. You, the home buyer, will pay for the lender’s title insurance when you close on the house, but it’s also a good idea to make sure you have an owner’s title insurance policy as well (in some areas of the country, sellers pay for these policies; in others, the buyer must purchase it). For example: You buy a home and get both lender’s and buyer’s title insurance, but then someone comes forward claiming they are the rightful owner of the home. If, in fact, the title was wrong and they are the rightful owner of the home, your title insurance policy will likely pay you the value of the home and the lender the amount they lent you to buy the home.

Closing Documents These are the documents finalized at closing: The deed – This is filed with the Recorded of Deeds office. It transfers title from the buyer to the seller. The Affidavit of Title – A statement by the seller about any known legal issues with the property or encumbrances on the seller’s title. Bill of Sale – A receipt-like document that shows the seller received all payments for the sale of the property. ALTA Settlement Statement – An itemized list of all the money and credits during the exchange. Transfer Tax Forms – Tax forms that show the amount of consideration paid for by buyer for the purposes of evaluating the transfer tax costs. At least three business days before your closing, the lender should give you Closing Disclosure statement, which outlines closing fees. Compare this to your Loan Estimate and ask the lender to explain what each line item on your closing costs is and why it is needed. There are limitations on the amount a number of fees can increase from the Loan Estimate to the Closing Disclosure so there really shouldn’t be any surprises on closing day. But if there are, you can still walk away at closing.

REALTOR (R) Seller's Agent A REALTOR (R) is real estate professional that is both a licensed real estate agent or broker AND a member of the National Realtor's Association. They are experts in the residential real estate process and help represent Sellers and Buyers during their real estate transaction. On this page, we will discuss the role, duties, and responsibilities of the Buyer's Agent: Role Showings: Sellers's Agents will coordinate with you and the prospective buyers to schedule time and access for property showings. Negotiations: Seller's Agents will assist the Seller in the Offer Negotiation process when the Seller receives offers to purchase their home. These include individual offers, multiple bids, and other offer situations. Management: Seller's Agents will assist the Seller in managing the entire buying process by organizing all of the requisite documents and ensuring all parties involved in the transaction are active in ensuring the selling process is being executed properly and in a timely fashion. Benefits - You do not need a real estate agent to sell a home; in fact, some home sellers leave the Seller's Agent out of the equation. However, you might benefit from hiring one. To save time. Agents are professionals who are active in the market and will have a pulse on the general market conditions in your area. Pricing a home properly on the market is important so that Sellers can receive the highest payment for their property and to sell quickly. Mispriced homes can end up staying on the market longer than desired by Sellers and may impair the Sellers ability to purchase another home and/or move on time. To get information and help with negotiations. Good agents should have wealth of information to help you make a decision. And, they’ll handle a lot of complex paperwork on your behalf. Offer Contract Contingency Negotiations Home Inspection Reports Appraisal Reports Earnest Money Escrow Extension Requests Another plus is that your agent will handle a ton of paperwork on your behalf. Unless you love filling out forms – and have experience in real estate transactions – this is a chore best left to the professionals, who should ensure that everything is done by the book. You could easily make a mistake with these documents. Mistakes can cause deals to fall apart or (worse) make you liable for an inadvertent breach of contract. (Licensed agent will have errors and omissions insurance to limit this risk.) An experienced agent will make sure that everything that needs to take place — counter-offers, extensions, appraisal, inspection, walk-through, loan approval — happens when it’s supposed to and how it’s supposed to.

Pre-Qualified Mortgage pre-qualification differs from a pre-approval in that pre-qualification assesses whether your debt-to-income ratio fits a lending institution' guidelines for home loans. It also provides an estimate of how much you may be able to borrow - a good first step in your house-hunting journey. While this number is informative, keep in mind how much you may qualify to borrow is often more than how much you can afford to spend on your new home and still have money left over for the other important things in your life; like furniture for your new home. Getting pre-qualified doesn’t require a commitment from you or the bank. It isn't a true application and your credit history doesn't factor into your pre-qualification. Even so, you should be aware that when you apply for a mortgage, your credit score will affect your ability to qualify. If you have concerns about your credit history, talk to your mortgage loan officer now to find out what loan options might be available to you. When you get pre-qualified, you can request a letter stating how much you may be able to borrow, based on the information you provided to the lender. You can give this letter to your real estate agent to show you’re a serious homebuyer.

Offer Rejection Sellers are able to reject any offers or counter offers presented by a buyer. The rejection, however, cannot come after a Seller has accepted an offer. Similar to Sellers, Buyers are able to reject any counter offers they receive from a Seller. Anytime a Buyer receives a counter offer , they may reject the offer and walk away from the deal.

Home Buying Buying a home may be the biggest financial decision of your life. Make sure you're informed. The home buying process is unlike any other purchases you've made in your life. It is important to understand the complexity of such a large transaction so that you know all of the costs, benefits, and risks associated with owning real estate. Home Buying Steps Step 1: Pre-Approval Professional Involved: Mortgage professional The first step to the home search process is to be pre-approved by a mortgage lender. The pre-approval will help you determine your financial situation. There are different types of mortgage loans. Learn why it is the first step: Pre-Approval Step 2: Buyer Interview Professional Involved: Realtor The 2nd step in the home search process is to work with a Realtor to talk about your wish list and your financial situation. In this conversation with your Realtor, you will work together to determine what are realistic goals when looking for your next home. You may also enter into a Buyer's Agreement with your Realtor. Steps 3: Home Search Professional Involved: Realtor The 3rd step involves you and your Realtor searching for available properties and scheduling showings to view properties. You might also be attending Open Houses during the home search process. Step 4: Make an Offer Professionals Involved: Realtor The 4th Step is when you've found the property you wish to purchase and you work with your Realtor to send an offer to the Seller for the price you'd like to purchase it for. An offer is a legal document used to outline a potential real estate transaction between a buyer and seller. Step 5: Negotiate Professionals Involved: Realtor The 5th Step occurs after you submit an offer to the Seller. The Seller can decide to Counter Your Offer , Accept Your Offer , or Reject Your Offer . If there are multiple offers, the Seller may counter by asking for your Highest and Best Offer . Step 6: Contract to Close Professionals Involved: Realtor Mortgage Professional Real Estate Attorney Appraiser Home Inspector Title Company The 6th Step occurs after your offer is Accepted. The Attorney Review , Home Inspection and Mortgage Approval are occurring simultaneously. Step 7: Closing Professionals Involved: Realtor Mortgage Professional Real Estate Attorney Title Company The 7th Step occurs after the financing is confirmed. The property's utility will be switched over to you, the final walk-through is conducted, the title is transferred , closing costs paid and closing documents completed.

Home Remodeling Speak with a professional today about your project! FREE CONSULTATION First and Last Name Email Description Phone Number (Optional) Upload up to 5 pictures (15mb or less) Select File Get Estimate Services Kitchen New countertops, appliances, cabinets, sinks, and completely new redesigns. Bathroom New bath, shower, vanity, mirrors, lighting, sinks, and complete redesigns. Exteriors New Gutters, Deck, Patio, Painting, Windows, Sidings, Roof Basements Flooring, drywall, painting, and fully finished basements Where to Start? Prior to reaching out to several remodeling services, we're happy to give you advice on how much you might expect to pay for your home update. In our investment business, we work with several trusted construction and remodeling companies and we love sharing information with homeowners. We can also help you get estimates from various vendors anonymously so that you don't get bombarded with sales calls. Get an estimate by filling out the form, call/text 773-389-5166 , or email us at remodeling@padscouts.com TIMELINE BUDGET SCOPE OF WORK EXPECTATIONS Process Gather Information - Room Measurements & Mood Board Get Estimate - Virtual, Call, or Physical Estimate Design Process (Optional) & Receive Proposal(s) Accept & Sign Agreement Schedule Construction Dates Execute Construction Final Walkthrough & Sign-off Completion Timeline Budget Materials Design Understand Your Reason The reason for why you want to start a home improvement or remodeling project is very important to how we advise you on the project. There are different factors to consider depending on the reason for the renovation. For example, an improvement project to increase the home's value is different than building out your forever home concept. Increase Value Forever Home Functionality Style Update First and Last Name Email Description Phone Number (Optional) Upload up to 5 pictures (15mb or less) Select File Get Estimate Our Partners We work with a variety of local contractors and companies to help bring our projects to life. If you'd like our recommendations, enter your project details into the estimate form and someone from our team will speak with you to determine which contractors may be a good fit for your project. We strive to get you a few recommendations so that you have more than one option!

How to choose a lender? Comparing quotes from several mortgage lenders is a critical part of the homebuying process. According to Freddie Mac data, getting three quotes can save you about $1,500, while five quotes can save you an average of $5,000. So, how do you do this? First, apply with at least three lenders. Head to their websites, fill out their online application forms, and give them a little information about your homebuying plans. You can usually get a quote within a few hours to a day or two. Once you have the quotes in hand (they’ll come in the form of what’s called a “loan estimate”), you should look at the following points to compare your options: Interest Rates Interest rates vary greatly between lenders. So, see how your quotes measure against other lenders. Example of how interest rates can drastically change your monthly payment: Purchase Price: $300,000 10% down payment Loan Amount: $270,000 At 4.25% , your monthly interest and principal payment is $1,328.24 At 4.75% , your monthly interest and principal payment is $1,408.45 APR This is your total annual cost to borrow the money, plus any fees or other charges required. Origination, underwriting, and application fees: Do the lenders charge fees for any of their services? If they do, compare the cost of those and see what comes out on top. Prepayment penalties Some lenders charge a penalty if you pay off your loan early. Make sure you know which of your options does and doesn’t. Estimated closing costs and cash-to-close This is what you’re expected to owe for the loan’s closing and on closing day. These can vary greatly as well. Private Mortgage Insurance (PMI) Private mortgage insurance (PMI) is a type of insurance policy that protects mortgage lenders in case borrowers default on their loans. This insurance cost will vary depending on the lender and the type of loan that you are seeking (i.e. Conventional, FHA, USDA, VA, etc.) How To Find A Lender? You can find mortgage lenders online, through your real estate agent, or by using a mortgage broker. You can also look to your personal bank or local credit union for a mortgage loan. If you’re in Illinois, here are a few of our trusted partners: Juan Fleitas - Compass Mortgage Direct Line: 630.687.6023 Cell Phone: 708.214.2222 Email Address: juanfleitas@compmort.com State License: NMLS# 219823 Erica Garcia - Compass Mortgage Direct Line: 773.644.2932 Cell Phone: 773.710.1665 Email Address: ericagarcia@compmort.com State License: NMLS #1714772 Amiel Steurman - Cypress Mortgage Direct Line: 312.829.1010 Email Address: amiel@cypressmc.com State License: NMLS #234812 Wendy Aquino - SunWest Mortgage Company Direct Line: 773.946.3650 Email Address: wendy.aquino@swmc.com State License: NMLS #921729