2023 Buyers Guide IL & WI

Contents

The Home Buying Process

The Process

STEP 1

MEET WITH YOUR AGENT

• Discuss budget

• Discuss market conditions

• Research area neighborhoods

• Set wants & needs

STEP 2

GET PRE-APPROVED

• Gather your financial documents

• Meet with a lender

• Obtain Pre-Approval

• Confirm you have adequate funds

• Set a budget

STEP 3

FIND YOUR HOME

• Tour homes

• Adjust criteria if necessary

STEP 4

MAKE AN OFFER

•Research comps in the area

• Work with your realtor to set up the best offer

• Negotiate terms of the offer

STEP 5

UNDER CONTRACT

• All negotiations are finished

• Both parties have signed contract

• Deposit earnest money

STEP 6

DUE DILIGENCE

• Professional inspects the property

• Negotiate Repairs

• Attorney Review

• Obtain home owners insurance quote

STEP 7

APPRAISAL

• Professional appraiser ensures the property is worth the contracted sales price

STEP 8

TITLE COMMITMENT

• The title company will send you a title insurance policy for the property after closing

STEP 9

DOCUMENTS TO LENDER

• Make sure all requested docs are sent to your lender prior to closing

STEP 10

CLOSING

• Wire final closing funds

• Final walk-through

• Sign closing documents

• Receive your keys

The Cost Of Buying

The Costs Of Buying A Home

EARNEST MONEY DEPOSIT:

Theinitialamountyouputtosecurethehomeforouroffer Onaveragethisis1%ofthesalesprice,anddoa fewdaysafteracceptedoffer.Thismoneyisreducedfromyourfinalclosingcosts.Itistypicallycashedand heldateitherthetitlecompany,attorneyorlistingfirm'soffice Duewithin3-5Daysofcontract.

INSPECTIONS:

Homeinspectionsareimportantwhenbuyingahome Wewanttofindouteverythingthatcouldpossiblybe wrongwiththehome Ageneralhomeinspectionisamust,butyoucanalsoselectmanyothertypesof inspectionsincludingfireplace,termite/pestinspection,radoninspection,waterinspection(ifwellwater), septicinspection(ifon-siteseptic),orsewer! Duewithin3-7daysofcontract.

APPRAISAL:

Allhomesthathaveamortgagewillrequireanappraisaltoensurethatyouarebuyingahomethatisnot overpriced.Anappraisalisdonestrictlyforthelenderandcostsbetween$400-$600.Thiswillbepaid upfront. Duewithin5-10daysofcontract.

DOWN PAYMENT:

Thisisnotdueinfulluntiladayortwobeforeclosingday!Ifyou'reusingaVALoan,youwillnothavea requireddownpayment!Otherloanproductsrangefrom35%(withanFHAloan)to20%,andeverywherein between!Youwillbeabletodiscussthespecificsofyourloanwithyourlendertofindoutexactlyhowmuch ofadownpaymentwillberequired. Dueatclosing.

CLOSING COSTS:

Closingcostsarethefeesthatareneededtocloseandgetkeysforyournewhome suchastitlefees, lenderfees,transfertax,escrow(includingyourtaxes),reimbursements,andhomeownersinsurance Closing coststypicallyrangefrom3%-5%ofthepurchasepriceofthehome. Dueatclosing.

GENERALHOMEINSPECTION:

$450-$650(DEPENDSONSQFT)

RADON: $225-275

TERMITE: $100-$150

*THESEAREAVERAGECOSTSANDVARYDEPENDINGONTHEINSPECTIONCOMPANYUSED&SCOPEOFPROJECT

The Mortgage Process

The Mortgage Process

The very first step of the home buying process is to get a pre-approval letter from a lender stating how much you are pre-approved for. A pre-approval letter is typically only valid for 30-90 days as long as no major financial changes have occurred in your life.

1. What type of loan do you recommend for me and why?

There are multiple types of mortgage loans, and you should know which one is best for you and how it works A good lender can help break this all down in easy terms for you to understand, and will be here alongside us in the journey to help answer any questions that come up that pertain to the home loan

2. Will my down payment vary based on the loan I choose?

If you’re tight on cash or don’t want to be cash poor, let your lender know. Loans vary in their down payment requirements, and no two scenarios are the same. The lender is there to put the puzzle pieces together and come up with a plan that will work for you and your financial scenario so it is best to be completely transparent with them from the beginning

3. What is the interest rate and the annual percentage rate (APR)?

Everyone talks about the interest rate, but the APR is just as important It combines the interest rate with the fees a lender charges to originate your loan It is the full cost of financing a home

4. Can I lock in the interest rate? If so, for how long?

If you think rates will be moving up, ask if you can lock it in for a set period of time Some lenders have extended rate lock options

5. What will my closing costs be?

Are they a part of my loan, or will I pay them in cash at closing? Can I take a higher interest rate and use a lender credit to help cover my closing costs? Closing costs usually run 3-5% of your loan value so you need to know how they’ll be covered Sometimes we can also negotiate the seller to help cover a portion of your closing costs, depending on the market conditions

YOUCANUSETHELENDERYOUCHOOSE.THESEAREAFEWOFTHELENDERSIKNOWANDTRUSTANDHAVEWORKEDWITH

Qualifying for a Mortgage

W-2 Income/Salary

Income from part-time jobs

Income from a second Job

Overtime & Bonuses

Seasonal jobs

Self-employed Income

Alimony & child support (Documentation required)

Income from the lottery Gambling

Non-occupying

Unverifiable income

Income from rental properties

NEEDED documents

W2’S FROM THE PAST 2 YEARS 3 MONTHS WORTH OF PAY-STUBS

BANK STATEMENTS (PAST 2-3 MONTHS)

PREVIOUS 2 YEARS OF TAX RETURNS

LIST OF YOUR DEBTS & ASSETS

DIVORCE DECREE

Mortgage Loan Guide

There are many different types of loans. when you speak to your lender, they will help decide which one is the best fit for you Each loan product has different minimum credit scores required as well as different down payment options

VA LOAN

Loans designated for active duty, veterans, spouses, and reservists, offered through private lenders and guaranteed by the U.S. Department of Veteran Affairs. This is a $0 down loan program.

FHA LOAN

Loans designed for those with high debt-to-income ratios and lower credit scores, and most commonly issued to first-time homebuyers. Offered by FHA-approved lenders only and backed by the Federal Housing Administration. Typical down payment is 3.5%

USDA LOAN

Loans for homebuyers in designated rural areas, backed by the U.S. Department of Agriculture. There are income qualifying limits as well. It is also a $0 down loan program.

CONVENTIONAL LOAN

The most common type of home loan, which is offered through private lenders. Down payment can be as low as 3% and as much as 20%.

Mortgage Loan Guide

WHO QUALIFIES DOWN PAYMENT

CONVENTIONAL

Do's & Don'ts Of The Loan Process

There are certain “Do’s and Don’ts”of the home loan process which may affect the outcome of the ability to purchase a home These remain in effect before, during, and after loan approval up until the day of funding your loan and closing Many times credit, income, and assets are verified days or hours before you have signed your final loan documents

MAKE SURE THAT YOU DO NOT:

Don’t get married or divorced

Don’t change professions or start your own business

Don’t change bank accounts

Don’t buy ANYTHING! (appliances, furniture, etc )

Don't co-sign a loan for ANYBODY else

Don't buy a new vehicle

Don’t throw away documents

Don’t get lazy with monthly bills and incur any late payments

Don’t let anyone run your credit or apply for any credit cards

Don't pay off any old debt collections unless instructed to do so by your lender

MAKE SURE THAT YOU DO:

Do keep all accounts current, including mortgage, car loans, credit cards, etc

Do contact both your lender and agent anytime a question may arise

Do make all payments on or before due dates on all accounts, even if the account is being paid off with your new loan

Do return phone calls from your agent, loan officer, Settlement Company, or anyone else involved in your transaction ASAP! TIME IS OF THE ESSENCE !

Home Search

Onceyouhaveyourfinancesinorder,thehousehuntofficiallybegins!

IwillsetyouuponanautomaticsearchthroughtheMultipleListingService(MLS),whichisthedatabasethat Realtorsusetolistandsearchforhomes Themomentahomethatfitsyoursearchcriteriaislistedforsale,itwill besentdirectlytoyouremailinbox Ifweeverneedtoadjustthesearchcriteria,justletmeknowandIcanmake anychangesyouneed

Usethesearchfiltersbutnottoomuch.

Youdon’twanttonarrowyoursearchsomuchthatyouonlyhaveahandfulofhomestoview Keepingyourwants vs.needslistinmind,expandyourgeographicsearchwillallowformoreoptions

Ifyoufindsomethingthatcatchesyoureye,it'sagoodideatodoadrive-byfirst

Onlinepicturescanbedeceivingsodrivingthroughtheareawillgiveyouabettersenseoftheneighborhood,area, andifit'sahomeyouwanttoview

Remember,youcan’tchangethesizeoflotorthelocation

Location,location,location!Considerthiswhenpurchasing,

Don'tletyourselfgetdistractedbythehomedecororstaging. Consideryouoptions,butdon'tgetanalysisparalysis.

Whilethedecororfurnituremaybeattractive,thesethingsdon'tcomewiththehomeandwillbegonebythetime youmovein Trytostayfocusedonthefloorplan,andconditionofthehome

Ifahomemakesagoodfirstimpression,makesureyouwritedownallofthereasonswhyyoulovethathome This isoneofthelargestpurchasesyou’llevermake,soIfullyunderstandwantingtomakesureyoumaketheright decision Don'ttakesomuchtimedecidingthatsomebodyelseswoopsupthehomeandgetsundercontract beforeyoucanevenwriteanoffer.

QUESTIONS TO ASK BEFORE SEARCHING FOR A HOME

Offer & Negotiations

Offer & Negotiations

Soyou’vefound“theone”andyou’rereadytoputinanoffer let'sgooverthebasics!

INORDERTOWRITEANOFFER,WEWILLNEEDTHEFOLLOWINGINFORMATION:

PRE-APPROVALLETTERANDPROOFOFFUNDS.

Includeapre-approvalletterthatshowsthatyou’reserious,pre-approved,andreadytopurchase

OFFERPRICE

iwillhelpyoudeterminetheproperty'smarketvaluebasedoncompsYoumayonlygetoneshot,somakeitcount Wewillusecompsasaguide,butgoinwithastrongnumberandtermsweknowasellerwouldfindfavorable

EARNESTMONEYDEPOSIT FINANCINGAMOUNT

Thisisn'tdueuntilAFTERtheofferisaccepted,butmakesurethefundsarereadyItistypically1%ofthe purchaseprice

Whatpercentageoftheloanyouarefinancing,andhowmuchyouareputtingdown?

CLOSINGDATE INSPECTIONS

Ifgettingamortgage,thisistypically30-45daysfromacceptanceoftheofferThiswillbethedaythedeedtothe homeisrecordedinyournameandthekeysarehandedoverItisfavorabletoaskthesellerswhattheirpreferred settlementdateIs

Theinspectioncontingencyis5daysinIL&14daysinWI,toperformInspections&renegotiateorterminatethe contractIftheInspectioncomesbackunacceptable

Inspections & Insurance

Duringtheinspectionperiod,thebuyerhastherighttohireaprofessionaltoinspecttheconditionof thehome.Theinspectionwilluncoveranyissuesinthehomethatwouldhaveotherwisebeen unknown.Ialwayshighlyrecommendtohavehomeinspectionsdone.Evenonnewconstruction! Thestandardhomeinspector’sreportwillcovertheconditionofthehome’sheatingsystem;centralair conditioningsystem; interiorplumbingandelectricalsystems;theroof,attic,andvisibleinsulation;walls,ceilings, floors,windows,anddoors;thefoundation,basementandstructuralcomponents.Youwillreceiveawritten reportoftheinspection,butIrecommendyouattendthelast30minutesoftheinspectiontogooveranyfindingstiwth theinspector.

ADDITIONALINSPECTIONSYOUMAYNEED:

RADONINSPECTION-Radongasisthe2ndleadingcauseoflungcancerintheUS-itisanaturallyoccurringgas thatiscolorlessandodorlessandcanonlybedetectedwitharadondetector

TERMITEINSPECTION-AskyourlenderifyourloanrequiresanycertaininspectionssuchasaWoodDestroying Organism(WDO)inspection

LEAD-BASEDPAINTINSPECTION-Ifthehomewasbuiltpriorto1978,alead-basedpaintinspectionis recommended

WELLWATER/SEPTICINSPECTION -Ifthehomehasasepticsystemorwellwateritisimportanttodothese inspectionstomakesurethewaterisnotcontaminatedandthesepticsystemisworkingproperlywithnoleaksor breaksinthelinesorseptictank

Homeowner's Insurance

Homeowner's insurance is always required when you are financing a home. Depending on if your house is in a flood zone, or potential flood zone, flood insurance may also be required. Always discuss all your options and quotes with your insurance agents. Below are the different types of insurance, and a few insurance agents that my clients have worked with before.

HOMEOWNERS

Thestandardhomeownersinsurancecoversfinancialprotection againstlossduetodisasters,theftandaccidents

FLOOD

Protectsagainstdamagecausedbyaflood Ifyouarenearaflood zone,itstillcouldbeworthittogetfloodinsuranceevenifitisnot required.

HAZARD

Hazardinsuranceprotectsagainstdamagecausedbyfires,severe storms,hail/sleet,earthquakesorothernaturalevents

WIND

Protectsagainstdamagecausedbyeventssuchastornadoes, hurricanes,orgales.

MY TRUSTED INSURANCE AGENTS

HTTPS://DAGLEYINSCOM/FATHOMCLIENT/ (832)772-4300

If you ' re looking to find the best bundle around, I highly recommend you check out Dagley Insurance. They shop around both large and small insurers to find you the best rates AND coverage - FOR FREE.

Closing

Preparing For Closing

TITLE

The title company will conduct a title search to ensure the property is legitimate and find if there are any outstanding mortgages, liens, judgments, restrictions, easements, leases, unpaid taxes, or any other restrictions that would impact your ownership associated with the property. Once the title is found to be "clear", the title company will issue a title Insurance policy that protects lenders and owners against claims or legal fees that may rise over ownership of the property This is required when obtaining a mortgage and is highly recommended even if you are paying cash. This will also be a part of your closing costs, and the fees are state-regulated, which means every title company will charge the same amount for title insurance, making It easier for you because you don't need to "shop around"!

"CLEAR TO CLOSE" IS EXCELLENT NEWS!

Itmeansthemortgageunderwriterhasofficiallyapprovedalldocumentationrequiredtofundtheloan.All thatremainsistheactualclosingprocess Whenwehear"CLEARTOCLOSE"thatdoesn'tmeangoout andstartfinancingnewappliances,andnewcars Youstillneedtowaituntilafterclosingtomakeany otherlargepurchases.

FINAL WALKTHROUGH

Wewillperformafinalwalkthroughthedayofsettlementtoconfirmthatthesellermadeanyrepairsthat wereagreeduponandtomakesurenoissueshavecomeupwhileundercontract Nottoworry-Ihavea verydetailedfinalwalkthroughchecklisttousetoensurewedon'tmissanything!

TRANSFERALLUTILITIESINTOYOURNAME(GAS,ELECTRIC,WATER,SEWER,ETC) REVIEWTHECLOSINGSETTLEMENTSTATEMENTAFEWDAYSBEFORECLOSING FINALWALK-THROUGH

WIREFUNDSTOTHECLOSINGCOMPANY(FORDOWNPAYMENT&CLOSINGCOSTS) BRINGYOURDRIVER'SLICENSEORPASSPORTTOTHECLOSINGTABLE

SIGNALLCLOSINGDOCUMENTSANDWAITFORTHEPROPERTYTORECORDIN YOURNAME

HURRAY!POPTHECHAMPAGNE,YOUAREAHOMEOWNER!

4-6 WEEKS BEFORE

Frequently Asked Questions

REASONS WHY NOT TO CALL THE AGENT ON THE YARD SIGN

The listing agent has a fiduciary duty to the seller by signing a contract with them first, you as a buyer are a second interest. If you went to court, would you use the other person’s attorney? Of course not! It is the same exact situation when you are buying a home You want an agent representing YOUR best interest and negotiating and advocating for you No matter what real estate company a home is listed for sale with, I have the ability to show you that home and write up any offers

NEW CONSTRUCTION

It is a similar scenario when buying a new home The new home sales rep has the builder's best interest at heart and represents the builder Additionally, I can often negotiate better terms or upgrades in your new home that the builders do not tell buyers about because they have the builder’s best interest and profit in mind, and not yours I can also recommend which upgrades to do now with the builder, and what would make more sense to do after you move in Finally, I'm happy to recommend vendors who can do upgraded work post-closing, for less cost than the builder will charge

FORECLOSURE/BANK-OWNED PROPERTIES

Though many foreclosed homes are perceived as excellent investments due to lower-than-average pricing, there are a few stipulations to consider Many foreclosed homes are in rough condition due to previous owners being forced out of their homes With this in mind, the properties are rarely left in “move-in” condition and are always sold as-is with an extremely rare chance to have the home fixed prior to purchase An additional bit of info to understand is that just because you found it online listed as a pre-foreclosure doesn't mean it will actually ever hit the market for sale Sometimes those homeowners are refinancing, get caught up with their payment, or the home gets sold all cash at an auction If a foreclosure home is for sale on the market, I still can help represent you in the purchase of that home You do not have to bid online on your own

Why Should You Hire Me As Your Agent?

I am an expert at advising and negotiating on your behalf through our offer strategy to ensure you get the best deal or to have your offer accepted in a multiple-offer situation

I don't believe in "take my word for it." I believe in education and receipts - which means I use data and experience to explain this process and answer your questions.

I will answer your same question 5x, 5 different ways if that's what it means for you to understand the answer

I understand the immense pressure, stress, and fear that comes with purchasing a home. I take pride in taking care of my clients.

I believe in home ownership and the benefits it brings families I want to help make that dream come true for you

I have an extensive referral network to help give you the best deal and any discounts when it comes to the maintenance and long-term care of your new home

I love to celebrate this incredible milestone with my clients, and can't wait to celebrate with you too!

Reviews

We purchased our first home from across the country (and without ever stepping foot in it). If you asked me if I would do it all over again, yes yes yes! But only if Ashley Morton is our realtor!

If you are looking for a phenomenal communicator who has expertise in the VA loan and is well connected in the community with resources and recommendations, you ’ ve found your match.

We are first time home buyers and Ashley truly did an amazing job at guiding our family through the process. She was alway available to answer our questions, provide a video tour, and sent us dozens of resources to help us too. We absolutely love our new home and neighborhood. Thank you Ashley!

-Kara Vernon

We are a military family who had to look for a realtor to find us our dream home in Illinois and we got extremely lucky to have found Ashley. She went out of her way for us, did dozens of video tours, looked into every detail of the houses to make sure we got what we were looking for. She is very professional and was always there for us whenever we had questions (which were a lot). I recommend her! She’s been the best realtor we have ever worked with!

-Regina Weston

Ashley has been nothing but the best help I could have recieved from a real estate agent! She went above and beyond to help answer any questions I had throughout the entire home buying process She always made sure to provide useful tips and supported my decisions to the very end. Thanks a bunch Ashley!

-Jesse Soto

Ashley was amazing to work with. She listened to what we were wanting and helped us find our dream home. She was there for every step we took and explained everything before, durning and after. Even though I know she was working with several clients she treated us as if we here only ones and that alone was amazing Thank you Ashley for helping us buy our first home and making it the easiest process!

- Sarah Riley

Ashley was the best realtor we have ever worked with, and we have worked with several others in the past. She was so thorough, attentive to details all along the way, kind and easy to communicate with, very knowledgeable, professional, and we felt like she truly had our best interests in mind. I would highly recommend her to anyone looking for a realtor! Such a great experience. Thank you, Ashley!

-Anna Brndiar

notes

AboutAshley Morton

I'm a Realtor, Military Spouse and Mom who loves what I do! I guess you could say Real Estate is in my blood. My dad is a contractor so we were always living in a constant state of construction. Then, my husband and I bought our first flip at the barely-ripe age of 20. But it wasn't until my late 20s (and my husband joined the military) that I fell in love with a career in Real Estate

Beyond knowing exactly what its like to be in a military family because I live in your shoes, I also bring a combination of expertise in Real Estate, Business, Marketing, and Customer Relations together to serve my client's every need

Why Work With Me?

Licensed in both IL & WI Certified VA Specialist & Have Helped Over 125 Military Families Relocate Degree in Business with a Background in Marketing Top Producer at Fathom Realty Partner with Military Minded Businesses (Lenders, Inspectors, and More)

I hope you have learned a bit about me and what fuels me to continue to represent my clients in the best possible manner. I am dedicated to educating my clients throughout the entire buying process. I would love the opportunity to get to know your family and your real estate needs. If you have any questions about the real estate market, or your neighborhood, I would love the opportunity to be a great resource to you!

Chat Soon, Ashley