The Buying Process

We know how to buy homes in Northwest Indiana

Buying a home can be an exciting and emotional experience. As local experts, you can rely on us to guide you through the process so you can feel comfortable and confident each step of the way.

  • Let's kick off this exciting journey with a splash of fun and empowerment! Your very first move should be securing representation from a top-notch, savvy REALTOR®. Here at Favela Real Estate, our team comprises high-achieving REALTORS® who boast extensive experience across various price ranges, neighborhoods, and scenarios. We're not just about success; we're committed to your success!

    When you start spreading the word about your home-buying plans, it seems like everyone and their furry friend wants to offer recommendations. However, this is no time for amateur hour. Purchasing a home stands as one of the most significant financial transactions you'll undertake, and you deserve the protection and guidance of a seasoned professional. Trust in our expertise to safeguard your interests and steer you toward your dream home with confidence!

  • Let's keep the excitement going as we dive into the next steps with enthusiasm and empowerment! Your next move involves a thorough financial review alongside your lender. At Favela Real Estate, we team up with an outstanding group of mortgage brokers who are true experts in their field, overseeing thousands of transactions annually. Your first step is to connect with them and gain a crystal-clear understanding of your financial capabilities. This assessment encompasses not only the costs of home ownership but also factors in current and future interest rates, providing a comprehensive view.

    At this juncture, we suggest initiating an online home search in tandem with your trusted REALTOR® while keeping your criteria fairly wide. This allows you to become acquainted with general market pricing and start to uncover your personal preferences. The world of homeownership is wide open, and we're here to help you navigate it confidently!

  • We can tell you're on top of your game, and we applaud that! Now that you've got your finances squared away, let's revisit that checklist with your newfound budget in mind.

    After perusing some online listings, you've probably started to pinpoint your deal-breakers: condo or house, move-in ready or a fixer-upper, garage, finished basement, and more. With this clarity, it's time to refine your online search criteria and shift from spotting trends to identifying homes that truly hit the mark for you.

    Now, the real fun begins – it's house-hunting time! Get ready to explore some potential dream homes in person. Your journey to finding the perfect one is about to get even more exciting!

  • House tours can indeed be a rollercoaster of emotions – from thrilling and exhausting to exhilarating and disheartening, all in one go. We totally understand! Here's a piece of advice: trust your instincts, keep those lines of communication open with your REALTOR®, and do your best to savor the journey. Sometimes, it may only take one tour to strike gold, while other times, it could take twenty. But rest assured, your perfect home is out there, and you're on the path to finding it. So, embrace the adventure, and let's keep the search going!

  • Now, let's shift into the serious side of things with your friendly yet all-business REALTOR®. There's a lot to consider, and getting it right is crucial.

    First off, let's talk about the cash you'll need. Your deposit is the amount you submit with your offer, typically ranging from $5,000 to $25,000, depending on the home's purchase price. Your down payment, on the other hand, is the percentage of the home's price you're covering with your own cash. It includes the deposit you made with the offer and an additional payment just before possession. For instance, if you're buying a $450,000 home with a 10% down payment ($45,000 in total), you'd provide a $10,000 deposit with the offer and the remaining 10% ($35,000) at closing. If your offer isn't accepted or you don't meet your conditions, the deposit money is returned to you.

    Next, what's included in the sale? While appliances and window coverings are usually standard, they're not always guaranteed. Your REALTOR® will delve into this in detail with you.

    Now, possession day – believe it or not, this has caused hiccups in many deals. This is where your adept REALTOR® comes into play, navigating this aspect on your behalf.

    Conditions are up next. There's no limit to the number of conditions you can place on an offer, but the most common ones are financing and inspection. You and your REALTOR® should have already devised a plan for handling these conditions well before you put pen to paper on an offer.

    We're experts at crafting offers that appeal to sellers while still meeting your buyer's needs. However, some offers may get turned down. In our experience, every time this happens, buyers often end up finding something they like even more and feel grateful that the previous offer didn't pan out. So, trust the process, and let's keep moving forward!

  • If your offer was conditional, you'll have the specified number of days, as outlined in the offer, to meet those conditions. Your trusty REALTOR® will be by your side throughout this process, but it's essential not to procrastinate. There's no guarantee that the seller will grant an extension if you haven't fulfilled your conditions within the agreed timeframe.

    Once you've successfully satisfied your conditions, it's time for the big celebration because the deal is now officially a final sale! It's a moment worth savoring on your journey to homeownership. Cheers to your new home! 🎉

  • The countdown to closing and taking possession is a whirlwind of excitement and tasks. Our office has your back and will send you handy checklists for smoothly transitioning to your new home, along with our trusted recommendations for movers, lawyers, locksmiths, and more.

    4 weeks ahead: It's time to get the ball rolling. Book your movers and start gathering those trusty cardboard boxes. Consider packing one box a day to make it manageable.

    3 weeks ahead: Secure your home insurance, and don't forget to set up service calls for internet/TV services to be ready for possession day.

    2 weeks ahead: Make sure you've scheduled an appointment with your real estate lawyer a few days before the possession date. Also, get going on your change of address and arrange mail forwarding with the US Postal Service.

    1 week ahead: Confirm your moving plans with your chosen movers and kick your packing into high gear.

    Closing: This is the meeting with your real estate lawyer a couple of days before possession. Make sure you've arranged your home insurance before this appointment. The lawyer will provide you with the total amount you'll need, covering the balance of your deposit, property taxes for the portion of the year you'll own the home, legal fees, and disbursements. Prepare a certified check for this amount, hand it over to the lawyer, and collect the keys – you're ready to move in!

    Possession Day: It's finally here! Check that all appliances are in working order (let us know ASAP if not). Move in and savor the moment. We highly recommend celebrating with champagne and takeout for your first dinner in your new home. Congratulations, you're officially a homeowner! 🏡🥂

  1. Get Pre-Approved

The initial step in the journey towards homeownership involves gaining a clear understanding of your financial strength and setting a suitable price range. Collaborating with a licensed lender proves to be invaluable in this endeavor, as they can assess your financial status and furnish you with a pre-approval. This pre-approval hinges on a meticulous examination of your income and credit history, determining the amount the bank is willing to extend as a loan. Armed with this pre-approval, you can confidently embark on your home search, fully aware of your financial boundaries. It's also important to note that possessing a pre-approval letter can significantly enhance the appeal of your offer, especially in situations where sellers are faced with multiple offers.

Worried about the possibility of being unable to act swiftly on an offer due to the need to sell your current home first? Don't hesitate to inquire about our handpicked and esteemed roster of lenders who can effectively bridge the gap between your current home and your desired one.

2. The Home Search

Embarking on your quest for the ideal home begins right here, where you'll find the latest MLS listings in your preferred neighborhoods. Get started by setting up your complimentary account to save your most-loved properties and request showings effortlessly. As your dedicated REALTOR® team, we're here to assist you in every step of the way. In addition to your own searches, we'll also actively scour the market for homes that align with your criteria. When you spot a property that captures your interest, just let us know, and we'll arrange a personalized showing tour for you to explore the property in person. Your journey to finding your dream home is within reach, and we're excited to be a part of it!

3. Making An Offer

When you're ready to take the next step towards your home purchase, we'll be here to guide you in crafting the most compelling offer possible. We'll also handle the paperwork on your behalf, simplifying the process for you. Making an offer involves several crucial considerations, including the proposed purchase price, the desired closing date, any sale contingencies, and specific terms tailored to your unique situation. Once your offer is submitted, the seller may respond by either accepting, rejecting, or proposing a counteroffer. In the case of a counteroffer, we'll engage in a negotiation phase, working diligently until both parties reach a mutually agreeable arrangement, or until the offer is declined by either side. Rest assured, we'll be with you every step of the way, ensuring your interests are well-represented throughout the process.

4. Going Under Contract

Once your offer is accepted, you'll enter into an official contract. Although the sale won't be finalized until the closing date, the property is reserved exclusively for you during the contract's duration, preventing it from being sold to anyone else. At this stage, unless you're making a cash purchase, it's time to place an earnest money deposit and secure your mortgage loan. With a multitude of loan programs available, it's crucial to collaborate with a trusted lender who can assist you in identifying the most suitable loan option tailored to your individual circumstances. Your journey toward homeownership is progressing, and we're here to ensure you make the best financial decisions every step of the way.

5. Home Inspection

Evaluating the physical state of your prospective home is a crucial aspect of the home-buying journey. A certified home inspector will perform a thorough examination of the entire property, meticulously scrutinizing the home's structural integrity and its various systems. Additionally, they'll look into potential concerns such as pest infestations or mold presence. Depending on the terms of your purchase agreement, we may engage in further rounds of negotiation to address and rectify any issues uncovered during the inspection process. Your peace of mind and the integrity of your investment are our top priorities throughout this phase.

6. Home Appraisal

Your lender will coordinate a professional appraisal of the property, a critical step in the home-buying process. This appraisal is a neutral assessment of the genuine or fair market value of the home, carried out by an impartial third-party appraiser. The appraiser's role is to confirm the property's appraisal value, providing a reliable figure for all parties involved. If the appraisal indicates a value lower than anticipated, you may have the flexibility to revisit negotiations on the purchase agreement or, if necessary, opt to terminate the contract. Ensuring that you are making a sound investment that aligns with your financial goals is our primary concern during this phase.

7. The Final Walkthrough

Before the closing process begins, we'll organize a final walkthrough of the property to verify that all agreed-upon repairs have been successfully executed, and that the home maintains or surpasses the condition it was in when you initially made your offer. This walkthrough serves as the last chance to address any issues or concerns related to the home before the closing occurs. Depending on the terms outlined in the purchase agreement, you may be required to sign a formal contract addendum confirming the completion of the walkthrough and the satisfactory condition of the home. Our aim is to ensure your utmost confidence and peace of mind as we approach the final stages of your home purchase journey.

8. Closing!

It's time to celebrate your upcoming move into your new home! Your lender will furnish you with a final closing disclosure, which neatly summarizes all the essential details, including loan terms, monthly payments, taxes, and closing costs. At this point, your lender will also confirm that you are clear to proceed with the closing process. During the closing, you'll have the opportunity to sign all the necessary paperwork, sealing the deal on your home purchase and loan agreement. Once all parties have signed, and your loan is funded, you'll receive the keys to your new home, marking the exciting moment when you can officially move in and embark on this exciting new chapter in your life!

9. Post-Closing

Congratulations on reaching your homeownership goal! But let's make one thing clear – your connection with Favela Real Estate doesn't stop here. It's time to unpack, settle in, and break in your new house with a fantastic housewarming party.

At Favela Real Estate, we believe in building lasting relationships, and many of our clients become lifelong friends and continued clients. Our mission is to remain a valuable resource you can count on for years to come. Favela Real Estate clients trust us, return to us, and gladly refer us to their loved ones. We're thrilled to welcome you to the Favela family, and we look forward to being your real estate partner for all your future adventures. Cheers to your new home and the exciting journey ahead! 🏡🥳🤝