GUIDE for First Time Home Buyers
Peoria Home: First Time Home Buyer Guide
Guide for First-Time Home Buyers in the Peoria Area
Purchasing your first home is a significant milestone, and navigating the real estate market in Peoria, Illinois, requires careful planning and consideration. Here is a comprehensive guide to help first-time homebuyers make informed decisions and find their dream home in the Peoria area.
1. Determine Your Budget
Understanding your financial capacity is paramount. Calculate your budget by assessing your income, existing debts, and expenses. Use online mortgage calculators to estimate monthly payments, including taxes and insurance. This will give you a clear picture of what you can comfortably afford.
2. Identify Your Ideal Location
Research and explore different neighborhoods in Peoria to identify the ideal location for your new home. Consider factors such as proximity to work, schools, public transportation, and amenities like parks, shopping centers, and healthcare facilities.
3. Define Your Home Requirements
Determine your specific needs and preferences for your future home. Consider the number of bedrooms and bathrooms, the presence of a basement or garage, the desired size, and the age of the home. Decide if you prefer a move-in ready property or a fixer-upper that allows for customization. Make a list of amenities that are non-negotiable.
4. Consult a Local Lender and get Pre-Approved
Speak with local lenders to explore mortgage options that suit your financial situation. They will help you find out what purchase price amount you can be approved for and also how much you will need for a down payment. Credit, income, and assets are the main factors in a loan approval. Your loan officer will help you get pre-approved and determine your budget.
Research top-rated lenders in the Peoria area, such as EZ Mortgage, Caliber Home Loans, CEFCU, Flat Branch, and Hometown Community Banks.
GRANT OPTIONS - DOWN PAYMENT ASSITANCE
It is also smart to inquire about available grant options, such as Borrow Smart, IHDA, Chenoa Grant, and City of Peoria Down Payment Assistance. Understand the terms and conditions of these grants, as some may require a commitment to residency or repayment. A good loan officer will be easy to communicate with while you are shopping for homes. Before you write and offer it is important to find out your cash to close and estimated monthly payment.
Using a grant is not always "Free Money". Depending on your situation. They may or may not be the best option for you.
5. Choose a Trusted Realtor
Selecting the right realtor is crucial. Look for a professional who understands your needs and has a strong track record. Read reviews and seek recommendations from friends and family. Consider reputable real estate companies like Adam Merrick Real Estate, Remax, Keller Williams, Jim Maloof, Sunflower Real Estate, or Coldwell Banker.
Using a great realtor is very important. They will help you negotiate, notice potential issues with the home, and also help you navigate the complexities of the real estate contract. The local real estate association is PAAR (Peoria Area Association of Realtors).
6. Begin House Hunting
Start viewing homes that match your criteria. Be prepared to ask questions about the property and assess its condition thoroughly. Keep a record of the features you like and dislike in each home.
7. Make an Offer
When you find the perfect home, work with your realtor to draft a competitive offer. Consider including seller-paid closing costs to reduce your upfront expenses. Collaborate with your lender and realtor to determine a target monthly payment and cash-to-close amount.
8. Conduct a Home Inspection
Prioritize a professional home inspection to identify any potential issues with the property. Use the inspection report to negotiate repairs or credits with the seller.
9. Secure Home Insurance
Explore options for homeowners' insurance with local providers like River City Insurance, Preston Insurance, or Country Financial. Ensure you have adequate coverage to protect your investment.
10. Navigate the Underwriting Process
Stay in close communication with your lender and loan processor. Start this process as soon as your offer is accepted. Avoid job changes, new debts, or financial transfers without consulting your lender.
11. Plan Your Move
Prepare for your move by arranging utility transfers and hiring a moving company or enlisting friends and family to assist.
12. Final Walk-Through
Conduct a final walk-through of the property to ensure it is in the agreed-upon condition.
13. Closing Day
Visit the title company for the closing ceremony, and upon completion, congratulations, you are now a homeowner! You will typically
14. Maintain Your Home
Build relationships with contractors and service providers for home maintenance, such as HVAC, plumbers, electricians, and roofers.
15. Stick to Your Budget
Be diligent in managing your finances to avoid overextending yourself. Homeownership comes with various expenses, so maintaining a budget is essential for long-term financial stability.
Congratulations on your journey to becoming a homeowner in the Peoria Area. Central Illinois is one of the best areas in the country for home affordability for first time home buyers.
A guide for First Time Home Buyers in the Peoria area
home inspections Guide
HOME INSPECTIONS FOR FIRST-TIME HOME BUYERS IN PEORIA
What components of the home are inspectors looking at?
To start, there are different types of inspections: General house inspection, radon inspection, pest inspection, mold inspection, well/septic inspection, pool inspections, chimney inspections, quality tests for drinking water, and many other specific inspections. Typically the general house inspection will recommend getting a specialist inspection for specific issues to further investigate an issues they may notice.
Purchasing your first home is an exciting milestone, but it can also be a daunting process filled with numerous decisions. One of the most crucial steps in buying a home, especially for first-time home buyers in Peoria, is the home inspection.
A home inspection is a detailed examination of a property's condition, helping buyers make informed decisions and avoid costly surprises down the road. In this article, we'll walk you through what home inspectors look for when evaluating a property, ensuring that you're well-prepared for the process.
1. Foundation:
Home inspectors begin by examining the structural integrity of the house. This includes the foundation, walls, and roof. They look for any signs of structural damage or wear and tear that may affect the safety and stability of the property. The three main foundation types are basement, slab, and crawl space.
Overtime, the way water runs can affect the integrity of the foundation. Maintaining gutters and proper grading is a big factor in preventing and mitigating foundation issues.
2. Roof:
Inspectors assess the roof's condition, searching for leaks, damaged shingles, or potential issues with the gutter system. A well-maintained roof is essential for preventing water damage and preserving the overall condition of the house.
3. Above-Grade Structure:
The above-grade structure of the house, which includes walls, siding, and exterior elements, is inspected for any signs of damage, deterioration, or inadequate maintenance that may impact the home's energy efficiency and aesthetics.
4. Grading:
Proper grading around the property ensures that water drains away from the foundation, preventing moisture-related issues. Inspectors check for proper grading to avoid potential water damage and foundation problems.
5. Electrical:
Home inspectors assess the electrical system to ensure it is safe and up to code. This includes checking the electrical panel, wiring, outlets, and fixtures. Safety is paramount, especially for first-time home buyers.
6. Plumbing:
The plumbing system is inspected for leaks, water pressure, and proper drainage. Any issues with pipes, fixtures, or water heaters are noted for further evaluation.
7. Windows and Doors:
Inspectors examine windows and doors for drafts, proper sealing, and functionality. Energy-efficient windows and doors can contribute to lower utility bills and increased comfort. Windows not opening and closing properly could be the sign of a foundation issue, or just normal wear and tear.
8. Fireplace:
If the home has a fireplace, it's inspected for safety and functionality. The inspector checks for any structural issues, proper venting, and the condition of the chimney and flue. Ensuring a safe and efficient fireplace is crucial for warmth and ambiance.
9. Termites and Other Pests:
Peoria, like many other areas, can be prone to termite and pest infestations. Inspectors thoroughly examine the property for signs of termites, as well as other common pests such as rodents and insects. Identifying these issues early can prevent costly damage to the home.
10. Radon:
Radon is a colorless, odorless gas that can seep into homes and pose health risks. Home inspectors in Peoria often conduct radon testing to determine if the levels in the home are within safe limits. Mitigation measures may be necessary if radon levels are high.
11. Mold:
Mold growth can lead to health problems and structural damage. Inspectors look for signs of moisture intrusion and mold growth in areas prone to dampness, such as basements, bathrooms, and attics. Addressing mold issues promptly is essential for a healthy living environment.
12. Septic System/Well:
In rural areas or properties not connected to municipal services, inspectors evaluate the condition of septic systems and wells.
First Time Home Buyers Peoria - Peoria Grants - Peoria Real Estate - Peoria Homes for Sale
IHDA Grants in Peoria: A Guide to Affordable Homeownership
Down Payment assistance for the Peoria Area - IHDA Grant
Are you a first-time homebuyer in Peoria seeking financial assistance to fulfill your dream of owning a home?
Consider the Illinois Housing Development Authority (IHDA) Grants, designed to empower individuals and families on their journey to homeownership. In this comprehensive guide, we'll walk you through the various
IHDA Mortgage Illinois HFA1 Highlights
IHDA Mortgage Illinois HFA1 is committed to making homeownership accessible. Here's what it offers:
- 0% Interest 2nd Mortgage: IHDA Mortgage Illinois HFA1 provides up to $10,000 in interest-free assistance for down payment and/or closing costs. This loan remains deferred until you sell, refinance, or pay off your mortgage.
- Affordable 30-Year 1st Mortgage: Benefit from a 30-year 1st mortgage with a competitive fixed interest rate.
- Flexible Mortgage Types: IHDA Mortgage Illinois HFA1 is compatible with various mortgage types, including FHA, VA, USDA, FNMA HFA Preferred, and FHLMC HFA Advantage.
HFA1 Requirements
Whether you're a first-time or non-first-time homebuyer, IHDA Mortgage Illinois HFA1 welcomes you. Key requirements include income and purchase price limits, credit score criteria, primary residence occupancy, and homeownership education completion. New construction properties are also eligible. Must contribute $1,000 or 1 percent of the purchase price, whichever is greater
Opening Doors Highlights
IHDA Mortgage's Opening Doors program is designed to break the renting cycle. It offers:
- $6,000 Assistance: Receive $6,000 for down payment and/or closing costs, forgiven monthly over 5 years—no repayment required.
- 30-Year Fixed Rate Mortgage: Enjoy a 30-year fixed rate mortgage with a competitive interest rate.
- Loan Types: Choose from FHA, VA, USDA, or FNMA HFA Preferred and FHLMC HFA Advantage loan types. DACA Recipients (Dreamers) are eligible.
Opening Doors Requirements
Opening Doors welcomes both first-time and repeat homebuyers in all Illinois counties. Requirements include income and purchase price limits, a minimum credit score of 640, primary residence occupancy, and homeownership education completion. New construction properties are eligible. Must contribute $1,000 or 1 percent of the purchase price, whichever is greater
Access Forgivable Highlights
The Access Forgivable program offers:
- 4% of Purchase Price: Receive up to $6,000 in assistance for down payment and closing costs, forgiven over 10 years—no repayment required.
- 30-Year Fixed Rate Mortgage: Benefit from a 30-year fixed rate mortgage with a competitive interest rate.
- Available Mortgage Types: Access Forgivable is available for all mortgage types, including FHA, VA, USDA, FNMA HFA Preferred, and FHLMC HFA Advantage.
Access Forgivable Requirements
To qualify, you must meet income and purchase price limits, have a minimum credit score of 640, intend to use the property as your primary residence, and complete homeownership counseling. New construction and existing homes are eligible. Must contribute $1,000 or 1 percent of the purchase price, whichever is greater
Access Deferred Highlights
The Access Deferred program offers:
- 5% of Purchase Price: Receive up to $7,500 in assistance for down payment and closing costs, provided as an interest-free loan deferred until you sell, refinance, or pay off your mortgage.
- 30-Year Fixed Rate Mortgage: Enjoy a 30-year fixed rate mortgage with a competitive interest rate.
- Available Mortgage Types: Access Deferred is available for all mortgage types, including FHA, VA, USDA, FNMA HFA Preferred, and FHLMC HFA Advantage.
Access Deferred Requirements
To qualify, meet income and purchase price limits, maintain a minimum credit score of 640, use the property as your primary residence, and complete homeownership counseling. Both new construction and existing homes are eligible. Must contribute $1,000 or 1 percent of the purchase price, whichever is greater
Access Repayable Highlights
The Access Repayable program offers:
- 10% of Purchase Price: Get up to $10,000 in assistance for down payment and closing costs, provided as an interest-free loan repaid monthly over 10 years.
- 30-Year Fixed Rate Mortgage: Benefit from a 30-year fixed rate mortgage with an affordable interest rate.
- Available Mortgage Types: Access Repayable is available for all mortgage types, including FHA, VA, USDA, FNMA HFA Preferred, and FHLMC HFA Advantage.
Access Repayable Requirements
To qualify, meet income and purchase price limits, maintain a minimum credit score of 640, intend to use the property as your primary residence, and complete homeownership counseling. Both first-time and repeat homebuyers statewide are eligible. Must contribute $1,000 or 1 percent of the purchase price, whichever is greater
SmartBuy Highlights
Don't let student loans hinder your path to homeownership. IHDA Mortgage SmartBuy can assist you with:
- $5,000 Assistance: Receive $5,000 for down payment or closing costs.
- Up to $40,000 Student Loan Debt Relief: Access up to $40,000 in student loan debt relief (limited to 15% of the purchase price or $40,000, whichever is lower).
- DACA Recipients Eligible: DACA Recipients (Dreamers) can participate.
- FNMA Loan Types Only: SmartBuy is available exclusively for FNMA loan types.
SmartBuy Requirements
To qualify, you must have at least $1,000 in student loan debt in your name from an eligible educational institution. Pay off one borrower's full remaining student loan balance at loan close. Additionally, meet income and purchase price limits, maintain a minimum credit score of 640, intend to use the property as your primary residence, and complete homeownership education. New construction is allowed. Must contribute $1,000 or 1 percent of the purchase price, whichever is greater
Please note: The Access Repayable program is closed for new applications as of 5/21/2021.
Reserach these IHDA grants and make your homeownership dreams a reality in Peoria. IHDA Mortgage is your partner in achieving affordable and accessible homeownership. Reach out to IHDA Mortgage today to begin your journey towards owning a home in Peoria.
IHDA Grants Peoria
Get a Basic understanding of contracts
Understanding Real Estate Contracts: A Guide for First-Time Home Buyers
To start, always consult with a licensed realtor attorney when entering into a real estate contract.
Buying your first home is an exciting journey, but navigating the complexities of real estate contracts can be overwhelming. To help you through this process, let's break down some key aspects of real estate contracts:
When Do We Have a Contract?
When someone takes legal action claiming that an agreement was broken, the first thing a judge checks is if there was really a contract between the people involved. To show that there was a contract, the person complaining must prove four important things:
- Offer: This means that one person promised to do something or not do something in the future.
- Consideration: It means that something valuable was promised in exchange for that promise. This valuable thing could be money, work, a service, or even just relying on that promise. This is what makes a contract different from a gift. If you promise to give someone a gift and don't follow through, it's not a contract because there's nothing valuable promised in return.
- Acceptance: The offer must be accepted clearly and without any confusion. If someone agrees to the offer in a way that matches what was promised, it's good. But if they change the offer in a big way or if the person who made the offer objects soon after, it might not be a contract.
- Mutuality: Both people in the contract must understand and agree on what they're promising. They need to have a shared understanding of what's in the contract.
So, if the person complaining can prove all these things, they make a strong case that there was a contract. But if the other person wants to say there was no contract, they need to show that one or more of these things didn't happen.
Regenerate
Now that you understand the basics of a legal contract, let's break down some key aspects of real estate contracts:
1. Price: The price of the home is a fundamental part of the contract. It specifies the amount you're willing to pay for the property.
2. Terms: This section outlines the details of the deal, such as whether you're paying in cash or financing the purchase. Cash means you're paying the entire purchase price upfront, while financing involves a mortgage.
3. Contingencies: Contingencies are conditions that must be met for the contract to proceed. Common contingencies include:
- Inspections: You have the right to inspect the property for issues and request repairs or negotiate the price based on the findings.
- As-Is: If the property is sold "as-is," it means you're buying it in its current condition, with no repairs expected from the seller.
- Closing Date: This specifies the date when the property officially changes ownership.
- Type of Financing: Different loan types (e.g., conventional, FHA, VA, USDA) have varying requirements. Conventional loans often have fewer appraisal repair requirements and can be more attractive to sellers compared to government-backed loans like FHA, VA, and USDA.
4. Earnest Money: This is a deposit you provide to demonstrate your commitment to the purchase. If the deal falls through for valid reasons, you typically get this money back.
5. Deadlines: Real estate contracts have specific deadlines that must be met. These may include deadlines for inspections, appraisal repairs or value disputes, repair requests, loan commitment, final walkthrough, and the closing date. Missing deadlines can have legal consequences.
6. Breaking the Contract: If you need to cancel the contract for reasons allowed under your contingencies (e.g., a failed inspection or financing issues), you can usually do so without legal ramifications. However, if you back out without a valid reason, you may lose your earnest money and face potential legal action from the seller.
Legal Ramifications: Real estate contracts are legally binding documents. Failing to uphold your end of the contract (e.g., not closing the deal as agreed) can lead to consequences, including the loss of your earnest money or potential lawsuits from the seller.
It's crucial to have a qualified real estate agent and, if possible, a real estate attorney to guide you through the contract process. They can help you understand the terms, contingencies, and legal obligations involved in your specific purchase. Remember that a well-negotiated and carefully reviewed contract can protect your interests and ensure a smoother home-buying experience.
First time home buyers guide to contracts