You probably started the home buying process in one of two ways you saw ahome you were interested in buying or you consulted a lender to figure out howmuch money you could borrow before you found a home (sometimes calledpre-qualifying). The next step is to sign an agreement of sale with the seller,followed by applying for a loan to purchase your new home. The final step is calledsettlement or closing, where the legal title to the property is transferred toyou.

At each of these steps you often have the opportunity to negotiate theterms, conditions and costs to your advantage. These pages will highlight suchopportunities. You will also need to shop carefully to get the best value foryour money. There is no standard home buying process used in all localities.Your actual experience may vary from those described here. These pages take youthrough the general steps to buying a home, to eliminate, as much as possible,the mysteries of the settlement process.

Buying and Financing A Home
The real estate broker frequently, the first person you consult about buying ahome is a real estate agent or broker. The most common practice is for theseller to hire the broker to find someone who will be willing to buy the homeon terms and conditions that are acceptable to the seller. Therefore, the realestate broker you are dealing with may also represent the seller. However, youcan hire your own real estate broker, known as a buyers broker, to representyour interests. Also, in Illinois,agents and brokers are allowed to represent both buyer and seller.

Even if the real estate agent represents the seller, state real estatelicensing laws usually require that the broker treat you fairly. If you haveany questions concerning the behavior of an agent or broker, you should contactyour States Real Estate Commission or licensing department.

Sometimes, the real estate agent will offer to help you obtain a mortgageloan. He or she may also recommend that you deal with a particular lender,title company, attorney, or settlement/closing agent. You are not required tofollow the real estate brokers recommendation. You should compare the costsand services offered by other providers with those recommended by the realestate broker.

Selecting an Attorney
Before you sign an agreement of sale, you might consider asking an attorney tolook it over and tell you if it protects your interests. If you have alreadysigned your agreement of sale, you might still consider having an attorneyreview it. An attorney can also help you prepare for the settlement. In someareas attorneys act as settlement/closing agents or as escrow agents to handlethe settlement. An attorney who does this will not solely represent yourinterests, since, as settlement/closing agent, he or she may also berepresenting the seller, the lender and others as well.

If choosing an attorney, you should shop around and ask what services willbe performed for what fee. Find out whether the attorney is experienced inrepresenting home buyers. You may wish to ask the attorney questions such as

What is the charge for negotiating the agreement of sale, reviewingdocuments and giving advice concerning those documents, for being present atthe settlement, or for reviewing instructions to the escrow agent or companyWill the attorney represent anyone other than you in the transaction Will theattorney be paid by anyone other than you in the transaction