Tips for Buying a Home from a Real Estate Attorney
Whether you are a renter looking to become a first-time homeowner or you are already a homeowner hoping for an upgrade, you will benefit from preparing beforehand. If you are planning on buying a home this year, here are some tips from a real estate attorney to get ahead of the game.
1 | Determine and stick to a budget.
Before you go to a lender to apply for a mortgage to buy a house, you should set a basic home budget. The budget should include: estimated mortgage payments, local real estate taxes, homeowners insurance, association dues and assessments, and closing costs (including lender loan closing costs).
2 | Interview Real Estate agents.
A Real Estate agent’s job is to advocate for you during the complicated process of buying a home. In most cases, the seller also covers the buyer agent’s commission. However, not all Real Estate agents are created equal. Choose an agent who works full-time in real estate, knows your geographic area of interest, and has a personality that will work well with yours.
3 | Get a preapproval from your lender.
To get that edge over the competition, you should consider getting a preapproval for a mortgage before you start house shopping. A preapproval gives you a good understanding of what you can afford, and you will be able to make a strong offer because your lender has already looked at your financial condition.
4 | Understand the Real Estate contract.
While Real Estate contracts are long and dry, they are also essential to ensure that your purchase goes smoothly. A residential Real Estate attorney can advise you on the most beneficial contract terms and strategies for your purchase.
5 | Get a home inspection.
Home inventory has been low for the last few years, creating a Seller’s market. As a result, buyers often make offers with no inspection contingencies. While this strategy might help in a competitive market, the risks do not outweigh the reward. Home inspections can be completed quickly and cheaply, and can disclose major defects that may negatively affect the home’s value.
6 | Obtain Title Insurance.
Title Insurance protects buyers from property loss due to liens or any other defects in a home’s title. Unlike other types of insurance such as car or health insurance, which cover future events, Title Insurance insures against past issues. Instead of monthly payments, Title Insurance is a one-time premium payment, with coverage for as long you own the property. The cost of Title Insurance is generally about 0.5% of the purchase price, so it is well worth the money.
The process of buying a house can be tedious and stressful at times, but it is also quite a momentous and exciting life change. Hopefully this home buying advice will help you and your family to properly plan for your journey to finding your new home. For more information about how a real estate lawyer can assist in alleviating some of the demands and complexities that often come with the home buying process, visit our Real Estate page or click the link below to contact the office of Cona Law.