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Avoid These Common Mistakes When Looking for Your Next Home

Posted on in Real Estate

Lake County real estate attorneysThe idea of buying a new home is exciting to many people, but it can also be very intimidating. The fun parts include reviewing listings, thinking about the amenities you want in a new home, and possibly even kicking around ideas for interior decorating. Of course, the financial part of the equation is often where the challenges arise, and it can be confusing to deal with all of the legalese and real estate jargon that you might be hearing. For reasons such as these, it is important to work closely with a knowledgeable real estate attorney who can help you avoid some of the most common home-buying mistakes.

Mistake #1: Moving Before You Are Ready

Many would-be homebuyers get so excited about the possibility of owning a home that they overlook the importance of being truly ready to settle down. While most people prefer the idea of building equity in a home instead of paying rent, many experts recommend renting for a while when moving to a new city or state. Once you sign on to buy a home, you could be stuck in it, even if you decide you do not like the area. Get settled and comfortable in the new town first, then you can begin looking for that place of your own.

Mistake #2: Too Much House, Too Little Money

You and your spouse, if applicable, should work with your attorney and your real estate agent to determine what your realistic budget should be. Once you have decided on a budget, you need to stick to it. You might be tempted to exceed your budget so that you can have a few more “nice things,” but going over your budget is dangerous. Could you still afford the extra money each month if you were suddenly unable to work or if something happened to one of your children? One way to make sure you stay under budget is to seek pre-approval for your mortgage loan.

Mistake #3: Underestimating the Costs of Home Ownership

Most people who rent their homes make just a single rent payment each month and leave the rest of the worrying to their landlords—except maybe for utilities like electric and cable. When you own a home, however, your mortgage payment is just the beginning. You will also need to think about property taxes, water bills, and home repair costs. As a homeowner, you are responsible for calling someone to fix the water heater when it breaks, for example, and such costs can add up quickly.

Mistake #4: Making Verbal Agreements

When you are in the negotiation phase of buying a home, any agreements that you reach with the seller need to be in writing. If the seller is supposed to leave the refrigerator and stove, put it in the purchase contract. The same is true for window treatments, bathroom fixtures, ceiling fans, and similar items. If you do not have everything in writing, you could find yourself having to buy new things unexpectedly—which could come with a hefty price tag.

Contact a Libertyville Residential Real Estate Lawyer

If you are looking to buy a home, an experienced Lake County real estate attorney can help ensure that your best interests are fully protected. Call 847-549-0000 for a free consultation with Newland & Newland, L.L.P. today.

 

Source:

http://www.forbes.com/sites/learnvest/2013/03/06/the-7-top-home-buying-mistakes-you-should-avoid/

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