The prospect of buying the home of your dreams is an exciting idea for anyone. Thinking about the specific features you want your new home to have, fantasizing about how you will decorate your home, and considering all the ways that your new home will improve your life can understandably cause anyone to be eager. However, it is important to remember that buying a home will probably be one of the biggest financial decisions you ever make. Rushing this decision can lead to major mistakes that could cause significant financial problems for you down the road.

Purchasing a Home That You Cannot Realistically Afford

Your budget for your new home will largely be determined by your mortgage lender. The lender will determine the mortgage loan based on your credit score, tax documents, and other information. However, lenders sometimes approve homebuyers for larger loans than they can actually afford. Such approvals, in fact, were among the main causes of the housing market crash of 2008 and 2009. If you end up being approved for a mortgage loan that is larger than you anticipated, it may be best not to accept this larger amount. Financially overcommitting yourself in order to buy a more expensive home may lead to years of financial struggle and even foreclosure.

Underestimating the Costs of Being a Home Owner

If you are a first-time homebuyer who has previously rented, you may be shocked when you realize just how expensive owning a home actually can be. Most homeowners will tell you that maintenance costs, utility bills, property taxes, and insurance comprise a major chunk of their yearly expenses. Asking to view the home seller’s past utility bills and finding out about the property taxes and insurance costs in the neighborhood will give you a better estimate of these costs.

If you are ready to buy your first home, congratulations! Being a homeowner comes with numerous benefits, but also many serious responsibilities. Your home will probably be the biggest financial investment you ever make, so it is essential to be aware of the obstacles you may experience in the home-buying process. Whether you are a first-time homebuyer or you are currently a homeowner interested in buying a new home, there are a variety of ways that a real estate lawyer can help you.

Limitations of Real Estate Agents

When someone prepares to buy a home, they may assume that the only professional they will need to consult with is a real estate agent or broker. A real estate agent can offer helpful support and advice on a variety of issues, however, his or her guidance alone is not enough to ensure the home-buying process goes as smoothly as it should.

One major limitation that real estate agents have is that they cannot offer guidance regarding any legal issues that arise during the purchase. Not only do real estate agents generally lack the legal knowledge and education needed to give quality advice about legal issues, doing so can actually threaten their broker’s license. A lawyer will be aware of the federal statutes, state laws, local ordinances, and case-specific regulations you will need to comply with in order to avoid legal problems with your new home.

There is no question that buying a home can be an exhilarating venture. However, it is also a process you should not take lightly. It is important that you do not rush the selection process and that you ensure you are making an informed decision. For help with home purchase contracts and trustworthy legal guidance throughout the home-buying process, contact an experienced real estate attorney. While you are house-hunting, make sure to consider all of the relevant factors. Keep a watchful eye out for the following red flags that could signal that the home you are considering is not the right option for you.

The Owner Will Not Cooperate with the Inspection Process

Getting a home inspection when you are considering buying a new home is essential. There may be major issues with the roof, water damage that is concealed by wallpaper or paint, faulty wiring, plumbing issues, and other problems which are not noticeable without a proper inspection. If the homeowner seems hesitant to allow an inspection or does not want you to use your own inspector, this could be a sign that he or she is trying to hide something.

Missing Permits for Major Work Done to the Home

When you are considering a home, ask to look over the Report of Residential Building Record or the “3R” report. This report should include the permits issued for any major renovations or additions that were done to the home since the home was built. If there has been significant work done to the home and there is no record of it, this could mean that the work was not done to code. It could also mean that the renovations were poorly executed or are now unsafe.

There is no question that spring and summer are the most popular months for buying a home. Therefore, they are also the most popular months for selling a home, since you cannot buy a home unless someone is selling.

While winter does not officially begin for another month or so, the cold season has already made its presence known in Northern Illinois, and we all know that it is here to stay for a while. With this in mind, you might have decided to wait until the spring thaw to put your home on the market. Some experts believe, however, that selling your home during the winter could be very rewarding for several reasons.

Reason #1: Less Competition

Because everyone “knows” that springtime is the season for selling a home, many people choose to wait. If you wait too, there probably will be hundreds of other homes available, including many near your neighborhood. With winter comes fewer available homes, which means your home will be in a better position to stand out. Fewer options will push potential homebuyers in your direction, even if not as many people are looking for new homes. The question is one of supply and demand, and the winter season is often a seller’s market

Buying a new home is an exciting opportunity, but the process can be time-consuming and stressful at times. By the time you have found the right home, secured the necessary financing, and reached an agreement regarding the terms of the deal, you will certainly be ready to move in and relax for a while. Before you can do, however, there is one final step: the closing. If you have never bought a new home before, you should be aware of what goes on at closing and what you will be expected to do.

Your Role at Closing

Before you can get the keys to your new home, you will generally be required to attend and participate in a mortgage closing. Most often, a closing is a scheduled appointment at the office of an attorney, the title company, or your mortgage lender. You should bring any documents that you received or signed in the weeks leading up to closing, along with two forms of identification. You will also need an acceptable form of payment—usually a cashier’s check—if your required payment has not already been wired in advance.

Once the closing gets underway, you will: