A home purchase is not as easy as it sounds. With all the papers you need to read and sign, all the negotiations you need to make as well as other processes in order, it can be one of the most complicated and significant transactions you can make in a lifetime. This is the reason why it would be wise to work with a property lawyer.
If you think hiring a lawyer will only increase your expenses during a home purchase, then you got it wrong. Hiring the services of a property lawyer can actually save you money – not to mention time and effort when buying a house. Are you still in doubt that you need one? Here are six reasons that will change your mind.
Avoid Signing Unfair Terms, Rates, And Conditions
Most of us will resort to home loans just to buy a house because let’s face it – real estate is not cheap. Some lenders will try to trick you into signing an agreement that will only cost you more than necessary. By working with a lawyer, they can review the contract and see if all terms, conditions, and fees are fair for both parties.
Better Understand Legal Documents
Since a home purchase using a mortgage loan involves legal paperwork, you can expect the terms in contracts and agreements to be complicated. Property lawyers can explain what’s written in layman’s term, letting you understand what the document entails. You can also ask questions to clarify the legal issues you may face during and after buying the property.
Address Title Problems
Encountering title issues like Boundary/survey disputes, Illegal deeds, and conflicting wills are not as rare as you may think. There are times when homebuyers are close to making the home purchase, only to find out there are problems with regards to the property’s title. A lawyer can help resolve any issue concerning titles, and help avoid future conflict that can delay your home purchase.
Recommended Read: These common title problems can snag your home closing
Consult Tax Consequences
We already know that homeownership involves many costs and fees – taxes included. Your gain or loss out of the home purchase can affect your federal income taxes. By hiring a lawyer, one can answer your questions regarding tax consequences.
Protect Your Rights
Every homebuyer and mortgage borrower has its own rights. However, not everyone is aware of such a privilege. When buying a house, a lawyer can help protect your rights by making sure you get a good deal and make fair considerations during any transaction.
Some States Require Lawyers During A Home Purchase
Not all countries or states require homebuyers to have a lawyer. However, when it comes to the title search, preparation of the contract as well as closing the deal, a lawyer may be necessary. Having a legal representative will make the home purchase easier, less stressful, and work in your favor.
Here are six mistakes you want to avoid in buying a house
It’s easy to make mistakes, especially if this is your first time making a home purchase. However, that doesn’t mean you should make the same mistakes made by homebuyers before. That is why hiring a property consultant or a lawyer is a must if you want to make it right and avoid problems in the future. Remember, a single mistake can leave you with buyer’s remorse, cost you your mortgage, or even end up being house poor. Or sometimes, leads you to hire a property attorney to help you fix it.
While buying a house may seem an exciting experience, one shouldn’t be overwhelmed with the home-buying process. If you are hesitant or have zero knowledge on how to do it right, then consult a property lawyer for such a purchase. When making a home purchase, avoid doing the following.
Shopping For Houses Before Knowing How Much Loan You Qualify For
One common mistake home buyers make is that they go on house hunting without knowing how much they can afford first. Since most of us need to apply for a mortgage loan to make homeownership a reality, one needs to check which program you’re eligible to learn the maximum amount you can borrow. If you look for a house first, then you might get disappointed if you find out the home you want is out of your price range.
Talking To A Single Lender
If you limit yourself to the first lender you come across, you lose the opportunity of comparing rates and finding a good mortgage deal. Exercise your right and shop for lenders. Aside from lenders, you can also consult property lawyers as they can also help you.
Stretching Your Budget
Once you applied for a mortgage and got approved for a home loan, you’ll get to the amount of loan your lender is willing to lend you. However, it would be best not to avail of the maximum credit limit. For example, your lender said you qualify for a $425,000 mortgage. Just because they are willing to give you this amount means you can comfortably pay the loan every month.
Draining Your Bank Account
Not everyone is qualified for a zero down payment mortgage. While paying at least 20% down payment has its perks, and you shouldn’t overexert your savings just to meet the 20% mark. Depleting your savings can leave you struggling to pay for your monthly mortgage – not to mention all of your other financial obligations. Consider your options, see if you qualify for down payment assistance programs or grants, or even use down payment gifts when applicable.
Failure To Deal With Credit Issues
A poor credit score and history can stop you from getting approved for a mortgage. Lenders have different credit score requirements, but most will ask for at least 580 FICO scores. If you don’t clean up your credit history, pay your dues on time, or if you keep on opening new credit lines, you can have a hard time finding a lender who will finance your purchase.
Using Your Heart When Buying A House
When you make decisions while you’re feeling extreme emotions, chances are you’ll choose the option you will regret later on. It is easy to fall in love with a house that’s big and beautiful. But if you don’t listen to your intuition and was blinded with your seller’s sweet talk, you might end up skipping essential steps such as a title search or the home inspection. This can prove to be problematic if the house is an actual fixer and upper, leading you to pay far more than it’s worth.
As mentioned, a home purchase is a sizable investment. While it is not a requirement for every homebuyer, everyone can benefit from the services of a legal representative. You will want to make the most out of the experience by hiring a lawyer that can protect yourself from legally and financially.
Authorship info: Robert Viggiano is the owner and co-founder of Sunnyside Title Agency. After earning a B.S. in Finance from Fordham University, Robert went on to become a licensed title agent in the state of New Jersey. He founded Sunnyside Title Agency with his wife, Angela, in 2018. Named after Robert's hometown of Sunnyside, Queens, Robert prides himself on running an agency with a staff dedicated to exceptional and timely customer service, as well as those who share his optimistic and competitive mindset. A former basketball player, Robert has previously served as a volunteer coach for William Paterson University's basketball team.