Planning to Purchase a New Home? Watch Out for These Common Mistakes

 Posted on January 31, 2020 in Uncategorized

There are so many things to consider when you are thinking about a new home purchase. What neighborhood should you move to? What types of amenities are most important to you? Are there certain features in a home that you cannot live without? What size home should you buy? Fantasizing about the perfect new house, apartment, or condominium can be one of the most enjoyable parts about the home-buying process. However, those looking to buy a home should also be aware of the many pitfalls that can spell disaster. The home-buying process can involve complicated financial challenges and legalese-filled documents that are impossible to understand. This is one reason it is so important to work with an experienced real estate attorney when buying a new home.

Buying a Home that Exceeds Your Budget

Making a realistic budget can be extremely difficult. The majority of people grossly underestimate their actual expenses and forget about the small expenses that add up every month. If you overestimate the amount of money you can reasonably contribute to your mortgage every month, you may find yourself unable to make these payments on time. You could even end up at risk of foreclosure. When determining how much you can spend on a new home, make sure to consider the added costs which you do not necessarily experience as a renter. You will need to account for property taxes, utility bills, and the costs of maintaining your home.

Sticking to your budget can take a great deal of self-control. Many people struggle with this part of the home-buying process. Make sure you work with your real estate agent and lawyer to find a budget that will not leave you with more house than you can afford. Seeking pre-approval for your mortgage loan is one way to help ensure that you do not miscalculate your budget and overcommit.

Moving Before You Are Ready

Moving to a new home can be thrilling, however, home buyers should be wary of moving before they are truly ready. Most mortgage lenders calculate your average income using your income from the past two years. If you have not had your job long enough, you may want to wait a year or two before buying a new home. The same is true if you have not established a good credit score or saved enough for a decent down payment. Ultimately, it is better to know for sure that you are ready to buy a home than to find out you were not ready after it is too late.

Contact a DuPage Real Estate Lawyer

Buying a home is potentially the largest purchase you will ever make. To get the legal guidance you need when purchasing a new home, contact Stock, Carlson & Asso. LLC. Call us today at 630-665-2500 for a personal consultation with an experienced Wheaton real estate attorney.

Sources:

https://www.lendingtree.com/home/mortgage/home-buying-mistakes/

https://www.forbes.com/sites/trulia/2016/08/31/7-warning-signs-youre-not-ready-to-buy-a-home/