Buying a house can be an exciting time. However, real estate transactions can be complex and it is important to be aware of certain information before you begin the process.
- Getting a pre-approval – Looking at homes outside of your financial ability can be fun but can be a waste of time if you are seriously looking to purchase a home. Getting a pre-approval will not only inform you how much you may receive for a mortgage loan but also can help to prove to a seller that you can afford to buy their home if you have not yet obtained a mortgage.
- The importance of an attorney – While most people immediately set out to find a realtor when searching for a home, you should never underestimate the importance of seeking help from an experienced real estate attorney. Real estate contracts are complex and contain legal terms that most people do not understand right away. The last thing you want to do is sign a contract with unfavorable terms or be taken advantage of in any way during your transaction.
- Getting a mortgage – Once a contract is signed, you must obtain the necessary mortgage for the property (unless you can pay cash!). You will need significant documentation to obtain a mortgage, including tax returns or pay statements and W-2’s. The more organized you are with your financial records, the faster this process can go.
- Costs of the buyer – Paying the mortgage principal is not the only expense of buying a home. You can pay for inspections, attorney’s fees, title insurance, closing costs, and private mortgage insurance (PMI), which is common unless you put more than 20 to 25 percent down on your home. You should be prepared to cover these costs.
- Closing on your house – The real estate transaction is never complete until closing. At the closing, you will sign many documents including your mortgage note and should receive certain disclosures. If any title issues arise, you want to have your attorney available to help resolve the dispute. However, once closing is complete, you will be the proud owners of your new home.
Call 201-498-9768 today for more information.
Buying a house is stressful but an experienced attorney can ease a lot of that stress. At the Law Office of John L. Schettino, we represent individuals and companies in real estate transactions of every kind. Please contact our office to discuss our services today.