Buying a house is a major commitment, and you want to ensure that you have covered all of the bases before signing on the dotted line. There are many common mistakes that buyers have made in the past, so here are a few tips to save you from those troubles.
1. Borrowing Mistakes: Be careful to completely calculate your total monthly costs. Loan officers often quote the cost of principal and interest, but do not include the tax and insurance since those numbers vary, but this could leave you with an additional $500 or more a month that you did not account for. Also, shop around. Consult two or more lenders to make sure that you are getting a competitive loan.
2. Hiring a Real Estate Agent: Make sure you hire the right kind of agent that will be able to provide sufficient support and service throughout your entire buying process. It is also important that the agent has your interests in mind and works with you as a partner, instead of projecting their views onto you. Again, be sure to shop around. Look for experience, good reputation, and knowledge of the local area.
3. Lawyer Selection: Definitely hire a lawyer! Not hiring a lawyer is just foolish. Real estate law is local, each state is different and there are also local customs associated with the trade that the attorney can help you with. Also, you want to make sure that you completely understand all of the documents that you are signing at closing.
4. Choosing an Inspector: Do not expect too much from your inspector. They know a great deal about houses, but they cannot see inside the walls or find every little imperfection. They also cannot give you estimates, so if you want an estimate on a project or repair you must consult a contractor.
5. Underestimating the Entire Process: House-hunting is going to take a substantial amount of time, plus you will spend on average 20 hours on the deal during the week your offer is accepted, not including the time you spent stressing about the deal. You will probably need to reschedule some things during this week to make time for it. Also, it is a major investment and huge decision, so prepare to be a little stressed, it’s normal.
If you are looking to purchase or sell real estate, feel free to contact Pulgini & Norton, LLP at (781) 843-2200 or (888) 344-2046, or email us with any questions you may have. Our attorneys offer nearly 40 years of combined legal experience and provide thorough, timely, and results-driven service in many aspects of both residential and commercial real estate.
10 areas where buyers make mistakes, boston.com