Buying a home comes with a lot of anxiety. For most people, buying a home is the largest purchase they will make in a lifetime. Homebuying anxiety trips up many would-be homeowners in their real estate search. People worry about affordability, making a good investment, location, size, missing out on "the deal"—the list goes on. The best way to avoid buyer's remorse is to work closely with experienced real estate professionals. Here are five ways working with a real estate attorney can lessen your homebuying anxiety and help you make the best decision for your real estate goals.
1. Understand Mortgage Types
Before you agree to any mortgage, it is vital to understand your options and what each means for you. There are several kinds of home and mortgage loans, each with different pros and cons. The first lender you talk to may offer something other than the type of loan you are looking for. This is why shopping around for a mortgage that works best for you is essential. A real estate professional can explain each type of mortgage, which would likely work best for your situation, and tips on negotiating with a lender to secure the best loan for you.
2. Examine Closing Costs
As a homebuyer, you likely have a specific amount saved to cover the costs of purchasing a home. Closing costs, however, still tend to be a big shock for many homebuyers who were prepared for the downpayment but not the fees and expenses that go along with closing. In New Jersey, closing costs tend to be between 3% and 6% of the home's purchase price. Especially for first-time buyers, this can add a hefty price tag to the upfront costs of purchasing a home. Homebuyers with funding issues do have options, though. An experienced NJ real estate attorney can help you negotiate closing cost responsibilities in the home sale contract. It is common for buyers to ask sellers to cover some of the closing costs to decrease the buyer's closing cost burden. Ultimately, sellers may be more willing to cover some closing costs to sell quickly or in exchange for other buyer concessions.
3. Investigate the History of the Home
Before you purchase a home, it is very important to do your due diligence in researching the history of the house. Doing this can alert you to any physical or legal problems with the property. A capable real estate agent can help you discover how long a home has been for sale, how many times and how frequently the house has been on the market, and any previous failed sales that could signal issues with the home. A real estate attorney can help you dig through the records surrounding the property. This will tell you if there are any liens or encumbrances on the property that could tangle you in legal troubles later. An attorney has the research capabilities and legal insight to help you protect your investment before you even purchase the property.
4. Utilize the Attorney Review Period
New Jersey requires a three-day review period during which the respective attorneys of the buyer and seller are allowed to review the sales contract. The contract becomes binding at the end of the third day unless an attorney has raised a concern. This review period cannot be waived in New Jersey, and buyers and sellers can cancel the contract at any time during the review period. If any changes are made during the attorney review period, the review window is extended until all parties are in agreement. Having an attorney review the real estate contract can help protect your rights throughout the homebuying process and ensure that you can back out of the contract if the property is found to be lacking.
5. Hire a Real Estate Attorney
Many people talk about the importance of working with a real estate agent when purchasing a home. But few discuss the critical importance of working with a real estate attorney. An experienced real estate attorney offers a multitude of beneficial services intended to protect you and your investment. Every real estate transaction includes navigating your state and town's many complex real estate laws. Form contracts and documents can hardly cover all the complex, town-specific laws surrounding real estate transactions, which is why hiring an attorney is so essential. Working with a trustworthy real estate attorney can help you protect your best interest and avoid buyer's remorse.
Veitengruber Law is an experienced real estate law firm with years of success helping NJ homebuyers achieve their real estate goals. If you are considering purchasing a home in the near future or need an attorney to review a real estate contract, get in touch with us today.