What Not to Do Before Buying a Home

Buying a house is the most expensive investment that you will make in your entire life. Don’t blow your chances of owning your dream house by committing mistakes.  This is the checklist of the things that you should not do when buying a home: 

  1. Don’t forget to pay your loans

It is very important that you are updated with all your loan payments, including credit cards, car loan, personal loans, etc. The lenders will look at your payment history to verify your credibility as a borrower. If you miss out on your payment several times, it may lead to not getting a loan with good terms. 

  1. Avoid changing jobs

Don’t do job hopping at least two years before you buy a house. One factor that the lenders are looking at before you get approved for a mortgage is a permanent source of income. To demonstrate your financial stability, it is important that you stay with one company. By changing jobs many times, you make the lenders think that you don’t have a steady income to keep up with the mortgage. 

  1. Avoid changing banks

Your bank history plays a big part in a mortgage application. So whether your bank made you upset or another bank is offering you a good deal, you do need to pass it up.  Changing banks will not look good on your application process.   

  1. Avoid buying a car.

Don’t buy a car before buying a home. Sometimes, when you are confident that you have enough to buy a property, you are trying to prove yourself too much by buying a car. Unfortunately, buying a car can destroy your plan plans of buying a house completely. Remember that when you apply for a mortgage, the lenders will investigate your credit history. If they find out that you have accumulated too much credit because you are also paying for your car, it might take your chances of getting a loan with good terms. 

  1. Don’t buy furniture or appliances just yet

Your main priority during the initial stage of the home buying process is to get approved for a loan. It is understandable that you will get excited about moving into your new home but buying furniture and appliances doesn’t make any sense. First of all, you don’t know if the fixtures will fit into the rooms of your new house. Second, if you will buy these things on credit, it will affect your chances of getting approved for a mortgage. 

Real Estate Attorney Job Description

Real Estate Attorneys ensure that all legal aspects are covered when buying or selling Real Estate Properties. They make sure that all parties get a fair share of any deal. They need to possess effective communication skills, negotiation skills, are highly analytical, and business minded. If ever you wondered how important their roles are, here’s the job description of a Real Estate Attorney. 

Prepare documents 

Real Estate transactions involve a lot of paperwork. They are the ones who prepare the documents, more specifically, the contracts that buyers or sellers must sign to make it a legally binding document. The contract will contain the responsibilities of each party and guides everyone involved on what to do in case the deal goes wrong.  

Review documents 

Real Estate Attorneys review the documents or contracts of a specific Real Estate deal. They need to make sure that all the fine print or details are clearly understood to protect everyone’s rights. Real Estate Attorneys need to review documents on a consistent basis especially when negotiations are ongoing. All agreements being discussed should be put in writing. 

Give Legal Advice 

Players of the Real Estate game need to familiarize the legal boundaries for all their actions. One mistake could land them in hot water. It is a Real Estate lawyer’s responsibility to give their clients expert legal advice to keep them within the bounds of the law. Litigation or lawsuits are something that ordinary people want to avoid at all costs.  

Transfer of Title 

Real Estate Lawyers facilitate the transfer of ownership from the previous owner to the new owner. It is their responsibility to check that the Title doesn’t have liens or encumbrances in order to avoid complications. They also take into account any Environmental or Insurance issues, Appraisals, Contracts, or any agreement that would prove to be detrimental to their clients. 

Come up with Lease or Rental Agreements 

Landlords need a Real Estate Attorney’s legal services to come up with Lease or Rental Agreements. This ensures that they know what to do in case they have problematic tenants. Landlords know where they stand if in case they’ll have to deal with problems with their rental properties. This is very important as there are laws that also protect the rights of tenants.  

Real Estate Lawyers or Attorneys serve an important role in the Real Estate Industry. Hiring them is just like choosing the right Real Estate Agent you want to work with. They can help you achieve your Real Estate goals by making sure that everything you do is legal and avoid any potential lawsuit that will only give you problems. 

Mistakes to Avoid When Buying a House

Making mistakes when buying a house can be very costly. Keep in mind that buying a house is a very expensive investment and any pitfall can cause you financial worries that is hard to recover. To avoid committing mistakes, dodge any of the following scenarios: 

  1. Don’t buy a house if you have plans to move again

Buying a house is a lifetime investment. Don’t buy a Calabasas houses for sale just because you want to own one. If you have a plan of moving again to a different location, don’t buy a house just yet. People think that it is impractical to rent – writing checks to the landlord every month and still don’t have any right to the property.  However, you will put yourself in boiling water once you buy a house and after few years, decide to relocate. You might end up not getting ROI and paying more for moving in expenses. 

  1. Not sticking with the budget

Many buyers get a property which costs more than what they can afford. At the onset of the planning stage, most homebuyers will set a budget. But once they see a house that is out of their range, they simply disregard the budget. They continue to stretch their budget until one day; they realized that they have spent twice their original plan. To avoid this problem, get preapproved for a loan before buying for a house. Limit your search to the upper limit of the loan that you are approved for. 

  1. Not anticipating for the hidden costs

Buying a house is not as simple as buying items in the grocery store- you only pay for the price that is marked on the item. You need to set aside a budget for the following expenses:  closing costs, property insurance, property taxes, homeowner’s association fee, attorney’s fee, and other small things in between. 

  1. Paying small down payment

It’s a bad idea to skimp on the down payment. If you will pay small down payment, you will end up paying more on mortgage insurance until as much as 20% of the house is paid off. You will also need to shoulder a hefty monthly mortgage and will incur less initial equity in the house. As much as possible, pay more on the down payment as it will make other expenses lesser. 

  1. Don’t take advantage of the inspection

House inspection is your way to judge the value of the property. Together with a professional inspector and your agent, determine if the asking price is just right based on the result of the inspection. If there are many maintenance and structural issues, bring this up to the owner to re-negotiate the price.   

Things to Consider Before Buying a Property in A Hot Market 

A hot market in Real Estate is usually not the best time to be a buyer. The high demand and low housing inventory have caused home prices to go up significantly. It’s because more and more people are looking to buy a house than there are homes for sale. Missing your chances results in continuing to pay for rent without any chance of recovering that money at all. Here are the things to consider before buying a property in a hot market. 

Your future plans 

Buying a house is entering into a long-term commitment. By now, you should have a clear picture of where you want to be in the next 20 years or so. Are you settling down soon and looking forward to having kids? Can you see yourself living comfortably in the property you’re seriously considering? Lay out your future plans. Ask yourself if purchasing a property today moves you a step closer towards your goals. 

It’s possible effects on your finances 

Buying a property on a hot market can mean having to pay more than it is worth. Take a closer look at your finances if you can really afford it. Remember that you might have to take out a home loan in order to finance your purchase. Since buying a home is an expensive purchase, can you commit to paying around 25% to 30% of your monthly income for a longer period? 

Know your competition 

A hot Real Estate Market means tough competition between buyers in order to successfully buy a property. Make sure that you are always a step ahead of your competition. This means going big on down payment. Going big on down payment lowers the amount your chosen lender will have to finance. Sellers will also likely take note of your offer. A buyer going big on down payment means serious business. 


The cost for items that need repairs or upgrades 


Even if other people are looking to buy a property, never forget to perform due diligence. Have the property you’re considering inspected by an independent professional home inspector. It’s the only way for you to get an unbiased report of the things that need to be worked on or upgraded and how much it will cost you. Use this as a trump card during negotiations to get the seller agree to a lower price.  

Choose your Real Estate Agent wisely 

Hiring the right Real Estate Agent can work wonders for you during a hot market. You will have access to their useful resources and professional network. A brilliant Real Estate Agent can even connect you to pocket listings where only a few people know about it. It means you have lesser competition on really valuable properties. 

If all these things work out in your favor, then go ahead and make that purchase! 

The Advantages of A Realtor

If you are purchasing a new home, I would always, always recommend using the services of a realtor. First of all, and this may be your most important reason, you do not pay for any of the services provided. That’s because the realtors on both sides of the transaction are paid by the seller as part of their Listing Fee. Beyond any economic reasons, however, a realtor will have access to every property for sale that is listed on the Multiple Listing Service (MLS) for your area. Simply by providing a few details about what you are looking for and where, a realtor can literally make hundreds of homes available to you for your review (depending on how specific your parameters are). That gives you the chance to review the list from the comfort of your home and weed out those properties that don’t suit your needs. If any questions are raised during your research, your realtor will be the one to track down the answers for you..

When you have narrowed down your selection and have chosen properties you’d actually like to visit, working with a realtor is key. Most sellers that list their home, do so in order to make sure that their home is being shown to “real” buyers being accompanied by a licensed real estate professional. For convenience, most listings provide for a lockbox or Sentrilock box for secure access to the home. Obtaining the lockbox code will be impossible unless you are a licensed realtor. Homes that are being sold by the owner (FSBO’s) are a different matter and I will get into that later in this post.

The buying process includes a number of steps that a realtor can not only facilitate, but expedite, as well. Once a buyer has decided on a property, the realtor can prepare your offer documents (contracts, addenda, disclosures, etc.) for your signature and present them to the seller. One your offer is accepted, your realtor can guide you through the process to a successful close of escrow. This will include having the home inspected, the attorney review of the contracts and the processing of your mortgage financing. If a buyer doesn’t have access to an attorney, lender or home inspector, a realtor will be able to provide references for those services.

As a seller, the decision becomes a bit more complicated. Many sellers are discovering that the market value of their home is not as much as they had hoped and they have to sharpen their pencils in order to break even. When you consider a realtor may charge a listing fee of anywhere from 4-6%, the list of costs to sell your home, after the payoff of your mortgage, can make that break even point difficult to attain. The advantages to listing your home with a realtor are myriad. They include, but are not limited to, the accurate analysis of your home’s market value, the Open Houses, staging recommendations, signage, Multiple Listing Service inclusion and, most of all, the extensive marketing of the home (the most important advantage).

Importance of Hiring A Realtor

Some people may be tempted to buy or sell a home independently so that they can avoid paying the Realtor’s fee or commission. However, more often than not, it can turn out to be a more difficult, time consuming, and even costlier option in the end. Realtors are professionals and members of the National Association of Realtors (NAR) who subscribe to the Associations code of ethics. A Realtor has extensive knowledge of the market and sufficient experience in handling sale and purchase of real estate. There is usually no way for an average individual to have the latest insights about the realty market or to possess the expertise of negotiations and legal formalities involved in sale and purchase of a home. Real estate transactions are not just about bargaining the price and filling out some forms to complete the deal. The negotiation process can be long drawn out in order to receive the best possible deal. Secondly, the legalities involved in the property documents and making an agreement to buy or sell must be followed appropriately in order to have a secure deal.

Protecting your Legal Rights-Sale or purchase of a home is a very major transaction, and it may involve multiple negotiations even after the agreement to buy or sell has been made. It is important to be aware of your legal rights in such situations when the agreement is already signed, and you discover some new fact about the deal later. For instance, if after you have signed the agreement to buy a home, you realize that a government department or agency, a huge department store, a school, or a gas station has plans to move in just opposite to your location. If you no longer wish to buy that home, for many and obvious reasons, the realtor is the best person to intervene on your behalf and protect your legal rights in such case. Similarly, if the seller backs out of the deal after the agreement, the Realtor® will know your position from a legal standpoint in such a situation.

Getting the Best Deal-If you are in a hurry to sell your home, a Realtor can help you sell it faster and without any compromise on the price. Experienced Realtors are in contact with many potential buyers and sellers, and they are in the best position to achieve a fair deal for all parties. In many cases, a buyer or a seller who makes a deal without the involvement of a Realtor may end up making a poorer realization, even after adjusting for the potential savings in realtor’s commission or fee.