Legal Tips and Resources
If you are getting ready to purchase a home, there will be things you should and absolutely should not do during the preparation stages. In the time between now and when you plan to buy a house, you should be extra cautious in how you are managing your money. You may want to consider starting a savings account, if you have not already. Take into consideration how much you can save every month and refrain from making any huge charges to your credit cards.
It can be useful to have a legal professional help guide you through this complicated and extensive process of buying a home. A real estate attorney can offer advice before you sign on any dotted line. In the article to follow, we have listed four major ways a potential home buyer can make mistakes prior to purchase.
#1 – Getting a Brand New Credit Card
Those who are working towards buying a home may want to opt out of any credit card offers for a while. When applying for a credit card, the lending company may run a hard inquiry. As a result, your credit score can take a temporary, yet substantial ding. You want to keep your credit score as high as possible when making as huge of an investment as buying real estate.
#2 – Major Spending on a Current Credit Card
Charging up your credit card can have a negative influence on the home purchasing process. As your credit balance goes up, your credit score can go down. Due to this, a home loan interest rate may increase. Then, if your home loan interest rate goes up, then your monthly mortgage may go up as well. Keep in mind that how you treat your credit during this time can have catastrophic consequences.
#3 – Changing Employment During Escrow
Quitting, changing jobs or going on maternity leave can put your chances of getting through escrow at risk. A lender can see that you no longer have a job and may question whether or not you will be able to afford the house after all. Wait until escrow closes before making any career path changes.
#4 – Not Getting Familiar with the Neighborhood
It can be much easier to fall in love with a house, than it is to fall in love with a neighborhood. Check out the neighborhood throughout the week, and especially on weekends. Drive around during the day and at night. You may be surprised to find that on Saturday nights, partying and screaming can be heard from a small bar down the street. These are factors that could make your dream house become a nightmare, if you were not aware of these aspects to begin with.
We recommend consulting with a real estate lawyer Sacramento, CA offers before making your final decision about which home is the right choice for you. They can help you find the perfect property that does not come along with any surprises. Unfortunately, house contracts may have very sneaky contract fine print, your attorney can help prevent this from happening to you.
Thank you to our friends and contributors at the Yee Law Group for their insight into real estate law and home buying.