It Pays To Have Good Legal Advice When Purchasing A Home
When it comes to financial transactions, buying a house will probably be one of the largest ones of your lifetime. While this article focuses on home buying, the same or similar rules make sense when buying commercial property. Since it is such a major decision, it is very important to get good legal advice, especially during closing to ensure all of the documentation is correct. You need to make sure you have the best property lawyers Christchurch has available. There are also other things it helps to know when purchasing a home.
1. Don’t buy if you can’t stay for a least a few years. If you cannot commit to living in the home for at least three years, it probably won’t be worth buying. The costs of buying and selling a home may end up costing you money if you sell any earlier, even if the market is on the upswing. If prices are falling, it is an even worse investment.
2. As any experienced Christchurch lawyers will advise you, be realistic about what you can afford. The rule of thumb is to buy a home that costs about two-and-one-half-times the homeowner’s annual salary. You can get a better idea of what you can really afford by using one of the online calculators which factors in your income, expenses, and debts and then calculates what you can afford.
3. Know your credit status. Chances are you will need to finance and get a mortgage, so you should check your credit report and fix any errors. Begin at least two or three months before you start looking at homes. This will provide you time to correct any errors on your report and even provide a 100 word statement if there is something you cannot get removed. You are entitled to one free copy of your credit report annually.
4. Unless you qualify for one of the special mortgage programs, you will probably need to put at least twenty percent down to qualify for a conventional loan. Be sure to shop around to compare interest rates and points between lenders.
5. Check out the neighborhood. Even if you do not have children, buying in an area with good school can really help when it comes time to sell.
6. Research before bidding. Always research what similar homes in the same area are selling for, especially within the last three months. This provides you a baseline for your starting bid. If similar homes sold for 5 percent less than the asking price, then your starting bid could be eight to ten percent below the seller’s asking price.
7. Engage professional help. Even though it is possible to peruse listings online and even download real estate documentation, it is always smart to hire professionals to do the final paperwork. Getting good legal advice is just smart, especially when the transaction involves tens of thousands of dollars, if not more.
Buying a home can be a challenge, but the process can go much more smoothly if you do your research, take your time, and hire the right professionals to provide good legal advice, especially before signing the closing documents. Taking these steps will help ensure you get a good deal and find the home of your dreams.