Purchasing a home is likely to be one of the most significant investments you make in your entire lifetime, especially if you’re doing it for the first time.
Although there are many safeguards in place to protect you as you go through the process, your own common sense will serve you better than anything else.
Here are a few common sense things to watch for to help you become an informed home buyer:
Know what’s right for you.
If, for example, you plan on calling your new property home for at least 20 years, a fixed rate mortgage could make sense. However, everyone is recommending you get an adjustable rate mortgage because of its current low rate. What to do? Use common sense: Step back and think about whether this the right way for you (not others) to go.
Ask questions and expect answers.
If you don’t understand something that has been said, ask for clarification until you do. It’s your right to ask questions and you should expect a quick, polite and informative response.
Manage your expectations.
Just because you may be able to afford a larger home or a higher mortgage amount, doesn’t mean a big home or high mortgage is in your best interest.
Sit down with your mortgage professional before you begin your home search, so you know what to expect in terms of monthly payments. Use your common sense and your mortgage professional’s advice.
Use a real estate attorney.
Don’t consider purchasing your home without a real estate attorney.
While you may be tempted to save on legal fees, a good real estate lawyer is worth his or her weight in gold.
And note that your lawyer charges the same amount, regardless of the sale price of your new home or the mortgage amount.