Buying a home is an exciting step in life, but many times there are  complications that arise. The standard residential real estate process is long and quite confusing, with many documents, dates, and fees to keep in mind. For these reasons, it is increasingly important to employ the help of a real estate attorney.

A real estate attorney – also referred to as a “Closing Attorney” or a “Transactional Attorney” – is a main player when it comes to the overall real estate process. The assistance of a real estate attorney helps clients navigate through the complex components of this big, life-changing step.

Below are some of the most important Do’s and Don’ts involved with purchasing a residential property.

• DO get excited about your new home. Get to know your new home and new community.

• DO form your team ahead of time. It is crucial to make sure you have someone by your side for each step of the buying process. Picking and advisory team that you trust saves you time and money. Most Buyers need a:
• Realtor (the licensed real estate salesperson)
• Lender (the person or group lending money)
• Insurance Agent (for homeowner’s insurance)
• Home Inspector (responsible for the inspection report); and
• Real Estate Attorney (the lawyer helping you navigate the logistics) 

• DO understand the roles of your team. Your advisory team is there to support you, but it’s important that you do your best to keep track of the status of tasks at hand. Who is to schedule the home inspection? Who will order the appraisal? Who should you call for this or that? If you are unsure, don't hesitate to ask for clarification.
  
  
• DO get pre-qualified for your loan before you make an offer. This will make your offer stronger because the Seller is able to  see that you appear to be qualified. 

• DO know your numbers. You need to work carefully with your lender to make sure you know exactly how much your down payment is (not the % down on your loan, but the actual amount of money you need to bring to the closing) and what your monthly payments will be. 

• DO review the personal property list in the contract of the things that the Seller is leaving  in the house (appliances, furniture, etc.) If there is a mistake, make sure to clarify, in writing, exactly what things the Seller must leave. Miscommunications about what stays and what goes can potentially create problems at closing. 

• DO take a look at the real estate tax bill and tax assessment. Always look to see if the Seller is getting any discounts or exemptions, or if the property is assessed for a lot less than you are paying. These things can mean that your taxes are going to go up and you need to budget for a bigger monthly payment. (If you need help understanding your tax bill, ask your realtor or real estate attorney.)

Don'ts

• DON’T let all of these details take away from the excitement of a new home. You want to purchase this house for a reason. This process should simply is help you reach that goal.

• DON’T hesitate to ask a lot of questions. Your team is likely happy to share their knowledge. There are no dumb questions. We understand that buying a house isn't a frequent purchase.

• DON’T forget to calculate utility costs in your budget. You can ask sellers for the prior utility bills or costs so you can get a feel for how much to budget for them.

• DON’T wait until the last minute for things – especially for your lender. Once all of the details of the contract are straightened out, your lender is the key to getting you across the finish line. Many lenders need to process things through a lot of red tape, so, work closely with them to keep the process moving. 

On the other hand, if you need more time for your home inspection or mortgage commitment, let your lawyer know ahead of time. Additionally, if something else goes wrong, let you team know ASAP. The faster the issues are addressed, the faster a solution can be reached.

• DON’T forget to acquire a quote for your homeowner’s insurance at the beginning of the process to know how much the cost will be. You may also want to check with your insurance agent about prior insurance claims on the property.

• DON’T forget to look over the by-laws, rules, and regulations if you are buying a home with a homeowner’s association. Once you purchase your home, you are automatically part of the association and are responsible to follow all of these rules. In most cases, once you receive a copy of the rules, you have some time to review them and to determine if you want to terminate the contract based on the rules (rental restrictions, parking issues, pets, etc.).

• DON’T ever wire money via email without verifying them over the phone with the title company or brokerage company you are sending the wire to. Wire fraud is a huge problem with real estate transactions. It is important  to be very careful in making sure your money goes to the right place.

This may seem like a lot of information; however, your real estate lawyer and everyone on your advisory team will be happy to help you through the home buying process. you make the right choices to get you your dream home.

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