Your home is likely the biggest investment you have. Whether you’re buying or selling a house, understanding the process will help you make smart financial choices and avoid legal complications.
Check out these simple tips to avoid making costly mistakes:
Know how to choose a good team.
While many people go through the buying and selling process on their own, if it’s not something you do every day, be sure to get the qualifications of the professionals you decide to work with.
Interview several real estate agents and check references before you commit to one – you can also check the National Association of Realtors website for more insight. And make sure your home inspector is properly qualified and licensed for home inspections.
Another important team member is a real estate attorney, who plays a different role than an agent. While most agents are excellent representatives, they may not be aware of all the legal issues that should be considered when buying a house or getting ready to sell.
An attorney you’ve hired is there to represent your interests and ensure your rights are protected. Consider working with an someone who will help you understand all the legal documents and exactly what legal liabilities you have accepted.
Know what lenders can and cannot do.
Understand what your financial limits are and don’t be pushed into an interest rate or FHA loan that isn’t feasible. Don’t let anyone persuade you to sign loan documents with missing or incorrect information such as your income, debts or length of employment.
Don’t sign anything you don’t understand.
Mortgage documents can be complicated and lengthy. Take the time to read what you’re signing. If you need help, consider reviewing the documents with a skilled real estate attorney, a trusted real estate professional or a housing counselor with the U.S. Department of Housing and Urban Development.
