Purchasing your first home is an exciting time. A home purchase is also a major investment, sometimes the biggest investment you will make in your lifetime.
It is often a good idea to work with an attorney when going through the homebuying process, especially if it is your first time. You might have questions as you go through each step of the process and having an attorney representing your best interests gives you peace of mind knowing your rights are protected.
New York law only requires that an attorney be present on your closing date. However, by this time almost all the necessary requirements and steps have been completed. You may want to start working with a real estate attorney earlier in the process, ideally at the start.
An attorney can spot any potential legal issues as you go through each step. If something is missed or a mistake is made this results in the closing date being pushed back. But if it is caught in time, it can save you time and money and allow you to move into your new home quicker.
Contract review
A real estate transaction involves contracts. Many of these contracts are long, detailed and contain unfamiliar legal terms. An attorney can help you understand the terms of each contract and negotiate changes to contracts that are in your best interest.
One of these contracts is the purchase agreement. This is typically the most important contract in the process.
A purchase agreement is a contract that outlines the terms of the entire transaction. Some of these terms include the purchase price, down payment, contingencies and the closing date.
Contingencies are potential events that could give one party a legitimate reason to cancel the same. Common examples of contingencies are if a home does not pass an inspection or if liens are found on the home through a title search.
Title search
A title search is a key component of a real estate transaction. This is a search to see if anyone else holds a lien or interest in the property. You can do this yourself, but having an attorney perform it for you assures you that the search was done properly and thoroughly.
Additionally, if any liens are found, an attorney can advise you on how to address them. Depending on the circumstances, a lien might be a reason to cancel the sale altogether. You should generally not take such a drastic action without professional advice.
Most home purchases require the buyer to take out a mortgage. An attorney can assist with reviewing the mortgage documents and making sure you understand the terms.
Setting up a mortgage typically requires you to submit several types of documentation to the mortgage company. The mortgage company will then process your mortgage and provide you with information on your estimated monthly mortgage payment.
Your mortgage payment may or may not include tax and insurance payments are part of your overall payment. An attorney can help you understand what is and is not included so you do not end up with a mortgage payment you cannot afford.
Closing date
When your closing date arrives, your attorney can continue to be there by your side to answer any final questions you may have and ensure the transaction goes smoothly.
Finally, there is always the potential for complications to arise during a real estate transaction from changes in circumstances or unexpected events. An attorney can help resolve problems that threaten to derail the transaction.