Purchasing a new home in Illinois is a process that comes with a variety of different expenses. Before those interested in buying a home consult with a real estate attorney Illinois about the terms of their purchasing contract, future homeowners should carefully consider four main expenses that are associated with buying and owning a house.
- The Down Payment
Many lenders require a down payment that equates to 20 percent of the home’s value or more before they will consider offering buyers a mortgage. Those getting ready to buy property should keep in mind that making a bigger down payment will allow them to owe less money on their mortgage and get better terms on their loan. In comparison, buyers who put down less than 20 percent on their mortgage, while they may not have to save up as extensively, may have to acquire private mortgage insurance.
Before purchasing property, homebuyers should consider having one or several inspections done to determine if any problems exist with the house or if there are any potential issues they need to be aware of. While most future property owners usually have a general inspection done, other inspections can be done to check for issues like pests, lead paint or radon gas.
- Closing Costs
Prior to attending the closing meeting with their real estate attorney in Illinois, buyers should remember that there are several closing costs they are expected to pay to cover the cost of transferring ownership of the property into their name. Standard closing costs are usually service fees charged by the lender and cover expenses related to obtaining credit reports, having an appraisal done on the property, documenting the purchasing process and various administrative fees.
One common mistake those who purchase property often make is assuming that their mortgage is the only expense related to owning a home. However, future homeowners should remember that maintaining their home and paying for utility costs should be factored into their monthly budget. These maintenance costs may include tasks like painting the home periodically, fixing broken appliances, ensuring that their plumbing and electrical systems are always in good working order and taking care of the trees, bushes, lawn and other features that surround the exterior of their home.
Although homeownership can be highly rewarding, those looking to purchase a home in the near future should familiarize themselves with all of the costs associated with owning property. In this situation, those looking to buy a new home may also benefit from speaking with a real estate attorney in Illinois who can address their concerns about the cost of owning a home.