Planning to Purchase a New Home? Watch Out for These Common Mistakes

buying, Wheaton Real Estate LawyersThere are so many things to consider when you are thinking about a new home purchase. What neighborhood should you move to? What types of amenities are most important to you? Are there certain features in a home that you cannot live without? What size home should you buy? Fantasizing about the perfect new house, apartment, or condominium can be one of the most enjoyable parts about the home-buying process. However, those looking to buy a home should also be aware of the many pitfalls that can spell disaster. The home-buying process can involve complicated financial challenges and legalese-filled documents that are impossible to understand. This is one reason it is so important to work with an experienced real estate attorney when buying a new home.

Buying a Home that Exceeds Your Budget

Making a realistic budget can be extremely difficult. The majority of people grossly underestimate their actual expenses and forget about the small expenses that add up every month. If you overestimate the amount of money you can reasonably contribute to your mortgage every month, you may find yourself unable to make these payments on time. You could even end up at risk of foreclosure. When determining how much you can spend on a new home, make sure to consider the added costs which you do not necessarily experience as a renter. You will need to account for property taxes, utility bills, and the costs of maintaining your home.

Sticking to your budget can take a great deal of self-control. Many people struggle with this part of the home-buying process. Make sure you work with your real estate agent and lawyer to find a budget that will not leave you with more house than you can afford. Seeking pre-approval for your mortgage loan is one way to help ensure that you do not miscalculate your budget and overcommit.

Moving Before You Are Ready

Moving to a new home can be thrilling, however, home buyers should be wary of moving before they are truly ready. Most mortgage lenders calculate your average income using your income from the past two years. If you have not had your job long enough, you may want to wait a year or two before buying a new home. The same is true if you have not established a good credit score or saved enough for a decent down payment. Ultimately, it is better to know for sure that you are ready to buy a home than to find out you were not ready after it is too late.

Contact a DuPage Real Estate Lawyer

Buying a home is potentially the largest purchase you will ever make. To get the legal guidance you need when purchasing a new home, contact Stock, Carlson, Oldfield & McGrath LLC. Call us today at 630-665-2500 for a personal consultation with an experienced Wheaton real estate attorney.

 

Sources:

https://www.lendingtree.com/home/mortgage/home-buying-mistakes/

https://www.forbes.com/sites/trulia/2016/08/31/7-warning-signs-youre-not-ready-to-buy-a-home/

Benefits of Utilizing an Advance Healthcare Directive in Your Illinois Estate Plan

directive, DuPage County estate planning lawyerFor many people, it can be hard to know which estate planning tools and documents are appropriate for their circumstance. Estate planning has become almost synonymous with a Last Will and Testament, but drafting a will is by far not the only important aspect of estate planning. One estate planning tool which you may not have heard of is an advance healthcare directive—the most common type of which is a living will. A living will allows a person to make decisions about their potential future medical care in advance. If you are someone who wants to have a say in the types of medical intervention you could receive if you become incapacitated through illness or injury, an advance directive may be right for you.

A Living Will Puts You in Control

Few would argue that medical advances made in the last several decades are anything short of remarkable. Many people are able to survive and even recover from illnesses and injuries which would have led to death even just a few years ago. Because of this, more and more individuals are realizing how important it is to make decisions about medical treatment and end of life care in advance. A living will allows you to dictate the types of medical intervention you do and do not want if you are incapacitated by illness or injury. More specifically, a living will can allow you to:

  • Refuse certain medical treatments;
  • Know the results of your medical treatment;
  • Ensure doctors follow your wishes regarding medical intervention and care; and
  • Authorize medical treatments you may want in the future.

An Advance Healthcare Directive Can Help Your Family Avoid Burdensome Decisions

One of the biggest benefits of a living will is that it saves your family from having to make medical decisions on your behalf if you become incapacitated. The famous Terri Schiavo case is a dramatic example of the importance of proper estate planning. The young woman fell into a persistent vegetative state in 1990 and required a feeding tube to live. An aggressive, public battle between Schiavo’s parents and her husband regarding her feeding tube resulted. Her husband believed Schiavo would not have wanted her life artificially prolonged in this way while her parents vehemently believed that she should be kept alive at all costs.

Family members of individuals suffering from an incapacitating medical condition often disagree about the types of life-prolonging care their loved one should receive. By creating a living will, you can significantly reduce the need for family members to make these types of burdensome decisions.

Contact a DuPage County Advance Medical Directive Lawyer  

Contact our experienced Wheaton, Illinois estate planning attorneys today if you have further questions about living wills or other estate planning tools. Call 630-665-2500 to set up an initial consultation.

 

Sources:

https://www.cbsnews.com/pictures/look-back-in-history-terri-schiavo-death/

https://www.forbes.com/sites/northwesternmutual/2015/08/26/what-you-should-know-about-advance-directives/#3dcc31ac6b4c

Examining the Different Types of Business Mergers and Acquisitions

DuPage County mergers and acquisitions lawyerMergers and acquisitions are highly misunderstood legal terms, and are often considered to be synonymous among small business owners and the general population. However, there are some distinct differences between the two; understanding them and how they change the dynamics of a business transaction can be critical for ensuring a company’s future success.

Mergers

A merger is a business transaction in which two companies join together to form one company. Many times, one of the two companies ceases to exist. One example is the2007 merger between Digital Computers and Compaq in which Digital Computers was absorbed by Compaq.

Yet, not all mergers are the same. Instead, there are five types of mergers, all of which are listed and described below:

  • Horizontal merger. This involves two companies in direct competition with one another, both in market and product line.
  • Vertical merger. This is an agreement between two companies in a similar industry, but different type of business. An example would be a merger between a framing company and a drywall company.
  • Market-extension merger. An agreement between companies in different markets but with similar products.
  • Product-extension merger. An agreement between companies in similar markets that sell distinct products.
  • Conglomerate merger. Two companies with seemingly nothing in common merge. An example would be an electronics company merging with a company that sells car parts.

Acqusitions

An acquisition is a business transaction in which one company purchases another company. The latter of ceases to exist. In this scenario, the buyers take over the operations and decision-making of the purchased company. Many times, acquisitions have negative connotations, while mergers are viewed in a positive light. Whatever the case may be, it’s important to know that there are three main acquisitions

  • Strategic Remix acquisition. This is an agreement in which the acquired asset, including operations and product line, are combined with an existing business to increase profit.
  • Private Equity acquisition. This is when a company buys another business at a cheap price, pumps it full of resources, and then sells it at a higher cost.
  • Alphabet acquisition. An agreement between two companies that is a hybrid of the other two types of acquisitions. When this happens, the buyers take on the operations and product line of the acquired company with the intention of waiting to see how the acquired company does. If they improve, the buyers have the choice to sell or pump in more resources and potentially keep running the company for their own profit.

If you are looking to enter the world of mergers and acquisitions, contact Stock, Carlson, Oldfield & McGrath, LLC. Backed by more than 40 years of legal and business experience, our Wheaton small business attorneys can help you make informed decisions about your organization’s future. As a small business ourselves, our legal team knows how important a transaction like this can be for your business’ future. Call 630-665-2500 to schedule a consultation with our office today.

Sources:

https://www.investopedia.com/terms/m/mergersandacquisitions.asp

https://www.investopedia.com/terms/m/mergersandacquisitions.asp

https://www.investopedia.com/terms/m/mergersandacquisitions.asp