Home Buying What To Ask
Home buying can be tricky business. Maybe you’re buying your first home or you’re a seasoned owner, be sure to ask these questions about buying a home. Also, ask your friends and family for tips too!
10 Questions To Ask Yourself About Home Buying
1. What elements are must-haves in your home and what can you forgo?
First of all, decide on a few elements you can’t live without and let the rest go. You’ll be able to look at houses with your needs more clearly in mind. Home buying is almost always all about give and take. You may have an extensive list of wants, however you may not find all of it in one home. Compromise is key in home buying.
2. Can you commit to staying in one place for a few years?
If you plan on moving in a year or two, home ownership may not be for you. Experts say a minimum 5-year stay will allow you to gain back the value from your home. Also, it is property values typically grow the longer you stay in one area. Next consider how long you want to be in one area. If you are thinking fewer then ten years you might want to rethink buying a home.
3. How much home can I really afford?
The costs that go with buying a home expand far beyond the monthly mortgage payment. Before home buying think about all of your expenses. Take the time to figure out what you can afford per month, including property taxes and insurance rather than guessing. And also what you can afford for a down payment, closing costs and all the other extra fees involved with buying a home. This will ensure that probably be able to afford the home you wish to buy.
4. How do you plan to find an agent?
The relationship between you and your agent is important, do your research and find someone who can really help you navigate the process. Rather than just letting them be in charge of the home finding, take an active role and build a relationship with your agent. A good relationship will ease you into home bying.
5. Do you know different markets and neighborhoods?
Do you know what you want from the area you live in? Have you done research to learn about the areas you are interested in? Research school systems and crime rates and shop around in the market you’re looking in. Find out what other houses are going for and how long they have been on the market. Also, you will need a point of reference on the properties you search for. Don’t be afraid to look outside your target location.
6. How does the home buying process work?
Sure, you’ve heard family and friends throw around words like “appraisal” and “closing costs”, do you truly understand the process the whole home buying lingo? Don’t be afraid to ask questions, knowing what you’re in for can help you make smart decisions along the way. Also, ask your friends and family how they went through the home buying process. Futhermore, this will give you an idea of what you are in store for.
7. Do you know your credit score?
You need to know if you are mortgage-worthy and it starts with your credit score. It’s also a good idea, to know your credit score in case you have to work on approving it for a better loan. When it comes to home buying, lenders want to know they can trust you.
8. Where will you be getting your mortgage from and what options are available to you? Knowing the different types of mortgages available to you is important. Look at all your options and programs and you find one that works for you. Buying a home is just the same as buying a car, only the loans are biggers. It seems like a complicated procedure, but knowing what is available to you can make home buying so much more easier.
9. Are you preapproved or prequalified?
These are two very different things. Pre-approval is a written agreement from a lender saying they will give you a certain amount of money to buy your home under specified conditions like the interest rate and length of the loan. A prequalification is an estimate of how much you may be able to borrow. Next knowing your status helps you throughout the home buying process and will allow you to know your price range. Also, Having the paper work approved will help you go through the home buying process quicker.
10. How much do you plan to save for a down payment?
How much do you need? The usual down payment is considered 20%, some loans are available with less down. Also, the larger the down payment the more equity you will have in your home and the lower your monthly payments will be. Your bank can offer better loans, as well. Be sure to check out different types of loans and lenders. If you are a first time home buyer, you may also qualify for 0% down. It’s all about doing the research and knowing what is available to you.
In conclusion, take the time to know what is out there, ask questions and also know your limits when home buying. It’s better to be prepared rather than being caught offguard. This article may also be quite helpful in home buying. Futhermore, if you are looking for more home decorating tips check out this article on our website: