Questions You Need To Ask When you are First Time Home Buyer
Buying your very first home is one of the biggest milestones anyone can have. However, all first-time home buyers
Mortgages for Champions Has Great advice for First Time Home Buyers
will have very different experiences. To some, it’s a tedious and stressful process, while others might say otherwise.
Mortgage Tips for First Time Home Buyers
It all comes down to one thing, though: how prepared you are.
It’s crucial to research and ask the right questions. This gives you a major advantage. It’s important to be on the right track early on and hit the ground running.
Work with your realtor and bank to make the right choice. Avoid any inconveniences and future obstacles by knowing what you’re getting into. Get yourself one step closer to your future home by answering these questions before you buy.
Why and for How Long Do I Need This Home?
While these may sound like strange questions, they’re still important to consider. Large families have different home needs compared to young professionals or college students. You should consider exactly what kind of home you need and how long you plan to stay there.
Working with your realtor can help narrow down your options and find something that fits you. A family looking for a forever home will consider proximity to schools, parks, and yard space. Working professionals or students may need to be close to work or school.
If you’re only on a job assignment or an exchange program, you likely won’t invest in a long-term home. This could give you some flexibility as your list of deal-breakers will be easier to work with. It’s important you ask these questions both for yourself and to your realtor.
Know what you want and what you are ready to sacrifice. Ask your realtor to find the best match for your needs and budget. Consider the length of ownership, the area, and how much you could recoup when you decide to sell.
Whether you plan to flip it, stay long-term, or until life takes you elsewhere, these are important questions to answer.
What Made the Realtor Pick This Home?
Home Buying Tips
Very rarely do the first-time home buyers shop without the aid of a realtor. Real estate agents make the whole process easier and help you find your dream property. One of the most important questions to ask a realtor is why they chose to show you this house?
Any good realtor will talk with you and listen to what your needs are. They’ll then do their best to find something that meets your criteria. The agent should have a series of houses lined up to show you.
When they take you to each property, get to the point and ask them what’s so special about this house. If they were listening, they’d be able to point out all of the features they know you wanted. Those who didn’t or who don’t care might show you homes within your budget, but which aren’t tailored to your needs.
Don’t let them sell you on possibilities and any amenities you didn’t want or ask for. Often these come with extra costs that blow your budget. Hold realtors accountable and ask about the features that are important to you.
Make a list of your requirements and any flexibility in your budget, and ensure the realtor abides by it. Chances are you will have to compromise, so work on what’s optional and what is a deal breaker. At each house, ask your realtor what made them bring you here, and keep them focused on your requirements.
Is This Home Within My Budget?
Creating and sticking to a budget is on most lists of the best home buying tips. “What’s my budget?” is one of the most important questions to ask when buying your first home. Your finances will determine what you can get, and your realtor should be aware of this.
Whether you want a new apartment or a fixer-upper, you need to have your budget in order. Make sure you also prepare enough for certain unexpected situations, fees, and payments. This will help you secure your home in a smooth and easy manner.
The last thing you want is to find the perfect home only to find out it isn’t within your budget. A set budget also allows you to streamline your home search. The realtor won’t waste everyone’s time with houses way out of budget.
Most realtors factor in property taxes and any closing costs when working with you. Including property taxes, an average of 28% of your post-tax income is a good starting point to cover your monthly house payments. Typical closing fees are usually associated with inspections, estate fees, and commissions.
If your first-time home is a fixer-upper, there are more questions to consider. Your budget needs to factor in not only the costs of renovation but of unforeseen expenses. Many homes, especially older ones, will run into structural or building code issues as you go.
You’ll want an emergency fund set aside for such occasions, even if your home isn’t a fixer-upper. It’s good to have the flexibility to redecorate or replace things in your new home. At the end of the day, you need to ask hard questions about yourself, your budget, and your finances before you buy.
What Kind of Mortgage Can I Afford?
Important home buying questions will always include how to get a mortgage. If you’ve made a
Important Home Buying Tips
budget, you may already have an idea of how much you can afford. You’ll need to take stock and talk to the bank and your realtor to figure out the finer details before you buy a home.
Things like credit score and your job and debt history will be important factors. That said, the best people to ask are usually at the bank. When choosing your mortgage, you’ll also have to consider the interest rate.
Fixed interest rates are often better for long-term ownership. This is because you won’t be subject to interest rate fluctuations, which will save you money. Adjustable rates are often lower in the beginning, but can rise unexpectedly.
This makes adjustable rates preferable for short-term ownership since you won’t be around when the rates jump. By considering these things and talking to your bank and realtors, you’ll save money. This can also help set up a foundation for your finances to avoid losing the house you worked hard to buy.
Are There Any Concerns With This Property?
This is one of the most important questions to ask when buying a house. Homes go on the market for all sorts of reasons, and often they have no shortage of hidden problems. Older homes, in particular, can have a host of safety and structural issues that you’ll need to address.
Ask your realtor if the house has gone through inspection recently. Issues like asbestos or lead can be serious health issues for you or your family. They also are expensive to remove and replace.
Another thing to ask about is if there are any structural concerns. Corrosion, or a cracked foundations, rotting wood, and water damage are things you should be aware of. Never buy a house without asking and then considering if the associated work and costs are worth it.
The property may still be worth the price, but ask the realtor up-front. It may be possible to address home concerns before you sign without going too far over your budget. This will save you from dealing with the hassle and paperwork yourself.
By neglecting to ask these questions, you may be in for a rude awakening later. If the concerns are serious enough, you’ll be legally obligated to deal with them out of pocket. Get ahead of the headache by asking before you buy.
Has This Property Been on the Market Long?
You should also consider how long a house has been on the market before you buy it. It might be a sign that something is wrong or that the price is too high. Always ask how long the property has been sitting on the market.
Talk to your realtor so you can figure out why it’s been on the market for so long.
The longer a property sits without a buyer, the more room you should have to negotiate a lower price. The same is true in reverse for newly listed homes. By knowing how long ago the house got listed, you’ll have a better understanding of how fair the price is.
Knowing how long a property’s been on the market lets you and your realtors negotiate with confidence to get the best deal. If the house is still way over budget or the average price, you can confidently walk away.
This is one of those first-time buyer questions that often make a big difference. It will save you from beating around the bush and having buyer’s remorse for turning down good homes. It can also save you from falling in love with a home that is way overpriced.
First Time Home Buyers Should Ask the Right Questions
There’s no feeling that can quite match getting your own home. To get there, though, first-time home buyers need to ask the right questions to plan and make the right choice. At RealFi Home Funding, we answer financial questions to help you.
The Mortgages for Champions program is one way we help first-time buyers get their dream home. Contact us today for more information or to find out how.
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