When buying a home there are some important questions you should ask. These answers will help you feel confident that you’re making the right decision and the right investment.
What’s my Budget?
While you may think you know what you can afford, there are some considerations you may not have thought about. This is because payments come up outside of the home’s sales price – including things like renovations and repairs or updating appliances, blinds, and flooring.
Am I Financially Prepared for Buying a Home?
Even when you find a home you can afford to buy, you must still have the money to close on it. This is why you should always get pre-approved for a mortgage when you’re buying a home. Doing so tells you exactly how much of a home you can afford, and it also shows the buyer that you can close quickly.
What Type of Mortgage Should I Get?
There are many types of loans with various terms and other differences between them. This is why you should work with a knowledgeable loan officer who knows about all the products that are available.
What Costs do I Need to pay at Closing?
Besides making a down payment you must also pay for closing costs. This may include attorney fees, realtor’s commissions, a home inspection, and insurance. You must also make a down payment. If you’re a first0time homebuyer, this will be 5% of the loan’s total cost. Otherwise you’ll determine how much the down payment is when buying a home, but it’s important to understand that anything under 20% will require you to buy additional mortgage insurance.
What’s the House’s History?
Before making an offer, you should know about any previous damage to the home. This is found in the C.L.U.E. (Comprehensive Loss Underwriting Exchange) report which shows you any claims filed on the property in the past 7 years.
How Much Money Should I Offer?
It’s challenging to find the right price – too little money and you may lose the home to another buyer, but too much and you overpay. This is why it’s important to work with a buyer’s agent whom you trust and who is knowledgeable about the area in which you’re buying the home. You should also be prepared to make multiple offers before landing on a price both parties will agree with.
What can I do to Make my Offer Stand Out?
When you find a home that you really want to own, be prepared to share a compelling story in a written note to the seller. This is your opportunity to share with the sellers how you see yourself enjoying their home in the future. Sometimes this can make all the difference between having your offer accepted and losing out to another buyer because people can connect to you emotionally – something that will occasionally trump the finances in the right situation.
Picture Credit: paulbr75