The Best Questions to Ask before Buying Your First Home
Anyone who is contemplating purchasing their first home will probably lose a fair amount of sleep before the end of the process. One way to help alleviate some of those sleepless nights is to do your due diligence and ask the right questions going into the process before any contracts are signed. Getting your questions answered by a reliable and honest real estate agent will help you make the right choice for your family and personal circumstances.
Many first-time homebuyers may wonder, “How do I ask the right questions if I don’t know what to ask?” Here, we’ll go over the most common questions and even a few that should be asked but often aren’t.
Some general categories that every first-time homebuyer should consider include the following:
• Your financial stability
• Current and past condition of the property
• Demographics
• Property value
• Other miscellaneous questions
Financial Stability
One of the most common questions before deciding to purchase a new home is “Can I afford it?” This is a question only you can answer. To determine whether you have the finances to purchase a home, you will need to examine your current and future earning potential. This means carefully considering your current finances along with prospective future earnings.
Examine your bank accounts, both checking and savings, along with any 401(k) savings or other savings designated for a home purchase. Knowing your credit score is also key. This may alleviate surprises when your financial institution checks it for the purchase. Some additional and particularly important financial responsibilities to consider include:
• Down payment
• Property tax costs
• Homeowner’s insurance
• Closing costs
• Inspection costs
• Hidden homebuyer costs:
- -Home maintenance
- -Appliance servicing
- -Yard maintenance
Current and Past Condition of the Property
The property agent will provide you with information on the current and past conditions or problems with the property. You should not count on this as the final word, however. You can do your own homework on the history of the home. If there are any issues with structure, roofing, plumbing, or electrical problems, have them checked and confirmed to have been addressed before signing any paperwork. This will take the expertise of a home inspector that you can trust. Questions to ask the inspector include:
· Are there any mold and flooding problems?
· Has any major renovation been completed on the home?
· When was the last time the furnace or roofing had maintenance?
· Has there been sufficient testing for foundational flaws?
Demographics
For first-time homebuyers, it can be a deal-breaker if the demographics are not satisfactory. For example, if you have a family, it will be important to ask the following questions:
· How far away are the schools?
· How far away is it to my place of employment?
· How far away are the police and fire departments?
· How far away are the hospitals, markets, and other sites such as gas stations, etc.?
· What are the neighbors like?
· Is there any significant construction taking place near the new home?
Property Values
There are several ways to learn the value of a property you want to purchase. There are online valuation tools that you can use, or you can hire a professional appraiser to value your home. You can also evaluate other properties that are like the property you want to purchase, which can give you a rough idea of what the property may be worth.
Other Miscellaneous Questions
There are many ways to secure financing to purchase a new home. Some additional questions to ask to make sure your bases are covered include:
· How can I estimate the total cost of my home purchase?
There are numerous home purchase calculators online that are free and ready to use. Take advantage of one of these to get a better picture of total expenses.
· Where can I find the best financing options?
It is smart to start with your financial institution since they know you. If they cannot assist, there are other options.
· Are there any homebuyer programs from which I can benefit?
There may be special programs for new homebuyers. Each state has its version of these programs.
· What is the required credit score?
Like any other purchase, a new home purchase will depend greatly on the score at the time of your purchase.Anyone who is contemplating purchasing their first home will probably lose a fair amount of sleep before the end of the process. One way to help alleviate some of those sleepless nights is to do your due diligence and ask the right questions going into the process before any contracts are signed. Getting your questions answered by a reliable and honest real estate agent will help you make the right choice for your family and personal circumstances.
Many first-time homebuyers may wonder, “How do I ask the right questions if I don’t know what to ask?” Here, we’ll go over the most common questions and even a few that should be asked but often aren’t.
Some general categories that every first-time homebuyer should consider include the following:
• Your financial stability
• Current and past condition of the property
• Demographics
• Property value
• Other miscellaneous questions
Financial Stability
One of the most common questions before deciding to purchase a new home is “Can I afford it?” This is a question only you can answer. To determine whether you have the finances to purchase a home, you will need to examine your current and future earning potential. This means carefully considering your current finances along with prospective future earnings.
Examine your bank accounts, both checking and savings, along with any 401(k) savings or other savings designated for a home purchase. Knowing your credit score is also key. This may alleviate surprises when your financial institution checks it for the purchase. Some additional and particularly important financial responsibilities to consider include:
• Down payment
• Property tax costs
• Homeowner’s insurance
• Closing costs
• Inspection costs
• Hidden homebuyer costs:
- Home maintenance
- Appliance servicing
- Yard maintenance
Current and Past Condition of the Property
The property agent will provide you with information on the current and past conditions or problems with the property. You should not count on this as the final word, however. You can do your own homework on the history of the home. If there are any issues with structure, roofing, plumbing, or electrical problems, have them checked and confirmed to have been addressed before signing any paperwork. This will take the expertise of a home inspector that you can trust. Questions to ask the inspector include:
· Are there any mold and flooding problems?
· Has any major renovation been completed on the home?
· When was the last time the furnace or roofing had maintenance?
· Has there been sufficient testing for foundational flaws?
Demographics
For first-time homebuyers, it can be a deal-breaker if the demographics are not satisfactory. For example, if you have a family, it will be important to ask the following questions:
· How far away are the schools?
· How far away is it to my place of employment?
· How far away are the police and fire departments?
· How far away are the hospitals, markets, and other sites such as gas stations, etc.?
· What are the neighbors like?
· Is there any significant construction taking place near the new home?
Property Values
There are several ways to learn the value of a property you want to purchase. There are online valuation tools that you can use, or you can hire a professional appraiser to value your home. You can also evaluate other properties that are like the property you want to purchase, which can give you a rough idea of what the property may be worth.
Other Miscellaneous Questions
There are many ways to secure financing to purchase a new home. Some additional questions to ask to make sure your bases are covered include:
· How can I estimate the total cost of my home purchase?
There are numerous home purchase calculators online that are free and ready to use. Take advantage of one of these to get a better picture of total expenses.
· Where can I find the best financing options?
It is smart to start with your financial institution since they know you. If they cannot assist, there are other options.
· Are there any homebuyer programs from which I can benefit?
There may be special programs for new homebuyers. Each state has its version of these programs.
· What is the required credit score?
Like any other purchase, a new home purchase will depend greatly on the score at the time of your purchase.
