Approximately 33 percent of home-buyers in the U.S. were first-time buyers in 2018.
Buying a home for the first time can be a scary prospect because there are so many questions to ask about this process.
Read on the essential first-time home buyer questions that you need to ask before you buy.
First Time Home Buyer Questions You Need to Ask
Buying a home will probably be one of the most financially costly decisions you make, but it’s also a great investment.
If you are a first-time buyer and you’re nervous about purchasing a home, make sure you do your research and ask the relevant questions.
1. Are You Ready to Buy?
Up first on homebuyer questions is: are you ready to buy?
Purchasing a house can be expensive – you don’t just have to think about the price of the house and the mortgage rates. You also need to consider the cost of maintenance, closing fees, furniture, and so on.
Work out your financial situation. Do you have enough money coming in? Have you got enough money for a down payment?
2. What Kind of Mortgage Can You Afford?
Next on the list of questions for first-time homebuyers is: what kind of mortgage can you afford?
Working out how much money you have for a down payment is essential for understanding how much you can afford.
Lenders expect between five per cent and 20 per cent of the loan. It depends on the loan type and different lenders, so do some research to find a loan and down payment that suits you.
3. Do You Have an Emergency Fund?
Still focusing on the financial side of buying a house, you need to ask yourself if you have an emergency fund and/or savings.
If you have been renting up until now, your landlord will pay for maintenance and repairs. When you own your own home, you are responsible for any repairs, so make sure you have some savings.
There are several questions to ask a realtor when buying your first home, which might help you avoid any nasty fees. For example, you may want to know what’s included in the price.
There are also many checks you can do, such as getting a homebuyer survey done on the property and having a plumbing inspection before you buy a home.
4. Questions to Ask Your Realtor When Buying
Where possible, complete a home buyer questionnaire and get feedback from the realtor on your requirements. For example, are you being realistic with your expected property purchase price for the type of home and location? Real estate agents are there to assist you; however, beware the vendors, aka sellers, pay them, so be careful when you’re looking around a house, that you get the information you need to make an informed decision whether to progress with putting in an offer on the property.
Essential questions to ask include: why the previous owners are leaving, how long the house has been on the market, what is included in the price, the owners accept a lower offer, etc.
5. What Type of Insurance Do You Need?
Finally, make sure you research the different types of insurance you need. Home insurance covers your possessions if they are stolen or damaged.
You can also get insurance to cover any external or internal damage that might happen to your property, such as a fallen tree or floods. Make sure you do some research to find the best deals and coverage.
For more information on buying a home for the first time, click here.
Research, Research, Research
Follow our guide on the first time home buyer questions to ask. And remember, the more research you do, the more prepared you’ll be for buying your first house.
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