5 Questions To Ask When Buying A Home

5 Questions To Ask When Buying A Home

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When it comes to making the major decision to buy a home, planning and research pays off. Here are a few important questions to ask before signing on the dotted line.

1. What Kind of Home Do I Need?

There are literally millions of homes on the market, all with different characteristics that won't be right for everyone. So before you get overwhelmed by all that's out there, consider what you're really looking for in your next home. Do you want the low-maintenance lifestyle in a condominium? Would you prefer a quaint historic cottage in the country? If you're a parent, what school district do you want to live in? How many miles will you have to drive to work every day?

There are several factors to consider when it comes to identifying your home needs. Location, amenities, and size are three major points that most home buyers take into consideration. If it's helpful to you, make an actual list on paper of the qualities you need in your home. Remember, there is a difference between "needs" and "wants." You can always list things you would like later. Focus on the qualities you can't live without first.

2. What Can I Afford?

This is a very important question home buyers must ask themselves. It is equally important to be honest with your answer. Remember that when you get preapproved for a loan amount, that might not necessarily reflect the amount you can afford. That is simply what the bank or mortgage lender is willing to loan you. Be honest with yourself about how much you can afford to pay each month for a mortgage. Many home buyers get into trouble by purchasing a home that is too far above their means. Also take into consideration the long-term "living" costs of a home. Take note of property taxes, homeowners insurance, maintaining the home, HOA dues if applicable, and the cost of utilities.

3. How Will I Get the Money I Need To Buy A Home?

Typically, buyers go through a mortgage lender when they need to borrow money for their home. Lenders have access to many different types of loan programs and should be able to guide you through the process and answer your questions. If you're worried about not being able to make a down payment, some lenders even offer low or no money down mortgages to qualified buyers.

4. How Long Has the Home Been On the Market?

Once you've determined what you need, what you can afford and how you're going to get the loan, you can start focusing on the home you're interested in. An important question to ask your real estate agent is how long the home has been on the market. This can give you a good indication of how flexible the sellers will be on price. If it was just listed, they'll probably turn down a low-ball offer. If it's been on the market for more than 6 months, you'll have a better chance at talking them down or negotiating closing costs, though if it's been listed for years the sellers may not be serious about selling or realistic about what the home is worth.

5. What Kind of Condition is the Home In?

This question will partially be answered by a home inspection, once you put an offer in on the house. However, it's important to take a close look at a home's physical condition and appearance before you make an offer. Do you see a lot of wear and tear? Have the appliances been updated or upgraded? Make sure you look at the exterior as well as the interior. Although you won't be able to spot every defect, a keen eye will help you determine if a home is worth your time and money.

These are just a few important questions to ask before buying a home. Like any major purchase, there are several factors to consider. Talk to your mortgage consultant and real estate agent to get more ideas on how to plan your next home purchase.

About the Author:
Steph Medeiros is a marketing professional who helps mortgage companies promote their brands and products, such as VA mortgage loans and zero down mortgage loans, online.



Article Originally Published On: http://www.articlesnatch.com


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