Buying a Home?
What questions should I ask?
The process of buying a home for the first time can leave a lot of people with a feeling similar to how I often feel when I'm walking out of an auto mechanic's shop. What do all these terms mean? How can I educate myself to make the right decision? Who can tell me if I'm getting the right deal or not?
If you're a first-time home-buyer or haven't purchased a home in a decade, there are some key questions that you should ask to help you arrive at the right property, the right price, and the right plan for maximizing your investment.
What is my price range?
To know what kind of properties you can afford, the number that will be most meaningful to many buyers is the total MONTHLY PAYMENT. When budgeting to purchase a home, you may be surprised to find that some financing options allow you to purchase the home without paying any upfront costs.
I like to use mortgage calculators like the one linked here to estimate what my clients' monthly payments will be, and to test out different financing scenarios.
You should also consider what different types of loans might be available to you: USDA, VA, FHA, Conventional... (Find out what each one of these abbreviations actually means on this page)
What geographic area is right for me?
Is it important for you to be close to work or to have certain community features? Would living within walking distance of a pool affect your decision to purchase a property?
Consider using the available map functions on free search services to circle a geographic area and narrow your search to available homes within that area.
What property details are most important to me?
Is it important to you to have a third bedroom available for hosting your parents when they come to visit? Is it important that you have a couple acres to start a small farm? Will a detached garage be necessary for vehicle storage?
Consider identifying a few key property features that will immediately narrow your search so that when the right property shows up, you can move forward quickly and confidently.
What are my long term plans for this property?
Real estate transactions typically represent a long-term commitment on the part of the buyer. Some research suggests that the average home-buyer stays in a home for 13 years before changing their living situation again.
Even if you aren't planning on living in the same house for the next 13 years, it pays to have a plan in mind from day one. Are you going to sell this property in 3 years? Are you going to make improvements to the property to improve the re-sale value? Are you going to live by yourself, host your family, or rent to tenants?
Making some of these plans BEFORE purchasing a property can allow you to maximize your investment and select the property that best fits your current AND future needs.
