Questions To Ask Before Buying
Are you ready to start the home buying process? You want to make sure you're prepared! Finding the right real estate agent to guide you through the process can really help make simplify buying a home. Going it alone can get messy. Find the perfect agent, then sit down with them to discuss the following questions you should be asking yourself before you buy a home.
- WHAT'S MY TOTAL BUDGET?
What is your total budget when it comes to buying a home? Keep in mind that there is more that goes into buying a home outside of the sales price. You'll have to consider the cost of inspections, appraisals, down payments, and closing costs. This can have an impact on the price of home you're looking for.
- IS MY FINANCES IN ORDER?
Do you have 2 years of steady income that can be shown through taxes? You'll want to reach the minimum requirements by banks to get approved for a mortgage. You also want to make sure you have enough money saved aside for the down payment and any other additional fees you'll be coming out of pocket for.
- WHAT KIND OF MORTGAGE SHOULD I GET?
There are a variety of mortgage programs available for buyers. Some range from a down payment of 0% to 5%, and have credit requirements between a 580 to 640+. Your agent will be able to help you connect with a lender to go over your options and pick the right one.
- WHAT ARE ALL OF THE CLOSING COSTS?
Closing costs are going to vary with each home and price. You want to make sure you know what the estimated closing costs will be on a property before you place the offer. Although most often they range around an additional 3% for buyers, this can vary on a case by case basis.
- HOW SOON ARE YOUR READY TO MOVE?
When you find the right house and place an offer, you don't get to move in right away, unfortunately. You have to go through the full mortgage approval process. This can take on average 30 to 45 days. Make sure you make plans for your current living situation to accommodate the time span it takes to find a house then close on it. If you're purchasing with cash, this time period can be reduced to around 2 weeks.