Finally, you’re ready to snap up a home!
Whether you’ve saved up enough cash or you’ve just been approved for a mortgage, buying a home is a big investment. And like all investments, you want to ensure you’re making the right decision.
Image by Paul Brennan
You’re probably wondering what’s the worst that can happen when you’re buying a home. Well, a lot! If you don’t buy a house that suits your current and future living needs, for example, you might be forced to sell it sooner and possibly make a loss.
To prevent such mistakes, here are the questions to ask when buying a house.
- How Much House Can I Afford?
Houses are big-ticket purchases. At last look, the median price of a home in the U.S. was over $250,000.
This is a lot of money and not many people can afford to pay for a house in cash. A mortgage is the only way for the majority of prospective home buyers to be homeowners.
As such, it’s crucial to know how much you can afford. Whether you’re buying in cash or getting a mortgage, know your budget.
Keep in mind that just because you might qualify for, say, a million-dollar mortgage, doesn’t necessarily mean you can afford to buy a house that costs a million dollars. Assess your finances, consult a professional if you have to, and create a budget that works for you.
- What Does the Local Real Estate Market Look Like?
Real estate markets change depending on a wide range of factors. In general, though, a typical market switches between being a buyer’s market and a seller’s market.
A buyer’s market means the supply of homes exceeds demand, which also means home prices are lower and homes are taking longer to sell. A seller’s market means demand exceeds supply, which also means prices are higher and homes are flying off the market.
As a buyer, you want to enter the market when it’s a buyer’s market. You’re more likely to find a killer deal at this time.
- What Type of Home Do I Need?
There are different types of homes you can buy, ranging from a condo to a single-family home, townhome, beach houses, and more.
The type and size of the home you want will be heavily influenced by your budget, but it’s still important to have a good idea of what you want without factoring in the money.
Look at your family and lifestyle. If you’re a bachelor who doesn’t plan to raise a family, for instance, you could make do with a condo. However, if you’re a family person, a single-family home could serve you best.
- Which Professionals Do I Need to Hire?
Buying a home is a multi-step process. As a first-time buyer, it’s hardly possible to go through it on your own without making costly mistakes.
It’s best to hire professionals to help you, but which professionals do you need to hire? You need a real estate agent, a mortgage broker if you’re taking out a mortgage, a home inspector if you need to inspect the home you’re buying, and real estate attorneys to help you seal the deal.
Now You Know the Questions to Ask When Buying a House
Buying a house is a big step, but it’s also a complicated business. It needn’t be complicated for you, though. Now that you know the questions to ask when buying a house, you’re in a good position to have a smooth process.
Once you get the home, come back to our blog for useful homeownership tips and insights.