What To Ask And Consider When Buying A Property
There is no question that when you purchase a home there is a lot that you need to think about. Especially if this is your first time at the rodeo, you will want to make sure you are well prepared by asking all of the necessary questions so there are no surprises. Here is a list of some of the most important things to ask and consider as you get started.
Budget – You must establish a budget for what you are most comfortable with spending but also for how much a lender will qualify you for. Connecting with a mortgage agent is the first thing you should do.
Downpayment – Some first time buyers take advantage of programs where they can put little down in the way of 3.5% to 5%. However, it is worth noting that if you put less than 20% down then you will be required to also pay PMI (private mortgage insurance).
Closing Costs – This is an important mention – many people get focused on the “downpayment” and forget about closing costs which are separate and somewhat substantial. These are your recording fees, prepaid items such as insurance and taxes and the like. Your lender should be able to give you a good idea of what to plan for this.
Moving Expenses – Aside from hiring movers and vans, take a look at any other fees that may be involved such as move in/out fees depending on your community.
Furnishings – If you are moving into a larger space than what you have, you should consider setting aside a budget for necessary furnishings that you will need.
Questions About A Particular Home
Neighborhood – Check the area for what is nearby for services, transportation as well as any plans that may be in the works for future development. Visit it at various times of day and talk with neighbors to get a real sense of what it is like.
Schools – This is of course of interest to those who have children, but knowing about the local schools and how they rank is also of importance to your home’s resale value.
Repairs – This is something that if it is not obvious then it will be uncovered when you perform a home inspection. It is key to hiring a professional so that you know what will be needed for repairs and that you can budget for them.
Roof – Also something that will be examined at a home inspection, but asking how old the roof is as well is a good indication of when replacement will be needed.
Appliances – Asking about the age of appliances and if any still have warranties is a good question so you know how to handle repairs/replacement.
What is included – Before you assume the washer/dryer is staying, be sure to ask. Usually appliances and window treatments will stay but you should absolutely confirm if anything is being excluded.
Comps – Before you put in an offer, make sure that you know what is selling nearby and for what. See what is most appropriate for a dollar amount of your offer with this factual information. Appraisers will be looking at comps too!
Why are sellers moving – Finally, it is always interesting to ask why a seller is selling. It may be for reasons that are personal and unlike your situation, but nevertheless it could be helpful to learn why they are ready to leave.