Buying a New Home? Questions to Ask Yourself

If you’re considering purchasing a new home but don’t know where to start, here are some general questions to ask yourself before, during, and after the home-buying process. Knowing what type of home you’re looking for, understanding all of the steps to homeownership, and asking the right questions, will help streamline the process and keep you sane and focused during this exciting time in your life.

Questions to Ask Yourself When Buying Your First Home

Before you even begin looking at homes, there are many things to consider that will help you hone in to find exactly the right home for you and your family. First, you’ll need to determine what type of home you’re looking for. Do you need a single-story home, multi-family, or would you prefer to live in a condo setting?

The answer to this question will rely solely on the reasons you have for wanting to buy your first home. If you have a family and space you’re currently in is too small, then you may prefer a home with more bedrooms and ample backyard space. If you want to live near where you commute to work every day, you may want to look for a home in a developed area with grocery stores and other shopping nearby. For smaller, busy families that don’t have time to devote to the extras like yard maintenance, purchasing a condo may be a good choice.

A good rule of thumb is to consider your life and what it will be like in the next 3-5 years and purchase a home based on that lifestyle.  It also makes sense to consider what it is about where you’re currently living, that is an issue for you and your family and look for homes that will better suit the lifestyle you want.

Homebuying Questions Your Lender Can Answer

After you’ve determined what type of home and lifestyle you’re looking for, figuring out the financial side of things is key before you even step foot inside a home. Having a clear idea of what your budget is and how much house you can afford will save you time, energy, and money in the long run.

Your lender will run a credit report and often will let you know what types of items on your report need to be remedied before applying for a home loan. Sometimes they’re easy fixes that require a small payment to that old medical bill you forgot about from 6 years ago, other times you may have to do some detective work to figure out how to bring your credit score back up.

Assuming your credit is golden and you’re able to immediately apply for a home loan and get a preapproval, there are some questions your mortgage lender can answer for you. They’ll be able to tell you how much mortgage you can afford and often give a general idea of what type of down payment you may need to qualify for the mortgage. Your mortgage lender may also be able to share with you information about the different residence options; things like Homeowners Association fees, appraisal info, and anything else that they deem pertinent before you start looking at listings with your realtor.

Buying a New Home?  Time for a Little Detective Work

Once you set out on looking for your dream home, you’ll want to find out about your potential new community. Look into the annual property tax for the area, get a general sense of what utilities will cost and if there are any amenities fees that may be included; things like trash pickup, access to the neighborhood pool or tennis courts, will often require fees.

It’s Closing Time! What Questions Should You Have Answered

Once you’ve gone through inspection, insurance appraisal and had your offer accepted, it’s time to close on your new home. Buying a home can be a lengthy process, one with many ups and downs and sometimes disappointments, so bear in mind that at every step of the way, something could potentially go wrong with the contract or appraisal; you just never know.

You’re Ready for Closing

Once you get a closing date though, it’s pretty much a done deal. All that’s left to do is to wait. Usually closing is about a month out from when you get the final word, so this may be a good time to periodically drive through the neighborhood and to get a feel for what its like at all hours or hang out in a nearby coffee shop or park to acclimate yourself to the culture of the area.

At closing, you’ll find out your monthly mortgage payments. Bear in mind, there’s quite a bit of paperwork at this point and you’ll be signing your name page after page, but it will all be worth it in the end. Usually, your first mortgage payment is due 30-days after closing, so that gives you a bit of wiggle room.

You’ll also find out when you’ll be receiving the deed to your home, again its in that mountain of paperwork that you’re signing but each paper that you sign will be explained to you fully, and in great detail. This is also when you’ll hand over the closing cost payment and the closing attorney will let you that in the event of any discrepancies between the lender and title company, you’ll be reimbursed for any overpayment you make.

Buying a home for the first time is an exciting, yet daunting process. There’s a lot to consider and many questions you need to ask yourself at every step of the way. With a little bit of background research and a general idea of how the process will go, you’ll be well-equipped to handle the ups and downs of buying a new home, be on your way to homeownership, and settling into your new space in no time.