No matter how you look at it, buying a house is one of the biggest financial decisions of your life.
For this reason, it’s critical to make all the right decisions during the home buying process. This will give you confidence that you’re heading down the right path.
The more questions you ask of yourself, your realtor, and your mortgage lender the more information you’ll gather. And that information is what you need to make an informed buying decision.
If you’re buying a home for the first time, we’ve outlined the best questions to ask at each step so that you can create your own checklist.
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Questions to ask yourself when buying a house
It doesn’t matter if you’re a first-time or experienced home buyer, the best place to start asking questions is yourself.
The questions you ask yourself when buying a house will provide you with much-needed direction.
10 questions to ask yourself before you buy a house
- What is your housing budget?
- How much money can you afford to put down on the home?
- What features and amenities are most important to you?
- Do you have a location preference?
- Are you searching for a home in a specific school district?
- Do you plan on expanding your family in the future?
- Are you interested in a move-in ready home or a fixer-upper?
- Have you taken into consideration real estate taxes, HOA fees, and the maintenance of owning a home?
- Do you have a budget for furnishing and decorating your home?
- Will you move yourself or pay a company to assist you?
Adding to the above, here are some questions to ask when buying a house for the first time:
- Why did you decide to buy right now?
- What is your credit score?
- Do you have a clean credit report?
- Are you purchasing the home alone or with someone else, such as a spouse or partner?
- What’s most important to you in a starter home?
- Do you have a steady income?
- Do you expect your income to increase or decrease in the near future?
These questions are particularly important to first-time homebuyers.
If you’re in this position, you’re likely to have more questions than an experienced buyer. After all, you’re making a huge financial decision for the first time in your life. It’s natural to be cautious and thorough every step of the way.
Questions to ask a realtor when buying a house
While there are many questions you can answer on your own, it never hurts to gain the advice of an experienced real estate agent.
They know the area inside and out, along with having industry connections that can help you along the way.
15 questions to ask a realtor when buying a house:
- What are your thoughts on the area?
- Can you provide more information on crime statistics?
- How does the school district rank?
- How far away are shopping, dining, entertainment, and medical care?
- Can you make a referral to a mortgage broker or mortgage lender?
- How much experience do you have helping clients buy and sell homes in the local area?
- What sets your service apart from other agents?
- How long have you been a local real estate agent?
- Do you work full-time or part-time?
- Do you have enough time in your schedule to take on another client?
- What’s the ratio of buyers to sellers that you represent?
- How long does it generally take you to help a buyer find a home?
- Do you have references I can contact?
- Will I be working with you individually, or with a team?
- How does your commission structure work?
As you ask these questions and collect answers, you’re likely to have follow-up questions for the realtor.
Don’t be afraid to share these, too. A realtor who truly cares about you as a client is more than willing to answer any questions you have.
Tip: speak with three to five real estate agents before deciding which one to hire.
Questions to ask your mortgage lender when buying a house
Unless you’re buying your home with cash, you’ll want to consult with a mortgage lender as early in the process as possible.
There are several ways to find a lender:
- Talk to your local bank about the lending products it offers.
- Ask your real estate agent for a referral.
- Contact a lender you’ve used in the past, such as to refinance your current mortgage.
Just the same as a realtor, contact three to five mortgage lenders to better understand what the market has to offer.
Here are the types of questions you can ask of a mortgage lender:
- Which types of mortgage products do you offer?
- Do you have any special borrowing programs that I qualify for?
- What will my monthly payment be?
- What are interest rates at the present time?
- How much are closing costs?
- What credit qualifications do you require?
- Do you offer mortgage points?
- How long is my pre-approval good for?
- Do you offer a mortgage rate lock?
- Is there a down payment requirement?
- Do I meet the income requirements for securing a loan?
- Is there a prepayment penalty?
- Can you explain how private mortgage insurance works?
- What fees are associated with securing a mortgage?
If you’re ready to ask these questions, receive a pre-approval, and move forward with the home buying process, you’re in the right place.
At AAA Banking, we’re here to help you purchase your dream home — all without the hassle and stress that homebuyers have come to expect.
We take three steps to help make your purchase as smooth and affordable as possible:
- Request information regarding your financing needs, such as your price range and down payment.
- Submit your application, gather documentation, and process your loan.
- Close on your loan.
Contact us Monday through Friday from 8:00 am to 8:00 pm EST at (844) 897-2265. One of our mortgage loan officers can answer your questions and help you decide what to do next.