Questions for First-Time Home Buyers
By Andrea Eldert
Everything is more difficult the first time you do it. This includes the first time you buy a home. You’ve never been through the process so you don’t know what to expect. Without any previous experience, you don’t know what mistakes to avoid. You probably aren’t even sure what kinds of questions you should be asking yourself. While not comprehensive, this list of questions for would-be first-time home buyers can get you started thinking.
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Is Buying a Home Right For Me?
The first question any prospective home buyer should ask is whether a home purchase is really right for them. Sometimes people fall in love with the idea of home ownership and fail to consider that it has its drawbacks too. Home ownership requires much more investment than renting and not just financially. There is more that goes into regular upkeep in a home. Interior and exterior painting must be done periodically. Appliances need to be replaced. Leaky faucets and broken windows must be fixed. Yards require constant attention. While a home can be a great investment, it is not for everyone. If you don’t have the time, money, or skills necessary to maintain a home, you might want to hold off on making this major purchase.
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What Kind of a Home Is The Right Fit?
Once you decide that home ownership is right for you, it’s time to start thinking about what kind of home you want. This opens up a whole number of questions that you’ll want to answer. Would you like a home in town or in the country? Do you need a small house or a larger one? Would you prefer to buy a house that is move-in ready or would you consider a fixer-upper? Two story or one story? Basement or no basement? How many bedrooms? How many bathrooms? A yard big enough for a small army of neighborhood kids to take over or small enough to mow during a commercial break? It all depends on you and your personal needs, situation, and interests. Before you start looking, you should have a good idea of what your ideal home would look like.
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What Specific Features Do I Need or Want?
In addition to these big decisions, there are also a number of smaller ones that a prospective home buyer will need to make. You’ll need to decide what features in a home are important to you and which ones you can live without. It’s all about trade-offs. No home will have all the elements that you desire so you will probably have to give some things up. However, every home buyer has a list of features that they cannot live without. You can make a list of those features on which you are not willing to compromise…though with the competitive housing market, there is no guarantee you’ll get them all.
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How Much Money Can I Afford to Spend?
Perhaps the most important question is how much money you can afford to spend on a new home. There are several components to this question. First of all, you need to know how much a bank is willing to lend you. You can do this before you even beginning shopping for your home by getting pre-qualified. However, this is only a part of the answer. You have to do your own analysis too. Only you know your monthly expenses and spending habits. It is imperative that you look closely at your budget and determine how much you can afford to spend each month on your home. And remember that in addition to your mortgage, you also need to consider the expenses of property taxes, insurance, and both regular and unexpected repairs. The last thing you want to do is stretch yourself to the financial limit with your new home purchase.
When considering a home purchase, there is a lot to think about. For the financial aspects, you will need advice from the experts. From getting pre-qualified to choosing a mortgage option that fits your life and circumstances, Federated Bank can help. We are one of the few banks in the area to offer specialty mortgage products. Some of these products make home ownership easier for qualified buyers with features like low or no down payment, no mortgage insurance, or flexible credit standards. Stop in and talk with me any time. I’m happy to answer your questions and explain our mortgage solutions.
