Jerry Pinkas: Important Questions to Ask When Buying a House
Are you ready to purchase your dream home? When buying a new home, you have to equip yourself with the right knowledge and understanding about a home sale by asking yourself relevant questions to make a smart and informed decision.
The first question to ask is, “What is my budget?”, because getting the right price is not only the cost you have to pay. Don’t be one of those home buyers who just simply go online and check property listings without even having a clear idea of their total budget, and later on they are surprised to know how much it will cost them, thus they end up withdrawing from the home sale, which is really a waste of time and effort. Beyond the initial price of the house, you have to take into consideration renovations, remodeling, repairs, closing fees, processing fees, and other sorts of charges. At closing, what is the expected actual cost? The cost due at the time of signing may include real estate commissions, attorney’s fees, title insurance, and home inspection cost. These would include the cost of new flooring, window treatments, and new appliances.
The second question you need to ask yourself is “Is my financial house in order?” or “Am I financially capable of buying and sustaining the home?”. Before you make an offer, it is important to get pre-approved for a mortgage. Get pre-approved by the lender by checking your credit score. Most lenders do not approve mortgage loans if they see blemishes in the borrower’s credit history.
It is also important to ask yourself this question, “What type of mortgage loan should I get?” Think about the term of your loan, if you want a 15-year or a -3-year loan, or a fixed-rate or variable-rate, because no single mortgage fits all, and there are different terms and conditions. Don’t just choose any loan officer, choose one who is has the in-depth knowledge and skills in different types of mortgage for you to obtain the best option depending on your needs and preferences.
What is the history of the house? Your house may look perfect on the outside but it is actually infested inside, knocking its foundation because of pests like termites. What is the amount I am willing to make an offer? An offer that is too low may just risk you from losing the transaction, and too much may end you overpaying.
That is why it is important to talk with a real estate agent, someone who is knowledgeable and skilled to determine the price offers in the area. It is important to work with your real estate agent so both of you can make a good plan and strategy to make your offer stand out.