8 Questions Every First-Time Homebuyer Needs to Ask
Congrats! You’ve made the decision to buy your first home. Now what?
The homebuying process can be very overwhelming, especially if it’s your first time. There’s a ton of jargon, decision-making, and steps in the process to figure out as you go. It can be scary to think of all the pieces that go into buying a home. I am currently going through the process of my first home purchase, so I am right there with you!
To help you get started, I am going to share eight questions I learned to ask throughout the process. You are more than likely going to have many more questions come up throughout your own experience, but use this list as a starting point.
Some of these questions have straightforward answers, such as what is an EMD (Earnest Money Deposit)? Others will have answers that vary based on your own situation and your own preferences. We’ll go into some of these answers in the coming weeks as our blog posts dive further into the homebuying process for first-time buyers.
Don’t forget to download our free checklist and note pages so you can track these questions and more as you buy your home! You can download this free resource here!
1. How much house can I afford?
First, get pre-approved! This is a great first step that will save you time and stress later on. With this as your first step, you can go into the process knowing your affordability and setting realistic expectations for what type of house you can get.
The mortgage pre-approval process involves providing your lender with various documents that show your income, credit score, and more. Some documents you should have ready to go include your social security number, valid ID, proof of employment and proof of income, tax documents, and credit information.
You can get this process started as soon as you like. For example, I got pre-approved in October 2020 even though I didn’t plan to buy a house until 2021. Just know that your pre-approval letter typically expires within 60-90 days, so you will have to provide your lender with updated information if you go beyond that initial time period. Don’t feel stressed to make a decision within that 60-90 day period though; updating your pre-approval letter is quick and easy since your lender already has all your information!
Once you have your pre-approval and know your affordability, set your budget based on that. I suggest setting your budget below the amount you were approved for to account for additional costs such as closing costs, the home inspection, the appraisal, any home repairs, and insurance.
2. What am I looking for in a neighborhood/community?
This will, of course, depend on your personal preferences and needs. Some important things to consider are HOA fees, amenities, lifestyle of the neighbors (do a lot of them have young children? Are they mostly older couples or younger couples?), school district, safety, and walkability.
Whatever your preferences are, you’ll want to make sure your new community aligns with what you’re looking for. You might find the perfect home in a neighborhood that’s completely wrong for you. Will you be willing to sacrifice the location for the house itself? This is important to discuss beforehand!
3. How long do I plan to stay in this home? Will it fit my needs 3-5 years from now?
This is a very important question to not overlook. You probably plan to stay in your first house for at least a few years, maybe more. You want your house to meet your needs until you’re financially ready to move up to a different house. Do you plan on growing your family within the next few years? If so, does your house have room to grow? Do you anticipate making a job change soon that will affect your commute needs? Is the house practical for a baby or toddler?
Your first house does not have to be perfect by any means! But make sure it will work for you and your family for at least a few years.
4. What’s included with the home purchase?
The listing description usually states which appliances are included in the sale, but check with your Realtor® as well! You’ll want to make sure you know which appliances you’ll have and which ones you can expect to buy yourself.
Don’t be afraid to ask about things that may seem obvious. I had to ask my Realtor® if the ceiling fans were included (they were!). Built-in appliances are considered fixtures, so you can expect those to be included in the sale. Other appliances, however, are considered personal property of the seller, such as a free-standing refrigerator, washer, and dryer. While unlikely, the seller is entitled to bring these appliances with them to their new home, so make sure you’re aware of what’s staying and what’s going.
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