The article gives an analysis of Top Questions To Ask When Buying A Home. There are several important questions to ask when buying a new home. Buying a new home is an intensive process. Potential homebuyers want to make sure they purchase the correct home. Here are some important questions to ask when buying a new home.
Do you have a steady source of income? This might seem like a no-brainer of course you need steady income. However, some people are risk takers or impatient and can not wait to buy a home with or without steady income. This is part of the reason for our current crisis in the credit markets among other things. Potential homebuyers should make sure that they have been consistently employed on a regular basis for the last 2-3 years and they should make sure that their future employment prospects are stable. There are other important to ask as well.
Do you have a good record of paying your bills?
Your credit score will show evidence of this. If prospective homebuyers pay your bills on time, you will have an easier time qualifying for a home loan. Also, the interest rates will likely be lower. So make sure that you are good about paying your bills.
Do you have other outstanding debt?
If you have other outstanding debt, this will affect your ability to buy a home. Prospective homebuyers should eliminate your debt as much as possible before attempting to purchase your home. Having zero debt would be ideal. It would be even better if you could pay for your new home with cash.
Do you have money for a down payment?
This is important because having a down payment will lower the cost of the loan overall. If you have at least 20% down, you should way lower interest rates than someone who does not.
What type of loan is best for my financial situation?
There are many different types of home loans. Prospective homebuyers can get adjustable rate mortgages, fixed rate mortgages, interest only loans, and negative amortization loans. Each of these loans has their strengths and weaknesses. It is up to the potential homebuyer to do their research as to which loan program would work best for them.
What are the origination costs?
If a prospective homebuyer is working with a mortgage broker, there is a chance that their will be origination fees. Origination fees are extra charges in addition to the purchase of the home. The origination fee usually pays the person that you are getting the loan from. Also, there is a chance that they could add on extra interest to your loan to get paid.
Where do you want to live?
Determining where you want to live is important to know before the house hunt gets under way. Knowing where you want to live will help determine everything else. This will give you an idea of the cost of the homes you are looking at. This will help set a price range as well. This is important to getting an appropriate home loan.
All of these questions will help the first time buyer.