These first-time home buyer questions can assist you in making a choice that benefits you for many years to come. Review this guide of FAQs about home buying and even share it with your loved ones and friends who also may have first-time home buyer questions.
What makes someone a first-time home buyer?
A pretty common standard for a first-time home buyer is that you have not owned a home in the past 3 years. Some programs and special loans are in place for first-time home buyers. That is another reason you want to review these FAQs about home buying.
What type of home do I want?
Depending on your budget, lifestyle, plans to start a family, or even moving in a few years, one of the most critical first-time home buyer questions is what type of home is best for you? A brand-new construction home will have a higher price tag than a home that needs to be renovated, but there are associated costs with renovations. Consider what is easiest and the most feasible before you start your search.
Where do I want to live?
The city life brings charm and convenience, and the suburbs can provide room to grow and more of a community feel. How far do you want to commute? Which neighborhoods or areas have the types of homes that you love? These are common FAQs about home buying and the location to guide you to the right one.
What type of loan should I get?
After you have decided on home type and location, you can discuss the best home loan with your lender. They will review your assets, income, and credit score to guide you to a loan that will get you into your first home.
How much do I need for the down payment?
You want to have close to 20% of the home’s price to cover the down payment at the time of purchase. If you want to save and put more down, that can help you have equity early on and have fewer interest fees.
What are closing fees?
There will be fees that you need to prepare for and know about to seal the deal at the closing table. There will be home inspection costs, taxes on the home for possibly a few months, an application fee from the lender, and an appraisal fee. The closing fees will be around 2% to 5%. This is a very important first-time home buyer question as the money needed has to be considered when budgeting for the home purchase.
How much will property taxes cost me?
Be sure to do the research on estimated taxes for the home. This can sometimes be a shocker for first-time home buyers, so as much as possible, look into any fees or expenses. Your realtor can answer first-time home buyer questions pertaining to property taxes.
What is the breakdown of my mortgage payment?
A very good first-time home buyer question will deal with the mortgage because the buyer will have to pay that each month. The mortgage payment consists of the principal loan, mortgage interest rate, property taxes, and homeowner’s insurance. If your community has a homeowner’s association, fees will be included for that. A Private Mortgage Insurance (PMI) may also be in the monthly payment.
How much will utilities cost me?
You can ask the seller about how much they spent on utilities if you are purchasing a home that is not newly built. That will enable you to get a ballpark figure and develop a budget draft before you move. You can also research homes with the square footage as yours to figure out what you can expect to spend. Swimming pools and hot tubs are nice features, but they will also increase your utility expenses. A larger home will cost more to heat and cool as well.