It’ll probably be the largest purchase you’ll ever make. It’s an incredibly complicated purchase involving lawyers, mortgage advisors, realtors, insurance agents, home inspectors and so much more. Even so, when purchasing a home, there are many basic questions that buyers have, especially first-timers, that they ask too late or that they don’t ask at all.
In addition to many of the FAQs we get, there are some other common questions that homebuyers have, but that the answers aren’t always easy to provide, as they may be different from one buyer to the next. That almost personal nature of some of those questions means that many buyers don’t ask some very basic and/or important questions that they should have very clear answers for.
In no particular order, here are some of the most common questions that many buyers are afraid to ask.
1. Which Homes Can I Afford?
This is one that people are afraid to ask because they think they should know, but it’s rarely an easy question to answer, even for those who have bought a home before.
Of course the question depends on how much money you have, what your income is and how much you can borrow, but there are other factors as well. A fairly easy place to start to get an idea of what you might pay each month for a home is to try a mortgage calculator.
A general rule of thumb is that the total amount of your mortgage shouldn’t be more than 2 to 2.5 times your gross income. If you make $100,000 a year, you should be able to afford up to a $250,000 mortgage.
It’s also important to remember other costs in your calculations, like property taxes, land transfer tax, home insurance, moving costs and even a contingency amount for buying things for your new home, like furniture.
2. How Many Homes Should I Look At?
Online listings help you see many more homes than you could if you visited each one. The answer to the question is you should see as many homes as it takes until you find one you like and that you can afford. It’s also important you don’t negate a great house just because it’s your first time out looking. Sometimes that first one is meant to be, and you don’t want to miss jumping at it when you had the chance.
3. How Do I Know There’s Nothing Wrong With the House I Buy?
Your best protection against facing unexpected repair and maintenance costs after you buy a home is to get a home inspection. However, no one can tell for absolute certainty that there isn’t some hidden problem with your home.
4. Will My Offer be Accepted?
There are so many variables that can affect the answer to this one, it’s almost impossible to say. Sometimes, especially in a competitive sellers’ market, you could offer more than the asking price and still have your offer rejected due to competition from other buyers. Your realtor will be able to advise what market value is.
5. Can I Close on a New Home and Sell My Old Home at the Same Time
Yes, but it’s not always easy. It can sometimes be difficult to time the closings of the buy and sell perfectly. If you buy a new home before selling the old one, you could be stretched financially if the sale doesn’t go as planned. That said, make sure you have a backup plan and bridge financing arranged just to be safe. If you sell before buying, you might need to make temporary living arrangements. You can make your offer on a new home conditional on the sale of the old one, but that can be a detriment to your offer in a competitive market.
You should never be afraid to ask any questions when buying a home. If you have any questions about buying a house or condominium, give the Stephen Tar Team a call, we’ll be happy to answer them.