Important Questions to Ask When Buying a Home

Written by Posted On Monday, 21 December 2015 06:01

If you're considering buying a new home, particularly if you're a first-time homebuyer, you may be eager to jump at the first appealing property that you see, especially if it's in your price range or target neighborhood. But there's sound reasoning behind the words "buyer beware." Before you make what could be the largest and most important investment of your life, you want to be certain about what you're getting into. So here are a few questions to ask yourself, your lender, and your real estate agent if you're looking seriously at buying a home:

Ask Yourself:

•How much home can I afford? You'll have to do a few calculations to come up with what you can safely afford to spend on a new home. Beyond the down payment and your monthly mortgage bills, remember that there are additional costs involved in any real estate transaction, from loan application fees to closing costs to any immediate modifications you'll need to make to the property.

•What are my priorities when searching for a new home? The answer to this question will probably be based on where you are in your life – how many family members you have, whether you have children in school, where you work, and other factors. You'll want to consider home size and features, the amount of mortgage you are willing to take on, neighborhood, location, and other variables. Making a list of your priorities can help you narrow down your search.

Ask Your Lender:

•What are my loan options? Your lender should be able to give you some direction as to what type of mortgage best suits you. There are many options, from conventional loans to FHA and VA loans, fixed-rate and variable-rate loans, and loans with different terms. Your lender can help you determine the best fit for you based on your personal financial picture and also help you obtain pre-approval for a loan in a specified amount.

•What is TRID? This is a question every homebuyer should be asking as of October 3, 2015. TRID stands for the TILA/RESPA Integrated Disclosure Rule, a new regulation governing mortgages. TRID is designed to simplify the lending process for the borrower by cutting down on paperwork and clarifying the consumer's understanding of his or her mortgage purchase. If you haven't heard of TRID, ask your lender to give you a brief explanation.

Ask Your Agent:

•Is the asking price fair? Your agent will have the market knowledge to help you determine whether the seller is asking a fair price for the property in question. If the price is high or low, that should be a sign to do a little more research into the seller's pricing.

•How long has it been on the market? If a property has been on the market for several months, you should ask your agent why he or she thinks it isn't selling.

•Can you tell me anything about the neighborhood? Even if you've done your own research into a neighborhood, your agent may have additional knowledge or information to share regarding the neighbors, schools, and resale value.

•If you were buying this house, what would you want to know about it? Asking your agent to step into your shoes and offer an honest assessment of his or her concerns or questions about the house could serve as a guide for some of the questions you might ask of the seller.

•What should my offer look like? Making an offer involves more than just naming a price that you're willing to pay. You'll need to think about timing, contingencies, earnest money, and what type of down payment you can offer. Your agent can help you craft the best possible offer to appeal to the seller.

Every home sale is different, and every buyer will have specific questions to ask during the process, but the questions that I've outlined should provide you with a good starting point. When it comes to making such a significant purchase, it is essential to collect all the relevant details about the property and about the sale, so make sure that if anything is unclear, you ask for more information.

Would you like to know more? Visit www.andoverhomes.com for more information.

 

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Lillian Montalto

In May of 2000, Lillian established Lillian Montalto Signature Properties.

Lillian has been the #1 Agent in New England for the past 19 years. Lillian is the founder, broker and principal of Lillian Montalto Signature Properties at 34 Park Street, Andover MA.

Lillian has closed over $1.5 Billion dollars worth of real estate in her career. She also personally coaches several of America’s top real estate agents. Lillian has also been recognized by the National Association of Realtors as America’s #1 Female Real Estate Agent. She is active in several community activities including the Andover Montessori School, North East Builders Association. YWCA, YMCA, and North Andover Lions Club. Lillian is only one of 67 real estate associates nationwide to have achieved 8 educational designations. Her firm also is a member of Leading Real Estate Companies of the World, the #1 relocation company internationally.

Lillian has been a Brinton Super Star, a member of Bill Barrett's Top 50 and has been a keynote Speaker at NAR, the National Association of Realtors annual conference, and numerous Real Estate and Business seminars around the world, including Bali, Canada, Australia, New Zealand, South Africa, and the United States. She and her husband Bob, were recently recognized by Art and Antiques Magazine as being one of America’s Top 200 Art Collectors in 2 different categories; Primitive Art and Decorative Arts. Their home was recently featured in Boston Magazine, Art and Antiques, and the North Shore magazine. Their collections have been featured in Art and Antiques, Veranda, Shelter and various Wood Art Magazines.

www.andoverhomes.com/

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