When you’re ready to purchase a home, you may experience a lot of different emotions. You may be happy, excited or even afraid. All of these emotions are normal. When you’re in the market for a home, there are a few important questions you need to ask yourself as well as the real estate agent.
Budget
What Is the Down Payment?
You can get a loan, but what about the down payment? There are many different loan types available, but most loans that are available require a down payment regardless of your credit score. The down payment will depend on the cost of your home. The total percent of the down payment will range between 3 percent and 20 percent of your home’s total cost.
What about Closing Costs?
Closing costs are more fees you have to consider when you are in the market for purchasing a home. These standard fees are required when processing your loan and the services of a title company. Although there is no set amount for closing costs, you will be paying around 3 percent of your home’s total price.
How Much Are My Property Taxes?
Paying your property taxes are important. Your property taxes are used to fund many different things within the community, including fire departments, schools and to maintain safety, order and infrastructure. An assessor will determine the amount of your property taxes by examining your home and determining its value. Applicable deductions will be applied and a formula will be used to determine the total cost of the property taxes for your home. Property taxes in Washington state are incurred into the monthly mortgage.
Do I Have to Pay All My Utilities?
One downfall of owning a home is paying for all the utilities you use. Unlike living in an apartment, you will not receive certain utilities with your monthly payment. When you pay your home’s mortgage, no utilities are included. You will be required to pay for the services through the individual utility companies.
What about Home Insurance?
Homeowner’s insurance is essential for many different reasons. This type of insurance not only protects your home, it protects your belongings. There is no price on having peace of mind. As soon as you purchase a home, you will need to have a home owner’s insurance policy in place. Today, all lenders require you have homeowner’s insurance. Before you make your final decision, research home insurance policies that suite you best and acknowledge what the policy covers, including floods and earthquakes.
Repairs and Maintenance
Regardless if your home was recently built or is an older home, you will need to set money aside for unexpected repairs and maintenance fees. Plumbing and other issues, including furnace problems all fall on the owner of the home. Since you purchased your home and are no longer renting, you are the landlord who must fix the issues when they arise.
Interior
Are There Enough Bedrooms and Bathrooms?
When you are considering a family home, make sure there are enough bedrooms and bathrooms to accommodate everyone. A family home of four can make do with one bathroom, but two might be more convenient. Your children may be toddlers now, but they will eventually grow up and will need their own space.
Is There Enough Available Space and Storage?
Ensure each room has enough space for someone to live. Consider belongings that will be in the room and the space that is left. Try not to crowd or use every square foot of space you have in a room by placing every piece of furniture or other belongings in a single room. This instance brings us to storage matters. Some homes are available with storage units, such have a shed. If you can’t comfortably fit your belongings in the room or home, make sure there is enough storage space available to store the remainder of your belongings.
Does This Home’s Floor Plan Fit My Family’s Lifestyle?
A lot of potential homeowners do not consider a home’s floor plan until they have already purchased the home and it’s too expensive to make changes. Some floor plans are more awkward than others. When you are considering the floor plan, think of the number of people in your home and the traffic that will go in and out of a room. Make sure there is enough room for more than one or two people to be in one room at once.
What about Missing Features and Renovations?
Some homes will require more work than others. The only question you need to ask yourself is if you are willing to put in the time, effort and extra money to make the repairs on your own or hire someone to fix things. Every home will not be perfect, but there are some homes that require a minimal amount of TLC and because of this, the home’s price may be lower than others. As far as renovations are acknowledged, if you feel comfortable with making the necessary renovations, have at it! Don’t be afraid to do things on the interior or exterior of your home to customize it as much as possible.
Exterior
Does This Home Look Appealing?
Some homes have a more welcoming exterior than others. Is the home appealing to you and your family or does it require a little work? Sometimes all that’s required is a little yard work, such as adding flowers, removing a few trees or painting.
How about the Yard?
You are responsible for lawn care. Is the yard big enough for what you may have planned or is it too big to maintain?
Are Exterior Renovations Needed?
The interior of the home may be perfect, but what about the exterior? Are minor or major repairs needed to repair the outside of the home? Will you have the time and money to fix the home?
Neighborhood and Location
Location?
When you are moving into a home with your family you should consider things such as living on a busy street and the convenience of your location. If living on a busy street bothers you, you certainly want to find a home that is located off the beaten path. Is the neighborhood quiet or noisy? Are you close to grocery stores, restaurants, parks and other places that may interest you? How close to you are your friends and family? How far do you have to travel to work each day? Is there a lot of traffic during your commute? Take all of these into consideration.
What Are the Schools Like?
When you have school-aged children, the type of schools available are essential. You may want your children to attend public school. Are there any public schools in the area? If you do not mind your child attending public school, what are the ratings of the schools in your district?
Here are a few of the essential questions you should ask when looking for a potential home. Asking these questions will get you off to a great start to finding your perfect home. Below are a few great links for follow up information:
Home Buying Tips That Will Give You an Edge
Money Essentials for Home Buying
Negotiating Tips Every Home Buyer Should Know
Nancy is a client first real estate agent in Tri-Cities, WA. If you have any questions on owning homes, living in the Tri-Cities, or purchasing your first home, you can contact her directly at: