Home buyers are faced with many decisions when purchasing a house and it is essential that they ask the necessary questions to protect their rights before signing the closing documents.
Questions All Buyers Should Ask
There are some questions even experienced home buyers should ask:
1 – What Can Buyers Afford?
Consider all monthly costs including mortgage payments, property tax escrow, insurance escrow, maintenance, upkeep, repairs and utility expenses.
2 – What are the Closing Costs?
In addition to the downpayment, closing expenses usually include:
- Appraisal
- Home Inspections
- Title Insurance
- Real estate Commissions
- Loan origination fees
3 – Is Loan Pre-approval Necessary?
It is recommended. Offers from pre-approved buyers are usually preferred by sellers.
4 – Mortgage from a Bank or Broker?
Both have benefits, depending on the buyer’s credit standing and finances. Buyers should shop around for mortgage offers and seek expert advice before committing.
5 – What Kind of Mortgage Should Buyers Get?
The two primary options are a Fixed Rate Mortgage, usually for 30 or 15 years, and an Adjustable Rate Mortgage (ARM). Each can be beneficial, but advice from a reputable source such as a real estate closing attorney is recommended.
6 – Do Buyers Need a Real Estate Agent?
Even experienced home buyers use agents because they are familiar with the market, understand the home purchase process and can spot red flags that a buyer might not notice.
7 – Any Past Problems With the House?
The buyer’s agent and home inspection can help determine if the house has a history of problems. Buyers should ask questions, and sellers must disclose problems.
8 – Is the House Worth the Asking Price?
Pricing varies between markets. An attorney or agent can find comparable prices to help buyers understand fair market values.
9 – Should Buyers Increase the Offer if Others Bid on the House?
If it is a buyer’s “dream house,” increasing an offer may be appropriate but buyers should seek advice and avoid overbidding.
When buyers ask the right questions, they tend to be more satisfied with their home purchase. Advice from reliable sources such as a real estate attorney or buyer’s agent can be helpful in guiding them through the purchase process.
