Buying a house can be someone’s biggest decision during their life. Owning a house can give them a real equity, a sense of accomplishment and a feeling of independence. Sounds attractive, doesn’t it? However, for home buyers, especially first-time home buyers, there are several questions they need to think clearly before they purchase their house.

1. How is your financial status?

Before making an offer and purchasing the house, it is important to check one’s financial status. First of all, buyers should look at their savings. It is recommended to open an emergency saving accounts and it should at least contain the living expense for three to six months. It is also important to keep the accessibility and liquidity of the saving. Buyers should invest their money in a safe way and gain the regular return. After that, buyers should review their spending and know how much they spend each month. To review the spending, buyers should include all the expenses (food, utilities, clothes, car payments, student loans, entertainment, saving, etc.). Finally, buyers should check their credit. Buyers need to have a good credit score if they wish to get a home loan, thus they should always pay their bills on time. Meanwhile, most lenders today would like to choose the borrowers whose housing expenses is within 30% of their gross income per month.

2. which type of home will best satisfy your needs?

There are a variety of houses that buyers can choose, including single-family home, townhouse, condo, co-operative, duplex, etc. Buyers should find out their ownership goals in order to choose the one that satisfy their needs most.

3. What features do you want your home to process?

When talking about features, buyers should consider all their needs in order to make the house their ideal home. To begin with, they should decide the size of their house and the type of their neighborhood. After that, they should work on details such as the layout of their house, the appliances they need in bathroom and kitchen, and the decorations for the living room and bedrooms.

4. How much mortgage can you get?

To begin with, buyers should have an idea about the amount of money that lenders are willing to give them. Buyers should check their payment history, current job, monthly income, and credit scores and clearly tell lenders how much they can afford. Later on, buyers should get a preapproval for the loan by applying for a mortgage and filling out the paperwork. Finally, buyers should search around and find a lender with suitable interest rate and fees through mortgage calculator or Google searches.

5. How much do you actually need?

Sometimes buyers can get a huge amount of money which they don’t actually need. In this case, buyers, especially first-time buyers, should figure out how much money they really need to borrow in advance. Meanwhile, when calculating how much they need to borrow, they should never forget the others costs besides their monthly mortgage payment such as food, clothing, entertainment, property taxes, homeowners insurance, maintenance cost, and closing cost.

6. Who will help you find a home and lead you through this process?

Buyers need a real estate agent if they wish to buy their own house. A real estate agent can help buyers to find a house which meets their need most within their budget. Afterwards, these agents can assist buyers with their offer, loan application and paperwork. During this process, agents can use their knowledge and experience to protect buyers from any problems and in return, agents can earn commission paid by sellers.

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