Buying a house is not something you simply add to your cart. You need ample time to complete the purchase. There is a lot to consider when picking your perfect home. You need to gather the facts first before sealing the deal.
As a homebuyer, you are well aware that the home-buying process is overwhelming. There are never-ending questions that run through your mind.
In line with this, we list down the top questions homebuyers must ask. Get the right answers you entailed in your home-buying journey.
Homebuyers Questions Before The Buying Process
Assess yourself first before jumping to the first real estate agent you see. Ask the following questions.
How much is my budget?
How much can you afford a house? Homebuyers get too excited when they found a place suitable to their liking.
Always take note of this. Without the proper budget, you might end up paying for more. Any lender might approve you a number, but there’s a risk. You carry a mortgage burden so enormous and for a long time.
Avoid this nightmare. Don’t take on a mortgage with payments that are more than 25% of your monthly salary. Always allocate a budget for property taxes and homeowner’s insurance. Don’t forget the mortgage insurance and homeowners association dues.
Do I need to buy or continue to rent?
One of the best substantial investments is a house. But renting also works the same. It all depends on some circumstances. As of today, the interest rates are low. It is cheaper to pay a mortgage than paying rent.
Buying or renting a house depends on your needs. Consider the length you plan on staying in a home. If only for a few years, it is better to rent.
Also, think if you are ready for additional responsibilities. Owning a home needs regular general home maintenance. Are you up for it?
Is there a rent-to-own property?
A rent-to-own property is open in the market but is limited. Why? Owners take a higher risk of terms for a rent-to-own. That’s why terms are more favorable to them.
If you still opt for a rent-to-own, find an owner who offers this. Prepare a considerable amount of down payment. Also, expect a higher interest rate than what a lender usually provides.
Get a more favorable term through a bank or lender. It ensures the home you’re renting to be finally yours one day.
Is a realtor necessary?
Home buying with a realtor is a strong recommendation. Agents represent your best interest when buying a home. They are the best assistant for homebuyers. It saves you from calling every listing agent just to check out a house.
However, real estate agents are different. Interview your prospective realtor beforehand properly. It helps in choosing the best buyer agent.
Got the answers you need? If yes, proceed to your house hunting.
Questions Homebuyers Ask While House Hunting
Buying property in Philippines is not all about the house’s physical features. You have to look more into it. It is essential to know the following information.
What is a short sale?
Let’s say a buyer bought a house and lot for sale in Signal Village Taguig City. However, the seller didn’t receive enough funds from the buyer. Or the market dropped, making the property’s value drop. As a result, the existing mortgage balance is more than the property’s fair market value.
When this happens, sellers lack the cash to pay off their mortgages. Thus, the short sale.
Are you still planning to purchase a short sale? Consider this.
- The time it takes for a short sale response.
- The fact that a foreclosing is highly possible
- Many short-sale properties are in disarray.
Don’t lose hope. Buying a short sale is possible. Just be patient and be in no immediate rush to move.
What is foreclosure?
A foreclosure is a property owned by a lender – Real Estate Owned (REO). These properties are sold as ‘it is.’
Homebuyers and investors prefer buying this to a short sale. All they need to do is fix the property, flip it, and sell it to an owner-occupant.
How is the neighborhood?
Ask your realtor about it. Agents got the pertinent information for every question homebuyers asks. They know the growth of the local economy, crime, statistics, and taxes. Also, they are familiar with local amenities like schools. Most importantly, ask if the community is prone to calamity. It saves you from any foreseeable crisis.
How long should I look before making a house purchase?
There is no specific number of homes. Base your decision on facts. Also, trust your instincts.
Consider the answered questions homebuyers ask.
House hunting is fun if you know what you’re looking for. Always dig deeper for a wise decision.
Homebuyers’ Questions While Placing A Purchase Offer
Fulfill your dream house by getting the right answers to these questions.
What is earnest money?
Also known as a good faith deposit. Homebuyers provide it to the seller’s real estate company. It guarantees to hold in their pledged account. The primary purpose is to show how serious the buyer in purchasing the home.
The earnest money deposit is less than the final figure the buyer has to pay. Pay a larger deposit for a more substantial purchase offer. Thus, securing your prospective home.
Can I do an inspection?
Inspection is a must for homebuyers. Perform several types of inspections like home inspection, pest inspection, random test, and many others.
In most cases, homebuyers must ask for a bare minimum of a home inspection. Although there are common findings, no two homes are the same. So, it is a great idea to get your home checked.
Always understand the terms when placing a house offer. It makes the deal worthy.
Homebuyers’ Question After An Accepted Purchase
Finally, you’re in the last phase of home buying. It is exhilarating, but you still need to know the following.
Is a final walk-through necessary?
A final walk-through is not a requirement but is necessary. Buying a home several weeks go by between the last walk through your home. Changes might happen during this time.
Always do a final walkthrough. Check if all is working like the first time you saw it.
When is the closing date?
The closing date for the purchase is a target, not a guarantee. Read and understand the contract. The date does not mean it is the day you will own your new home.
The closing date is not up to the realtors. The attorneys set the date and time for you.
Once you get all your questions answered, you are sure and secure with your new home.
Before making a purchase, it’s crucial to thoroughly inspect a property, but in case you missed something, What To Do If You Bought A Home With Undisclosed Problems is an important guide for addressing any issues that may arise after closing.