Questions to Ask Before Buying a Property

DWIGHT HEARD, BROKER, BS, CRS, GRI

562-760-3130 CELLULAR

562-424-0768 OFFICE

DWIGHTHEARDREALESTATE@GMAIL.COM

Whether you’re a first-time homebuyer or a seasoned real estate investor, buying a home is an exciting process. However, there’s also many questions to consider when you decide to buy. So before you begin your search for the perfect home, here are four questions you should ask yourself.

 

   

What do I want?
Take the time to figure out what type of home you want to buy. From single-family homes and multi-family homes to condominiums, there are many different options on the market and it’s important to choose the type that best fits your needs. Figuring out the town or neighborhood you want to live in is equally important. While a home might have all of the amenities you’re looking for, factors like crime rate and proximity to highways can impact the overall home-owning experience. A good idea is to list out and prioritize your needs (e.g. location, number of bedrooms, bathrooms, yard size, school district) before you begin your search.

What can I afford?
The rule of thumb is that you should never spend more than 30% of your monthly income on a mortgage payment. An alternate rule states that you can afford to buy a home that runs about two-and-a-half times your annual salary. For a more tailored look at what you can afford, call your real estate broker to see what your monthly mortgage payments would be if you bought a home today.

Am I financially prepared?
A few months before you start searching for a home, review your credit history and make sure it is in good standing. Get copies of your credit report, ensure that it’s accurate, and fix any issues you discover. Next you’ll also want to get Pre-Approved for a home loan, which will put you in a better position to make a serious offer once you find the right home. Pre-approval from a lender is based on your credit history, debt, and income.

How do I make the best purchase offer possible?
Do your research! Your purchase offer should be based on the sales trends of similar homes in the area and the current real estate market. So before making your purchase offer, consult with your real estate broker and review the selling prices of comparable homes. A review of the current real estate market, prices, size, amenities and condition of a current list of homes listed For Sale, homes in Escrow and homes that have Closed Escrow within the last 90 days; in the surrounding neighborhood, can help guide you in submitting a knowledgeble and reasonable purchase offer.