Common Home-Buying Questions - New Article

How do I determine my home-buying price range? Do I need a real estate agent? How do I research the seller's asking price? Which type of mortgage loan should I choose? What happens at a real estate closing?

These are five of the most common home-buying questions I receive from readers of this website and blog. For the longest time, I used to answer these questions to the best of my ability ... on an individual basis.

After a while the light bulb finally went on. I've now compiled these common home-buying questions into an article, and you can read it below.

5 Common Home-Buying Questions

Happy home buying!

~Brandon

Renting vs. Buying a Home - New Article Posted

Should I rent a home, or go ahead and take the "plunge" into buying the home? This is a common home-buying question about potential buyers, and it's something we've blogged about before. But we still get the occasional question on this subject, so we've posted a new article to help you answer this question for yourself:

Renting vs. Buying a Home - How to Decide

In some cases, this is a fairly simple decision. For example, if your monthly mortgage on a home was equal to (or below) what you pay in rent -- and if you were going to stay in the same area for more than a year or so -- then it would make a lot of sense to buy a home instead of renting.

In other cases, the decision is not as simple. That's why we continue to offer advice on the subject of renting vs. buying a home.

Happy home buying!

~Brandon

Home Buying Questions - Choosing a Neighborhood

Continuing our series on home buying Q&A, we come to another frequently asked question among home buyers: "How do I choose a neighborhood?"

This is a great home buying question to ask, because it shows you're thinking the right way about real estate. When you buy a home, you are also buying into the neighborhood in which the home resides. You are also buying into the school system, property tax situation, and other factors that affect the value of your home.

There's also the more human aspects of choosing a neighborhood. Obviously, you want to choose a neighborhood that you'll enjoy coming home to every day ... a neighborhood where other home owners care about the appearance of their homes, and the appearance of the neighborhood as a whole.

In other words, you want to choose a neighborhood that complements your home, as opposed to detracting from it.

Here are some resources to help you choose the right neighborhood before buying a home.

• Neighborhood Scout
  
• Yahoo Neighborhood Reports
  
• Helpful article on-site (scroll down to "location, location, location")
• Choosing the right neighborhood (About.com)
  

Learn More
This blog post is part of an ongoing series of common home buying questions.

House Hunting - How Do I Get Started?

Continuing our series on home buying questions, we now get to process of shopping for a home:

"How do I begin house hunting?"

House hunting is one of the most exciting parts of the home buying process. Not only are you shopping for a home, but you're also making one of the biggest financial investments of your life.

Here are some resources to help you get started:

• 10 Steps to House Hunting
• What to Ask When Looking at Homes
• Create a Home Buying Wish List

Happy home buying!

~Brandon

Home Buying Questions: Low-Income Home Buying Programs

Continuing our list of questions to ask when buying a home, we come to another common question among home buyers:

"What are low-income home buying programs?"

In general terms, a low-income home buying program is any program designed to assist home buyers who may not otherwise qualify for a mortgage loan.

Normally, when you talk about low-income home buying program, you're talking about programs that have some form of government backing. In other words, the government backs or guarantees a loan on behalf of the home buyer.

Low-income home buying programs work by making mortgage lenders more inclined to loan money to a borrower who might not otherwise be qualified for the loan. The lender is comfortable doing this, because in the event that the borrower / home buyer defaults on the loan, the government has backed it. So the lender will be taken care of either way.

Learn More
We have a helpful tutorial on the subject of low-income home buying programs.

Happy home buying!

~Brandon

Home Buying Questions - Which Type of Home Loan?

Continuing our series on home buying questions, we come to a common question among first-time home buyers: "Which type of home loan should I choose?"

I avoid answering this question with any finality. I'm happy to teach people about the different types of mortgage loans, but only the home buyer can make that final decision. The best thing you can do is learn the pros and cons of each type of mortgage, try to determine how long you'll be in the home, and make your decision based on that.

Often, the decision comes down to two factors: (1) how long you'll be in the home, and (2) how comfortable you are with the uncertainty of changing interest rates.

Here's some information to help:
Types of Home Loans - A Home Buyer's Guide

Learn More
This blog post is part of an ongoing series of home buying Q&A.

~Brandon

Home Buying Question: How Do I Find an Agent?

Continuing our series on home buying questions, we come to the question: "How do I find a real estate agent?"

This is an important decision to make, and not something you should rush through. By choosing the right real estate agent, you can enjoy a much smoother home buying process. This is especially important if you're a first-time home buyer.

But how do you find a real estate agent? There are a lot of real estate agents out there, and they all have different specialties and skill levels.

Here's some information to help:
How to Find a Real Estate Agent

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This blog post is part of an ongoing series of home buying Q&A.

~Brandon

Home Buying Question: How Much Can I Afford?

Continuing our series on home buying questions, you must ask the next logical question: "How much house can I afford?"

Your mortgage lender will help you answer this question, because they won't let you take out a loan they don't think you can handle. But it's best to determine your budget before you even approach a lender.

Mortgage calulators are a great place to start. Using a mortgage calculator, you can divide a mortgage amount into monthly payments. This will help you determine where you comfort zone lies.

Here's an article that will help:
Home Buying - What Can You Afford?

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This blog post is part of an ongoing series of home buying questions and answers.

~Brandon

Home Buying Question: How do I check my credit?

Reviewing your credit report is one of the first steps you should take during the home buying process.

It's easy to obtain copies of your credit report. Yes, I said "copies" ... plural. There are three credit-reporting agencies (Equifax, Experian and Trans Union), so you should request your credit report from all three.

By law, you are entitled to one free credit report per year. You can request a copy from all three companies at once by visiting their joint website: AnnualCreditReport.com.

Once you've received your credit reports, you should go over them with a fine-tooth comb to look for errors or inaccuracies. Here's more info on that.

Learn More
This post is part of an ongoing blog series listing the most common (and most important) questions to ask when buying a home.

Happy home buying!

~Brandon

Home Buying Question - Where Do I Begin?

So let's assume you've answered the previous home buying question (Am I ready to buy?) with a resounding "Yes." So now what? You're ready to buy a home, but where do you get started?

A home buying profile is a great place to start. This is simply a list of home buying criteria to help you narrow your home search. Whether you work with a real estate agent (recommended) or decide to go it alone, a home buying profile will be a big help.

Here are some of the items to put on your home buying profile:

1. Target monthly mortgage.
2. Maximum price range.
3. Number of rooms needed.
4. Neighborhood or part of town (first priority).
5. Neighborhood or part of town (second priority).
6. Type of house desired.

Obviously, these are just some of the basics. But if you can fill in the blanks for each of these items, you'll be off to a good start. And don't worry ... we will fill in more of the blanks as we continue in this blog series of home buying questions.

Learn More
This is part of an ongoing blog series listing the most common (and most important) questions to ask when buying a home. Read more here

Happy home buying!

~Brandon

Home Buying Questions - Am I Ready to Buy?

For obvious reasons, this should be the first home buying question you ask yourself. After all, if you're not ready to buy a home, there's no point in asking all the other home buying questions.

This is a question that only the home buyer (or potential home buyer) can answer. Buying a home is one of the biggest financial decisions you will ever make, so you need to weigh the facts carefully and be honest with yourself.

Helpful Resources
Here are some resources to help you answer this all-important home buying question, "Am I ready to buy a home?"

• Are You Ready to Buy a Home?
• How Much Can You Afford?
• Buying vs. Renting Calculator
• The Buying vs. Renting Decision

Learn More
This is part of an ongoing blog series listing the most common (and most important) questions to ask when buying a home. Read more here

Home Buying Q&A: What Does a Home Inspector Do?

In short, an inspector checks the safety and functionality of your potential home. Inspectors focus primarily on the structural and mechanical aspects of the home.

Get a home inspection as soon as possible after the sellers accept your offer. Make the contract contingent upon the home inspection. That way, if the inspection uncovers a major flaw that you’re unwilling to accept, you have a legal way out of the contract.

Don’t confuse the home inspection with the home appraisal. The home appraisal protects the lender’s financial interests. The home inspection protects you, the buyer. The appraisal is the bank’s way of determining whether or not the house is worth the price you’ve agreed to pay. The inspection is your way of identifying structural or mechanical problems with the house.

Learn More

Learn more about home inspections