March 30, 2023
If you are buying your first home, you’ll want to ask some important questions of both the seller of the house and your participating FHA lender.
The lender questions should include asking about the option to buy down your interest rate with discount points, and how much your interest rate could be depending on FICO scores and credit history.
You should ask the lender about options for both 15-year and 30-year mortgages even if its just to compare the rates and monthly payments.
You should also ask what benefits might be available with a higher down payment and how much your lowest down payment might be based on an estimated sale price and your credit.
Questions To Ask Your Seller
Some people worry about haggling or even questioning a seller. But this is a common part of the real estate business so asking your seller why they want to sell the property is NOT too personal.
You are investing thousands of dollars to buy real estate, and the seller should expect such questioning.
And the answer you get could tell you a lot about whether to make an offer.
Another question to ask? When has the home has had major repairs, upgrades, or additions? How old are they and are they due for repairs or further upgrades?
You also want to know whether any alterations to the home were done with the proper permits and meet local building code.
If the home is older and the seller claims there have been no major repairs, some feel this might be an indication to reconsider making an offer. How old is the property you want to buy?
For example, if the home is older than the typical life expectancy of the roof, and the seller says there has been no work done, are you willing to risk a roof replacement early on in the mortgage?
Ask About Your Potential New Neighborhood
Where are the nearby schools, daycare, and shopping? How far away are you from the big retail center with all its traffic and congestion? What’s the light pollution and noise pollution like nearby?
Does the neighborhood have issues with rising water, heavy snow, or flooding? These are all important factors that may influence your decision to buy or walk away.
Ask About Your Potential Neighbors
In this context, we don’t mean the people you live next door to, but rather the overall makeup of the area. For example, do local businesses operate nearby? Do those operations positively or negatively affect the neighborhood?
Do you want to live in an area where street fairs and other local events are common, or do you want a quieter and more secluded area?
Asking these questions could tell you a lot about whether you should make an offer and close the deal.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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