Checklist for first-time homebuyers

Good questions to ask yourself when embarking on a new home search.

1. Where do you want to live?

Do you want to live close to your family? What kind of schools do you want your children to go to? How important is it to be close to shopping, work, hospitals, community amenities, entertainment? Is a morning commute important to you?

Looking for a home really starts with looking for a neighborhood. Deciding where you want to live will save you a lot of time as well as miles on your odometer if you narrow your search in the beginning.

2. What kind of home do you want or need?

Before you start looking at home, it's a great idea to determine not only what you want in a home, but what you need. It focuses the hunt for a home and saves time because you are only looking at homes that meet your criteria.

3. How long do you expect to live in your new home?

If you plan on living in your new home for only a few years, or if you do not have children, then proximity to schools may not be an issue, but resale value will be. On the other hand, if you have a family and plan on staying put for 10 or more years, schools and home size will be your priorities.

4. What don't you like about where you are living now?

Making a list of what you do and do not want in a home will also help you weed out homes. If there are two decision makers, make sure you have common needs and wants and a couple "must haves."

5. What is your lifestyle?

Do you work from home? Do you entertain often? Are you a gardener? These are all important questions to ask yourself so you may further narrow down your search for a home. Also remember to keep your needs list somewhat flexible in case you cannot find a home in your price range with all the amenities you want. Put the list in order of importance. For example, an eat-in kitchen may be more important to you than a fireplace.

6. How much home can you afford?

The best way to know how much home you can afford is to find out how much money you can qualify to borrow. There are two thing you will wan to consider before talking with a home lender. Check your credit by getting a copy of your credit report. This determines your credit score for the three major credit bureaus, make sure to check them thoroughly for any discrepancies and errors. Also calculate how much of a monthly mortgage payment you're comfortable paying. You may qualify for a higher loan amount, but feel more comfortable paying less in your monthly budget. Think about items like home maintenance, taxes, insurance and association fees, if applicable.

How Important is a Home Inspection

Your buyer's offer has been accepted and it is time for the inspection. Often times home inspections go well, but that also depends on how well the current owners take care of their home. Is there deferred maintenance? Did the seller refinish an unfinished basement without pulling any permits to do so? What if there are high radon levels?

Whether you are buying a $100,000 home or a $1,000,000 one, getting a home inspection is perhaps one of the single-most important checks you need to conduct to make sure the home is safe and secure. If you are selling a home, however, is having an inspection as important? Some people might say no, but below presents some strong reasons why you should get an inspection, whether you are the buyer or the seller.

Buyer reasons:
Peace of mind — Puts the buyer’s mind at ease that the home is in good shape.

Renegotiate – If problems do arise, the buyer can negotiate a lower price or ask the seller to make repairs.

Opt-out — If the problems are too big or unsettling, the buyer can opt-out of buying the home.

Future needs — Buyers can learn about potential maintenance and upkeep.

Seller reasons:
Smooth sale – Sellers can deal with any issues early that could impede the sale of their home.

Make repairs — Sellers can repair problems before putting the house on the market.

Help set/increase price — By making repairs, it will help set the price of the home and could even enhance the value.

Transparency — Having a pre-inspection report available for buyers tells them that the seller has nothing to hide.

As you can see, having a home inspection is crucial for both buyers and sellers and the cost is usually only a few hundred dollars— well worth it to provide peace of mind and to know what kind of house you’re getting and the condition it is in.