Q&A: Questions to ask as a first-time home buyer

October 27, 2011, 5:16 am

As a first time homebuyer, you probably have a lot of different questions. But some questions are more important than others. Here are three questions that you should make sure you have answered before you attempt to secure a loan.

1. How much house can I afford?

While you may have asked yourself this question in terms of the loan you are taking and the payment it will require, you also need to think of it in terms of utility costs.

Heating and cooling a home can get expensive, and the bigger your home isthe bigger your utility bills will be. Likewise, cleaning, insuring and repairing will all become more expensive.

See also: Mortgage Qualifier Calculator

2. How will my credit affect mortgage rates?

The better your credit is, the lower your mortgage rate will be. Find out your credit (or FICO) score and ask your lender how it will affect your mortgage rate. If possible, look for ways to improve the score before you take out the loan.

See also: Dont pay for your credit report

3. What first-time homebuyer programs can I take advantage of?

Your local, state and federal government has many different programs available to help first time homebuyers. In addition, your IRA or other retirement plan may allow you to take some funds out of your plan without penalty to pay for the down payment.

Also, the IRS sometimes has programs available to incentivize your purchase.

Property Management