Common Buyer Questions

Common Buyer Questions

 

Q?

Why buy instead of renting?

A.

If you are renting, you are not building any equity; you are paying someone else’s mortgage. If you buy a home, you are building a legal right to possess a significant asset.

Q?

How much money do I need before I can purchase a home?

A.

There are many factors that affect this question depending on what type of mortgage you use. Creating a team for yourself utilizing an experienced Realtor, mortgage broker/banker, and lawyer will help you determine the costs you can afford.

Q?

How much should I offer on a home?

A.

You should ensure the asking price is in line with other homes that have recently sold in the neighborhood. John Mattiello & Associates can pull “comparables” that have sold recently in the same area as the current home you are interested in. Do you feel the home is in good condition or does it need a lot of upgrades? How many days has it been on the market? And, how badly do you want this home?

Q?

How do I know if I can get a mortgage?

A.

There are tools to assist you at John Mattiello & Associates. You’ll need to get a mortgage broker or financial lender to determine if you qualify and for how much.

Q?

Is a newer home a better purchase than an older home?

A.

Older homes may be in more established areas, but they may also require some repairs and updating. Newer homes are usually easier to maintain and more energy efficient, but they may not have all the amenities you are looking for close by. Take the time to look at the individual characteristics of each home.

Q?

What does a mortgage usually cover?

A.

A mortgage usually consists of 3 parts:

  • Principle- the amount you borrow
  • Interest- the fee paid to the lender for the ability to borrow
  • Property taxes- an annual tax assessed on your property divided by the number of mortgage payments you make in a year

Q?

What other issues should I consider before buying a home?

A.

Always check to see if the house is in a low-lying area or in a high-risk area for natural disasters. Be sure the house meets building codes. Also, consider local zoning laws which could affect future remodeling or the ability to make an addition.