Whether you’re a first-time homebuyer or have been around the real estate block before, asking the right questions during your house hunt can help you find the right type of home for your needs and avoid problems later.
Read more: Save for your dream home with buckets in an Ally Bank Savings Account
Questions to ask before starting your home search
1. What is my homebuying budget?
Understanding how much house you can afford will inform your entire homebuying process. With an Ally Bank Savings Account, you can use buckets and boosters to organize and accelerate your savings.
2. What are the must-have features that I want in a home?
Determine which features you can and cannot compromise before starting your search.
3. How long do I plan to stay in this home?
Determine whether the home — and the mortgage — aligns with your long-term goals.
4. Do I have savings ready for unexpected home expenses?
Some homeownership costs are predictable, like your mortgage. Others aren’t as easily accounted for, such as unexpected repairs.
Questions to ask about costs and finances
5. What is the minimum down payment required?
The actual amount will depend on your home’s purchase price and the type of loan you choose, but best practice to avoid additional fees is to plan for a 20% down payment.
6. What are the closing costs?
Closing costs, which total between 2-5% of the mortgage amount, include lender and third-party fees, and any additional costs, such as mortgage insurance.
7. How much are property taxes and HOA fees in the neighborhood?
Homeowners association (HOA) fees are usually determined by the HOA’s board of directors or property management company. Property taxes are typically based on the assessed property value (typically determined at the state or local level).
8. What are the typical utility costs?
The average cost for electricity, gas, water and sewage varies based on location, household size and individual usage patterns.
Questions to ask about the property condition
9. Are there any major repairs needed?
A home inspection will typically reveal the condition of the house and whether any major repairs are needed. You can also ask what kind of repair work the previous owner has previously had done.
10. What is the drainage situation around the property?
Ask the seller or their agent about any past drainage issues, water pooling or flooding problems. If there’s rain in the forecast, try to arrange a visit to the house during or immediately after the storm.
11. Are there any known issues?
The home seller and the home inspector should disclose any known structural problems, water damage or health and safety hazards.
A home inspection will typically reveal the condition of the house and whether any major repairs are needed.
12. How old are the roof and windows?
Knowing when the roof and windows were last updated can make a huge difference in mapping out the future expenses you may incur.
13. What insurance claims were made by previous tenants or owners?
This question could uncover previous damage and give you a heads-up on any problems that may arise once you have keys in hand.
14. What additions and major renovations are allowed?
Some communities have restrictions on what home improvements can be done, so look into local zoning laws before you make a purchase.
Questions to ask about the neighborhood and location
15. What are the local schools like?
Living near a highly-rated school can increase property values.
16. How heavy is the traffic during peak times of day?
Use online map tools to see real-time and typical traffic conditions or observe in person.
17. What is cell phone service like?
Check coverage maps online, ask the current homeowners and neighbors about their experience or use apps to measure signal strength.
18. Are there any ongoing/upcoming major construction projects nearby?
See current and future construction developments by checking with the local city or county planning department, reviewing building permit records and inquiring with the seller and their agent.
19. How much have other homes in the area sold for?
Your real estate agent will have access to this information, or you can use digital tools to scan the area for home values.
Questions to ask when making an offer and closing
20. Has the home received any other offers, and if so, what happened with them?
Asking this can help you gauge the competitiveness of the market and whether your offer needs to be more aggressive.
21. What is included in the sale?
The purchase agreement should clearly state what’s included and excluded in the sale, including appliances, light fixtures and window coverings.
22. What contingencies are recommended for the offer?
Contingencies — which commonly include inspection, appraisal and financing — can protect you as a buyer.
From house hunter to homeowner
Hunting down your preferred property can be fun, but don't forget to collect all the important details along the way. Going beyond what a home looks like and diving deep with these questions can help you make the right decision on your home.
