Answers to Home Buying Questions in Louisville, KY
Buying a new home in Louisville is an exciting and often overwhelming experience. The idea of finding the perfect home for your family is exhilarating, but the thought of all that goes into the process can be frustrating and stressful. Many home buyers have questions when it comes to buying their dream home, so we’ve compiled a list of commonly asked questions:
What Do I Do Before Buying a Home?
The most important thing to do before you buy a home is make sure your finances are in order. This means checking your credit report to ensure there are no mistakes that need rectifying. Consider your budget, so you know just how much home you can afford and start saving money for a down payment. Before you start looking for a new home, it’s also imperative that you become pre-qualified for a loan from the lender of your choice. This can make or break the home buying process. A pre-approval allows you to see exactly which price range you can afford and it makes the loan process a bit faster when you do find the home of your dreams.
How Much Can I Afford?
What you can afford to pay for a home is not the same as you neighbor can afford to pay for a loan. You have to make several considerations. Just because a bank tells you that you qualify for a certain amount doesn’t necessarily mean that’s what you can afford. You have to consider other factors associated with home ownership. This can include everything from homeowner association fees, taxes, insurance, utilities and maintenance. Once you know how much all of that will cost, you can more accurately determine what you can afford in a mortgage.
Why Should I Buy Instead of Rent?
While there’s nothing wrong with renting for those who choose to do it, home ownership allows you to see a return on your investment. If you rent, you pay money to a landlord each month and have nothing to show for it in return. When it’s time to move, it’s time to move. If you buy, the money you pay to live in your home each month goes toward the value of your home, and you get to use that value to do other things when you decide to sell.
How Do I Choose the Best Mortgage Loan?
The best way to choose the best mortgage loan for you is to consider your financial situation. If you can afford changes to your monthly payment in the years to come, perhaps an adjustable rate mortgage is best for you. This type of mortgage comes with a changing interest rate.
If you aren’t comfortable with your mortgage rate changing to unknown terms every few years, consider a fixed rate mortgage. This will remain the same throughout the life of your loan. Finally, choosing the best mortgage loan means comparing terms between different loans with different lenders to see which one offers the lowest interest rate and the best terms.
What Should I Look for When Deciding On a Community?
The best way to choose a great community is to ask yourself what will make your life most convenient and most enjoyable. If you like to be close to entertainment, perhaps downtown living is right for you. If you have children, perhaps a neighborhood close to good schools, parks and other families is what you’re looking for.
How Do I Make the Right Offer on a Home?
There are two considerations to make here. First, most sellers price high to make room for negotiation. Ask your realtor to provide you with a list of comparable sales in the neighborhood to get an idea of what is a reasonable offer. Secondly, consider asking about five percent below the listed asking price. This is a good starting point that might result in an acceptance or at the very least, a counteroffer that’s still less than the asking price.
Buying a Home in Louisville, KY
Buying a home is a confusing process at times, but with the right realtor and an understanding of the process, you have no reason to worry. A realtor familiar with Kentucky real estate laws is a necessity. You’ll find the perfect home for your family. Before you know it, you’ll be receiving the keys to your new home.