Common Questions Asked by First-Time Home Buyers

The decision to become home owners should not be made lightly, as it is a major life change that requires an understanding of the process and the financial requirements. As we work with many first-time home buyers, we have compiled some of the most commonly asked questions.

  • OreillyTeam-CircleMasterFile6-Nov15Should I buy or continue to rent? Making the jump from an apartment to a home is a big decision. Many first-time home buyers feel some hesitation. Consider buying a home an investment in your future. Homes have the potential to gain value over time. However, when you buy a home, you are assuming responsibility for any needed repairs or emergencies. When you rent an apartment, your rent usually covers maintenance and the property owner is likely responsible for fixing any appliance or system that breaks or stops functioning. Once you own your home, these fixes will be your financial responsibility. So, while you have the freedom and enjoyment of a home that is all your own, you must also be prepared for the added responsibilities of home ownership.
  • Do I need a Realtor? The simple answer is yes, especially for first-time home buyers. The real estate market can be tricky, as you must consider comparable property sales in your area, understand the current state of the market, and determine your budget and price range. A Realtor is best equipped to help make this process as understandable and smooth as possible, and help you find the right home within your necessary or desired budget and time frame.
  • How much money do I need to buy a home? This is a complex question that your Realtor, as well as your bank or mortgage lender, can help you to understand. When you buy a home, you will of course need to be prepared to take on a monthly mortgage payment, in addition to property taxes and home owners’ insurance. For many homeowners, those additional expenses will be rolled into your mortgage payment. You will also need to be prepared to put some money down on your home. Some lenders will require you to pay private mortgage insurance if you put down less than 20 percent of your home’s purchase price. In addition, keep in mind that any desired cosmetic upgrades or necessary repairs will become your financial responsibility upon ownership, so you will need to budget for and set aside funds to make those fixes.

O’Reilly Team is here to help first-time home buyers find their ideal property. Contact us today with any questions, or to begin your home search.