FAQs

All Answers You Need to Know About Buying House

Buying House Questions

1Will buying a house help my taxes?

There are indeed certain benefits that can be availed by you during the process of buying your house.  Of course, this must be a very carefully thought-out process as there can be negatives also. The notable areas of benefit for a house buyer in respect of taxes pertaining to house purchase are:

  • You can deduct the interest and property tax portions of your mortgage payment
  • Private mortgage insurance premiums are no longer deductible
  • You can only take a deduction if you itemize deductions
  • If you pay more tax, the more of homeowner tax breaks will help you

2What are buying a house checklist?

The housebuying checklist could have the following set of vital questions wherein these  will prove valuable for a house buyer:

  1. Clear decision regarding your place of living
  2. Are the basic amenities gettable in close proximity to the house?
  3. Has the house been built on a strong building and roof?
  4. Are there enough rooms for me in the house to use in line with my needs?
  5. Is there good natural light penetration into the house?
  6. Is there sufficient electricity supply in the area where my house stands or recurring problems there on this front if any?
  7. How many neighboring homes are there and what is the noise level?
  8. Are there any issues pertaining to parking of vehicles?
  9. Are there any problems in the surrounding caused by mosquitos and insects?
  10. Is the garden area satisfactory to me and my family?
  11. Are there some other projects happening near my house area?
  12. Will the house face danger of flooding during monsoon?
  13. What are the boundaries set for an officially recognized property?
  14. What will be the operating costs to do?
  15. Will there be any requirement for renovations?

3What is credit score?

A credit score signifies the number score given to an individual wherein it is done after conducting the analysis of his/her credit file so as to understand the credit worthiness of that individual. The information obtained by credit bureaus, who prepare a report for each credit rated individual is utilized as the criteria for giving the individual credit score.

4Will buying a house affect my SSI?

Social security does not affect an individual’s social security insurance (SSI) while purchasing a house. People who receive SSI benefits on a continual basis will need to exercise caution

5Will buying a house affect child support?

No.  Nevertheless, you must clearly understand that the house buying process is not going to allay your obligatory duty of child support.

6Can buying a house be cheaper than renting?

There is a mix of pros and cons in both house buying and house renting. It solely depends on how well an individual analyses his situation for coming to the right decision.

7Can buying a house cause anxiety?

It all lies in the human mind on how we perceive things and the maturity of mind. Positivity will reduce anxiety levels whereas pessimistic mindset will shoot up the anxiety levels. It is vital for any individual who wishes to purchase a house to be really firm and think that:

  • Which is the right fit or house for me in terms of my financial status, family and future?
  • I will be the boss of my house once after I buy it
  • I must be bold enough to discuss a lot of things prior to house buying with many people despite my nature of character i.e. introvert or extrovert.
  • In life, things never go planned most of the times and additional spend outs will happen and be ready for it.

8How to buy a house?

The pivotal points to be applied while involving in the house buying process constitutes:

  • Start research immediately once the idea of house buying crops up in your mind
  • Fix the borrowing amount that you are going to get through a mortgage for house buying. Use your affordability calculator after clearly computing your financial health
  • Identify the correct real estate agent
  • Get Prequalified and Preapproved for credit for Your Mortgage
  • Involve in Intense shopping for buying your house as it is a big asset
  • Work with the appropriate mortgage banker to select your loan
  • Get the home inspected by the related professionals
  • Have the home appraised
  • Do the coordination paperwork properly and ensure that the seller is the actual owner of the property that you are to buy
  • Ultimately, finalize the deal (close the sale).

9Where do you start to buy a house?

A complete market research of the real estate industry is the first step to take when you give an onward move to initiate the house buying process.

10How long does it take to buy a house?

House buying is a real test of patience but the opinion regarding the time period it takes differs from one another,  am talking about industry experts and other related professionals. In case, if an individual has to finish his/her credit commitments, it may even take more than three months, all processes included.

11What are the preparations before buying a house?

There are 10 steps that a buyer must definitely undertake prior to purchase of a house:

  • Check your individual credit score
  • Start the saving habit
  • Try to keep extra cash
  • Consult a good lender
  • Investigate the downpayment assistance programs
  • Attend seminars or programs regarding home buying
  • Look at the potential neighborhoods in the area where you are going to buy a home
  • Arrive at a decision on the spending you are going to do
  • Go and visit open houses
  • Interact with many realtors

12How long does it take to close on a house on closing day?

According to some latest research, the closing time of a house will take on average, a minimal period of 50 days. However, it might even take longer and it is vital for buyers who need a mortgage to quickly complete the loan process and property appraisal.

13What happens on the day of closing on a house?

This is generally the last day of property transaction that happens between a seller and a buyer. The seller will hand over the keys of the house after completely clearing the possessions/things inside the house, to the buyer to occupy the purchased property.

14How much do you have to put down to buy a house?

According to a large number of current researches, it has been noted that student loans are of course causing a big delay to the  house buying process for many buyers.

15Will buying a house affect my credit score?

Yes indeed. The credit score will definitely have an impact on the level of your probability to get a mortgage alongside the interest that goes with the same.

16Can student loans affect buying a house?

It is noted by a large number of current researches that have undertaken that student loans are of course causing a big delay to the house buying process for many buyers.

17What is buying a house on contract?

House buying on contract implies that a contract has been signed by both the buyer and a seller after mutual agreement of the price and other terms. This means the house purchase has been completed by a buyer after paying the mutually agreed price from the seller.  Usually, the buyer will do an initial down payment and thereafter complete by making a series of payments.

18What does buying a house in foreclosure mean?

A foreclosure property or house signifies that a mortgage lender sells the property in order to settle payment for a default mortgage loan. The process of foreclosure starts with a public auction wherein the lender will call for sale of the property. Thereafter, anybody can come forward to buy that property.

19What does buying a house on short sale mean?

Short sale means a house buyer buys the property from the lender of a seller at a lesser price than what the outstanding mortgage loan amount is.

20How buying a house at auction works?

There are three steps involved in the auction-based house buying process:

  1. Firstly, the auction will be conducted by an auctioneer who will tell the bidding attendees as to what amount they will accept. They will begin at a high price but gradually at the closing time of the auction, the auctioneer would accept lower bid amounts.
  2. The auctioneer will be informed by the seller about what is the reserve price that he has set. However, when the last bid goes above the reserve price, the house sale will be done. Then, the buyer will pay the initial amount of 10% to the auctioneer. The settlement day or ownership transfer to buyer usually takes 20 days afterward but however, it is subject to negotiation.
  3. However, when the reserve price is not reached, the home is passed on and it means that the property was unable to be sold at the auction. Generally, it is notable that the property is sold after the auction. When a specific individual becomes the highest bidder, he/she stands to get the opportunity of doing negotiation to buy the property and then fix some terms and conditions to the contract if he wishes to.

21How to negotiate while buying a house?

The integral points to be executed by an individual during his negotiation process of house buying are:

  • Do the necessary groundwork before getting ready for a mortgage
  • Ask the real estate agent much information to facilitate your comprehensive understanding of the financial position of the seller
  • Engage in close and clear working with your agent to arrive at a clear amount that you wish to pay and how to regress from that price to take a decision on your initial offer price
  • Keep your emotions in check
  • Keep your bid free of contingencies except for things like mortgage approval, home inspection and environmental checks in your area.
  • Competition must not be a deterrent for your plans

22Why is buying a house cheaper than renting?

Initially, the feeling of ownership gives you that kind of headstart. The home will have a good value appreciation over the next few years and this will be definitely felt worthy by the buyer .

Renting is the process of paying a fixed amount as rent for some time and then when the situation occurs, keep shifting from one place to another. This is a very irritating thing that is experienced by many people and that feeling of stagnancy in life will be definitely felt by those individuals who live in a rented house.

23Why buying a house is so stressful?

The dual pressure of finance and emotions while initiating the house buying process starts stress building in an individual.  The stress further exacerbates when the list of processes leading to house purchase begin to happen one-by-one. The house purchased related procedures or formalities will take a lot of patience and energy out of an individual who buys a house.

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