Be Prepared To Answer These Questions When You Buy Your First Home
When you buy your first home, be prepared for things to get personal.
You’ll be asked a lot of different questions from your loan officer and your realtor from the start.
These questions aren’t meant to be creepy or overly personal, but to give your loan officer and realtor the information they need to do their job.
In this post, we’ll cover some of the questions you should be prepared to answer when you buy your first home and why they’re being asked in the first place.
Questions From Your Lender
When you talk with your loan officer, he or she will ask you a lot of different questions. They will ask you about your finances, your income, your debts, and your savings. These questions are asked to gain a better understanding of your financial situation.
Here are just a few of the categories your loan officer may ask about.
When you apply for a loan, a loan officer wants to see that you have steady income coming in. You should be prepared to talk with a loan officer about your income.
Here are just a few of the questions you should be prepared to answer:
- How much do you make?
- Are you salary, commission, or hourly?
- Are you self-employed?
These questions help give a loan officer a better understanding of how much you make. Based on that, they’re able to see how much income you have coming in on a monthly basis.
A loan officer will also ask about your job history. Job history is important when you apply for a loan. A lender wants to see a history of steady employment. Someone who jumps around from job to job can be a risky loan candidate.
Debts are another important category that your loan officer will ask you about.
A loan officer will want to know the following about your debts:
- How much are your monthly debts?
- What are the balances?
- What lines of credit do you have?
- Do you plan to pay any of your debts down before buying a house?
This is sometimes where things can feel a little personal. It can sometimes feel strange to talk with a complete stranger about your debts and obligations. But, it’s a very important part of buying a home.
A loan officer needs to know what your monthly obligations are. You can make great money, but if you have a lot of debt, it can be hard to get approved for a loan.
Finally, a loan officer will want to know what kinds of assets you have. A loan officer will want to know how much is in your check and savings accounts. He or she will also want to know if you have any additional assets like a 401K or IRA.
Again, it can feel strange to talk about how much money your have in the bank. But, this is important because it shows how much you have to put towards a down payment.
Questions From Your Realtor
Your realtor will also ask a lot of questions. The better a realtor is able to understand what you’re looking for, what your priorities are, and what your timeline is, the better they will be able to assist you in finding a home.
Here are a few of the categories your realtor will ask questions about.
Where You Are In Your Home Search
A realtor will want to know a bit of information about where you are in your home search. Mainly, he or she will want to know if you’re working with another agent and if you’ve been pre-approved.
First, a realtor will want to know if you’re working with another realtor. Stealing buyers from another realtor is not something realtors do and a realtor can run the risk of getting into trouble if they do. This is why they will ask you this.
As far as the pre-approval, realtors want to make sure that you’re able to buy a home. This saves you, the realtor, and sellers time. If you can’t afford a home, there is not use in looking at homes.
Your Want / Needs
Realtors will also ask a lot of questions about your housing wants and needs. The more they are able to understand what you’re looking for, the easier it will be for them to help you find a house.
Here are some of the questions you should be prepared to answer:
- What location are you looking in?
- How much do you want to spend?
- How much space do you need?
- What needs are important?
- What wants are important?
- What things are major turn offs?
The more detailed you are able to be about these questions, the better. Realtors don’t ask these question to be annoying. They do it for your own benefit.
Finally, a Knoxville realtor will ask you questions about your timeline.
Some buyers are in a hurry to buy a home while others want to take their time and find the right place. It’s important for your realtor to know what the expectations are and if you’re in a rush to find a home.
Are you thinking about buying your first Knoxville home? Are you unsure of where to start? Don’t worry – you’re not alone. We’ve helped countless Knoxville first time buyers buy their first home and we’d love to do the same for you. Shoot us a text, email, or give us a call today. Rick can be contacted at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com.
Are you ready to start your home search? Visit our home search page to get started today. Or, be sure to keep up with our Knoxville First Time Home Buyer’s Blog to keep up with the latest information about buying your first home.