20 Questions You Should Ask Yourself
- What is your financial situation?
- Do you have a down payment?
- The recommended amounts are 20% for an owner occupied property or 25% for an investment property. These amounts will help you avoid paying PMI (private mortgage insurance)
- What monthly payment would you be comfortable paying?
- It is recommended that you don’t exceed a payment of 33% (net income) or 25% (gross income).
- Have you been pre-approved?
- If so up to what amount?
- On what conditions? (terms, rates, down payment, time frame)
- Will this property be owner occupied?
- If no, then – Will it be used as a rental?
- If yes, then – How soon do you need to be moved in?
- Who will be living with you?
- Will anyone else be contributing towards the monthly payment (ie. roommates, family, etc.)
Physical Property Questions
- What location are you interested in or are you open to different areas?
- What type home are you looking for?
- i.e. single family, twin home, condo, townhouse, etc.
- What style home do you find most appealing?
- i.e. rambler, cottage, craftsman, contemporary, etc.
- Do you want a garage, a carport or no preferance?
- What size yard are you looking for?
- Do you want to maintain the yard yourself, or would you prefer an HOA maintained property?
- Do you have a preference as to the age of the home?
- How many bedrooms do you need?
- How many bathrooms?
- What additional rooms are important to you?
- What style kitchen do you prefer?
- Do you have a preferred flooring type?
Investment Property Questions
- What is the primary purpose of this purchase?
- Is this for cash flow, appreciation, a tax shield, or personal use?
- Are you interested in multi-family or single family investments?