20 Questions You Should Ask Yourself

 

 

Personal Questions

 

1. What is your financial situation?
2. 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)
3. 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).
4. Have you been pre-approved?
   • If so up to what amount?
   • On what conditions? (terms, rates, down payment, time frame)
5. 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?
6. Who will be living with you?
   1. Will anyone else be contributing towards the monthly payment (ie. roommates, family, etc.)

 

 Physical Property Questions

 

1. What location are you interested in or are you open to different areas?
2. What type home are you looking for?
   • i.e. single family, twin home, condo, townhouse, etc.
3. What style home do you find most appealing?
   • i.e. rambler, cottage, craftsman, contemporary, etc.
4. Do you want a garage, a carport or no preferance?
5. What size yard are you looking for?
6. Do you want to maintain the yard yourself, or would you prefer an HOA maintained property?
7. Do you have a preference as to the age of the home?
8. How many bedrooms do you need?
9. How many bathrooms?
10. What additional rooms are important to you?
11. What style kitchen do you prefer?
12. Do you have a preferred flooring type?

 

Investment Property Questions

 

1. What is the primary purpose of this purchase?
   • Is this for cash flow, appreciation, a tax shield, or personal use?
2. Are you interested in multi-family or single family investments?