Because home ownership is such a big life step, it’s normal for it to prompt a lot of questions from prospective homebuyers. Here are three of the most frequently asked questions aspiring homeowners have.
1. Do I need a realtor?
You can be a homebuyer without the help of a realtor, but it’s a lot more work and there’s a high chance you won’t get as good a deal. Realtors are experts in their field. They can really help you throughout every step of the homebuying process—from negotiating to figuring out how much earnest money you need to understanding the current housing market. So while you may not think you need a realtor to buy a home, it would be wise to have one!
2. Which is better: buying or renting?
The answer to this question is so subjective because each person has different housing needs depending on what season of life they are in. Are you putting down roots career-wise and family-wise? Do you have the time to take care of a home? If so, start saving up to buy! If not, renting would be a better option for you.
Another factor to consider is, of course, the market. If interest rates are high, it’s probably better to rent. But if the market is good and interest rates are low, you could save a lot of money by buying a home versus renting.
3. Should I get preapproved before or after I start looking at homes?
The best time for preapproval is before you start looking at homes. There’s no point in starting your search for the perfect home if you are unfamiliar with the process, don’t know what each component costs, and are unsure of how much house you can afford. Nailing these details down at the beginning will greatly help streamline the process moving forward.