Ask Better Questions: Buying Your First Home

The average first-time homebuyer can spend up to 3 months searching and visit 10+ homes before making a purchase—but those who ask the right questions up front typically find their perfect fit much faster. The difference isn't luck—it's strategy.

Most first-time buyers focus on the wrong questions. They ask "How much house can I afford?" when they should be asking "What can I comfortably maintain?" This subtle shift in questioning can save thousands of dollars and months of frustration.

This guide covers:

• The essential questions to ask yourself before starting your search

• Critical questions for lenders, agents, and sellers

• The must-ask questions that could save you from costly mistakes

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Questions to Ask Yourself Before You Start Looking

Buying your first home typically involves mortgage qualification, property search, negotiation, inspection and closing. First-time buyers often qualify for special loan programs and down payment assistance that repeat buyers cannot access.

"What's my real monthly housing budget—beyond just the mortgage?"
Your mortgage payment is just the beginning. Property taxes and homeowners insurance often add another $200+ monthly, depending on your area. Factor in utilities, potential HOA fees and setting aside 1-4% of your home's value annually for maintenance—all of these "smaller" fees can massively change how much house you can afford. According to a study from Bankrate, owning a home can cost over $21,000 per year in hidden fees and expenses. Create a realistic budget that includes all these expenses before you start shopping.

"How long should I plan to live at my first home?"
The breakeven point where buying a typical home becomes cheaper than renting a comparable home is often later than 5 years in the current market, especially at today’s prices and mortgage rates. If your job situation might change or you're considering starting a family that could outgrow a starter home, factor these life changes into your timeline. Each year you stay beyond the breakeven point builds more equity and helps justify those initial purchase costs.

"What should my tolerance be for unexpected home repairs?"
First-time homeowners often face unexpected repairs in year one—from minor fixes to major system replacements. Can you handle a surprise furnace replacement in January? What about a roof repair after a storm? Having an emergency fund specifically for home repairs prevents these surprises from becoming financial crises.  For more information on building a holistic financial plan, read our guide From Complexity to Clarity: Understanding Holistic Financial Planning.

The Crucial Questions You Should Ask When Buying Your First Home

For Your Lender: "What's included in my APR beyond the interest rate?"
This question reveals the true cost of your loan. Your interest rate might be 6.8%, but your APR includes origination fees, points and other charges. Understanding this difference helps you compare offers accurately. Online comparison tools can make it faster to review offers from multiple lenders, and shopping around can lead to meaningful savings.

For Your Agent: "What's the listing history on this property?"
Many buyers never ask this, missing potentially crucial negotiation information. A home that's been relisted multiple times or had price drops signals a possible opportunity to buy, and could hint at seller fatigue. If it previously fell out of contract, understanding why gives you leverage. This history often reveals issues you can use to negotiate repairs or price reductions.

For the Seller: "Are you aware of any planned changes to the neighborhood?"
That peaceful field behind your dream home might be slated for development. While sellers must disclose known material facts, asking directly about planned developments, zoning changes or upcoming construction often yields information that wouldn't otherwise be volunteered—and can impact home value.

For Your Inspector: "What are the most expensive potential issues you're seeing?" Go beyond the standard inspection report. Ask your inspector to prioritize findings by potential cost and urgency. Understanding whether that foundation crack is cosmetic or structural, or if those old pipes will fail in two years helps you make informed decisions about proceeding, negotiating or moving on completely.

Questions That Reveal True Home Costs and Value

"Which closing costs are negotiable?"
Processing fees, underwriting fees and application fees often have room for negotiation. Many buyers don't realize these aren't set in stone. Ask specifically about lender credits—many will offer to cover certain fees in exchange for a slightly higher rate, which can make sense if you're tight on cash at closing. The Consumer Financial Protection Bureau offers guidance on understanding these tradeoffs.

"How will different down payment amounts change my total costs?"
The conventional wisdom says 20% down, but consider this: putting down only 10% means paying an extra $150-300 monthly for mortgage insurance, but you'd keep tens of thousands in savings for emergencies or other opportunities. Sometimes having that cash cushion is worth the extra monthly cost. Run the real numbers using our home affordability calculator to see what makes sense for your situation.

"What's the average days-on-market for comparable homes?"
This reveals market dynamics your agent might downplay. If similar homes sit for 60+ days but your target has been listed for 15, you likely have less negotiating power. Conversely, a home lingering past the area average often signals motivated sellers who may accept below-asking offers.

Home Affordability by Income

The table below shows estimated home affordability based on household income, using conventional loan guidelines (28% front-end debt-to-income (DTI), a 30-year term, 7% interest rate, 10% down payment, and typical costs for property tax, insurance, and private mortgage insurance (PMI). Your actual affordability may vary based on existing debts, location, and lender requirements.

This data was calculated with the Datalign Home Affordability Calculator.

*Includes principal, interest, property tax (1.25%), homeowners insurance, and PMI. Does not include HOA fees. Use our home affordability calculator for a personalized estimate.

The Questions You Never Think to Ask When Buying Your First Home

"What's the history of property tax increases in this area?"
Property taxes aren't static—some areas see dramatic jumps after reassessments. A home with taxes that haven't been reassessed recently might face significant increases upon sale. Ask for the tax history and research the property price history in the area to understand potential future costs.

"What would my walk-away costs be at each stage?"
Understanding exit costs prevents expensive mistakes. Earnest money is often refundable during inspection periods but not after. Some contracts include additional deposits that become non-refundable at specific milestones. That said, knowing exactly what you'd lose if you needed to sell or move on from your home at various stages is incredibly important.

"What are sellers required to disclose in this state?"
Disclosure laws vary by state. Some require revealing any material defects, while others have specific requirements about noise, deaths or litigation. Understanding these requirements helps you ask targeted follow-ups, know exactly what you're getting upon your home purchase and avoid surprises after purchase.

"Has this home ever had insurance claims?"
Previous claims can affect your ability to get insurance or impact your rates. For example, water damage can signal ongoing issues or a potential flood-risk. While not always disclosed, asking directly often prompts sellers to share this history. You can also request a CLUE report to verify a property's claims history.

Frequently Asked Questions About Buying Your First Home

How much house can I actually afford? Lenders typically use the 28/36 rule—housing costs shouldn't exceed 28% of gross monthly income, and total debt shouldn't exceed 36%. But that's the maximum, not the target. A more comfortable range is 25% or less, especially if you have other financial goals. Factor in property taxes, insurance and maintenance before settling on a price range.

What credit score do I need to buy a home? Minimum requirements vary by loan type: 620 for conventional loans, 580 for FHA loans with 3.5% down (or 500 with 10% down and no fixed minimum for VA or USDA loans). However, higher scores unlock better interest rates and lower monthly payments.  According to LendingTree, improving your score before applying can save thousands over the life of your loan.

What's the difference between pre-qualification and pre-approval? According to the Consumer Financial Protection Bureau, pre-qualification is a quick estimate based on self-reported information. Pre-approval involves verified income, assets, a hard credit pull and underwriting review—it carries far more weight with sellers. In competitive markets, a strong pre-approval letter can make the difference between winning and losing a bidding war.

What's actually included in my monthly mortgage payment? Most payments include four components: principal (paying down your loan balance), interest, property taxes, and homeowners insurance—often called PITI. If your down payment is less than 20%, you'll also pay private mortgage insurance (PMI). HOA fees, if applicable, are typically separate.

What red flags should I watch for when touring homes? According to National Property Inspections, look for signs of water damage (stains on ceilings, musty smells, warped flooring), foundation cracks wider than a quarter-inch, outdated electrical panels, aging roofs and evidence of DIY repairs. Always hire an independent inspector—and don't skip the sewer scope in older homes, as line replacements can cost $10,000 or more.

The Aligned Perspective: Buying Your First Home

The path to homeownership becomes clearer when you ask strategic questions that reveal true costs, hidden opportunities and potential pitfalls. The right questions transform an overwhelming process into a series of informed decisions aligned with your financial reality and life goals.

At Datalign, we've connected over $50 billion in assets with 13,000+ trusted advisors who help buyers navigate these complex decisions. Whether you're questioning mortgage options or evaluating long-term financial impacts, the right guidance ensures you're asking questions you haven't even thought of yet.

Simple, strategic, and designed to give you clarity as you grow.