Questions to Ask When Buying a House

Questions to Ask Before House Hunting

Before you look at houses, ask yourself whether you’re financially ready for the responsibilities of homeownership. These questions will help you decide if now is the right time to buy.

Does It Fit My Housing Budget?

To afford a house, keep your monthly house payment to no more than 25% of your monthly take-home pay (including principal, interest, property taxes, homeowners insurance, homeowners association fees, and private mortgage insurance). That way, you’ll have breathing room in your budget and enough money left over every month to put toward other important financial goals, like investing for retirement (Baby Step 4).

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Stick with a 15-year, fixed-rate conventional mortgage and measure the 25% guideline against that payment. A 30-year loan can make a bigger house look affordable, but you’ll pay far more in interest and stay in debt twice as long. Skip FHA and VA loans too.

Using our Mortgage Payoff Calculator, let’s compare a 15-year and 30-year mortgage for a $300,000 home with a 20% down payment, which means a $240,000 loan. For simplicity, this example uses rounded interest rates and excludes property taxes, home insurance and HOA dues.

$300,000 Home With 20% Down

The 30-year payment is lower, but it costs you around $199,000 more in interest.

Do I Have a Fully Funded Emergency Fund?

You need one before you buy. A fully funded emergency fund of 3–6 months of expenses is Baby Step 3, and you shouldn’t drain it for your down payment. Homes come with surprise repairs, and that cash keeps a dead water heater from turning into debt.

Have I Saved Enough for a Down Payment?

Aim for a 20% down payment to avoid private mortgage insurance (PMI). If you’re a first-time home buyer, a smaller down payment—at least 5%—is okay, but your monthly payment will include PMI. Saving for your down payment and closing costs comes after Baby Step 3, as part of Baby Step 3b. Use EveryDollar to find margin in your monthly budget and put it toward that goal.

How Much Are Closing Costs?

Budget around 3–4% of your home’s purchase price in closing costs.¹ On a $400,000 home, that’s about $12,000–16,000. Save enough cash to cover those costs on top of your down payment.

How Much Will I Need to Furnish and Decorate?

Set a cash budget for furnishing and decorating before you buy. The amount depends on what you already own and how much you want to change, so make a room-by-room list of what you’ll need.

You may only need a gallon of paint and furniture from your current place. Or you may need to buy new pieces. Either way, only buy furniture you can pay cash for, whether it’s new or used.

Don’t use a furniture-store payment plan or buy now, pay later companies like Klarna or Afterpay. Taking on consumer debt for a couch is never a good idea.

If you need to, decorate one room at a time. You may have some empty rooms for a while, but your budget and future self will thank you.

Questions to Ask a Real Estate Agent

Interviewing your agent is just as important as touring the house, so ask these questions before you sign anything.

How Long Have You Been an Agent, and How Many Homes Do You Close in a Year?

You want a full-time pro with a steady track record, not someone who sells a couple of houses on the side. Ask how many buyers they’ve helped in the past year and how many of those homes were in your price range and area.

How Well Do You Know the Area Where I’m Looking?

A good agent knows local sales trends and can help you research neighborhood-specific risks, like areas known for flooding. Ask for recent sales data near the homes you’re considering.

How Will We Communicate, and How Fast Will You Respond?

Buying a house moves fast. You’ll have questions at night and on weekends, so find out up front how they like to communicate and how quickly they usually call back. If the answer is vague, keep interviewing.

Will You Teach Me the Process or Just Push Me to Close?

That’s what we mean by the heart of a teacher. The right agent explains each step clearly, answers every question on this list, and helps you determine whether a house fits your budget. If an agent pushes you to spend more than you can afford, move on.

How Do You Get Paid, and What Will I Be Signing?

Ask how your agent is paid, whether you could owe any fees yourself, and what services, commitment length and cancellation terms the agreement includes. Review the buyer’s agent agreement before you tour any houses, and make sure you understand every line.

Don’t choose an agent just because they’re a friend or relative. Choose a full-time pro with a track record who’ll tell you no when you need to hear it. A RamseyTrusted^® real estate agent will welcome every one of these questions.

Questions to Ask When Touring a Home

When you tour a home, look past the staging. Ask about the neighborhood, the home’s condition, and the costs you’ll take on as a homeowner.

What’s the Location Like?

Make sure the location fits your daily routine and long-term plans. Before you make an offer, check:

• Distance from work: There’s nothing wrong with a longer commute, but you do want to know what you’re getting into. Especially in bigger cities, the neighborhood you’re looking at may not be as close to your office as you think.
• Distance from schools: Chances are, you don’t want to drive your kids an hour to school every morning.
• Convenience of shopping: How far is the nearest grocery store? How many grocery stores do you have to choose from?
• Distance from friends and family: Everyone needs community in their life, and that can be really tough if you’re too far away from your loved ones.
• Property values in the area: Look for a home in the bottom price range of a strong neighborhood. Those homes are more likely to increase in value and are usually easier to sell later. Ask your agent to show you local price trends so you know whether values in the area are holding steady.

Getting some clarity on these details will help you decide if a certain location or neighborhood is the right fit for your wants and needs.

What Are the Schools Like?

Research the assigned schools, district boundaries and transportation options before you make an offer. Even if you don’t have kids, keep in mind that a home located near good schools could be more valuable when it’s time to sell.

Is the Location Prone to Natural Disasters?

Find out which natural hazards affect the area and what insurance coverage you may need. Ask your agent whether the home is in an area where tornadoes, floods, wildfires, earthquakes, hurricanes or ice storms are common. Before you buy, ask your insurance agent which local hazards a standard homeowners policy covers and excludes. Flood, hurricane and earthquake damage typically require separate coverage, so you may need to buy an additional policy or endorsement. RamseyTrusted insurance agents can help you understand your options.

Are There Any Problems With the House?

Get a professional home inspection before you buy to uncover problems you may not spot during a tour. Sure, your seller may be required to disclose known problems, depending on state law, but they could always leave something out (accidentally or intentionally).

A good home inspection will give you info on the safety and performance of things like the roof, foundation, electrical system, HVAC system and plumbing. If any red flags pop up, you can either pass on the house, ask the seller to resolve some or all of the issues before closing, or see if you can negotiate for a lower price and fix the problems yourself once the home is yours.

How Old Is the Roof?

Ask the seller how old the roof is, what material it uses, and whether it has had recent repairs or inspections. An asphalt shingle roof has a lifespan of around 20–30 years.² If the roof is approaching the end of its life expectancy, it could cost you nearly $10,000 to replace it.³ You don’t want a surprise roof replacement messing up your budget.

What’s Included When I Buy?

Get a written list of everything included with the home and make sure that list is in your offer. Some states have different laws about the stuff that should be included in a home purchase. Don’t just assume you’re buying all the appliances, light fixtures and window treatments (like blinds or drapes) when you make an offer. If you do, you might be disappointed when there’s a gaping, empty space in the kitchen where the refrigerator used to sit.

How Old Are the Major Systems and Appliances?

Ask how old the major systems and included appliances are. This includes the HVAC system, water heater, washer and dryer, refrigerator, stove and dishwasher. Imagine moving in and discovering those items are on their last legs. Not exactly a warm welcome. Knowing that before you buy lets you factor replacement costs into your offer or negotiate with the seller.

How Much Are the Property Taxes and HOA Fees?

Ask your agent for the home’s current property-tax bill and the HOA’s monthly fee, as well as what the fee covers and whether increases or special assessments are planned. Both costs vary based on the home, location and association, so review the actual numbers before you make an offer.

What Do Utilities Typically Cost Each Month?

Utility costs vary by home, season and location. Ask the seller for the past 12 months of water, electricity and heating or air conditioning bills, or the average monthly cost for each.

Questions to Ask Before Making an Offer

Before you make an offer, understand the home’s market value, what the seller wants from the deal, and which contingencies will protect you. These questions will help you make an offer you won’t regret.

What Are Similar Homes Selling For?

Ask your real estate agent for a comparative market analysis (CMA). It compares the home’s list price with recent sales of similar homes nearby so you can tell whether the home is priced fairly and avoid overpaying.

What Does the Seller Want From the Deal?

Ask your agent what the seller has said they want, like a specific closing date or a quick move. A seller who needs to close fast may be more flexible on price or terms to get the deal done. If it works for your budget and comfort level, tailor your offer to the seller’s stated timeline and terms.

How Many Days Has the House Been on the Market?

There are two sides of the coin on this question. On one side, the longer a house sits on the market, the more likely the seller will be flexible on price. On the flip side, a house that’s having trouble getting sold could have some issues you need to look out for.

So, if a house you’re interested in has been sitting on the market for a while, see if you and your agent can find out why. If there are no red flags, you may have stumbled on a chance to get a discount.

To give you a frame of reference, the median time on the market for U.S. houses in September 2026 was 61 days.⁴ Now, that number may look different in your local area, and it may also fluctuate based on the time of year. Every market is unique, so ask your real estate agent to give you an idea of how fast houses are moving in the market where you’re shopping.

What Contingencies Should I Include in My Offer?

Include inspection and appraisal contingencies in your offer. If you’re getting a mortgage, include a financing contingency too. Contingencies are conditions that must be met for the sale to move forward. The inspection contingency gives you time to inspect the house and negotiate repairs or back out, and the appraisal contingency protects you if the house appraises for less than the price in your contract. A low appraisal doesn’t force the seller to lower the price, but it may mean your lender won’t lend as much as you expected. You can renegotiate, cover the gap in cash, or walk away if your contract allows it. Ask your agent how long each contingency lasts and what happens to your earnest money if one isn’t met.

How Much Earnest Money Will I Need?

You’ll typically need 1–5% of the home’s purchase price for earnest money.⁵ Earnest money is a deposit that shows the seller you’re serious about buying. It goes toward your down payment or closing costs when the sale closes. Ask your agent what’s typical in your area and which contract contingencies let you get the deposit back. If you back out for a reason your contract doesn’t cover, you may lose it.

Frequently Asked Questions