My wife and I are looking at buying our first home. Anyone have any advice to a first time home buyer? We are looking at a FHA loan due to the low percentage down.
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Re: First time home buyer
Fixed rate mortgage. No adjustable rate or interest only crap. That got a lot of people in trouble to begin with.
Josh
Fixed rate mortgage. No adjustable rate or interest only crap. That got a lot of people in trouble to begin with.
Josh
Re: First time home buyer
Buy something you cannot afford then squat as long as you can. Then walk away and do it again.
Oh, wait that's not right.
Shop for a floorplan everything else can be changed easy. Floorplans can be changed too, but usually its a little more.
Buy something you cannot afford then squat as long as you can. Then walk away and do it again.
Oh, wait that's not right.
Shop for a floorplan everything else can be changed easy. Floorplans can be changed too, but usually its a little more.
Re: First time home buyer
I'm a Realtor with RE/MAX here in Utah. The first thing you need to do is find a good mortgage person, if you don't know one then talk to a Realtor in your area that has a good relationship with honest hard working lenders. When choosing a lender, find one that does this full time and that knows the ins and outs of their profession. I prefer not to go with banks mortgage officers because they are usually on salary. Mortgage companies work on commissions so they will work harder for you to make sure that the deal gets done and done in a timely manner. Choosing the wrong lender could end up costing you money. Realtors don't make anything by referring lenders to buyers. Once you have found a lender, have them run your credit and give you a good faith estimate on what the loan is going to cost, this will also give you an ideal of what you can afford, monthly payments ect..... By having started this process with a lender it will give you leverage when you find a home that you like and want to make an offer on and it will save you a lot of time. If you look at homes that are being sold without a Realtor (For Sale By Owner-FSBO) beware, FSBO's don't have to disclose a lot of things that Sellers do when being sold with a Realtor. Have a Realtor negotiate for you with FSBO's because 95% of the time the FSBO is already planning on paying a Buyers agent 3%. I hope that this was helpful and if you have any questions feel free to pm me. Also like the other members said, stick with fixed rate mortgages only.
I'm a Realtor with RE/MAX here in Utah. The first thing you need to do is find a good mortgage person, if you don't know one then talk to a Realtor in your area that has a good relationship with honest hard working lenders. When choosing a lender, find one that does this full time and that knows the ins and outs of their profession. I prefer not to go with banks mortgage officers because they are usually on salary. Mortgage companies work on commissions so they will work harder for you to make sure that the deal gets done and done in a timely manner. Choosing the wrong lender could end up costing you money. Realtors don't make anything by referring lenders to buyers. Once you have found a lender, have them run your credit and give you a good faith estimate on what the loan is going to cost, this will also give you an ideal of what you can afford, monthly payments ect..... By having started this process with a lender it will give you leverage when you find a home that you like and want to make an offer on and it will save you a lot of time. If you look at homes that are being sold without a Realtor (For Sale By Owner-FSBO) beware, FSBO's don't have to disclose a lot of things that Sellers do when being sold with a Realtor. Have a Realtor negotiate for you with FSBO's because 95% of the time the FSBO is already planning on paying a Buyers agent 3%. I hope that this was helpful and if you have any questions feel free to pm me. Also like the other members said, stick with fixed rate mortgages only.
Re: First time home buyer
Location is key. Best to buy in an area you like, don't live 40 miles from work just because you can get a bigger house out there.
Are you looking for a new home or existing? If new be wary as not all developers are created equal some do pretty crappy work. A bit of googling will let you know who is good in your part of the country.
Also pick a floor plan you like. I also second the idea of a fix rate mortgage.
Location is key. Best to buy in an area you like, don't live 40 miles from work just because you can get a bigger house out there.
Are you looking for a new home or existing? If new be wary as not all developers are created equal some do pretty crappy work. A bit of googling will let you know who is good in your part of the country.
Also pick a floor plan you like. I also second the idea of a fix rate mortgage.
Re: First time home buyer
fixed rate all the way. dont let them talk you into an adjustable rate program. dont over buy and get your self in trouble. ask alot of questions and take your time and do it right the first time. this is an exctiting time in your life and one that should be enjoyable. take all advise you are hearing and put it to work. good luck!
fixed rate all the way. dont let them talk you into an adjustable rate program. dont over buy and get your self in trouble. ask alot of questions and take your time and do it right the first time. this is an exctiting time in your life and one that should be enjoyable. take all advise you are hearing and put it to work. good luck!
Re: First time home buyer
I am also a Real Estate Broker for Coldwell Banker Bain. There are numerous loans available with low downs including FHA (3.5%), VA (0%), USDA (0%), and many States have Bonds available such as here in WA which will pay up to $10K towards your down payment. There's more than just the down you also need to take into consideration such as Closing Costs which depending on where you live can range from 2.5-4% of purchase price, home inspection costs $300-500, appraisal costs (usually tied into the loan), Attorney review costs (Depends on State), etc. Rodeo Trash was right on with you first step which should be getting with a lender and getting Pre-Approved (NOT Pre-Qualified) so as to know your buying power as well as up front costs. Your next step should be in finding a Buyer's representative. Buyer's representation is FREE so don't be afraid to have an agent help you. Look for designations behind their name such as ABR (Accredited Buyers Rep), GRI, CNE, etc and google them to get feedback on that agent/broker.
When you know what your loan type is such as FHA or VA come back and let us know. Loans such as those require the property be in good shape, ie no fixers/rehabs, so it's important to know the Minimum Property Requirements.
ARMS (Adjustable Rate Mortgages) are dangerous unless you're going in cash heavy or an investor, ie NOT FOR FIRST-TIME HOMEBUYERS!
If you look at any Bank Owned Properties and have questions feel free to PM me as I work for Freddie Mac, Fannie Mae, and several other lenders and I can fill you in on their idiocies and how to deal with them while cutting out have the bullsh!t and myths too many people put out there.
Last... Good luck and I hope you find something great!
I am also a Real Estate Broker for Coldwell Banker Bain. There are numerous loans available with low downs including FHA (3.5%), VA (0%), USDA (0%), and many States have Bonds available such as here in WA which will pay up to $10K towards your down payment. There's more than just the down you also need to take into consideration such as Closing Costs which depending on where you live can range from 2.5-4% of purchase price, home inspection costs $300-500, appraisal costs (usually tied into the loan), Attorney review costs (Depends on State), etc. Rodeo Trash was right on with you first step which should be getting with a lender and getting Pre-Approved (NOT Pre-Qualified) so as to know your buying power as well as up front costs. Your next step should be in finding a Buyer's representative. Buyer's representation is FREE so don't be afraid to have an agent help you. Look for designations behind their name such as ABR (Accredited Buyers Rep), GRI, CNE, etc and google them to get feedback on that agent/broker.
When you know what your loan type is such as FHA or VA come back and let us know. Loans such as those require the property be in good shape, ie no fixers/rehabs, so it's important to know the Minimum Property Requirements.
ARMS (Adjustable Rate Mortgages) are dangerous unless you're going in cash heavy or an investor, ie NOT FOR FIRST-TIME HOMEBUYERS!
If you look at any Bank Owned Properties and have questions feel free to PM me as I work for Freddie Mac, Fannie Mae, and several other lenders and I can fill you in on their idiocies and how to deal with them while cutting out have the bullsh!t and myths too many people put out there.
Last... Good luck and I hope you find something great!
Re: First time home buyer
It's great to see other Real Estate professionals on here and offering such great advise.
It's great to see other Real Estate professionals on here and offering such great advise.
Re: First time home buyer
Make sure you get a good gas furnace and/or woodstove.
if it has wall-heaters - RUN do n't walk. LOL (Or you WILL be putting in a wood stove.
Probably good idea not to get a home on a cement slab, I did that...never again. Get a basement!
Make sure you get a good gas furnace and/or woodstove.
if it has wall-heaters - RUN do n't walk. LOL (Or you WILL be putting in a wood stove.
Probably good idea not to get a home on a cement slab, I did that...never again. Get a basement!
Re: First time home buyer
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: ArcticLight</div><div class="ubbcode-body">Make sure you get a good gas furnace and/or woodstove.
if it has wall-heaters - RUN do n't walk. LOL (Or you WILL be putting in a wood stove.
Probably good idea not to get a home on a cement slab, I did that...never again. Get a basement!</div></div>
Come on now, do you really need a wood stove for Silverdale? Maybe out towards Seabeck... They are nice though.
In-Wall heaters such as Cadets tend to get recalled every other year, and baseboards aren't much fun either. Aim for forced air, electric or natural gas.
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: ArcticLight</div><div class="ubbcode-body">Make sure you get a good gas furnace and/or woodstove.
if it has wall-heaters - RUN do n't walk. LOL (Or you WILL be putting in a wood stove.
Probably good idea not to get a home on a cement slab, I did that...never again. Get a basement!</div></div>
Come on now, do you really need a wood stove for Silverdale? Maybe out towards Seabeck... They are nice though.
In-Wall heaters such as Cadets tend to get recalled every other year, and baseboards aren't much fun either. Aim for forced air, electric or natural gas.
Re: First time home buyer
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: NTRP-CKA</div><div class="ubbcode-body">Buy what you can afford, not what you qualify for. </div></div>
best advice
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: NTRP-CKA</div><div class="ubbcode-body">Buy what you can afford, not what you qualify for. </div></div>
best advice
Re: First time home buyer
I have been a loan officer for ~30 years, and have assisted many 'Hiders once the secret got out.
PM me w your contact info and I will give you the unvarnished truth about what's avail in 2011, gratis.
Sam
I have been a loan officer for ~30 years, and have assisted many 'Hiders once the secret got out.
PM me w your contact info and I will give you the unvarnished truth about what's avail in 2011, gratis.
Sam
Re: First time home buyer
Seuss, can you do the same for myself? Im going to be in the same boat here shortly and could use the info. (1st time home buyer)
Seuss, can you do the same for myself? Im going to be in the same boat here shortly and could use the info. (1st time home buyer)
Re: First time home buyer
I've been a home inspector since 1995. Get a home inspector who will give you the info you need, not what you, or the agent, want to hear. Trying to save a few bucks on the home inspector may cost you more in missed issues than the fee difference. I know a couple in WI, don't know if they're in your area or not. PM me for more info. You would be foolish to not attend the inspection. Ask questions. Go for a home that's in decent shape. Avoid the fixer. The romance of buying a fixer as your first home wears off pretty quickly if you're spending your time fixing the house, rather than enjoying it. Try to picture yourself living in the house the way it is for a year or two. Then try to picture the house as it could be. But don't dive right in to any changes you THINK you might want to make until you've lived there for at least a year. And did I say, don't buy a fixer. A coat of paint, new carpet, etc is one thing. Having to replace the bathroom or kitchen is another. Some of the homes that might qualify for FHA loans can be pretty beat.
I've been a home inspector since 1995. Get a home inspector who will give you the info you need, not what you, or the agent, want to hear. Trying to save a few bucks on the home inspector may cost you more in missed issues than the fee difference. I know a couple in WI, don't know if they're in your area or not. PM me for more info. You would be foolish to not attend the inspection. Ask questions. Go for a home that's in decent shape. Avoid the fixer. The romance of buying a fixer as your first home wears off pretty quickly if you're spending your time fixing the house, rather than enjoying it. Try to picture yourself living in the house the way it is for a year or two. Then try to picture the house as it could be. But don't dive right in to any changes you THINK you might want to make until you've lived there for at least a year. And did I say, don't buy a fixer. A coat of paint, new carpet, etc is one thing. Having to replace the bathroom or kitchen is another. Some of the homes that might qualify for FHA loans can be pretty beat.
Re: First time home buyer
I'd suggest going with a 30 year Fixed loan only, and not doing the 15 year thing as some financial advisers sometimes suggest. Because that way when times are good you can add extra money each month and pay things off faster but if you hit a rough patch your required payment is still low.
I'd suggest going with a 30 year Fixed loan only, and not doing the 15 year thing as some financial advisers sometimes suggest. Because that way when times are good you can add extra money each month and pay things off faster but if you hit a rough patch your required payment is still low.
Re: First time home buyer
Encouraging to see the good advice! Agreed on buying what you can afford. I qualified for higher than I would have liked to pay monthly. I had a real good real estate agent who found me a property a few years ago in SF that was well within means and I have not regretted it.
Encouraging to see the good advice! Agreed on buying what you can afford. I qualified for higher than I would have liked to pay monthly. I had a real good real estate agent who found me a property a few years ago in SF that was well within means and I have not regretted it.
Re: First time home buyer
buy the worst house on the block.....
it will appreciate the most.....
buy the worst house on the block.....
it will appreciate the most.....
Re: First time home buyer
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: shootist2004</div><div class="ubbcode-body">buy the worst house on the block.....
it will appreciate the most..... </div></div>
Lmao... If only that were true then 1/2 my Bank Owned listings would sell better...
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: shootist2004</div><div class="ubbcode-body">buy the worst house on the block.....
it will appreciate the most..... </div></div>
Lmao... If only that were true then 1/2 my Bank Owned listings would sell better...
Re: First time home buyer
I have bought every one of my houses with an intent to move in 3-5 yrs due to my career. If you are in the same boat this *might* work for you. Here are mine and my wife's criteria:
Safety... there needs to be zero or very low crime, read 6 months of the local paper
Schools... even if you don't have kids the schools need to be the best in the county
High Tension Powerlines... Stay the fuck away from them
Swimming pools... depends on the climate... AZ must have, WI I'm guessing no
HOAs... Yes, in suburbia...again this is if you are looking to turn it over in 3-5yrs... if you are looking for a long term house, I would avoid an HOA and spend the extra monthly on mortgage to buy more land or bullets
Sheriff... make sure he isn't an anti-gun dickhead (I just made this mistake)
Water... why buy where there are shortages or other controversy?
Home Warranties... negotiate this into your offer in the sale... let it expire while you live there and then buy another one to give to the next owner
Inspections... make him fix every-fucking-thing! Especially in this market, you have big leverage
House... Mid range home in the most expensive neighborhood you can afford... it should hurt a little to complete the sale. It needs to be perfect, for a definition of perfect, ask your wife... please do not counter her answer with logic in the equation, let her do her thing, you can thank me in 20 yrs when you're still married and happy
Mortgage... get one and always, always, always pay ahead even if it is only $100 per month in principle
Work and Money post homeownership... now that you have officially joined the game your objective is now to make more money than she is comfortable spending. Who is going to win? It's up to you. Get busy. Treat your job income as a bond fund that consistently pays each month, but even solid bonds can get rated as "junk" status at some point. Always be looking for a better rate on your bond fund. Take any extra return and re-invest like a capitalist. Also in recent years a new concept has emerged... you need to be ok with buying the perfect house in the perfect neighborhood and watching it go down by as much as 30-50%. You only lose money if you sell in that scenario.
Congrats and Have fun!
I have bought every one of my houses with an intent to move in 3-5 yrs due to my career. If you are in the same boat this *might* work for you. Here are mine and my wife's criteria:
Safety... there needs to be zero or very low crime, read 6 months of the local paper
Schools... even if you don't have kids the schools need to be the best in the county
High Tension Powerlines... Stay the fuck away from them
Swimming pools... depends on the climate... AZ must have, WI I'm guessing no
HOAs... Yes, in suburbia...again this is if you are looking to turn it over in 3-5yrs... if you are looking for a long term house, I would avoid an HOA and spend the extra monthly on mortgage to buy more land or bullets
Sheriff... make sure he isn't an anti-gun dickhead (I just made this mistake)
Water... why buy where there are shortages or other controversy?
Home Warranties... negotiate this into your offer in the sale... let it expire while you live there and then buy another one to give to the next owner
Inspections... make him fix every-fucking-thing! Especially in this market, you have big leverage
House... Mid range home in the most expensive neighborhood you can afford... it should hurt a little to complete the sale. It needs to be perfect, for a definition of perfect, ask your wife... please do not counter her answer with logic in the equation, let her do her thing, you can thank me in 20 yrs when you're still married and happy
Mortgage... get one and always, always, always pay ahead even if it is only $100 per month in principle
Work and Money post homeownership... now that you have officially joined the game your objective is now to make more money than she is comfortable spending. Who is going to win? It's up to you. Get busy. Treat your job income as a bond fund that consistently pays each month, but even solid bonds can get rated as "junk" status at some point. Always be looking for a better rate on your bond fund. Take any extra return and re-invest like a capitalist. Also in recent years a new concept has emerged... you need to be ok with buying the perfect house in the perfect neighborhood and watching it go down by as much as 30-50%. You only lose money if you sell in that scenario.
Congrats and Have fun!
Re: First time home buyer
oh and I almost forgot the most important part. The master bedroom needs to be on the upper most floor in the right rear of the house. Stairs can't exit directly out of the front door. Not because I believe in the feng shuie BS but the people who bought my previous 5 houses did.
oh and I almost forgot the most important part. The master bedroom needs to be on the upper most floor in the right rear of the house. Stairs can't exit directly out of the front door. Not because I believe in the feng shuie BS but the people who bought my previous 5 houses did.
Re: First time home buyer
no HOAs lol
no HOAs lol
Re: First time home buyer
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: PadronAniversary</div><div class="ubbcode-body">no HOAs lol </div></div>
This is the one that you need to watch out for. Right after you make sure it's a fixed rate loan.
HOA=Other people telling you what you can and can't do on your property. Talk about Un American
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: PadronAniversary</div><div class="ubbcode-body">no HOAs lol </div></div>
This is the one that you need to watch out for. Right after you make sure it's a fixed rate loan.
HOA=Other people telling you what you can and can't do on your property. Talk about Un American
Re: First time home buyer
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: baddeerhunter</div><div class="ubbcode-body">Seuss, can you do the same for myself? Im going to be in the same boat here shortly and could use the info. (1st time home buyer)
</div></div>
Any 'Hide member that wants my extremely biased advice is welcome to contact me anytime, glad to help. Lemme know.
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: baddeerhunter</div><div class="ubbcode-body">Seuss, can you do the same for myself? Im going to be in the same boat here shortly and could use the info. (1st time home buyer)
</div></div>
Any 'Hide member that wants my extremely biased advice is welcome to contact me anytime, glad to help. Lemme know.
Re: First time home buyer
Be sure your payments don't leave you sucking on an empty wallet if repairs are needed. Whatever you pay each month, set aside another fixed sum for home-maintenance-related contingencies.
Unless you're business-experienced at construction/repair contracting, leave the repairs to professionals. I don't do plumbing/heating, period. The other stuff I did a few Summers working for contactors (yes, in <span style="font-style: italic">this</span> century...), and I still think it's wiser to farm it out to a pro.
Those are other ways to get into trouble.
I live in a small rural village, and some of the village ordinances can seem like HOA regs. Still, the place looks decent, the folks are decent, and nobody's making rude noises about flying flags, etc. I think they tried once, but that flew like a lead balloon when the VFW and Legion packed the village meetings for awhile.
Be sure your payments don't leave you sucking on an empty wallet if repairs are needed. Whatever you pay each month, set aside another fixed sum for home-maintenance-related contingencies.
Unless you're business-experienced at construction/repair contracting, leave the repairs to professionals. I don't do plumbing/heating, period. The other stuff I did a few Summers working for contactors (yes, in <span style="font-style: italic">this</span> century...), and I still think it's wiser to farm it out to a pro.
Those are other ways to get into trouble.
I live in a small rural village, and some of the village ordinances can seem like HOA regs. Still, the place looks decent, the folks are decent, and nobody's making rude noises about flying flags, etc. I think they tried once, but that flew like a lead balloon when the VFW and Legion packed the village meetings for awhile.
Re: First time home buyer
There is some good advice and some poor advice on here so far.
1st. You don't need a mortgage broker! There is this thing called the internet, you can search for mortgage rates and fees with it and then you don't pay someone else to do it.
2. Fees, Fees, Fees- Once you look into a mortgage, realize that there are fees for everything. Once you acquire a Good Faith Estimate from a lender (BTW, that doesn't lock you into that lender or that loan), you will see the fees. Most of those fees can be negotiated. Underwriting fee, loan processing fee, etc, they are all cost/profit for the mortgage company. Once you find the loan you want, call the company and try to negotiate some of those fees down. It has worked for me on several loans.
There are fees that you must pay. Insurance and taxes.
3. For sale by Owner is a fine way to purchase a home. Especially in todays market. People may be upside down on their home and need to move for career or family purposes. Adding a real estate agent increases the price of the property 6%. Not everyone who is selling a home by themselves are trying to rip you off.
4. Make sure that this is the right move for you to make right now. IMO, if you don't have 10% to put down on a house, DON'T BUY NOW. Most experts will say 20% down as a minimum. Continue to rent until you have enough for a down payment, moving costs, and "new home" costs. Plus, you will need to be prepared for things breaking. A/C systems cost $2-4K: even if you have a home warranty, you may have to cover some of the costs associate with that replacement. A home inspection is a good idea, but know that you have little recourse if something goes wrong after you buy the home. The home inspector is not responsible for anything.
5. Make a budget and stick to it. If your top number is $100,000 for a home. Don't go over it one penny, even if the house is "perfect". Don't let a real estate agent talk you into going over your budget. IF a real estate agent takes you to a home listed for more than you told them that you were looking for, LEAVE that person immediately.
Interest rates are still low, home prices are low (and may go lower), it is a great time to buy a home if you are in the situation to get one. It should still be the American Dream to own a home. I just want to caution you about the costs associated with home buying, and don't for any reason to to Home Depot or Lowes! That's just $100 every trip, at least.
BTW, my experience is based in Florida and OK. I have purchased and/or sold 11 homes in the past 9 yrs. Which means that I have been to 22 closings on homes. Rules are different in each state. I have worked with good real estate agents and idiots. I have been to closing/title companies that knew or cared about what they were doing, and I have been to ones that could not tell me how much my closing would cost when I arrived. (BTW, you should know that at least 24 hrs in advance, because you need a cashiers/certified check for closing).
I just hate seeing people blindly walk into home buying and get ripped or have a bad experience, but then not know that it was a bad experience because it was their only shot.
There is some good advice and some poor advice on here so far.
1st. You don't need a mortgage broker! There is this thing called the internet, you can search for mortgage rates and fees with it and then you don't pay someone else to do it.
2. Fees, Fees, Fees- Once you look into a mortgage, realize that there are fees for everything. Once you acquire a Good Faith Estimate from a lender (BTW, that doesn't lock you into that lender or that loan), you will see the fees. Most of those fees can be negotiated. Underwriting fee, loan processing fee, etc, they are all cost/profit for the mortgage company. Once you find the loan you want, call the company and try to negotiate some of those fees down. It has worked for me on several loans.
There are fees that you must pay. Insurance and taxes.
3. For sale by Owner is a fine way to purchase a home. Especially in todays market. People may be upside down on their home and need to move for career or family purposes. Adding a real estate agent increases the price of the property 6%. Not everyone who is selling a home by themselves are trying to rip you off.
4. Make sure that this is the right move for you to make right now. IMO, if you don't have 10% to put down on a house, DON'T BUY NOW. Most experts will say 20% down as a minimum. Continue to rent until you have enough for a down payment, moving costs, and "new home" costs. Plus, you will need to be prepared for things breaking. A/C systems cost $2-4K: even if you have a home warranty, you may have to cover some of the costs associate with that replacement. A home inspection is a good idea, but know that you have little recourse if something goes wrong after you buy the home. The home inspector is not responsible for anything.
5. Make a budget and stick to it. If your top number is $100,000 for a home. Don't go over it one penny, even if the house is "perfect". Don't let a real estate agent talk you into going over your budget. IF a real estate agent takes you to a home listed for more than you told them that you were looking for, LEAVE that person immediately.
Interest rates are still low, home prices are low (and may go lower), it is a great time to buy a home if you are in the situation to get one. It should still be the American Dream to own a home. I just want to caution you about the costs associated with home buying, and don't for any reason to to Home Depot or Lowes! That's just $100 every trip, at least.
BTW, my experience is based in Florida and OK. I have purchased and/or sold 11 homes in the past 9 yrs. Which means that I have been to 22 closings on homes. Rules are different in each state. I have worked with good real estate agents and idiots. I have been to closing/title companies that knew or cared about what they were doing, and I have been to ones that could not tell me how much my closing would cost when I arrived. (BTW, you should know that at least 24 hrs in advance, because you need a cashiers/certified check for closing).
I just hate seeing people blindly walk into home buying and get ripped or have a bad experience, but then not know that it was a bad experience because it was their only shot.
Re: First time home buyer
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: NTRP-CKA</div><div class="ubbcode-body">Buy what you can afford, not what you qualify for. </div></div>
yes, thats something i've always believed in
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: NTRP-CKA</div><div class="ubbcode-body">Buy what you can afford, not what you qualify for. </div></div>
yes, thats something i've always believed in
Re: First time home buyer
HOA's have their pro's and con's, so don't be completely put off by them.
Pros: They can keep a neighbor from turning his house into a junk yard out front, stop someone from cutting down every last tree and making your home more susceptible to the elements, stop someone from marking a single-wide next door, and keep neighbors from having 30 people living in 1 house and parking up and down the block choking traffic.
Cons: Nazis, Nazis... NAZIS! Yes beware of the over-zealous communist that take over HOA's and try to use them s their own WMD's. They can make ludicrous purchases such as $100K landscaping jobs in common areas that you get stuck helping pay for.
If you're purchasing a home with an HOA be sure to request an HOA review which should include:
1. ASSC Rules & Regs, including, but not limited to Architectural guidelines
2. ASSC meeting minutes from the prior (2) Years
3. ASSC Board of Directors meeting minutes from the prior (6) months
4. ASSC financial statements from the prior (2) years.
Most HOA Review clauses allow an exit if you're unsatisfied with the review, and if it doesn't tell your Broker you want one.
Next, there's a neighborhood review. YOU SHOULD NOT BRUSH THIS OFF! Go and knock on your possible future neighbors door. Ask them questions about the neighborhood and the people. Do they like guns, lol? Also check for Sex Offenders. I can guarantee you'll find several within a mile radius if your in a suburban area, but the question is whether or not there's a halfway house with level 4's down the block.
Last, buying a home FSBO without at least an Attorney review is a great way to get yourself in a lot of trouble quickly since neither party knows all the ins and outs of title review, escrow, inspections, etc but they all want to tout that they've purchased multiple homes so they think their experts even though they had an agent that did 85% of the work behind the scenes and reviewed everything prior to it reaching their hands. In States like where I'm at (WA) we're held to the same standards and accountability as Attorneys and as such get sued just the same. Contrary to popular belief we go through constant continuing education, required clock hour courses, and the market changes constantly from a legal standpoint. If there's no other option and the FSBO won't sell unless your unrepresented then at least for your sake hire an attorney to review for $500.
HOA's have their pro's and con's, so don't be completely put off by them.
Pros: They can keep a neighbor from turning his house into a junk yard out front, stop someone from cutting down every last tree and making your home more susceptible to the elements, stop someone from marking a single-wide next door, and keep neighbors from having 30 people living in 1 house and parking up and down the block choking traffic.
Cons: Nazis, Nazis... NAZIS! Yes beware of the over-zealous communist that take over HOA's and try to use them s their own WMD's. They can make ludicrous purchases such as $100K landscaping jobs in common areas that you get stuck helping pay for.
If you're purchasing a home with an HOA be sure to request an HOA review which should include:
1. ASSC Rules & Regs, including, but not limited to Architectural guidelines
2. ASSC meeting minutes from the prior (2) Years
3. ASSC Board of Directors meeting minutes from the prior (6) months
4. ASSC financial statements from the prior (2) years.
Most HOA Review clauses allow an exit if you're unsatisfied with the review, and if it doesn't tell your Broker you want one.
Next, there's a neighborhood review. YOU SHOULD NOT BRUSH THIS OFF! Go and knock on your possible future neighbors door. Ask them questions about the neighborhood and the people. Do they like guns, lol? Also check for Sex Offenders. I can guarantee you'll find several within a mile radius if your in a suburban area, but the question is whether or not there's a halfway house with level 4's down the block.
Last, buying a home FSBO without at least an Attorney review is a great way to get yourself in a lot of trouble quickly since neither party knows all the ins and outs of title review, escrow, inspections, etc but they all want to tout that they've purchased multiple homes so they think their experts even though they had an agent that did 85% of the work behind the scenes and reviewed everything prior to it reaching their hands. In States like where I'm at (WA) we're held to the same standards and accountability as Attorneys and as such get sued just the same. Contrary to popular belief we go through constant continuing education, required clock hour courses, and the market changes constantly from a legal standpoint. If there's no other option and the FSBO won't sell unless your unrepresented then at least for your sake hire an attorney to review for $500.
Re: First time home buyer
Absolutely correct, every state is different and every for sale by owner is not out to rip you off, but when you talk to for sale by owners how do you know if they are asking too much for their home, did they price their home at that price because their nieghbor down the street is asking that or did they actually do the research to see what has actually sold. Here in Utah we usually only charge 3% to for sale by owners when representing the buyers and maybe another 1 to 1.5% if the for sale by owner wants us to take care of their paperwork as well. No matter what industry that your in, there are always bad apples that give the ones that actually care about their clients and their industry as well a bad name. A good home inspector is worth every penny you spend because they could save you thousands in the long run. If you decided to go with a Realtor, then having a good combination of Realtor, Loan Officer, Title Company and Inspector should make the process so easy that all you need to do after finding a home is show up at the inspection, the final walk through and the closing. Good luck in your search and will add that it is GREAT that there is so much good advise here for you.
Absolutely correct, every state is different and every for sale by owner is not out to rip you off, but when you talk to for sale by owners how do you know if they are asking too much for their home, did they price their home at that price because their nieghbor down the street is asking that or did they actually do the research to see what has actually sold. Here in Utah we usually only charge 3% to for sale by owners when representing the buyers and maybe another 1 to 1.5% if the for sale by owner wants us to take care of their paperwork as well. No matter what industry that your in, there are always bad apples that give the ones that actually care about their clients and their industry as well a bad name. A good home inspector is worth every penny you spend because they could save you thousands in the long run. If you decided to go with a Realtor, then having a good combination of Realtor, Loan Officer, Title Company and Inspector should make the process so easy that all you need to do after finding a home is show up at the inspection, the final walk through and the closing. Good luck in your search and will add that it is GREAT that there is so much good advise here for you.
Re: First time home buyer
Once again, this site comes through with a ton of useful info. I'm also currently looking to buy my first home. Just wanted to say thanks to the guys that have posted on here, especially the ones that are in fields related to this experience and are giving the straight scoop on things
Once again, this site comes through with a ton of useful info. I'm also currently looking to buy my first home. Just wanted to say thanks to the guys that have posted on here, especially the ones that are in fields related to this experience and are giving the straight scoop on things
Re: First time home buyer
Some truth in these posts, I've helped ~4000 people buy homes so have been through the process a time or two.
According to me, qualifying to buy a house boils down to three simple things-
1- Income
2- Assets (savings)
3- Credit
In short, if you have a stable job history (continuous employment, moving jobs is ok), money in the bank, and good credit there is as much money avail to borrow as ever. (If we were to start 'Hide Mortgage we'd want our customers to have these 3 I would wager).
Buying a house also comes to down a yes answer to 3 questions-
1- do I like the home to the point where I want to buy it/live there (get a home inspection!)
2- am I ok w my out of pocket costs for down payment and/or closing costs
3- am I ok w my monthly payment to own it
Rates for 30 yr fixed money is still in the low 4's, a first time buyer program offered by my bank today was 4.125% fixed for 30, so the combo of low home prices and rates is unique in my experience.
And lastly, fees, yes, even I charge fees, I assume most of my fellow 'Hide brothers work for profit, and we do to. No diff than a $4k bolt gun.
Any questions feel free to PM me or let it rip here.
Sam
Some truth in these posts, I've helped ~4000 people buy homes so have been through the process a time or two.
According to me, qualifying to buy a house boils down to three simple things-
1- Income
2- Assets (savings)
3- Credit
In short, if you have a stable job history (continuous employment, moving jobs is ok), money in the bank, and good credit there is as much money avail to borrow as ever. (If we were to start 'Hide Mortgage we'd want our customers to have these 3 I would wager).
Buying a house also comes to down a yes answer to 3 questions-
1- do I like the home to the point where I want to buy it/live there (get a home inspection!)
2- am I ok w my out of pocket costs for down payment and/or closing costs
3- am I ok w my monthly payment to own it
Rates for 30 yr fixed money is still in the low 4's, a first time buyer program offered by my bank today was 4.125% fixed for 30, so the combo of low home prices and rates is unique in my experience.
And lastly, fees, yes, even I charge fees, I assume most of my fellow 'Hide brothers work for profit, and we do to. No diff than a $4k bolt gun.
Any questions feel free to PM me or let it rip here.
Sam
Re: First time home buyer
Having 20% down saves you from buying Private Mortgage insurance, which does nothing for you, it protects the lender. With all the defaults happening, I suspect this is more expensive now than when I bought due to all the defaults in the last 10 years.
Prequalify for the mortgage makes it easier, but as said above, buy what you can afford, not what you qualify for.
I don't think FHA loans are worth the hassle. They come with some strings attached, like if you sell too soon you owe the government money. At least when I bought my house they were that way. Rates are very low right now, you don't need a FHA loan to get low rates. If you need FHA because you don't have the down payment, you probably aren't ready.
Plan for the future. My house payment was easy to handle before, now we have kids and the wife quit her job. Now we struggle.
Everything goes up. Don't buy something you can just scrape by with because your income may not go up as fast as your expenses.
Stay way, way away from any flood zones. Flood insurance is one of the biggest ripoffs out there, it is worse than actually flooding.
You will pay way less interest with a 15 year mortgage. You can probably buy a small house at first, and when you need the bigger house you can sell the first one. You would not be paying interest on the house you don't need at first. You have to be there awhile because the costs of selling a house will take some equity away.
Be patient, don't make any snap decisions. I think this economy is going to get much worse before it gets better, and we have barely started foreclosing on all the homeowners that are in trouble. My sister in law hasn't made a payment in a year, and she hasn't gotten kicked out yet. Houses are still dropping in price and could get pretty cheap before this is over. It may actually be a better time to sell right now than to buy.
Having 20% down saves you from buying Private Mortgage insurance, which does nothing for you, it protects the lender. With all the defaults happening, I suspect this is more expensive now than when I bought due to all the defaults in the last 10 years.
Prequalify for the mortgage makes it easier, but as said above, buy what you can afford, not what you qualify for.
I don't think FHA loans are worth the hassle. They come with some strings attached, like if you sell too soon you owe the government money. At least when I bought my house they were that way. Rates are very low right now, you don't need a FHA loan to get low rates. If you need FHA because you don't have the down payment, you probably aren't ready.
Plan for the future. My house payment was easy to handle before, now we have kids and the wife quit her job. Now we struggle.
Everything goes up. Don't buy something you can just scrape by with because your income may not go up as fast as your expenses.
Stay way, way away from any flood zones. Flood insurance is one of the biggest ripoffs out there, it is worse than actually flooding.
You will pay way less interest with a 15 year mortgage. You can probably buy a small house at first, and when you need the bigger house you can sell the first one. You would not be paying interest on the house you don't need at first. You have to be there awhile because the costs of selling a house will take some equity away.
Be patient, don't make any snap decisions. I think this economy is going to get much worse before it gets better, and we have barely started foreclosing on all the homeowners that are in trouble. My sister in law hasn't made a payment in a year, and she hasn't gotten kicked out yet. Houses are still dropping in price and could get pretty cheap before this is over. It may actually be a better time to sell right now than to buy.
Re: First time home buyer
PW,
PMI is nothing more than a risk premium you incur due to your lack of a 20% down payment, if you don't want to pay it, save the down, if you don't/can't, pay it. There are ways to incorporate the PMI into your loan as a one time payment rather than pay it as a monthly premium. This can be done quite cheaply, again, if you are qualified.
FHA? What strings? Been writing FHA loans since 1986 and haven't seen a string a single time. There have never been nor are there any prepay penalties w FHA, runs contrary to the mission of the program. Bought my 1st home w an FHA loan, and would use the program again w out hesitation.
Best part of an FHA is the loans are assumable, meaning downstream when you sell the home your buyer can take over your ~4% fixed rate loan rather than going to the market for new money, making your home more desirable, exactly how I sold my 1st home.
PW,
PMI is nothing more than a risk premium you incur due to your lack of a 20% down payment, if you don't want to pay it, save the down, if you don't/can't, pay it. There are ways to incorporate the PMI into your loan as a one time payment rather than pay it as a monthly premium. This can be done quite cheaply, again, if you are qualified.
FHA? What strings? Been writing FHA loans since 1986 and haven't seen a string a single time. There have never been nor are there any prepay penalties w FHA, runs contrary to the mission of the program. Bought my 1st home w an FHA loan, and would use the program again w out hesitation.
Best part of an FHA is the loans are assumable, meaning downstream when you sell the home your buyer can take over your ~4% fixed rate loan rather than going to the market for new money, making your home more desirable, exactly how I sold my 1st home.
Re: First time home buyer
Seuss,
The way I understood it, the FHA loans penalized you if you sold within five years or so. Maybe I'm thinking of a different type of loan, or was listening to aomeone who didn't know what they were talking about. I didn't qualify for it. The county where I bought had it capped at like $50,000.
As for PMI, I think it is an unnecessary expense, since it does the buyer no good. I paid $35 a month towards it for awhile. It is not a big deal, but on a 30 year loan it can take awhile to get 20% equity.
I understand that loans are a lot tougher to get now, my bank won't loan more than 80%.
I am going to have to refi myself, as I have a HELOC that will eat me up when rates go up. Too bad, I only have 7 years left on a 15 year.
Shoulda never let the wife quit.
Seuss,
The way I understood it, the FHA loans penalized you if you sold within five years or so. Maybe I'm thinking of a different type of loan, or was listening to aomeone who didn't know what they were talking about. I didn't qualify for it. The county where I bought had it capped at like $50,000.
As for PMI, I think it is an unnecessary expense, since it does the buyer no good. I paid $35 a month towards it for awhile. It is not a big deal, but on a 30 year loan it can take awhile to get 20% equity.
I understand that loans are a lot tougher to get now, my bank won't loan more than 80%.
I am going to have to refi myself, as I have a HELOC that will eat me up when rates go up. Too bad, I only have 7 years left on a 15 year.
Shoulda never let the wife quit.
Re: First time home buyer
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: maxpower220</div><div class="ubbcode-body">
1st. You don't need a mortgage broker! There is this thing called the internet, you can search for mortgage rates and fees with it and then you don't pay someone else to do it.
</div></div>
Thanks to everyone who has posted so far. Everyone's advice is very good and I appreciate everything thats been posted.
Where are some places to look online for a loan? I know of like quickenloans but i've read nothing but bad reviews on them.
I will be getting a home inspection for sure. There are several homes we have been looking at online that have been on the market for over a year; I'm hoping we can we can make an offer with some terms in our favor once we know we are pre-approved. Also I am able to do many home repairs and maintenance things, for larger projects we have several family members who are constructors; they have already said they would be able to help us as needed.
Now seems like a really good time for us to purchase.
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: maxpower220</div><div class="ubbcode-body">
1st. You don't need a mortgage broker! There is this thing called the internet, you can search for mortgage rates and fees with it and then you don't pay someone else to do it.
</div></div>
Thanks to everyone who has posted so far. Everyone's advice is very good and I appreciate everything thats been posted.
Where are some places to look online for a loan? I know of like quickenloans but i've read nothing but bad reviews on them.
I will be getting a home inspection for sure. There are several homes we have been looking at online that have been on the market for over a year; I'm hoping we can we can make an offer with some terms in our favor once we know we are pre-approved. Also I am able to do many home repairs and maintenance things, for larger projects we have several family members who are constructors; they have already said they would be able to help us as needed.
Now seems like a really good time for us to purchase.
Re: First time home buyer
Don't shop online for the biggest investment you'll make in your life, use local resource as is your Realtor for a couple names of folks they trust and respect.
I've saved more on line deals that were dying at the 11th hour (causing a potential default on the contract) than I care to recall.
Don't shop online for the biggest investment you'll make in your life, use local resource as is your Realtor for a couple names of folks they trust and respect.
I've saved more on line deals that were dying at the 11th hour (causing a potential default on the contract) than I care to recall.
Re: First time home buyer
Some state bond programs in theory have a "recapture tax" if you sell the home in 7 years, make a profit, and your income rises to certain levels.
Our local program in PA has made the commitment that if someone using their program ever gets hit with this that they'll 100% reimburse for it.
Has only happened once.
I wish my local bank competition would only lend 80%!!
Some state bond programs in theory have a "recapture tax" if you sell the home in 7 years, make a profit, and your income rises to certain levels.
Our local program in PA has made the commitment that if someone using their program ever gets hit with this that they'll 100% reimburse for it.
Has only happened once.
I wish my local bank competition would only lend 80%!!
Re: First time home buyer
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Prairie Wolf</div><div class="ubbcode-body">Having 20% down saves you from buying Private Mortgage insurance, which does nothing for you, it protects the lender. With all the defaults happening, I suspect this is more expensive now than when I bought due to all the defaults in the last 10 years.
Prequalify for the mortgage makes it easier, but as said above, buy what you can afford, not what you qualify for.
I don't think FHA loans are worth the hassle. They come with some strings attached, like if you sell too soon you owe the government money. At least when I bought my house they were that way. Rates are very low right now, you don't need a FHA loan to get low rates. If you need FHA because you don't have the down payment, you probably aren't ready.
Plan for the future. My house payment was easy to handle before, now we have kids and the wife quit her job. Now we struggle.
Everything goes up. Don't buy something you can just scrape by with because your income may not go up as fast as your expenses.
Stay way, way away from any flood zones. Flood insurance is one of the biggest ripoffs out there, it is worse than actually flooding.
You will pay way less interest with a 15 year mortgage. You can probably buy a small house at first, and when you need the bigger house you can sell the first one. You would not be paying interest on the house you don't need at first. You have to be there awhile because the costs of selling a house will take some equity away.
Be patient, don't make any snap decisions. I think this economy is going to get much worse before it gets better, and we have barely started foreclosing on all the homeowners that are in trouble. My sister in law hasn't made a payment in a year, and she hasn't gotten kicked out yet. Houses are still dropping in price and could get pretty cheap before this is over. It may actually be a better time to sell right now than to buy.
</div></div>
1. You are incorrect about the FHA. It's 2 years and only if you gain a profit. Most people move every 5-7 years now anyways.
2. PMI is not charged on VA loans either which are 0 down because the VA guarantees the loan.
3. You are also incorrect on the Foreclosure issue as it depends on the State you're in. Also, some areas for example here in Washington have seen between a 2-8% appreciation. Just because the median house price drops does NOT mean the home values dropped. It simply means people are cutting back and not buying as high as in the past.
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Prairie Wolf</div><div class="ubbcode-body">Having 20% down saves you from buying Private Mortgage insurance, which does nothing for you, it protects the lender. With all the defaults happening, I suspect this is more expensive now than when I bought due to all the defaults in the last 10 years.
Prequalify for the mortgage makes it easier, but as said above, buy what you can afford, not what you qualify for.
I don't think FHA loans are worth the hassle. They come with some strings attached, like if you sell too soon you owe the government money. At least when I bought my house they were that way. Rates are very low right now, you don't need a FHA loan to get low rates. If you need FHA because you don't have the down payment, you probably aren't ready.
Plan for the future. My house payment was easy to handle before, now we have kids and the wife quit her job. Now we struggle.
Everything goes up. Don't buy something you can just scrape by with because your income may not go up as fast as your expenses.
Stay way, way away from any flood zones. Flood insurance is one of the biggest ripoffs out there, it is worse than actually flooding.
You will pay way less interest with a 15 year mortgage. You can probably buy a small house at first, and when you need the bigger house you can sell the first one. You would not be paying interest on the house you don't need at first. You have to be there awhile because the costs of selling a house will take some equity away.
Be patient, don't make any snap decisions. I think this economy is going to get much worse before it gets better, and we have barely started foreclosing on all the homeowners that are in trouble. My sister in law hasn't made a payment in a year, and she hasn't gotten kicked out yet. Houses are still dropping in price and could get pretty cheap before this is over. It may actually be a better time to sell right now than to buy.
</div></div>
1. You are incorrect about the FHA. It's 2 years and only if you gain a profit. Most people move every 5-7 years now anyways.
2. PMI is not charged on VA loans either which are 0 down because the VA guarantees the loan.
3. You are also incorrect on the Foreclosure issue as it depends on the State you're in. Also, some areas for example here in Washington have seen between a 2-8% appreciation. Just because the median house price drops does NOT mean the home values dropped. It simply means people are cutting back and not buying as high as in the past.
Re: First time home buyer
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Seuss</div><div class="ubbcode-body">Don't shop online for the biggest investment you'll make in your life, use local resource as is your Realtor for a couple names of folks they trust and respect.
I've saved more on line deals that were dying at the 11th hour (causing a potential default on the contract) than I care to recall.</div></div>
+100
If I had a dollar for every time someone used an "on-line" company and then got pissed off after delayed closings, lack of communication from their loan processor, and just piss poor service all around I'd be loaded. You want someone that you can go directly to and deal with but not have to spend 2 hours on hold trying to reach.
I'll flat out call out 1 particular company as piss poor in the loan dept(Their other services are phenomenal though)... <span style="font-weight: bold">USAA</span>... Every time I have to deal with those idiots I want to drag one out in the street and beat them. They are always causing delays in closing, unless you know how to get around the system good luck getting a timely response, and most of them don't know the SOP's for certain States. My last client a Lt. in the USAF was buying a home from a retired Lt. Col. and after the nightmare then ensued with USAA they ended up having to get USAA to refund over $7000 for hell they caused.
Bottom line... Get someone you can catch at their desk if you have to and not have them disappear after the transaction. Get someone you can trust and has been established in your community and comes recommended. You'll be thankful later...
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Seuss</div><div class="ubbcode-body">Don't shop online for the biggest investment you'll make in your life, use local resource as is your Realtor for a couple names of folks they trust and respect.
I've saved more on line deals that were dying at the 11th hour (causing a potential default on the contract) than I care to recall.</div></div>
+100
If I had a dollar for every time someone used an "on-line" company and then got pissed off after delayed closings, lack of communication from their loan processor, and just piss poor service all around I'd be loaded. You want someone that you can go directly to and deal with but not have to spend 2 hours on hold trying to reach.
I'll flat out call out 1 particular company as piss poor in the loan dept(Their other services are phenomenal though)... <span style="font-weight: bold">USAA</span>... Every time I have to deal with those idiots I want to drag one out in the street and beat them. They are always causing delays in closing, unless you know how to get around the system good luck getting a timely response, and most of them don't know the SOP's for certain States. My last client a Lt. in the USAF was buying a home from a retired Lt. Col. and after the nightmare then ensued with USAA they ended up having to get USAA to refund over $7000 for hell they caused.
Bottom line... Get someone you can catch at their desk if you have to and not have them disappear after the transaction. Get someone you can trust and has been established in your community and comes recommended. You'll be thankful later...
Re: First time home buyer
SO far good advice, but stay aways from all the HOMO ASS....homowner associations, they suck.
MAKE SURE you do a very complete inspection of the home. INSPECTors ARE BASICALLY LAZY SO YOU MAY WANT TO WALK BY THE GUY/GIRL, AND POINT OUT STUFF LIKE,"uH, YOU GOING TO LOOK ABOVE THAT FALSE CEILING FOR WRONGFULLY INSTALLED WIRE"
"uh, you gonna check the bubbly paint on that deck for rot?" yeah, there are a plethora of issues a house has and if you have a crap inspector, you will be either busting your own ass to fix it, or paying someone else to do the work for you.
Buy tolls. All the tools a regular carpenter(woodpecker) or a Lather(skilled craftsman) would use. You will use them all. Mud tools, framing tools, board tools, metal tools...oh and while you are at it, build a sturdy work bench and get a nice sized vice, a drill press, and all the plumbing tools you can find.
If you don't like pissing money away on rent, get ready to spend it on the house. Stuff breaks, stuff needs fixing at the worst moments, but guess what, you asled for it because you bought your own house. It's the best thing in the world when all is right, but you will curse teh day you bought that mfr each and everytime you have to fix something you don't have the tools for.
Have fun now, ya'all hear!
SO far good advice, but stay aways from all the HOMO ASS....homowner associations, they suck.
MAKE SURE you do a very complete inspection of the home. INSPECTors ARE BASICALLY LAZY SO YOU MAY WANT TO WALK BY THE GUY/GIRL, AND POINT OUT STUFF LIKE,"uH, YOU GOING TO LOOK ABOVE THAT FALSE CEILING FOR WRONGFULLY INSTALLED WIRE"
"uh, you gonna check the bubbly paint on that deck for rot?" yeah, there are a plethora of issues a house has and if you have a crap inspector, you will be either busting your own ass to fix it, or paying someone else to do the work for you.
Buy tolls. All the tools a regular carpenter(woodpecker) or a Lather(skilled craftsman) would use. You will use them all. Mud tools, framing tools, board tools, metal tools...oh and while you are at it, build a sturdy work bench and get a nice sized vice, a drill press, and all the plumbing tools you can find.
If you don't like pissing money away on rent, get ready to spend it on the house. Stuff breaks, stuff needs fixing at the worst moments, but guess what, you asled for it because you bought your own house. It's the best thing in the world when all is right, but you will curse teh day you bought that mfr each and everytime you have to fix something you don't have the tools for.
Have fun now, ya'all hear!
Re: First time home buyer
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Switchblade</div><div class="ubbcode-body">SO far good advice, but stay aways from all the HOMO ASS....homowner associations, they suck.
MAKE SURE you do a very complete inspection of the home. INSPECTors ARE BASICALLY LAZY SO YOU MAY WANT TO WALK BY THE GUY/GIRL, AND POINT OUT STUFF LIKE,"uH, YOU GOING TO LOOK ABOVE THAT FALSE CEILING FOR WRONGFULLY INSTALLED WIRE"
</div></div>
Dude, it's apparent you've had more than 1 bad experiences with both HOA's and Inspectors. The HOA I won't bother because as I already said there are pros & cons to both and we'll likely not agree. But, the Home Inspector comment I'm gonna tell you that you're making a broad generalization on a group of individuals that you've had limited experience with. Even if you've bought and sold 20 homes you'd still have only dealt with a fraction of a percent of the home inspectors out there. I have 2 guys I use that bust there ass on inspections and are well worth the money. Too often people look for the cheaper inspectors or the ones with nice websites and then bitch when they get a piss poor home inspection. One of the best Home Inspectors here in my area doesn't even have a website and works off referrals only.
People need to quit being cheap then whining later that the services they received sucked. If they put as much research into the people who's services they use as they did into looking at homes online or buying cars then they might not get burned so often. Statistically, over 79% of Home Buyers/Sellers will use the 1st Broker/Agent they speak with to buy/sell a home. Where's the research there? They also tend to go towards older established agents because they think that means they're better. Problem is when they discover later that some of those agents feel entitled and as a result don't work as hard or stay in tune with the changing times and practices. Just some food for thought...
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Switchblade</div><div class="ubbcode-body">SO far good advice, but stay aways from all the HOMO ASS....homowner associations, they suck.
MAKE SURE you do a very complete inspection of the home. INSPECTors ARE BASICALLY LAZY SO YOU MAY WANT TO WALK BY THE GUY/GIRL, AND POINT OUT STUFF LIKE,"uH, YOU GOING TO LOOK ABOVE THAT FALSE CEILING FOR WRONGFULLY INSTALLED WIRE"
</div></div>
Dude, it's apparent you've had more than 1 bad experiences with both HOA's and Inspectors. The HOA I won't bother because as I already said there are pros & cons to both and we'll likely not agree. But, the Home Inspector comment I'm gonna tell you that you're making a broad generalization on a group of individuals that you've had limited experience with. Even if you've bought and sold 20 homes you'd still have only dealt with a fraction of a percent of the home inspectors out there. I have 2 guys I use that bust there ass on inspections and are well worth the money. Too often people look for the cheaper inspectors or the ones with nice websites and then bitch when they get a piss poor home inspection. One of the best Home Inspectors here in my area doesn't even have a website and works off referrals only.
People need to quit being cheap then whining later that the services they received sucked. If they put as much research into the people who's services they use as they did into looking at homes online or buying cars then they might not get burned so often. Statistically, over 79% of Home Buyers/Sellers will use the 1st Broker/Agent they speak with to buy/sell a home. Where's the research there? They also tend to go towards older established agents because they think that means they're better. Problem is when they discover later that some of those agents feel entitled and as a result don't work as hard or stay in tune with the changing times and practices. Just some food for thought...
Re: First time home buyer
* 20% down
* FHA loans aren't terrible (great rates right now), but if you have that 20% down (as you should), then conventional is the way to go, allowing you to forego PMI and still have competitive rates, depending on your credit history. FHA can allow better rates with lower credit, but PMI is generally automatically factored into the mortgage for the first 5 years...regardless of down payment or value of home.
* Great deals on foreclosures/FHA HUD owned homes right now.
* Payment no more than 25-35% of household *NET* income per month.
The last part is the most important, imo. If you can get on a 15 year mortgage and still meet that criteria, I'd personally go that route.
I'm closing on a second home right now and I agree with many of the above points. I hired an amazing real estate agent, went with an expensive, albeit amazing home inspector, as well as a reputable local lender. They have all made it possible for me to close on this home whilst working overseas. I'm paying a few extra dollars for peace of mind and people who seem to actually care about this deal going through successfully and me being happy with my purchase.
* 20% down
* FHA loans aren't terrible (great rates right now), but if you have that 20% down (as you should), then conventional is the way to go, allowing you to forego PMI and still have competitive rates, depending on your credit history. FHA can allow better rates with lower credit, but PMI is generally automatically factored into the mortgage for the first 5 years...regardless of down payment or value of home.
* Great deals on foreclosures/FHA HUD owned homes right now.
* Payment no more than 25-35% of household *NET* income per month.
The last part is the most important, imo. If you can get on a 15 year mortgage and still meet that criteria, I'd personally go that route.
I'm closing on a second home right now and I agree with many of the above points. I hired an amazing real estate agent, went with an expensive, albeit amazing home inspector, as well as a reputable local lender. They have all made it possible for me to close on this home whilst working overseas. I'm paying a few extra dollars for peace of mind and people who seem to actually care about this deal going through successfully and me being happy with my purchase.
Re: First time home buyer
You have gotten some good advice here.
The one thing I have not seen mentioned is, when looking at something to buy, also look at it like you were going to have to sell it. I know right now you think you will keep the house forever, but at some point you might want to sell.
The big thing we see is people getting more than they can afford or need. Just because rates are low does not mean you need to go to the outer limit of your ability to repay.
If you can work with a local bank, well in my area, that works out best.
Get a realtor, as (again in my area) there is no cost to the buyer, the seller pays the commission.
You mentioned that you have carpenter skills as well as family that can help. All this is good, but don’t get into something that needs work thinking that you will do the work and the value will go up and get you out of a bad debt to value ratio.
I have no idea what the market is where you are, but in each market there will be a price range home that is selling. In my area, the 50-125 price range home is steady and has seen the least up/down. Upper end homes(250+) are dead in the water here.
Good luck and enjoy.
You have gotten some good advice here.
The one thing I have not seen mentioned is, when looking at something to buy, also look at it like you were going to have to sell it. I know right now you think you will keep the house forever, but at some point you might want to sell.
The big thing we see is people getting more than they can afford or need. Just because rates are low does not mean you need to go to the outer limit of your ability to repay.
If you can work with a local bank, well in my area, that works out best.
Get a realtor, as (again in my area) there is no cost to the buyer, the seller pays the commission.
You mentioned that you have carpenter skills as well as family that can help. All this is good, but don’t get into something that needs work thinking that you will do the work and the value will go up and get you out of a bad debt to value ratio.
I have no idea what the market is where you are, but in each market there will be a price range home that is selling. In my area, the 50-125 price range home is steady and has seen the least up/down. Upper end homes(250+) are dead in the water here.
Good luck and enjoy.
Re: First time home buyer
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: BaileyMoto</div><div class="ubbcode-body">
I'm closing on a second home right now and I agree with many of the above points. I hired an amazing real estate agent, went with an expensive, albeit amazing home inspector, as well as a reputable local lender. They have all made it possible for me to close on this home whilst working overseas. I'm paying a few extra dollars for peace of mind and people who seem to actually care about this deal going through successfully and me being happy with my purchase.
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+1 You should post the names of who you used in your area for others near there that might be looking
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: BaileyMoto</div><div class="ubbcode-body">
I'm closing on a second home right now and I agree with many of the above points. I hired an amazing real estate agent, went with an expensive, albeit amazing home inspector, as well as a reputable local lender. They have all made it possible for me to close on this home whilst working overseas. I'm paying a few extra dollars for peace of mind and people who seem to actually care about this deal going through successfully and me being happy with my purchase.
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+1 You should post the names of who you used in your area for others near there that might be looking
Re: First time home buyer
Broker and Seuss, it's to bad that I can't use all of your comments for my CE credits. BaileyMoto said it just right, by having a GREAT team working in the Buyers behalf, this will be an amazingly easy process. Everybody needs to communicate through the entire process and everything will go smoothly and you will end up with a home that you will be happy with. It really should not be a hard process to buy a home with the right people working for you. Here in Utah we have Rural Housing and I'm sure they have it in other places as well, this is a GREAT program for those who are looking in those areas and for those who qualify and there is no PMI w/ 100% financing.
Broker and Seuss, it's to bad that I can't use all of your comments for my CE credits. BaileyMoto said it just right, by having a GREAT team working in the Buyers behalf, this will be an amazingly easy process. Everybody needs to communicate through the entire process and everything will go smoothly and you will end up with a home that you will be happy with. It really should not be a hard process to buy a home with the right people working for you. Here in Utah we have Rural Housing and I'm sure they have it in other places as well, this is a GREAT program for those who are looking in those areas and for those who qualify and there is no PMI w/ 100% financing.
Re: First time home buyer
lightsareout Where are some places to look online for a loan? I know of like quickenloans but i've read nothing but bad reviews on them. [/quote said:
Re: First time home buyer
Zillow is the most inaccurate site there is for finding home values because appraisers don't look at Zillow to get info for their appraisals. When an appraiser does an appraisal they look for "SOLD" homes on the local Multiple Listings and they usually want to use homes that have "SOLD" in the last 60 to 120 days but if they can't find good comparables, then they will look out to 6 months and within 1 mile of where the subject property is located, If they can't find comparables with in that 1 mile radius, then they will look further out. Realtors have access to alot of info including good mortgage companies.
Zillow is the most inaccurate site there is for finding home values because appraisers don't look at Zillow to get info for their appraisals. When an appraiser does an appraisal they look for "SOLD" homes on the local Multiple Listings and they usually want to use homes that have "SOLD" in the last 60 to 120 days but if they can't find good comparables, then they will look out to 6 months and within 1 mile of where the subject property is located, If they can't find comparables with in that 1 mile radius, then they will look further out. Realtors have access to alot of info including good mortgage companies.
Re: First time home buyer
Get a 15 year mortgage instead of a 30 .
Get a 15 year mortgage instead of a 30 .
Re: First time home buyer
Lightsareout, There has been a lot of GREAT advise on here especially from Broker, Inspector Gadget, Seuss and maybe even 2 cents worth from a 7 year Real Estate rookie like myself. There is also something that I don't think has been brought to your attention and that is, if you are looking at homes that are listed with a Realtor the Buyers agents commissions are paid for by the Sellers. I don't know about your area but here in Utah there are not as many for sale by owners as there has been in the past years due to the market. Good Luck!!!
Lightsareout, There has been a lot of GREAT advise on here especially from Broker, Inspector Gadget, Seuss and maybe even 2 cents worth from a 7 year Real Estate rookie like myself. There is also something that I don't think has been brought to your attention and that is, if you are looking at homes that are listed with a Realtor the Buyers agents commissions are paid for by the Sellers. I don't know about your area but here in Utah there are not as many for sale by owners as there has been in the past years due to the market. Good Luck!!!
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