We are buying our first house. Any advice or suggestions? [Archive]

Pete

11-19-2006, 01:18 PM

look at as many houses as you can. When you find one you like and want to put an offer in on, make sure to factor into your offer what needs to fixed on the home. Also, make your offer contingent on it passing a home inspection by a certifed inspector. Anything that doesn't pass must be fixed.

I would also recommend NOT buying a home for the amount you were pre-qualified for. I am glad I left some room under mine due to property taxes increasing etc.

Macs

11-19-2006, 01:25 PM

Buying your first home you can qualify for alot of goverment grants. I bought my first ohouse in 99. I got hooked up with a great mortgage company that told me how to apply for these. The goverment paid my closing cost. They also paid for all my inspections.

smokinwrench

11-19-2006, 01:55 PM

Check out the windows, our house has cheap windows and we loose tons of heat through them and not to mention in the summer they let in tons of heat also.

Also as said earlier your paymetn will go up. We made our scheduled payment the 1st month then it went up $105 per month. Your house paymetn will change every year and it normally goes up.

85ytz250n

11-19-2006, 01:55 PM

Take a night light, to test plugs, and check everysingle one. Check every faucet, sink, and shower head. Look around the hot water heater for leaks. Check that all lights work, and ceiling fans work. AIf there is a garage, make sure that the door works well going up and down. Check the outside foundation, make sure that there isnt any visible deteriation, if its a wood frame house look for termites. That is about all I can remember, I had a pretty good realtor, she showed me the night light trick for checking plug-ins. Nothing major but will be a pain in the butt to discover larger electrical problems that cost more to fix.

Barry

oldsking86

11-19-2006, 02:00 PM

Very true about the pre qual.. just because you can pay it based on those standards doesn't mean you want to run around with your head cutoff just to pay each months mortgage payment. Discuss wht you two want tp pay a month and then with that in mind you can get a ballpark price of the house you intend on purchasing.. Moneydown is an important factor to remember; the more you put down the less your loan is and payments would be. THere are many programs out for first time buyers that require no money down but then you still need to cover closing costs so it's a run around circle but in the end if you grab a hold of a good financer and realtor they can point you in the right direction.

LonesomeTriZ

11-19-2006, 02:41 PM

That is a lot of information that I did not even think about. These suggestions will certainly be of value. I am starting a list now with this valuable information. I plan to take it with me when we start to make the deal real. Thanks, I really appreciate it.

What else?

smokinwrench

11-19-2006, 03:08 PM

My wife and I searched for houses for about 1.5 years before we bought one.

We always got a good laugh about some houses. Owners woudl want a premium price but the house lookedlike 1960 on the inside. On one house we offerred $75,000 on a asking price of $85,000, it needed lots of work. Owner came down a whopping $500.

We found that nearly every house we looked at needed a minumum of paint and carpet. We got a $2,500 paint and roof repair allowance when we bought our house. We had to have the roof repaired and outside of the house painted in 45 days then they wrote us a check for $2,500, it was kinda tough to come up with that kinda cash that quick after buying a house.

LonesomeTriZ

11-19-2006, 03:13 PM

That is my fear. I really do not want anything that needs a lot of work. We might and I say again might be getting into a new construction. tjose houses are so much cheaper to move into.

XTrumpX

11-19-2006, 03:20 PM

One thing EVERYONE fails to mention about payment is taxes (except Pete who touched upon it). So after you figure out the loan payment which, for example, was $1000 a month. Now, add the extra $250-? on top of that payment that needs to go into escrow. And don't be the type to say you'll pay the taxes on your own because that's how people loose their house to tax leins or have to pay extra because someone bought you back taxes at an auction, which then you'll have to pay an extra 5-25% on top of what you already owe.

So, figure your loan amount + 1/12th of you yearly taxes + insurance + utilities, that's how you figure out how much you can afford before you sign.

Another good idea is, if they allow it in you area, is to pay a flat fee your round for your utilities. In colder climate regions where natural gas is used part of the year, you can arrange to pay the same amount each month, not matter how little you use during the summer. That way you don't get hit with a high bill between Sept-March. The extra money paid in the warm months stays in your account.

LonesomeTriZ

11-19-2006, 03:24 PM

That is a good idea about the utilities.

We firgured the payment, insurance, and taxes on a new contruction 3 bedroom house and it came out a lot cheaper than I thought it would. It almost has me worried it was so cheap.

weed

11-19-2006, 06:53 PM

check all the walls and carpet with a blacklight!!!!!!!lol

LonesomeTriZ

11-19-2006, 07:45 PM

check all the walls and carpet with a blacklight!!!!!!!lol

Um, gross.

I hope the people that moved into my old house did not do that. :naughty: :lol:

xd 200x

11-19-2006, 07:53 PM

Build a house most houses around bases are crap or older than dirt. + I dont think it is wise to buy or build a house with unless you can garentee you will not get tranfered within 2 years. For tax reasons.

bigreddaddy

11-19-2006, 09:11 PM

In my opinion, INSPECTION INSPECTION INSPECTION! We didn't have any problems with our house, but a friend of mine just bought a house that WAS inspected. BUT it turns out the dumb inspector didn't catch on that the whole house wiring was very, very old. It is the kind that doesn't use a breaker box. I can't think of what they call it at this moment.
Now this house was supposedly remodeled, updated everything, blah blah. After he bought it his insurance guy went out to inspect and found out about the wiring and said they would not give him homeowners insurance.
So he eventually had to get an attorney and the whole house is now being rewired.
He still has not been able to move in yet, and this happened about 2 months ago.

Good Luck.

LonesomeTriZ

11-19-2006, 10:42 PM

No time to biuld. How do I find a good inspector?

Jim mac

11-19-2006, 10:57 PM

One thing Id like to chime in. If your into playing with dirt toys, cars or anything that involve god forbid stepping outside onto your own yard, watch out for the neighborhood associations. Just because you paid 175000 for your house, doesnt mean you can park a car in YOUR driveway. Luckily Im in a older neighborhood, not a cookie cutter type place, but if I want to open the garage door and fire up the welder, or cut some metal, Pull a motor in my driveway I can. I try to keep the mess to a minimum, I wont cut anymore cars in my side yard, or store dead (Im going to build it someday) cars. But just make sure what you like to do for leisure and make sure it works with where you buy. Good luck Jim

LonesomeTriZ

11-20-2006, 07:01 AM

Dammit!

11-20-2006, 04:58 PM

Your Realtor (assuming you have decided on who to use) will be able to provide you with a good home inspector. I have three different ones I refer to but people always just get the cheapest guy (luckily in my case, that guy is really good). It's not a bad idea to be present during the inspection as well so you can tell the guy your concerns and make sure he checks those items out thoroughly.

Get a termite inspection. They're generally only around $50.

The property taxes (at least in the AZ MLS that I use) are on the bottom of the agent listing so your Realtor can give you that information easily.

HOA contact info is typically on the agent listing as well as a brief summary of the major rules (no visible RV's or trailers, age restricted community and that sort of thing). DO NOT just trust the info on the listing however and don't leave it in the hands of the Realtor. The Realtor is there to help guide you through the process but it really is your responsibility to do your due diligence during that inspection period.

dickieg89

11-21-2006, 05:27 AM

I just bought my house last year. I have a couple suggestions. Pay for a home inspection, most mortgage companies require that anyways. Do not buy what you are pre-qualified for, a lot of people here have said that, it's very true. Sit down and budget everything out with utilities and all that. My taxes have gone up $60 a month this year. Stay away from wells fargo bank, I've had a bad experience with them and their customer service is not very good. Just my 2 cents, good luck.

jeddy

11-21-2006, 07:37 PM

I would say a home inspection is a waste of money, but a necessary evil if your contract or loan (mortgage) provider requires it. You are better off befriending a good contractor and having him (or her) take a look at it for you. I bought my first house recently so I am very familiar with the process. On one of the houses I didn't buy the home inspector just called everything average for the age of the home, basically just covering their own butts. I had a friend of mine who is a contractor/fireman (I put his 911 Porsche back together) take a look at it, he found tons of things that were wrong that I missed and a lot of things that were downright unsafe. The most notable thing was that he knew the local building codes and told me that my plan to knock down the garage and start over wouldn't work because it was right on the property line and I wouldn't have room to build another one unless I left at least one standing wall of the previous structure.

The other big thing I'd say is to not feel bad about bickering on the price. Think of it this way, you're basically going to save three times the amount over the coarse of the loan. So if you drop the price $1k now, it'll save you $3k in the long run. If you think your realtor is pressuring you to buy a house for a price you don't like, find a new realtor, assuming your contract with the current one is up or will expire soon. Remember that they are working for you (and you will be reminded of that during the closing costs).

Anyways, good luck and try and get one in a good neighborhood. You can always change your house but you can't change your neighbors.

-J

oldsking86

11-21-2006, 08:33 PM

Heres a good rule of thumb I use as a mortgage broker... Assuming you put NO money down and finance the home fully, 10% of that price is pretty much your mortgage payment, not exactlly but pretty close (the mathematical possibility)

Say you get a home for $150,000.. The most you should be looking at for a payment would be $1500 a month, PITI (principle, intrest, taxes, and insurance)

I just did a gentelmen for a $140,000 home and came out with a figure just above $1300. He financed the full home with $500.00 down. That's with a fixed rate, I personally don't have my clients go with adjustable unless it's an investment property or they can't afford high payments at the beginning.

The more money you put down the lower your payments will be. Always keep that in mind, also if you purchase a NEW home becareful because if the property wasn't assessed after it was built yet, your taxes will be low at first but after the property is re-assesed with the new home on the property they will go up and so does your mortgage.

Eric250R

11-21-2006, 08:40 PM

That is a major concern for me. We have a lot of machines and two trucks a peice. Not to mention all my tools and equipment. The first thing i will be checking into is a home owner association. If I can not enjoy my hobbies on my own property than I will not live there.
This is a very good point that I was surprized no one had made earlier. Especially in Florida. A good friend of mine moved to Fort meyers. The community he lived in wouldn't even allow gas powered lawn mowers.:crazy: So yes, definately look for this as well. Needless to say he moved back here after about a year of putting up with their nonsense.

LonesomeTriZ

11-22-2006, 07:10 AM

Thanks. All of that was good reading. I see what all of you are saying and at the same time I have been corrected.

If 10% is usualy what the payment will be, why did my realter tell me around $735 will cover the monthly paymnet (including insurance and taxes) for a $100,000 home? should I be conerned about his math?

Alos, does any body know about that government program that hepls with the closing costs on a first home?

firefirefire90

11-22-2006, 08:43 AM

If you will only be there for a year, why not apply for military housing? Or rent a house. It doesn't make any sence to me to buy a house that you will live in for only a year. A few things to check (family has moved around a lot) is for water damage, window seals, and if the house smells like beans. We checked out one house in the town of Temecula, oh God....the smell of beans was so strong I swear I was in a can of Heinz Baked Beans.

LonesomeTriZ

11-22-2006, 09:16 AM

Renting is not an option and living on base is no where near one either. We have standards. I want at least some freedom. Considering property value is no the rise in this area and the rent on a house like the one we are getting is far more than the average mortgage, I think this is a good idea. We will make money either way when it is time to move.

xd 200x

11-22-2006, 10:28 AM

you really need to look into the tax sitation here I was no kidding. not property tax.

Billy Golightly

11-22-2006, 11:07 AM

If you do not do ANYTHING else when you buy a piece of property, get a SURVEY! Even if its already fenced its a must. It'll save you tons of headache with the neighbors in the long run.

Dammit!

11-22-2006, 11:37 AM

If 10% is usualy what the payment will be, why did my realter tell me around $735 will cover the monthly paymnet (including insurance and taxes) for a $100,000 home? should I be conerned about his math?

Alos, does any body know about that government program that hepls with the closing costs on a first home?

If you told him you're planning on living there short term he might be quoting some type of ARM or interest only loan. Some people are scared of those but if you know what you're doing they can save you a lot of money.

There are FHA and VA loans you can look into as well. Have you talked to a good lender yet? You might try Ditech.com and quickenloans.com also. I know with Ditech the closing costs are miniscule compared to a traditional lender but your credit has to be pretty solid. Not sure about quickenloans. I called them the other day just to see what they could do and the guy looked at my credit and got back to me. Said if I can bump up my credit score a little he can literally cut my monthly payment in half. I never called him back to see what kind of crazy program that was though.

LonesomeTriZ

11-22-2006, 03:11 PM

I did not think about those options. I do have a VA approval, but I am not sure if they are the best or not. My credt was perfect. I had a score in the high 7's. But there is a debt on there that is not mine and it is holding me up. Any ideas on how to get rid of it? The collection company is no help at all.

LonesomeTriZ

11-28-2006, 07:31 AM

We just made an offer on a house. I took all your advice and I think I put it to good use. We found a really nice house. It is a bit more than I wanted to get into, but the resale of it will make up for it. The location is perfect. It is close to town but you would never know it by looking at its location. it is also only a ten minute drive from the main gate at fort Benning. So no serious comute time for me. I hope this goes well.

oh, the only problem is the zoning issue. We will not be able to keep our last remaining horse on our property. I hate boarding fees.

smokinwrench

11-28-2006, 09:01 AM

oh, the only problem is the zoning issue. We will not be able to keep our last remaining horse on our property. I hate boarding fees.

Paint Honda on its sides and tell them its your new lawn mower.:beer

On a serious note my sister had to board her horses when she lived in KC, no way would I ever pay that much.

LonesomeTriZ

11-28-2006, 09:10 AM

I thought very seriously about claiming him had a yard machine. We may still try it. The worst that could happen is they tell us to get him in a stable and off the property. I think it is woth a shot.

The yard itself is pretty big. I can fit all my toys on one peice of property for a change. Well, almost all of them. The house has a one car garage, but that is big enough to work out of. I am hoping to have enough money left the get a shed for all of our machines.

firefirefire90

11-28-2006, 09:32 PM

Does your military base have a stable? MCAS down here has a really nice one. I would check that out.

LonesomeTriZ

11-29-2006, 09:06 AM

Yeah, there is a very nice one here. It is just a hassle to have to drive to it or deal with finding some one to take care of him if we can not make it out here. When I start class, my wife will have to make special trips to the base to get him fed. The fuel cost adds up.

Tri-Z 250

11-29-2006, 06:03 PM

Look for the do it yourself type stuff. If the guy is one who won't pay to have it done by a PRO, could be a fool. Your Inspection is important but not fool proof, remember they'll have a disclaimer on your inspection sheet. They will test the well and septic, if required in your area. Septic systems can sometimes run 20grand water wells can run about 5-6 with a new pump. Roof- how many layers of singels, no more than two/ if so knock 10-15grand off the house$. Basement- LOOK for cracks, ANY signs of mold/must or water leaks( stay away from). Unless you can work the price and you love the house- basement/foundation work is BIG$. Electrical is a fixable as long as the house was built after the 50's. How many amps are coming off the street. Anything under 100 amps and you'll be pushing it, if the house has AIR. In your inspection make sure the main line feeding the house is Copper!!! In the 60's they OK'd Alumin feed lines SUPER DANGEROUS!! If so to repannel and re feed the house knock 3grand get 200amp service. TURN every knob, OPEN every door/drawer or moving part to the house. I'm serious! Anything that moves, move it! If there are stickers on the furnice call them and asks for the last date of service, NEVER TRUST THE SELLER. You can if the guy has every receipt down to the paint on the walls. Age is the down fall of any home. Was the home owner was a person who maintained the home? You are the one with the money... ACT LIKE IT! You have the power in todays market, take advantage of it! You hear about location,location...its true! Only buy what you can sell tomorrow for the same or more! I have a ton of stuff I could bore you with but look to the age of things....House was built in the 60's most of the house is original....For a top price figure 7% per yr the home was owned from the original purchase price (in the best location perfect house situation). Perfect buy 10% less than the estimated tax evaluation from the county. For that same house. Goodluck, don't call me to move but do call for the opener:beer