Looking To Buy My First House

[Stalking_Eagle]

I have begun the reserach of buying a house for the first time. Anyone have any tips for me?

 

[lattedatte]

Have 10k in the bank after the purchase for things you don't expect. The unexpected always happens.

 

[Akron Irish]

Make sure you have enough space. Buy a house a little bigger than what you are anticipating so you have room to grow.
Check the basement walls for mold and/or water damage from flooding

 

[NDChatt]

If you can afford it buy a house that is being built. You can come in and pick everything for your house. I just bought my first house this past July. My wife and I were able to choose wall color, appliances color, title color, hardwood/carpet and many other things. And while having 10k extra in the bank for unexpected things is nice, most developers will offer warranties on their new homes. I have a warranty from my developer for 3 years that covers everything from the appliances in the house to the sod in the yard. Good Luck!

 

[lattedatte]

You are going to get a million suggestions, BTW, but from a financing perspective... STAY AWAY FROM ARM'S AND ADJUSTABLE RATE MOTGAGES OR FIXED WITH POINTS. you know all the forclosures that are occuring, those are the reason, they are the devil. Also, while I agree with the above about buying bigger and growing into it, DO NOT GO HOUSE POOR! I did and it was miserable for the first three years. Miserable.

 

[ND4life]

Have 10k in the bank after the purchase for things you don't expect. The unexpected always happens.

everyone has great ideas, especially this one. how many people are in your family? if your a bachelor, youll probably spend less $$$. for example im married and just bought a brand new house built in january. buying a brand new house is awesome. got that new house smell...haha.


me and the wife were gonna put 15k down payment but, it was only gonna drop the monthly payment by less than a hundred bucks. we got a 5.25% interest rate which aint too bad. so we spent it on things for the house (upgrades). better fixtures ($1500), sprinkler system($2500), blinds and window treatments ($2500), new living room (couches, tables and my TV $5500). things got real expensive and we dramatically overspent on our budget. you have to be prepared for ANYTHING.

i dont know your budget and if your profile is right, baltimore is way more expensive than where i live. i dont know your intentions for buying a house but, if your a DIY (do it yourselfer) id buy a house and fix it up and resell it. the most expensive part of this path is buying all the tools and supplies.

whatever you choose good luck....and GO IRISH!!!

p.s.- nothing is better than pulling into your own garage and having your ND flag waving in the front of the house.

 

[Stalking_Eagle]

Thanks for all the advice in advance. Baltimore can be expensive but there are a lot of houses that aren't too expensive right now. IT's really a buyers market, I just want to be in a safe neighborhood. I basically really tired of renting to tell you the truth. It's just me and my girlfriend but she is going back to school soon. Even if we weren't together I just feel its about that time. Luckily Maryland does this sweet program where you don't need anything down and get the closing costs paid for you. That is a help but I know I need to get a litlte mroe savings. I make a over $80, I just have no savings due to my poor money management in college. So I'm doing a lot of reserach right now to try and figure out what my options are. I really want to be able to put 15% down at the minimum. I get really big bonus each year so it isn't impossible to use that and my savings. More than likely next year is looking more do able but I guess I need to keep and eye out.

And no doubt I already have my flag to hang on my porch.

 

[davidtro99]

i just closed on my new home feb 16th and the one thing you need to know in a buyers market is that the longer the house is on the market the better negotioiation you will encounter. dont be afraid to low ball the seller there are tons of home on the market and we low balled the the first 2 houses and got denied but we fell in love with the 3rd home we offered and we lowballed them as well. they haggled a little, but i got the house that was listed at 119,000 down to 106,000 and they paid all my closing cost... by the way both housed i offered on 1st are still for sale and both sellers have called my agent asking if the offer was still on the table....haha.. good luck and have fun.. go irish

 

[stonebreakerwasgod]

Congrats! Find a reputable realtor, if you go that route, I have run in to alot of them, and many are awful. (no offense if ya'll are one). If you are buying from someone living there, and an inspector finds a problem(s), my suggestion would be to negotiate with the seller for the money and have yourself choose the company to fix the problem. I would agree staying away from ARM or interest only financing. Having as much money in savings is a good idea, also. I'm not sure that buying a bigger house at first is for everyone, it would make sense for some people to buy a house they can afford, and buying another bigger house once the budget allows for it. It really depends on your budget and family needs. All the advice so far seems to be good. Best of luck!

 

[marv81s]

i would make the sale contigent on a home inspection, ALWAYS HAVE A HOME INSPECTOR LOOK OVER THE HOUSE.

depending on how major the problem is, you and the owner can probably work the items out, but if they are major issues, then they, the owner, should bear the cost of getting it taken care of.

Great advice on the financing.

 

[lattedatte]

Thanks for all the advice in advance. Baltimore can be expensive but there are a lot of houses that aren't too expensive right now. IT's really a buyers market, I just want to be in a safe neighborhood. I basically really tired of renting to tell you the truth. It's just me and my girlfriend but she is going back to school soon. Even if we weren't together I just feel its about that time. Luckily Maryland does this sweet program where you don't need anything down and get the closing costs paid for you. That is a help but I know I need to get a litlte mroe savings. I make a over $80, I just have no savings due to my poor money management in college. So I'm doing a lot of reserach right now to try and figure out what my options are. I really want to be able to put 15% down at the minimum. I get really big bonus each year so it isn't impossible to use that and my savings. More than likely next year is looking more do able but I guess I need to keep and eye out.

And no doubt I already have my flag to hang on my porch.

Yikes, do not buy a house with nothing in the bank.... Shit like lawn movers, rakes/shovels, tools, dishwashers, car repairs(while not hous related), o and unless you are plumber(100 bucks min) for just the visit, all that stuff isn't free. So if you have no cash where does it go, credit card. Making 80k you should be able to save 20k rather quickly and then do it. I personally do not want anyone to go house poor like I did, it is miserable.

 

[rontdtarchala]

Unfortunatly most americans are stuck in a depression mindset when it comes to financing a home. Here is what you need to do...you want to make the lowest down payment possible, you want to make the lowest payment possible, with the biggest tax deduction possible...use your mortgage as an investment tool. You want to get compound interest working for you at the earliest age possible...say your home is worth...200,000 you can create over 1.2 mil in 30 yrs using your mortgage...send me a private messege and I will show you how its done...its what I do for a living...

 

[lattedatte]

Unfortunatly most americans are stuck in a depression mindset when it comes to financing a home. Here is what you need to do...you want to make the lowest down payment possible, you want to make the lowest payment possible, with the biggest tax deduction possible...use your mortgage as an investment tool. You want to get compound interest working for you at the earliest age possible...say your home is worth...200,000 you can create over 1.2 mil in 30 yrs using your mortgage...send me a private messege and I will show you how its done...its what I do for a living...

It is not as good as investment as you think, ask the folks in California what their home values have done over the last couple years, while they have only been paying interest. Now they are upside down and the banks are a callin. And he is in Baltimore their prices are inflated as well. Just be careful, I don't dispute in can be an invesment just be careful Eagle, be careful.

 

[notredomer23]

Make sure theres no molds spores or fungeses. Also no termites. And make sure there is a perfect wall for a 60' wide screen tv to watch nd games.

 

[stonebreakerwasgod]

Make sure theres no molds spores or fungeses. Also no termites. And make sure there is a perfect wall for a 60' wide screen tv to watch nd games.

If you do get termites, use sentricon (by a reputable company) it is the ONLY thing that gets rid of the entire colony....as my neighbor went through several different companies before using sentricon.

 

[brownkj002]

I am looking to buy my first house as well and the most important thing that I have found out besides the money and condition of the house is it's location. Make sure that's it's in an area that will always keep it's value. Make sure the neighbors keep up there yard and make the neighborhood look nice. Also, as someone has already said, make sure you low ball especially if it's a buyers market (there are always other houses). Good luck, I know I need it.

 

[Akron Irish]

And make sure you get good homeowners insurance. If you live in Ohio, I know a really good agent who sells insurance. He coincidentally happens to be a big ND fan also.

..............SHAMELESS PLUG...........:awesomewo

 

[LOVEMYIRISH]

I have begun the reserach of buying a house for the first time. Anyone have any tips for me?

Get a 30-year fixed mortgage... Bad things are a brewin and this will buy you security.

Do NOT go for the MAX mortgage you can. Stick to like 2/3's of it... They will let you take a mortgage that puts your near insolvency...be aware of that...be conservative.

 

[jiggafini19]

I have begun the reserach of buying a house for the first time. Anyone have any tips for me?

Relocate and buy mine. Been on the market for two weeks.

Jokes aside, good luck to you. Agree with having $10K saved (I had 15) and getting a 30 year fixed.

Do your homework on the neighborhood, too. Good schools are a good indicator of where you're at.

 

[Akron Irish]

Put enough down so you don't have to pay PMI

 

[LOVEMYIRISH]

Put enough down so you don't have to pay PMI

If you can, that's a great way to go...but it requires 20%. I could not afford hat at first, but managed to re-fi 5 years later and stop the PMI payments (once my home equity was 20%)

 

[lattedatte]

be conservative.

words I never thought I'd see in LOVEMYIRISH post. lol...

 

[lattedatte]

If you can, that's a great way to go...but it requires 20%. I could not afford hat at first, but managed to re-fi 5 years later and stop the PMI payments (once my home equity was 20%)

I put 5% down, 15% LOC and 80% 30 year fixed. No PMI. Then in 3 yrs I refied my LOC to a 20 fixed. There are ways around PMI.

But again, I put 5% down becuase that was my entire savings after I paid 20k for my wedding two months prior. DONT DO THAT!!! IT WAS MISERABLE!!!

 

[NDChatt]

I put 5% down, 15% LOC and 80% 30 year fixed. No PMI. Then in 3 yrs I refied my LOC to a 20 fixed. There are ways around PMI.

But again, I put 5% down becuase that was my entire savings after I paid 20k for my wedding two months prior. DONT DO THAT!!! IT WAS MISERABLE!!!

What is an LCO? What are the average house prices in everyone's area? Here in Chatt. the medium home price is around 180,000-200,000.

 

[lattedatte]

What is an LCO? What are the average house prices in everyone's area? Here in Chatt. the medium home price is around 180,000-200,000.

Line of Credit, it is adjustable so that was bad. But on the 15% i wasn't two worried about it and PMI was like 100 bucks a month. So that was a significant savings.

Wow, in the burgh their is a huge range. but 200 gets you a house w/4 bedrooms, 2,200 square foot, 15 yrs old and about 1/2-3/4 acre lot.

 

[LOVEMYIRISH]

words I never thought I'd see in LOVEMYIRISH post. lol...

lol...well I am conservative economically...very much so...unfortunately the party that supported my views (Republican) went over to the liberal side years ago.

The closest people to my economic views are old-school Republicans or Blue Dog Dems.

It sucks.

 

[LOVEMYIRISH]

Line of Credit, it is adjustable so that was bad. But on the 15% i wasn't two worried about it and PMI was like 100 bucks a month. So that was a significant savings.

Wow, in the burgh their is a huge range. but 200 gets you a house w/4 bedrooms, 2,200 square foot, 15 yrs old and about 1/2-3/4 acre lot.

Yeah, LOCs are to be carefully reviewed. It's best to pretend that the LOC interest rate could go up to 12%.

Right now a standard adjustable-rate Home Equity Loan is hovering around 9.5%. I got a better one because my credit score was 832...so I pay about 8%. My 30 year fixed is locked in at 5.625%... So I keep my HomeEq LOC (HELOC) fairly low.

 

[NDChatt]

Line of Credit, it is adjustable so that was bad. But on the 15% i wasn't two worried about it and PMI was like 100 bucks a month. So that was a significant savings.

Wow, in the burgh their is a huge range. but 200 gets you a house w/4 bedrooms, 2,200 square foot, 15 yrs old and about 1/2-3/4 acre lot.

My house was a little over 200K and I got 4 bedrooms, 2395 sq feet., unfinsihed bonus room on 1/4-1/2 acre
I found two different site that had the medium price in Chattanooga being as high as 200,000 and as low as 110,000. So I am going to split the difference and call it 125-150k.

 

[brownkj002]

I forgot to add that you should shop around for different loan companies. I have one that I am probably going to use that I only have to pay 3% down and I won't have to pay the PMI.

 

[portlaNDgal]

New house! Very cool. I hear ya on the “it’s just time” thing. I was sick of sharing walls with strangers and getting nickel and dimed on rent. Bought my first house 5 years ago and have never regretted it. I just closed on my 2nd house on the 28th of Feb, so I could go on all day.

First, another note on finances. Look into what you’ll be paying as a mortgage and try to live on that while you’re saving/looking for your house. My mortgage was over $700 a month higher than the rent on my last apartment, and I went into a lot of credit card debt before I adjusted my lifestyle. Not that I lived lavishly, I just wasn’t as prepared as I could have been. I also was house poor, although in the market I was in, I didn’t have much choice. I basically bought at the last minute I could afford in my area. I also knew I wouldn’t be there forever and planned to move to a less expensive area in the future, which I have. A good rule of thumb for home repair/maintenance expenses is 1% of your home’s cost per year. So, if you pay $200K for your house, make sure your budget includes $2K a year for repairs etc.

I did an 80-15-5 (1st mort. 80%, 2nd mort 20%, 5% down). The 2nd mortgage had a higher interest rate, but even with that I paid less than w/ a single mort. and PMI. The interest on both mortgages is tax deductible, which PMI isn’t. Also my 2nd mort was a fixed rate.

The way to find a realtor in my experience is to get a referral from someone you know. The realtors I worked with were fantastic. When I bought my house in Portland, the seller’s agent was a bozo. Thank God for my realtor; he kept me sane. Also, even if you have a good realtor, they may push you to go over your spending limit. Your realtor is your representative, but he/she also makes more if you spend more. You have to be your own advocate too. You will likely qualify for a higher loan than you can realistically afford, so don’t use the bank as your spending barometer either. Oh, here’s a great mortgage amortization/payment web site: http://ray.met.fsu.edu/~bret/amortize.html Don’t forget to add the cost of homeowners insurance and property taxes too. I pay HOA and property tax costs into an escrow acct every month which then pays out when they come due.

Most major cities have a web site that shows crime reportings by neighborhood or police precinct. Also look at where registered sex offenders live in case you plan on raising kids there.

Don’t be afraid to walk away from a house if the inspection goes badly. I walked away from a house I loved b/c the seller wouldn’t pay for what I felt were reasonable (albeit expensive) repairs.

One more thing then I’ll shut up lol. When you find a house you like, chat with some of the neighbors to get a feel for the block/neighborhood.