1st time home buyer

[Anthony_Joseph]

I gross a decent amount of cash, I net a bit less ( go figure) my credit is ehh, not bad, not good, nothing fradulant.

Not a whole lot in savings. I'm tired of renting. What are my options? Anybody familiar in this field?

 

[pbibby]

Can't wait to watch this thread progress. Thanks for posting. *subscribed*

 

[mdwest]

Difficult to do.. but find a realtor that you can trust...

Remember the realtor works for YOU (or is supposed to.. again.. see point above.. find one you can TRUST).... The seller, the builder (if buying new), etc.. all work in support of someone elses interests..

Get pre-approved for a home loan... this will give you a bit of leverage when you get ready to make an offer.. and will also let you know what your limits are...

Learn patience.. DO NOT buy the first thing you see.. DO NOT expect the transaction to go smoothly (something always gets hinky when buying a home)... DO NOT expect the transaction to go quickly (many, if not most home loans take longer to process than you will originally be told by your lender)..

Figure out in advance whats important to you (what part of town you want to live in, what amenities you want in the house, what your price range is, school districts, etc..etc..etc.. ).. send your agent out armed with as much information as you can possibly give him/her.. be specific about anything that you can be.. help them weed out all the "no" houses in advance for you...

Consider building/buying new... I've had a lot of success in walking into equity when buying new.. builders are typically motivated to get rid of houses quickly once they are complete.. for them its a business.. they need to turn the house, make a little bit of money, and move on to the next build... they are not emotionally attached, wont find "value" in things that dont actually have value, etc... and every day that house sits on the market unsold is another day they are carrying a loan on the books and not making a profit on their work... It may take a little longer while you wait on a house to get built.. but if you play your cards right you can walk into a money maker.. and also get the benefit of getting to pick out all of your colors, light fixtures, etc.. make minor modifications to the design to suit your needs/wants, etc.. and not have the hassle of having to start changing/fixing things right after you move in..

be prepared to walk away at any time... its a business transaction.. not a marriage.. you owe nothing to no one (to include your agent).. do not get wrapped up in absolutely having to have a particular house.. if you cant get the right price.. the right terms... on the right schedule.. etc..etc... then do not make the deal... let everyone know that you are a man of your word, and intend on adhering to any agreement made.. but that you expect them to adhere to their agreements as well, or you will walk.. and find another realtor/seller/builder/lender/whatever... if you let people screw with you, or not uphold their end of the bargain.. they will walk all over you... this is a huge decision.. make sure its right FOR YOU.. hold these other people accountable.. and make them do their jobs... youre going to be paying a lot of money in fees, commissions, interest, etc.. everybody from the agent to the bank has a lot at stake.. make them earn their pay.. do not let them take it from you without delivering a product worth the price you are paying..

 

[dscl]

As someone who bought their first home 18 months ago I will simply say take what mdwest said as gospel

 

[rev.b]

.. find one you can TRUST

Dave you know better. Rule #1 TRUST NO ONE!!!!!

 

[Kantucky]

What mdwest said.

But also shop around your pre approval. I've bought three houses, and the last time I shopped the loan around before looking for a house. Found a community bank that needed some loans. Gave me 3% on a 30 year where everyone else was around the 5% mark.

 

[Monsterdg]

I agree with mdwest, but I come from the other side of the coin; I used to flip houses. For me, I would buy the worst home on the best block, fix it up & there you have equity OR can move on to the next. You would be surprised what good landscaping and a paint job can do to the homes value. Inside, carpet, floors and paint get you the biggest bang for the buck.

Totally agree with needing a ton of patience and look at this purely as a business transaction.

I think the most important is look at the 5 year horizon; what's your plan down the road? Move for work? Marriage plans anytime soon, etc? A lot of things can be changed about a house; really look into things that cannot be change and is important to you. A few big ones are obvious, can't move the house, so how close to work, schools (if you have or plan on having kids). Can't typically expand a home, so getting a good size for the value is important. And lastly, a couple of things that people forget, what kind of internet and TV access does the home have available?

Best if luck on your search, post questions if you would like!

 

[BrittS88]

Be sure of your location bro. That's the biggest thing. Is it where you want it to be cLose to this or that. Is there a good b&m near by. Are the neighbors gonna be a problem. Stuff like that. IMHO. also shit will go wrong. And it's a fuckin headache. But it'll be worth it. Just remember your end goal when you get ready to beat the realtor with her own sign.

 

[sean]

Also check out Crimemapper.com and the Megan's law site. It'll be good to know, and could hinder possible resale down the road.

 

[dannysguitar]

Great thread!

 

[RacFocus]

Wish I would have read this thread before buying my first home 7 years ago. Good info here.

 

[Anthony_Joseph]

I think my worry is not being approved, or being approved for a much lower amount than I can actually afford. I don't wanna live in a shit hole, but I'm not expecting the ritz.

 

[RacFocus]

And for the love of god don't buy more than you can afford! You don't want your mortgage payments to hinder your lifestyle.

 

[Jfire]

Are you still single? Why not rent. The grass isn't always greener. I live in a (IMO)very nice home for where I live and what I do for work. I finished 2k sq ft of my basement now for a total of 5k sqft finished. Have my own heated/ vented cigar lounge. Acre lot, farm land and woods behind me, 3 1/2 car garage and all professionally landscaped before I bought it. Sounds like a dream and who wouldn't want it? Right!?!? ALOT OF PEOPLE!
To me and my wife it's what we live for. Our own vacation spot to speak and we purchased a brand new home that cost the builder 600k for 420k in 2010. But it's not for everyone. House is already 7yrs old and I can't fathom what the roof will cost me in 20 yrs. 90 gallon Water-heater is top of the line. Chalk up another 2300.00 for that in another 3-4 yrs. taxes/ homeowner ins 13k yearly. Once again for us it's worth it. Make sure you really want to go this route. Home owning can be a burden on many families. Make sure you are ready for it!
Regards,
Jfire

 

[Anthony_Joseph]

I'm married, and I work out of state 75% of the time.

 

[Griz]

.. find one you can TRUST

Dave you know better. Rule #1 TRUST NO ONE!!!!!

Good grief, I thought I was the only one with that as Rule #1

 

[Heath]

My wife and I are also looking to buy a house within the next 6 months or so and after talking to a couple different mortgage guys we finally found one that was willing to help us and not blow us off because we were not quite ready yet.
Anyway he told us about a program called "Rural Development Program" which in New Hampshire means if we buy a house in select rural towns we do not need a down payment and we won't need to have PMI. Which is huge. I think ND has something similar. You should ask you mortgage guy/girl when you find one. I added a link below to give you some more info. I hope this helps!

http://www.rurdev.usda.gov/ND_SingleFamilyHousing.html

 

[Big Lou]

Take your gross income and times it by 3 that's what you would qualify for mortgage wise . . but then you have to take your debt to income ratio into consideration.. conventional you have to put 20% down FHA is 3 1/2 but will have to pay PMI. consider A 2 family or mother/daughter so you have A income you can use. when negotiating ask for the seller to pay closing costs or A sellers concession.. also look for for sale by owner www.forsalebyowner.com most of the time they need to sell quickly and cant afford to pay A realtor commission. these are some tips . . I am in real estate any questions feel free to ask

 

[sofc]

.. find one you can TRUST

Dave you know better. Rule #1 TRUST NO ONE!!!!!

If that's true, why should we trust that? or you?

 

[sofc]

Who knows? You might get lucky. We looked for 3 hours one day at 4 houses. Bought the third house we saw for a very decent deal at the time. 5 year ARM because we thought we wouldn't be there longer than 5. We've been here almost 17. Luckily it has gone down every year.

If you want to increase chances of getting a better rate, you might want to improve your credit score. Pay off if you owe anything. If you have no history of credit, you might want to get a card or a loan to improve your credit. There are many threads on credit forums.

Also, take the time to search for the best rate. It is not something you should be lazy on. I was lazy before I bought my first/and only house but like I said, I got lucky.