Time to buy a house.......
 

I've decided it's time to buy a house. I know what I want (older model, near my parents, land or at least a fenced in yard for my boy Fruitcake) Now I just have to figure out how to get it.

That's where you come in. Give me your hints, suggestions, do's/don'ts, stories,advice about buying, remodeling and general realestate experiencees.

I do have a few houses that fit the bill but going into this whole thing blind I hardly know where to start and what to expect.
There's no doubt that the house I end up with will have a large element of DIY. Which frankly I am looking forward to. New houses hold no appeal for me.

Thanks for any input!
nekohl


Ps. I've watched and read and occasionally posted over the years but never started a thread. My first ever thread is about realestate. How boring! Lol

Great idea for a thread--something I have been thinking about as well!

foreclosures are a great start, also check out the auction on the courthouse steps. but make sure you read the fine print per state.

i have been watching the market here. looked at a few homes, when ppl lose homes to foreclosure, the houses are usually trashed, if by chance you find something from a death in the family, usually its been kept up pretty nicely.

Jack and I bought our first home together 2 years ago this month! Here are some things that worked (or didn't) for us:

* It may sound crazy but it actually does help to watch shows like "House Hunters" on HGTV. You can get a good feel for what other people are going through and some of the things you might not have thought of when looking around.

* Location really IS a huge factor. Make sure the drive is reasonable to work and the grocery store. Do a test drive during rush hour and see if there are any crazy traffic jams. Make sure the neighbors aren't a bunch of insane hillbillies (ok, that one was for us! LOL)

* ALWAYS get a home inspection. Make sure your home inspector is licensed and provides a full written report. They can find things like mold, bad roofing, rotting wood, etc. that may affect the price or repairs of your home.

* Get a realtor who knows they work for YOU. In other words, don't be afraid to tell a realtor exactly how you feel about the homes they are showing you or the pricing. We found that a lot of realtors will try to push your budget a little so make sure you hold your bottom line. If your absolute maximum is $150k, stick to it.

* Never offer your full price offer right up front. Leave room to negotiate.

* When you view the house, walk through every room. Take pictures and bring a notebook to keep notes! Also, walk through all of the outbuildings and check the land. Is it a soupy mudhole? Does the garage seem to be sagging a little? You can, of course, get that all checked during inspection and I also recommend going to the inspection as well. They will generally flush the toilets, check the electrical and faucets, etc. It's the best $200 you will EVER spend.

* Don't let paint and carpet scare you. If you want turnkey, you will pay a LOT more. A lot of homes can be rehabilitated for very little money even if they are out of date. As long as the structure is good, a few coats of paint and some cleaning will go a long way.

* We didn't have closing costs since we paid cash but remember that closing costs can sometimes be THOUSANDS of dollars. You can always ask the seller to assist with that :)

I'l think of more in a bit.

I was in the mortgage business for 20 years (out the last five) and recommend everyone be pre-qualified by a mortgage company as a first step. Ask friends and family who they went through to select a loan officer.

Credit is tight and it isn't as easy to get a mortgage loan as it was even three years ago. A conventional loan is always the best way to go if you have the money to put down, and a good employment and credit history. FHA and VA are wonderful loans if you have an issue in one of the three areas mentioned, but will cost you more in the long run.

Stick with your basic 30 year fixed rate loan and you will not have to worry about rates adjusting up. DO NOT go with any creative financing.

Your loan officer should also be able to help you find any financial assistance programs available in your area.

Once you know what you qualify for and have that pre-approval letter in hand, go house hunting. A pre-approved buyer has a much stronger chance of a contract offer being accepted and the processing time for the purchase will be considerably less with that portion already done.

homes
 

Here is my advice. First check out all mortgage co. And find the one offering the lowest interest rate for a fixed loan. 30 yr is probably what you want. But if you can afford a 20 yr way better choice. Then get preapproved with that mortgage co. They will lock in that low rate for 90 days or more. That gives you time to hunt. Remember even if the bank will preapprove you for 200,000. That doesn't mean you should buy a house that costs that much. Decide what you want your monthly payments to be. Then call realtor. It's free if you are buying only sellers have to pay a realtor. Tell her you are preapproved she will love you for not wasting her time. Tell her what you want your monthly payment to be. She can easily tell you what price range that puts you in. Including taxes insurance hoa any other fees etc. The banks figures will be inflated and misleading. Then start looking. Good luck . Remember it is always better to buy,than rent. If you can afford it. Renting is like tossing money away. You are paying someone else for something you could be paying yourself for.

1 more thing. When you call the company looking for a realtor, ask for a realtor who is knowledgable about sherrif sales and hud homes and foreclosures. If you can get one of those, usually you get a bigger better home for a good price.

My advice is don't underestimate the closing costs of the house purchase and move. This is something that many first time (and later) buyers are prone to do in the excitement of it all.

That's simply not true. Just as buying can have advantages over renting, renting can equally have advantages over buying. For a start, you have flexibility and not dependent upon a sale until you can move elsewhere and clearly not at risk of negative equity which is a very real and desperate situation for many people in the current environment (and, in certain locations, house prices will not reach their 2006 / 2007 levels for many years and, probably never if adjusted for inflation).

Also, although a renter pays rent, a buyer (unless they are a cash purchaser) pays interest on their borrowings. This is also "like tossing money away". Many people would be better off, financially, renting and saving the surplus amount that they would have made as a capital payment on a mortgage into another vehicle. Added to all this, of course, is the capital depreciation component of owning property.

Therefore, no, buying isn't always better than renting ...... it's important to be aware of the pros and cons of both options and decide in a clear, rational manner.

This is SUPER important to remember. I know way too many people who bought a house that cost what they were preapproved for...and then struggled financially. I have no idea why banks always overestimate what we can afford - they just do.

When I went through my "looking to buy a house phase" (I got over it and have decided to keep renting for the time being because I like the simplicity of renting) I was pre-approved for a good 50k more than what I KNOW I can afford.

Ask to see at least the last 3 months of utility bills so you have an idea of how much it'll cost you to heat/cool your home, etc. If you're in an apartment right now you -really- have no idea how much utilities in a house costs. Lord knows that I have no idea.

You -want- the total of your monthly costs (mortgage, insurance, property taxes, heat/water/electric) to be a couple hundred less a month than what you are paying as a renter. Why? Because shit happens. If your fridge breaks or a plumbing disaster happens you really do need to have that extra money socked away and waiting.

And for the love of cats...if you think there is any chance that this won't be the house you die in keep in mind the re-sellability of your house. Even if you think all you need is 2 bedrooms, a house with 2 bedrooms is infinitely harder to sell than a house with 3 bedrooms - and when the time comes for you to sell your house you'll be thanking the stars that yours has 3 bedrooms in it rather than 2.

Honestly, I think renting is pretty rad. If my oven stops working - I call my landlord. If a homeowners oven stops working - she has to pony up and buy a new oven. Fuck that.

thanks
 

Excellent input so far. My thanks to you all!

One of the houses I am interested in has 5 additional lots. They are wooded and from what I can tell not flat. I have toured the house and it is old enough(but updated ie new roof, wiring, windows) and quirky enough that I love it (the master bedroom has a soaking tub and the attic will make an excellent studio)
The realtor said they pay all closing costs and he even gave me the key code so I could take a look at the house on my own time. I really appreciated that because my hours at work are ridiculous!


Anyway, I like the idea of the extra lots, but shou
ld I decide in the future to divide the land up could I sell the extra land if I'm still paying on it? And does a home inspector check the land as well as the house or is that a separate inspector?

I have rented and I like the dear landlord my washer is acting up ness of it, but I'be been looking at houses for a while now and it's just time.

Any thoughts on For Sale By Owner? Pros/ cons?

I pay $40 a month for home insurance on repairs and replacement of plumbing, air conditioner, heater, water heater, etc. It's been well worth it. I've been here for 3 years and they replaced my heater. I saved about $5000. I'm not sure if my plan covers washer, dryer, and other appliances but I'm sure that's an option.

After you have become interested in a certain house, make sure to visit the house right after or during a heavy rain.

Look all around the outside of the house to see if it has good drainage and the rain runs away from the house. A house located on a small slope would be your best bet.

Water damage tends to be very expensive to fix especially if it goes for years unnoticed.