Time to buy a house.......

[300GT]

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.

[Medusa]

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 A lot of homes can be rehabilitated for very little money even if they are out of date.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.

[Andrea]

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.