Gonna buy me a house.

[TomJoe]

Any tips for a first time buyer?

I'm putting no money down, and am looking to avoid paying closing costs too.

[curses]

Any tips for a first time buyer?Read the fine print at the closing table. Don't be afraid to ask your loan officer questions, and don't be afraid to find another one if they don't answer them to your satisfaction. Be wary of ARM mortgages.

Get a GOOD home inspector, and don't forget to try all the outlets and lightswitches (that burned me on my current house)

[LadyShea]

Any tips for a first time buyer?

I'm putting no money down, and am looking to avoid paying closing costs too.

So you want 100% financing? You will need a very high credit score, and you will pay a higher interest rate and will have to pay PMI as well that way, just be prepared for 8-8.5% interest on 100% financing

[TomJoe]

So you want 100% financing? You will need a very high credit score, and you will pay a higher interest rate and will have to pay PMI as well that way, just be prepared for 8-8.5% interest on 100% financing

Yep. I figure though in 6 months or so, I'll refinance. I was told one way to "get around" paying closing costs is to have the seller "raise" the price of the house. From what I've been told, new houses in the area I'm looking at have a built-in closing cost cushion of a couple grand. So if I'm looking at a house for $112k, and have $3k closing costs, they sell the house for $113 and the bank never gets a whiff of it which allows me to avoid the higher interest rates.

Though I am starting to save additional ducats just in case I need to pay costs (and I'm going to have to purchase house insurance, pay the inspector, and all sorts of various sundry expenses I probably don't want to know about) if I can't get the interest rate to an acceptable level.

[ms_ann_thrope]

What minus said about ARMs, and you can ask that the seller pay closing costs as a part of your offer.

Also, it is a good idea to get pre-qualified for a loan before you start looking at homes (so you know what you can afford) or making an offer. If competing offers come in for a property, the one that comes from a pre-qualified purchaser is going to be more attractive. Knowing in advance how much you qualify for can help prevent heartbreak by keeping you from falling in love with something outside your price range.

There are lots of special deals and incentives out there available for first time homebuyers. I got over $3,000 in Home Depot gift cards just for using LendingTree's realtor referral service!

[TomJoe]

What sort of things should I be looking for as "must haves"?

I told her I wanted a house less than 20 years old, 3 bedroom, 2 bath and gave her my price range as well as the areas of town I wanted (the good school/low crime areas). She's been pretty good about giving me stuff in my range in those areas with those characteristics.

[LadyShea]

Check with your lender, many mortgage companies require a full year of payments before allowing you to refinance. Also, try to buy in an area that is growing, as you may be able to refinance with equity as your down payment...my friend did 100% financing in July, and the house has already increased in value enough to get her a 80% loan to value and eliminate the PMI and get her a lower interest rate.

As for the actual home search, make a three columned list. First column is "must haves", second column is "must not haves", third column is "would be nice but not necessary"

So you tell your agent you will not look at any homes that don't include everything on your must have list. You will not look at any homes that have something from your must not list.

Seriously, without this they will throw everything in your price range at you and it's easy to get lost.

[wei yau]

When I bought my home, it was a seller's market here. Things have flipped and now it's a buyer's marker.

We ended up taking two mortgages. 80/20 split, this helped us to avoid the PMI. As for closing costs, in our buyer's market, we've been told that a seller will often offer to pay closing costs.

[TomJoe]

What minus said about ARMs...

Plan on going fixed rate. 30 year.

Also, it is a good idea to get pre-qualified for a loan before you start looking at homes ...

Got this done, though it's with my bank and I told them I'd have the closing costs (which I currently don't have). Whoops.

So I'll be looking for another lender (going to check out Wells Fargo for starts).

There are lots of special deals and incentives out there available for first time homebuyers. I got over $3,000 in Home Depot gift cards just for using LendingTree's realtor referral service!

Oh, nifty.

[LadyShea]

What sort of things should I be looking for as "must haves"?

That varies. Do you require 2 full baths or will 1.5 baths do? Do you need a fenced yard? Are you willing to take on some minor repairs or does the house need to be move in ready. Is the third bedroom a must have or is it a would be nice? Do you have any strong feelings about flooring or countertops or cabinets? Do you need an attached garage?

[TomJoe]

What sort of things should I be looking for as "must haves"?

That varies. Do you require 2 full baths or will 1.5 baths do? Do you need a fenced yard? Are you willing to take on some minor repairs or does the house need to be move in ready. Is the third bedroom a must have or is it a would be nice? Do you have any strong feelings about flooring or countertops or cabinets? Do you need an attached garage?

Gotcha.

The one house I've already seen, I've asked the realtor to ask the builder if they'd throw in privacy fence and wood floors (except for the kitchen and bathroom obviously) *as well as closing costs* for their current asking price.

I don't want to piss off someone by coming in with an offer that they figure is to unreasonable they don't want to do business with me at all.

[ms_ann_thrope]

Wow, your bank will do a 30-year fixed on 100% financing? May I ask what the APR is?

[TomJoe]

Wow, your bank will do a 30-year fixed on 100% financing? May I ask what the APR is?

Technically, they won't.

They think I have $5 in closing costs. I told them it was a gift from my parents. I'm going to have the seller work in whatever costing costs remain (after we haggle) into the final price we agree on, and they'll wind up paying them.

Is that even legal?

[Sock Puppet]

I don't want to piss off someone by coming in with an offer that they figure is so unreasonable they don't want to do business with me at all.
Ask your realtor how long the house has been on the market, and find out what comparable homes have sold for recently. Even in a buyer's market, a seller wants a fair shake. If you make an offer that's well below what the comparable homes are going for, even if the market is soft, it will be perceived as an attempt to take unfair advantage. I speak from experience. I was so pissed off at an unreasonable offer that I countered with the full asking price. I would've been willing to come down if they hadn't made such a crappy first offer.

And BTW, $112K? Bloody fucking hell. I now officially HATE this nutbag state I'm in and its ridiculous housing costs.

But congratulations.

[Sock Puppet]

Is that even legal?Yes, but be careful that the final selling price isn't higher than the appraisal, or the lender will not approve the loan. That was how another of my offers fell through. The buyers wanted to add $30K to the selling price and then get it credited back, which was too squirrelly for their lender to go for.

[TomJoe]

Is that even legal?Yes, but be careful that the final selling price isn't higher than the appraisal, or the lender will not approve the loan. That was how another of my offers fell through. The buyers wanted to add $30K to the selling price and then get it credited back, which was too squirrelly for their lender to go for.

Okey doke. It'll only be a couple of thousand, so hopefully it won't be a problem. Now I just need my parents approval to let my bank probe their accounts to ensure that the money for this "gift" is there. :P

[ms_ann_thrope]

Now I just need my parents approval to let my bank probe their accounts to ensure that the money for this "gift" is there. :PYou should have your parents give you the money to put in your account (you can always give it back later). Unless they are going to be co-signers on your loan, no need to have the bank probe into their private stuff!

[ms_ann_thrope]

And BTW, $112K? Bloody fucking hell. I now officially HATE this nutbag state I'm in and its ridiculous housing costs.:glare: Don't hate on CA. It's a nice state with a good economy, that's why people are willing to pay so much to live here.


Hater! :hmph:

[Sock Puppet]

Enjoy it. I'm outta here, and you can keep Arnie too. :P

[ms_ann_thrope]

Oh, one other thing. I guess if you buy a new house, it's going to come with a warranty so this wouldn't be necessary right away, but I really like the optional insurance you can buy to cover major appliances and house systems (A/C, heat, plumbing, etc.). Mine already paid for itself when our water heater exploded. Basically you just pay an annual premium and then anything that breaks is just a $50 service call to have fixed or replaced.

[Dingfod]

It isn't uncommon in some markets for the seller to pay all or part of closing costs. That's perfectly legal. One house we bought needed a new roof, the seller did a cash kickback for the price of a roofing job. I had it re-roofed by a deep-discount contractor (read: Mexican) for about half of that. The same market conditions that put sellers in that position often have the seller paying for a one-year homeowner's warranty. You might try for it too. Shoot for the moon, baby!

[Waluigi]

Get a fixed rate mortgage. If you listen to nothing else I say, listen to that.

Get a good lawyer, one who specializes in residential real estate transactions. The laws are different in every state, and buying/selling a house is very complicated. Don't just listen to some schlemiel you met on the Internet.

Walk through the house with the home inspector, or go back later and look at everything again. I should have been more careful about this with my house. Look for evidence of prior water damage (small buckles in the walls near the ceiling or around windows, soft walls, etc.) Check the slope of the property, and take an up-close look at the lawn and shrubbery. Make sure you can fix or live with any of the imperfections of the house.

When I bought my house, I got a fixed-rate FHA loan. I then applied for (and received) a gift from an organization called AmeriDream which paid for my down payment. I actually walked away from the closing with some money, leftover from the gift. I rolled the closing costs into the mortgage.

There are what is called "seller's concessions", which are reductions to the net amount the seller will get. A real estate agent is paid for by seller's concessions, as are any improvements or expenditures you and the seller agree to in the purchase offer.

For my house, the seller's concessions totalled about $1k less than the closing costs, and the seller received a check for about $8k less than the purchase price.

Owning a home is as frustrating as it is rewarding, and be prepared for the unexpected. As an example, my hot water heater went TU four days after we closed. Four damn days! It's like it was programmed to mess up my week.

Good luck.

[Plant Woman]

Make sure that there is an inspection before sellers get their checks. Oh and a stipulated time for the sellers to vacate the house after closing. A realtor I believe will look out for that.

We bought our home directly from a seller (never again!). When we closed we couldn't get the sellers out. It took us 3 weeks to get them out. Meanwhile they didn't pay rent, and they trashed the place. They didn't leave us any keys. We had to get a locksmith to come out and change the locks. They left 3 pickup loads of garbage. When they took the washer out they didn't shut the valve properly. So not only did we have to take care of a mess, we had to have a professional come in and pull the carpet up in the next room and replace the pad, dry everything out. a window wasn't fixed that was in the contract, they took the refrigerator that was in the contract to leave. It was a nightmare.

We left our buyers a bottle of champagne, a card congratulating them, a clean house, tidy yard. We left all pertinent paperwork, ownership manuals and warranties on appliances, all neatly organized. Stark contrast, yes?

Be sure to have a realtor, they are worth every penny!

[biochemgirl]

I can't second getting a good lawyer enough. We got screwed on our house, first we had it and the offer accepted and it was a done deal and then one of the previous offers popped back in the picture...basically it was some shady business by the realtor and if we had had a good lawyer go through it it wouldn't have been a problem. We ended up getting the house but it was a very crappy situation.

Look at lots of houses. It's the best way to gauge what's out there and compare prices. Don't feel the need to settle, if you don't like it keep looking.

[TomJoe]

South Carolina law mandates that I have a lawyer present at the closing. So this is a done deal.

South Carolina law also states that I obtain ownership at closing ... so the people must be moved out at the time of the signing ... or (I assume) very shortly thereafter. But almost all of the houses I'm looking at are new builds, so I'd be the first owner and this is a moot point.

[biochemgirl]

If I had it to do over again I would have a lawyer go over all my offers and everything before closing too, just from our bad experience.

Good luck! Keep us updated!

[roastelk]

just want to mention, check out the waiting time at the land titles office, or what you ever guys call it in the us. I got totally screwed by them.

It took land titles 3 weeks longer than my posesion date to process the paper work, and the banks will not transfer any money until the paper work is done. now the guy i bought my place off of refused to sign a tenancy agreement to allow me the in place before the money was transferred. So I was stuck in a hotel room for 3 weeks waiting for some stupid paper work to go through. wound up costing me an extra 2 grand in bills.
The guy was a complete retard, he coudn't understand that his place was legally sold, and that I could not back out. Then he started calling me 10x a day asking where his money was, and then threatened to sell to some one else. I finally shut him up when I explained i could sue him for breach of contract if he tried to back out.

One other thing to do, is have your lawyer hold your downpayment in his/her trust fund, rather than simply handing it over to the seller. if shit goes sour you not going to loose all your cash that way.

that was private sale by the way. I didnt use a realistate angent, just a lawyer

[Dingfod]

One other thing to do, is have your lawyer hold your downpayment in his/her trust fund, rather than simply handing it over to the seller. if shit goes sour you not going to loose all your cash that way.Never hand over cash until closing unless it is held in escrow. Always use an escrow (http://en.wikipedia.org/wiki/Escrow) service to hold all monies until the transaction closes even if you have to pay the escrow fees yourself. Many banks and most all title companies offer escrow services.

[LadyShea]

State laws vary regarding attorneys, escrow, title transfers, closing procedures, etc. Your lender will know how to handle things.

[Dingfod]

What if there was no lender, just a cash transaction? An attorney should know the laws. A bank or title company can handle the escrow.

[roastelk]

State laws vary regarding attorneys, escrow, title transfers, closing procedures, etc. Your lender will know how to handle things.


we've actually had escrow fraud problems up here, its safer with a laywer. And by using their trust fund its essentially the same thing. If you have a good lawyer they'll explain everything to you though

avoid places like bubbas discount legal services...you know the one... its beside the payday advance place and across the street from the titty bar. It might be cheaper, but your just asking for trouble if you go there.

[LadyShea]

I've never even thought of using an attorney for buying a house. Can't imagine why one would be needed, at least not in any state I have purchased a house in. If it was a private, cash transaction yes, but my lenders and the state's laws have always had clear unambiguous rules, laws, and procedures. Of course, it can't hurt and if it makes you more comfortable then go for it.

Oh, I also always have signed a buyer's agent agreement with my broker, and always include lots of "outs" and contingencies in my offer to leave plenty of room for negotiating and/or walking away.

[rigorist]

I've litigated the house purchases that have gone wrong. Here's some random observations:

- You should have your good faith estimate of closing costs (it's on a form called the HUD-1) at least a week before closing. If they can't get it to you until just before closing, there is something fishy going on. Walk away.

- If the seller is in financial distress, there is a chance they have creditors itching to get paid from the sale. Some of them may move quickly to docket a judgment, which could be a lien against the property. If you sniff that the seller is in financial trouble, pay the extra for title insurance, especially if you are in a county where title registrations are backed up. Call the county registrar/clerk/land office and ask how far they are backed up on registering.

- While you are on the phone with the county, ask if the state/county has a Torrens registration system, and if they do, whether the property is Torrens property. If you have a Torrens system, but don't have Torrens property, insist that the seller convert the property.
(Torrens is a neat system that gets rid of the abstract that traces the land back to it being taken from Indians and gives you a clear and clean certificate of title).

- Don't forget to take into account property taxes and insurance costs in your monthly payment amount.

- Don't just trust the home inspector--go look at the place yourself. Use your nose.

- Keep this principle in mind--if it's not written down and signed, it never happened.

[Dingfod]

- Don't forget to take into account property taxes and insurance costs in your monthly payment amount.My lender doesn't do escrow. I have to pay my insurance and property taxes myself. That reminds me, property taxes are due next month. Gah!

Don't just trust the home inspector--go look at the place yourself. Use your nose.I wish that I had been able to go over the place myself because our home inspector for this Oklahoma ramshackle mansion, who was supposedly a licensed structural engineer, missed the fact that our house's slab foundation is falling apart and sinking at various rates. I looked into suing the bastard, but the contract was iron-clad, anything he missed he was not responsible for.

[Miss Shelby]

What sort of things should I be looking for as "must haves"?

I told her I wanted a house less than 20 years old, 3 bedroom, 2 bath and gave her my price range as well as the areas of town I wanted (the good school/low crime areas). She's been pretty good about giving me stuff in my range in those areas with those characteristics.
i think with a good realitor your bases are pretty much covered, one thing that I appreciated having was a Service One contract thrown in for a few years for free. We have not had to use it much, but it's good for the piece of mind.

Switching jobs, moving, getting married -- you are doing all of the massively stressful things in life all at the same time. LOL. I feel for you, but I am excited for you, too.

I'm really going to love it when you start having all of those daughters.

Michelle

[TomJoe]

I'm really going to love it when you start having all of those daughters.


:glare: