buying a house

ashpet13@yahoo.com

Hey everyone!

 Travis and I are both really new at this house buying stuff...I think they should teach a class in high school on it so that when you are older you know what you are doing! Anyways I was wondering if you all could give us some advise!? 

What is the first step we should be taking? Going to the bank to get pre-approved for a loan so we know what our price range can be, OR talking to a Realtor?

I have heard both ways but whats the point in talking to a realtor if you dont know how much money you can be spending? 

HOPE YOU GUYS CAN HELP!!! 

JnJ04

A lot of Realtors won't take you on showings unless you already have a pre-approval so go to the bank first. Also, there are a lot of programs and seminars available to first-time buyers.

Brewtowngrl

Get your pre-approval first.  There are a ton a classes out there that are free in most of the major cities that are free for first time home buyers. If you don't have time for that your agent should be able to guide you.  After all, that is why you pay them.

FoxinFiji

1. Check out all 3 of your credit scores/reports and make sure there isn't anything that needs to be disputed.
2. Get pre-approved.  Ask around for a bank or lender that other people recommend.  Most banks have first time home buyers classes but large lenders usually have the best rates (though you have to look at all the other fees they each charge you too).  Also, find out if there are any first time home buyers programs you can apply for and what the requirements are. 
3. Make a list of the "must-haves" and the "nice-to-have" things you want in a home.  This will help prioritize what you and your husband want in a house.
4. Ask around and find a realtor you can trust.  Meet them and see if you like them before you go ahead and start looking at homes with them.  Don't be afraid to walk away and find someone else you like better.  Avoid signing any paperwork with someone unless you know you want to use them. 
5. Research all the homes online before you go look at them.  If you know for sure you're not going to like it don't waste your time. 

Visit the buying a home board they are very helpful!  I know a lot of people who liked the "Buying a home for dummies" book.  This website is great for following the rates:

http://www.mortgagenewsdaily.com/  (but remember these rates don't take into account credit scores, etc. so what you may be able to get might be higher)

And remember it really is all about location, location, location.  A comparable home in a better location always increases in value faster and retains value in a down market better than a home in a worse location.

HTH!

clarkeja

Even BEFORE you get pre-approved, I would recommend creating an expense sheet. You can download Microsoft templates and enter in what you pay a month for entertainment, a typical credit card bill, your gas/electric expenses, car payments, insurance, etc. Don't forget to give yourself a buffer for incidental expenses (base this off your net income).

When we went in for our first pre-approval, the bank asked us what our GROSS income was. Now, we both know we don't take home our gross income. However, the bank pre-approved us based on this amount. We would've set ourselves up for a failed mortgage had we went this route.

Creating the expense sheet allowed us to grasp our spendings, calculate in our NET income so that when we went in for our second pre-approval, we told the bank we didn't want our monthly mortgage payment to be more than X amount. We can now say, we live comfortably and don't loose any sleep over our mortgage. 

Happy House Hunting!