New...need some advice!

pitbullmommy315

Hi everyone! I'm new to the nest. I've been living on the knot for awhile because I'm getting married next year...but my fiance and I are just starting our search for a house so I thought I'd come by here.

Anyway, today is the very first day that we are looking at houses with our realtor. We're looking at about five. What are some things I should look for (other than whether I just like the house or not) or what are some questions I should be asking? I am totally new to this and need some advice!

Sisugal

Step 1)  Get financially prepared: If you do not have a clear picture of your income and spending or do not operate on a budget - you need to track your spending - every dollar for a month or 2 to gather this information.  Look at your debt - get rid of credit card debt, pay down car loans (or off if you can). Your Debt to Income ratio plays into the interest rate for which you qualify. 

Then establish a "house" budget - how much you want to spend each month on housing. Rule of thumb guideline is your housing costs (mortgage+taxes+PMI+insurance +HOA dues+utilites) = 25-28% of your TAKEHOME pay. 30-35% in a HCOL area.

Establish an emergency fund of 3-6 months EXPENSES. You will need this AFTER you have paid your downpayment, closing costs, moving costs, start up costs (ladders, yard equipment, tools, trash cans etc), utility deposits, repair/maintenance costs, decorating/furniture etc. 

Consider if you plan to fund this on one income or the use of two incomes. Do you want to SAH when you have children or work PT?  Could you afford the house under those circumstances?

Step 2)  Decide on a location.  The best indicator of retaining or increasing the value of your home is LOCATION, LOCATION, LOCATION

Step 3) Prioritize your needs and wants in  a house and know what you are willing to compromise on - you will not find it all in one house.

Step 4) Do not buy emotionally, nor take the process personally - this is a business transaction

My final piece of advice for all non married couples is to make a plan for the possibility of the engagement ending prior to marriage - yes, it does occasionally happen to those who never thought it would.  Could one of you afford the house on their income alone?

Two good books to read:  House Buying for Dummies and Mortgages for Dummies

Good luck.

Edit:  If you are paying for your wedding, keep the wedding expenses separate from your housing and general budget.

nmoe

1)  The area- is it somewhere that you can see yourself for the next 5+ years (at least)?   How far is it from work, family, etc?

2)  The actual neighborhood- check it out during the day AND at night.  There was one that we looked at that seemed great during the day... not so much at night. 

3)  The size of the rooms, since that isn't something that can be cheaply changed.

4)  How much are you going to have to put into it to "make it yours"?  For example, if it's an older home that has really updated bathrooms/kitchen, that would be a major expense.

5)  Things you'll find out through inspection:  Is it structurally sound?  Any signs of water damage?  Roof in good shape?  If any of these are an issue, it would be a deal breaker for me, due to the expense/hassle of fixing.

6)  If you are planning on having children at some point in the next couple of years, would you still be comfortable with the space?

In addition to the above, some of our personal criteria was:

- had to have a finished basement

- had to have a back yard

- had to have a lot of storage space

- had to have central air

- had to have at least 3 bed/2 baths