Looking to buy a house for the first time! HELP

Re: Looking to buy a house for the first time! HELP

• Sisugal member

  

  September 2013

  Home Buying for Dummies

  Mortgages for Dummies -

  great info in both books.

  SAVE, SAVE, SAVE for a good downpayment, closing costs, moving, utility start ups, repairs/renovations, decorating/furniture & appliances/ yard items  AND have a good 6-8 month's expenses in an emergency fund.

  Review your credit scores and pay off all credit card debt.

  Also - I am not a fan of buying with boyfriends. Wait until you are married as there are legal protections with marriage should the relationship end. 

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• musictchr25 member

  

  September 2013

  Before Pre-Approval:

  
  

  1. Go to some Open Houses to figure out what you and your SO really like in a home and what you really can't live without in a home.  Make a priority list so that you can later provide that to your real estate agent.

  
  

  2. Get your finances in order. Request your credit scores and make any changes to your lifestyle to improve your scores, if necessary.  Banks will approve couples for a loan based on the lowest credit score between you both.  Make sure that you have enough money saved for a down payment, in addition to an emergency fund of at least 3 months rent, and also in addition to any money you will spend on upgrades, furniture, and supplies for the new house.  If you're looking for a list of what is needed when you buy a house, this is one that I made and featured on my blog: http://www.rhodylife.com/2013/06/new-home-survival-list.html

  
  

  3. Talk with a bank or mortgage lender about getting pre-approved for a home loan.  They will run your credit scores, and determine your Debt-to-Income (DTI) ratio, taking car payments and student loans into consideration.  Based on their findings, they will approve you for what they believe is what you can afford.  Just because they approve you for a certain amount doesn't mean that's how much you should spend.  You and your SO should have a discussion about what you are comfortable paying per month and stick with a budget.

  
  

  After Pre-Approval:

  
  

  1. Interview real estate agents and hire one to work with you during your home search.  Make sure that the real estate agent has ample experience, good reviews, and that they have a decent amount of monthly home sales so you know that they are hard working and successful.

  
  

  2. Provide the real estate agent with your home criteria. They will send you homes that match your needs, and will work with the listing agents on those homes to coordinate a time for you to tour them.  

  
  

  3. Once you have found a home that you love, make an offer. Your real estate agent can help you find comps for the area so you are making a realistic but lower offer than list price.  Make sure that you list any contingencies, like inspection, closing costs, washer and dryer stay, window coverings stay, etc. Your real estate agent will highly recommend that you have an inspection done, and although it can run you about $400 out of pocket, it will be well worth it in the long run.  Your offer will typically be coupled with a "Good Faith" check to shoe that you are very interested in the property.  Most real estate agents suggest $1000, however, do not give more than $2500, because an issue could arise with the Small Claims Court if the contract is broken and suing were taking place.  

  
  

  4. Negotiate your offer with the seller.  Chances are that your first offer will not be accepted, especially if it is a significant amount lower than asking price.  Don't feel the need to go over the budget that you and your SO have set, but keep in mind that a few thousand dollars more in price may only end up being $10 or $20 more per month on your mortgage payments.  

  
  

  5. Once you and the seller have agreed to a price, sign a Purchase and Sales Agreement.  At this time, your full down payment amount minus the amount you gave with your Good Faith check will need to be given to the listing agent for deposit. This does not need to be a certified bank check. 

  
  

  After Offer Accepted:

  
  

  1. Schedule and have the inspection on the property if you chose to add that to your contingencies.  Your real estate agent will have recommendations for an inspector, but you could also use Angie's List or ask other homeowners. You will be present for the inspection, so this is a good time to ask about how to turn off the main water valves, shut off the power to the house, and any other questions that you may have.  This list of what should be covered in an inspection will be helpful: http://www.rhodylife.com/2013/07/home-inspection-checklist.html

  
  

  2. Once the inspection is completed and the report returned to you, you have the ability to go back to the seller to negotiate on the issues that may have been found.  You can either require that the seller take care of the issues, or ask for the negotiated price to be lowered to accommodate the work that needs to be done. Radon mitigation and termites/pest control are required by law for the seller to take care of prior to the home being sold.

  
  

  3. After an agreement is made with the seller, provide the bank or mortgage lender with the information on the house.  They will begin their paperwork and schedule an appraisal for the home.  The appraisal will inform the bank of the estimated worth of the house to make sure that you are not overpaying for the property.  If the appraisal comes back lower than the price you have negotiated with the seller, chances are that the bank will not approve the mortgage for the home because they feel you are overpaying.  

  
  

  4. Find a real estate attorney or lawyer to represent you at closing.  The attorney or lawyer will do a title search on the home to make sure that there are no issues or liens on the property.  They will also work with the bank to prepare your closing documents.

  
  

  5. When the bank has finished preparing their documents, you will receive an official close date.  You will be notified of how much money is due at closing, and will need to provide a bank certified check before you are given the keys to your new home.  

  
  

  Closing Time:

  
  

  1. On the day of closing, you will be signing and initializing your name a thousand times.  Your attorney or lawyer will explain the mortgage to you and the terms that come along with it.  You will submit your bank certified closing costs check, and receive your keys.

  
  

  2. Congratulations! You are now a homeowner! Go rip out some carpets and tear down walls! Or, you could just buy a few gallons of paint and move right in. Whatever floats your boat.  

  Amanda @ Rhody Life
  DIY & Home Decor Blog
  
  
  
  

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• short+sassy member

  

  September 2013

  I assumed when I started the home buying process that my agent would find houses I wanted and then schedule showings on the ones I was interested.  HOWEVER, what I actually found to be a lot more useful, at least for me, was to search online myself for MLS homes in the area (most big real estate companies have a link for MLS listings on their website, even if you are not their client) and search on Craig's List.  I'd make a list of the homes I was interested in and then do a "drive by" to check out the exterior of the house, the neighborhood, and talk to neighbors (if there were any hanging around outside).  That cut the MAJORITY of homes off my list.

  Once my list was whittled down to the homes I liked, where in my budget, in decent neighborhoods, and looked in decent condition from the outside.  THEN I would contact my agent to schedule a showing.  I just found showings to be a big, time-consuming PITA and it saved everybody's time when I could eliminate 90% of the homes by doing a quick visit.

  Caveat: I do live in a medium sized city where no neighborhood is really all that far from where I was living and where there is GREAT disparity in both neighborhood and house condition. There are areas of town where there will be literally be gorgeous, large homes in great neighborhoods and two blocks down it is the slums with abandoned houses needing a gut job.  So my style will certainly not be best for many places.

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• Janessadawn member

  

  September 2013

  Getting a preapproval before shopping in earnest is my #1 recommendation. When you go to interview realtors for yourself (and it's to your advantage to hire one), have a list of wants/needs prepared ahead of time. Like the PP above, I found the majority of homes we looked at and sent them to our agent. I'm also very type A, but if you'd prefer your agent to do the digging that should be something they offer. Best of luck! It can be stressful and scary sometimes, and it's definitely a rollercoaster, but it's also fun!
  
  PS - Don't let the mountains of paperwork for the pre-approval scare you.
  

  

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• MommyLiberty5013 member

  

  September 2013

  Don't buy a home jointly unless you are married. If one of you wants to buy it (using only their money and credit) and the other person live there, fine. But, don't go in financially together if you are not legally bound to one another. You have no financial/legal recourse if the relationship ends.

   

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