First Time Home Buyer

[metron]

I am looking for my first home purchase in west Denver. I have been searching since last November. This is not a beginners market nor does it show major signs of the US housing market slump. Entry level prices out here gives a wide variety of trashed houses and a very occasional gem. What I see so far is those are instantly snagged up by "investors". Despite the current state of the US housing market and everyone saying its a buyers market, this one does not seem to be.

Anyone have experiences they would like to share as a first time home buyer, positive or negative?

[playinpearls]

buy a HUD home and save some money.

http://www.hud.gov/local/index.cfm?state=co

click on daveramsey.com and clarkhoward.com so you dont get ripped.

thats what i would do.

looking since november, and haven't jumped on anything is good. In the housing market your BEST friend is patience.

[Pilgrim]

I've bought and sold two mobile homes and three stick-built homes. Never had a bad experience buying or selling. Currently live in Fort Collins north of Denver.

1) Asking price isn't selling price.
2) The seller may be a lot more "motivated' than you think, so don't be shy about your offer. if you want to offer 50K under asking, go ahead. They'll counter.
3) Colorado lenders don't require it, but HAVE A SURVEY done of the property before you buy it. The cost is well worth it.
4) Know what you're signing, and read every page of every document. Let the people around the table wait while you do so.
5) No matter what else you do, DO NOT take out an adjustable rate mortgage.

[Jonyak]

make sure you have more than 10 grand set aside more than what you buy the house for, for expenses you have yet to know about.

Having a house is a lot more work than I ever expected. Expect for things to break and go wrong and to have to fix them.

make sure to buy it in the summer so you see it, not when its burried under snow.

[SuperDuck]

I'm looking near Milwaukee, and it's definitely a first-time buyer's market here. Houses are sitting for well over half a year, and asking prices are dropping. We don't have a house to sell (we're renting), so the time for us is now! We're actually going out tonight to three showings.

As mentioned above, there are a few different programs that can help you out as a first time buyer. Definitely explore all of your financing options. We're probably going to go through our old college's credit union, as they offer a killer bargain.

[metron]

Great tips so far, thanks all!! I didnt consider HUD but after a brief search on that site I dont think I am going to. I found a few scary houses in all the zip codes I have been looking so far. I also need to sell this house at some point.

No ARM is also great advice. Luckily I am a conventional buyer and habitual contract reader with a math/engineering background so I wont likely be making any stupid decisions in the mortgage department. Only problem is if the property comes back as "distressed" from the appraiser then I am no longer conventional. I guess "distressed" is happening a lot these days, even in seemingly great areas.

I will ask my agent about a survey, that sounds like a good idea and is something I didnt think about. Having extra money in the bank in also a great idea.

Keep 'em coming people!!

[metron]

Originally Posted by SuperDuck

I'm looking near Milwaukee, and it's definitely a first-time buyer's market here. Houses are sitting for well over half a year, and asking prices are dropping. We don't have a house to sell (we're renting), so the time for us is now! We're actually going out tonight to three showings.

As mentioned above, there are a few different programs that can help you out as a first time buyer. Definitely explore all of your financing options. We're probably going to go through our old college's credit union, as they offer a killer bargain.

Good luck SuperDuck!

Man I checked the credit union and they were not willing to deal with anything riskier than a 20% down, which isnt risky.

In some ways I wish I were in an easier market like yours. I have been intererested in and considered putting an offer on at least 3 places in the last few months and they were all under contract already, some within a month of listing. Good deals around here can disappear in days sometimes. OTOH that is good news for when it comes time to sell.

[seanm]

Originally Posted by Pilgrim

I've bought and sold two mobile homes and three stick-built homes.

They build houses out of sticks there? Like in the three little pigs?

What is a stick-built home?

[RWP]

Great time to be buying!

[need4mospd]

Originally Posted by seanm

They build houses out of sticks there? Like in the three little pigs?

What is a stick-built home?

Means the house is built on site and not in a factory.

[pointbass]

My best suggestion would be to buy what you really, truely can afford and not be sucked into thinking that you'll be able to somehow "make ends meet" if you buy a home priced above your price range. If you can know for a fact that you can comfortably handle a $1K a month mortgage, then don't fool yourself into thinking that a $1300 a month nut "is only $300 more". (Plug in whatever $$ your current situation looks like )

No matter how good that $1300 a month house looks, the minute you have some other financial issues crop up (medical, job loss, furnace, roof, car, whatever) that extra $300 a month will be like a weight dragging you down. I have friends that over-purchased and they are seriously regretting that move.

As someone said above, patience is your best friend ....

[seanm]

Originally Posted by need4mospd

Means the house is built on site and not in a factory.

I would never have guessed that in a thousand years! Factory built homes are so rare here that they are called factory built (and are usually cottages). "Stick homes" are just called "homes"

[Pilgrim]

Originally Posted by metron

I will ask my agent about a survey, that sounds like a good idea and is something I didnt think about. Having extra money in the bank in also a great idea.

In Colorado, the agent is going to tell you that you don't need one. In most states, lenders won't talk to you unless you have one...but this is one respect in which Colorado really lacks. Perhaps with the current mortgage situation, lenders here have gotten smarter and now require surveys. They should!

Spend the $500 for a survey and then (a) you won't have any surprises, and (b) if you later find out your patio is over someone else's property line, you can go after the surveyor.

BTW - a GOOD, EXPERIENCED agent is a real asset, but never forget that he/she is not working for YOU. The agent is working only for the seller! You should have an attorney review all the purchase papers on a first home purchase to make sure that you know what you're getting into.

[iamlowsound]

Originally Posted by seanm

I would never have guessed that in a thousand years! Factory built homes are so rare here that they are called factory built (and are usually cottages). "Stick homes" are just called "homes"

The US has a lot more factory built houses than Canada has. Although it is catching on a bit more in Canada.

lowsound

[metron]

Originally Posted by Pilgrim

In Colorado, the agent is going to tell you that you don't need one. In most states, lenders won't talk to you unless you have one...but this is one respect in which Colorado really lacks. Perhaps with the current mortgage situation, lenders here have gotten smarter and now require surveys. They should!

Spend the $500 for a survey and then (a) you won't have any surprises, and (b) if you later find out your patio is over someone else's property line, you can go after the surveyor.

BTW - a GOOD, EXPERIENCED agent is a real asset, but never forget that he/she is not working for YOU. The agent is working only for the seller! You should have an attorney review all the purchase papers on a first home purchase to make sure that you know what you're getting into.

The bank didnt mention any change about requiring a survey as of today but it may happen in the future because things are changing across the board and fast. I guess right now the underwriters are not budging on 10% down for conventional properties considered "distressed" and that status could apply simply if there are a lot of homes nearby for sale. Even in nice areas!

Thats great advice about agents too. I would say I have a real good one. You are right they are all working for the sellers. My agent knows that I know that and also that if I suspect I am getting pushed into anything then the relationship will quickly be terminated. Not much gets past me and she knows it.

One thing I would suggest to others is be thoroughly prepared before you get into it and dont get lost in the details. If you dont understand, dont continue. That is a big part of why the subprime mortage crisis happened. People just didnt get it.

[hbarcat]

Originally Posted by Pilgrim

....
5) No matter what else you do, DO NOT take out an adjustable rate mortgage.
...

6) DO NOT make your monthly payment close to the limit of what you can afford. Leave yourself lots of room for when the occasional rough spot hits. Live well within your means.

7) You'll be happier with a quality built, small, efficient house than with a house built to be as large as possible and sacrificing quality for size.

[TallLankyBastyd]

Make sure your first house is the perfect house for you and NEVER move again!!

Buying your 2nd home and selling your 1st is a major PITA!! I know... because I'm right in the middle of it at this time!!

We've spent 15 years in our current home and I wish our situation was such that we could stay but... moving on...

[mothmonsterman]

DO NOT GET THE ADJUSTABLE RATE LOAN


Look into forclosers or "HUD homes" and of course see what you can do in getting information on property auctions, there are some great deals to be had.

choose something that needs a little work, but nothing that will be a gigantic extra expense, even better if you can do it your self. Little sweat equity is good.

Have someone who knows construction, home repairs, and the like look at houses with you. You'd be surprised how much important crap they don't show you.

market is great right now, do not settle for the sticker price hangle, many many many houses are vacant and people really need to get rid of the burden.

not sure what else i can say, i ended up not buying so i'm not sure what happens after that.
When you find the "perfect house" looks at 10 more.

[peterbright]

I hate moving.

[iamlowsound]

Originally Posted by mothmonsterman

DO NOT GET THE ADJUSTABLE RATE LOAN


Look into forclosers or "HUD homes" and of course see what you can do in getting information on property auctions, there are some great deals to be had.

choose something that needs a little work, but nothing that will be a gigantic extra expense, even better if you can do it your self. Little sweat equity is good.

Have someone who knows construction, home repairs, and the like look at houses with you. You'd be surprised how much important crap they don't show you.

market is great right now, do not settle for the sticker price hangle, many many many houses are vacant and people really need to get rid of the burden.

not sure what else i can say, i ended up not buying so i'm not sure what happens after that.
When you find the "perfect house" looks at 10 more.

Big plus one on taking someone that knows construction with you. Most guys can spot anything and they usually aren't "awestruck" because it isn't something they they are going to be buying.

lowsound