Taking the plunge & buying a house.

[Chebass88]

Hey all,

This is a pretty exciting time. My wife and I are buying a house within the next few months. We have already gone in for pre-approval from the credit union, and started speaking with a realtor yesterday.

I will finally be able to yell at kids to get off my lawn! This will be me, looking over my back fence: . I'll finally have an area where I can do this with my instruments: . And of course, the sticker shock on closing day : .

We're looking in the town I grew up in (Collingswood, NJ) as well as the neighboring town of Westmont / Haddon Township. This is pretty exciting stuff here!!

Any tips / advice to the new homebuyer? Any lessons learned the hard way? Thanks!

Chebass88

[fdeck]

Don't trust the pre-approval letter. Chances are that you can't afford as much as the bank says that you can afford.

[aborgman]

Originally Posted by fdeck

Don't trust the pre-approval letter. Chances are that you can't afford as much as the bank says that you can afford.

Yeah that.

Also - it will cost more in regular maintenance than you'd expect.

About 50% more.

[Pilgrim]

Yes, make sure you're comfortable with the payments AND can also handle maintenance, the odd water heater that dies, and all the household and lawn tools you'll need.

Most of those mortgage calculators grossly overestimate the amount of your income that you can/should spend on a mortgage.

[guitar ed]

Become familiar with the layout of the nearest Home Depot, Lowes, what ever. The sooner, the easier on you.

Owning also means: You can justify owning tools like pitch fork and a chain saw. But acquire these slowly, and only as you need them.

edg

[Mike M.]

Don't bite off more than you can handle. That's part reason of what got this country in such a mess......greed. Get only what you can afford AND what will allow you to keep putting money into savings for those rainey days. Leave the credit cards alone.

Example: I bought my house (1,000 square foot ranch. No garage) in summer of '91. I've always lived a very modest lifestyle and saved money throughout the years. In January of 2009 I got laid off due to the greed that ran rampant in this country. But because I was smart, did without a lot and saved money I didn't miss a beat with my bills for the 14 months I was laid off.

Again, don't over-buy. Always expect the unexpected and prepare for it. Glad I did.

[DarkArwen]

Everything that they said, plus I don't care WHAT they tell you. Closing WILL NOT be complete in 30 days. Give it three months. Especially if you are renting and have to give a "move out" date to your landlord. Otherwise, good luck. The good thing about buying now is that you will NEVER be tempted to refinance because in a few years time, as the markets recover the rates will go back up.

[Staccato]

Originally Posted by fdeck

Don't trust the pre-approval letter. Chances are that you can't afford as much as the bank says that you can afford.

Yeah!

And, it makes a difference if you can have thousands in cash for decorating, or making changes in the weeks following your move into the house...

[MJ5150]

Get the lowdown on ALL the neighbors before you buy anything. Drive by late at night on the weekends, drive by on a sunny weekend, knock on a few doors and meet some people.

You may find the dream house, but your neighbors could easily turn it into a nightmare.

-Mike

[fdeck]

Another hidden cost of buying a house is children.

[Jim Campbell]

Originally Posted by Chebass88

Hey all,

This is a pretty exciting time. My wife and I are buying a house within the next few months. We have already gone in for pre-approval from the credit union, and started speaking with a realtor yesterday.

I will finally be able to yell at kids to get off my lawn! This will be me, looking over my back fence: . I'll finally have an area where I can do this with my instruments: . And of course, the sticker shock on closing day : .

We're looking in the town I grew up in (Collingswood, NJ) as well as the neighboring town of Westmont / Haddon Township. This is pretty exciting stuff here!!

Any tips / advice to the new homebuyer? Any lessons learned the hard way? Thanks!

Chebass88

a lot of folks buy a home,then start going nuts on furnishings,cars and credit cards.....learn to avoid temptation.....just because something is on sale does not mean that it's wise to buy it.....a great price on a sofa ain't so hot when the credit card interest is factored in....

[fdeck]

Another piece of advice is: Don't trust the "inspector." Many of them are charlatans. Someone I know did the following: He read a book on how to conduct an inspection, then he followed the inspector around and forced the guy to do a thorough job.

[Chebass88]

Thanks for the great advice. We'll consider these things carefully.

ian

[JimB52]

Buy in the best neighborhood you can afford. Get at least three real bedrooms and two baths. Never buy the best house on the block. Location. Location. Location.

[Jonyak]

have lots of money ready to spend, there are so many little fees and costs that you have never thought about.

lots of money.

[chokeslam512]

Originally Posted by Jim Campbell

a lot of folks buy a home,then start going nuts on furnishings,cars and credit cards.....learn to avoid temptation.....just because something is on sale does not mean that it's wise to buy it.....a great price on a sofa ain't so hot when the credit card interest is factored in....

This. My wife and I actually had the previous owners add some of their furniture into the purchase agreement so we didn't have to move our stuff or buy anything new. You can stipulate anything when you are negotiating the price.

[Chebass88]

We're doing pretty well for furniture - we have accumulated a few decent pieces through relatives and friends. Not much of it matches, but the price was right (free). That and almost all of our wedding presents (cookware, flatware, etc.,) are being store at our parents' homes as we live in an apartment.

We also own both of our cars and have zero credit card debt. The only debt I have is a student loan (~$5300 remaining), which is in an interest-free deferment due to being in grad school (which means principal-only payments). Even taking the full amount we requested, our debt-to-income ratio would be ~23% (pre-tax income), but we certainly understand about being house-rich.

[thefruitfarmer]

Go and check planning applications and permissions granted for buildings in the area.

Someone could be opening a kebab shop next door or a new railway line could be being built.

[chokeslam512]

Originally Posted by Chebass88

We're doing pretty well for furniture - we have accumulated a few decent pieces through relatives and friends. Not much of it matches, but the price was right (free). That and almost all of our wedding presents (cookware, flatware, etc.,) are being store at our parents' homes as we live in an apartment.

We also own both of our cars and have zero credit card debt. The only debt I have is a student loan (~$5300 remaining), which is in an interest-free deferment due to being in grad school (which means principal-only payments). Even taking the full amount we requested, our debt-to-income ratio would be ~23% (pre-tax income), but we certainly understand about being house-rich.

Nice! It sounds like you have a pretty firm grasp on reality... Is this your first home?

[Jonyak]

Originally Posted by thefruitfarmer

Go and check planning applications and permissions granted for buildings in the area.

Someone could be opening a kebab shop next door or a new railway line could be being built.

I wish someone would open a kebab shop next door to me.