TBers' Tips for the First-Time Homebuyer

**SoComSurfing** · #1 05-26-2008, 08:04 PM

I'm hoping to make that big purchase in the coming months. I've been doing lots of research online and talking to as many people as I can, but as many of us here do, I want to turn to the TB brethren for any helpful hints and tips. What say you?

Valerus · #2 05-26-2008, 08:16 PM

Try the homebuyer's forum.

fenderhutz · #3 05-26-2008, 08:24 PM

Buy the land you want as the first priority. You can modify a house.

Made three mistakes before I bought a house that was just ok on over an acre we loved the location.

NJL · #4 05-26-2008, 10:49 PM

Quote:

Originally Posted by SoComSurfing

I'm hoping to make that big purchase in the coming months. I've been doing lots of research online and talking to as many people as I can, but as many of us here do, I want to turn to the TB brethren for any helpful hints and tips. What say you?

there are many first time buyer incentives.. check your city, county and/or state gov's for anything that is out there.

i got a house on a 5.99 fixed conventional with no money down (the county gave me $3500+ from a bond for first time home buyers).. i showed up with a check for $180 at closing and my mortgage broker sent me a check back for $90.

there are programs out there, but you have to look. it's best to go for a mortgage broker, they know all the programs around.

NJL · #5 05-26-2008, 10:49 PM

and good luck!!

**MAJOR METAL** · #6 05-26-2008, 11:05 PM

All the best with it Adron !

LowBSix · #7 05-26-2008, 11:20 PM

Use one and only one Realtor you can trust.

Become educated on mortgages and know what you are saying yes and no to. Having been in the industry since 1989, feel free to contact me.

StyleOverShow · #8 05-26-2008, 11:43 PM

Sounds like you've doing your homework. Remember to calculate in operating costs of your home in your future budget like A/C operation & maintenance, heaters, etc. Nothing like getting yourself into a house and then the budgets so tight that you are trapped in it - no vacations, no toys, nothing. Good luck.

CamMcIntyre · #9 05-27-2008, 12:40 AM

I'm disappointed, i thought the title said home BREWERs.

JimB52 · #10 05-27-2008, 05:32 AM

It's better to buy the worst house in a good neighborhood than the best house in a bad area. Location . . .
Don't be afraid of cosmetics (carpet, paint, fixtures, etc.) Much easier and more satisfying to fix than structural or system problems.

TrooperFarva · #11 05-27-2008, 06:16 AM

If you're buying a foreclosed house, know that you're buying the house in 'as is' condition, you have no recourse if the house has problems. You can save a lot of money buying a foreclosed house, but you have to know what you're looking at.

Always get a proper inspection. It costs a few hundred dollars, but it can save you a whole mess of problems.

Don't get an ARM, get a fixed rate.

Always remember that the realtor gets a percentage of the sale price of the home, so they benefit from a higher price just like the seller does. So when the realtor is pressing you for a higher offer, it's for their benefit, not yours.

Get yourself a good real estate attorney. You'll need one to represent you at the closing anyway, it's better to find one early, and have them guide you along the way. They don't cost too much. I bought my first house 6 months ago, my real estate attorney charged a flat fee of $750, and did a whole lot of work for me, it was well worth it.

need4mospd · #12 05-27-2008, 07:27 AM

Save, save, save.
Just when you think you have enough money, you're halfway there. I had what I thought was plenty of money and wish I had about double. Why so much? It adds up quick, REAL quick. After a new fridge, couches, and dining table our budget was shot... Utilize craigslist and you'll do good.

Fixer uppers should be saved for people with a good chunk of disposable income or someone experienced in home repair. Home repair is expensive, and unless you've got a ton of construction industry friends or a ton of money, it will NOT be worth it. Think of all the other things you'll need to buy to fill up your new home, how much money will you have sitting around to fix that A/C? the roof? the busted pipe in the attic?
We bought a house that was nearly perfect on the inspection and we've had around $1000 in repair costs the first year. We're lucky compared to some. If that's the cost of a non-fixer upper, how much will that fixer upper cost extra in a year?

If you can wait til September or so you'll probably score a better deal as people are scrambling to sell their house that didn't sell all summer.

A house with an new efficient A/C is well worth it. Our house has HUGE 2+ story spaces, large south facing windows, and almost 3000 sqft. The electricity bill in the summer is barely above $250. Our 800 sqft apartment was $200. My wife is home all day and she keeps it COLD.

pedroims · #13 05-27-2008, 10:40 AM

Location, buy a house thinking in the area, check the neighborhood, Do the neigbords care about their yards? drive carefully? , etc. Also look for a good school district. Try to buy a house that is not between 12 - 15 years old because is when you need to start to do some high maintenance: change roof, furnace etc.

Also look for a house that needs the minimum chnages to fit what you are looking for, do not buy a house thinking that will be perfect "only" if you need to change flooring, bath , kitchen.

Married? then you need at least 3 bedrooms and two bathrooms, try to buy something that will fit your requierements at least for the next 10 years, enough time to have an equity.

Barkless Dog · #14 05-27-2008, 12:26 PM

Get your own inspector, not one recomended by the realator. They want the deal to go through.

dave64o · #15 05-27-2008, 01:48 PM

1) I have to echo what need4mospd said - whatever you think you'll need to cover your immediate expenses when you first settle or move in, TRIPLE IT!!!

We just moved into our new house a week ago today and to be honest it was in outstanding condition, much more ready to move in than any of the other houses we were seriosuly interested in. However, we're still finding little things that force us to make what seems like 4 or 5 trips to Home Depot every day - a few broken window locks, a dead bolt that didn't close properly, needed a new outdoor keypad for the garage door because the previous owner never got the code from the owner before her so we had no way to program our own code (need the old one to do that), a few of the window treatmenets she left don't work properly and need to be replaced, two dimmer switches didn't work properly and had to be replaced, etc., etc. etc.

All, in all they're minor issues, but they were things we didn't plan on and we're now remembering that they can add up FAST.

2) Watch the movie "The Money Pit" every time you start getting annoyed with all the little things you'll discover must be done once you move in. That movie came out right around the time we bought our old house and every time something came up after we bought it we'd quote the movie and get a laugh that eased some of the frustration. We're doing the same thing now with this house!

MJ5150 · #16 05-27-2008, 02:01 PM

Quote:

Originally Posted by TrooperFarva

Always get a proper inspection. It costs a few hundred dollars, but it can save you a whole mess of problems.

Amen! It should cost you at least $400. Well, that is the price for a good one in my hood. Don't accept one handed to you.

Be there for the inspection, and make sure the guy goes under the house and in the attic. Leave no stone unturned.

-Mike

bongomania · #17 05-27-2008, 02:34 PM

Fixed rate mortgage. Do not even consider a variable rate for even a second, it is the dumbest option ever. Also, be sure everything in the inspection is spelled out in detail. Don't accept an inspection that says things like "obstacles prevent full inspection" or "general appearance no issues" or any other wording that indicates they didn't look at every structural issue super closely. You want every damn detail spelled out, in writing that they (or the realtor) can be held accountable for.

need4mospd · #18 05-27-2008, 03:40 PM

Quote:

Originally Posted by bongomania

Also, be sure everything in the inspection is spelled out in detail. Don't accept an inspection that says things like "obstacles prevent full inspection" or "general appearance no issues" or any other wording that indicates they didn't look at every structural issue super closely. You want every damn detail spelled out, in writing that they (or the realtor) can be held accountable for.

On top of all this, make sure you are present at the inspection. And by "present", I mean ready to stand over the inspector's shoulder and ask 100 questions about anything and everything. Test every plug, every light switch, every drain, every cabinet door, every lock, etc.... Inspect every inch of flooring, under furniture if you have to. Question every crack in the wall, foundation, driveway. Check every window and door seal. Get on the roof. I could go on forever. And this is just what YOU need to do on top of the inspector's work.

A good idea I had AFTER my inspection was done was to get my own inspection sheet and make sure to take down my own notes as well as writing down anything they did. If they get annoyed or have a problem with helping you, I wouldn't hesitate to send them home without a check or at least calling the manager and demanding another inspector.

Barkless Dog · #19 05-27-2008, 03:44 PM

Quote:

Originally Posted by need4mospd

On top of all this, make sure you are present at the inspection. And by "present", I mean ready to stand over the inspector's shoulder and ask 100 questions about anything and everything. Test every plug, every light switch, every drain, every cabinet door, every lock, etc.... Inspect every inch of flooring, under furniture if you have to. Question every crack in the wall, foundation, driveway. Check every window and door seal. Get on the roof. I could go on forever. And this is just what YOU need to do on top of the inspector's work.

A good idea I had AFTER my inspection was done was to get my own inspection sheet and make sure to take down my own notes as well as writing down anything they did. If they get annoyed or have a problem with helping you, I wouldn't hesitate to send them home without a check or at least calling the manager and demanding another inspector.

Obviosly do not do/pay any inspections until you have aggreed to terms pending the inspection. Seller could be yanking you trying to get someone they really want to sell to pay more.

**SoComSurfing** · #20 05-27-2008, 05:30 PM

Thanks for the tips, all. Much of what you are saying is what I have been hearing from friends and family. I WILL NOT accept a variable rate mortgage. I've already spoken with several inspectors about their rates, what they look for, what they think about certain neighborhoods, etc.

Fortunately, I'm living at home after college, and my parents are being very supportive of me taking the time needed to find the right place, so I'm in no huge hurry.

The condition of the HVAC is a very good point. Mobile reaches the 90s for a good 6 months of the year, so proper insulation and an efficient system is a must!

At this point I really like a condo that is an end-unit, had the HVAC replaced just 2 years ago, the appliances even more recently, and a new roof on the building within the past 5 years. The latter being very important in a hurricane-prone area.