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Tips on buying a first time home.??????

Discussion in 'The Lounge' started by MOABDADC22, Dec 20, 2002.

  1. MOABDADC22

    MOABDADC22 1/2 ton status

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    My wife and I are going to try and buy a house this spring. Any tips on first time home buyer plans /forums/images/graemlins/deal.gif? How to get qualified for the most amount of $$$. Any suggestions would be greatly appreciated. /forums/images/graemlins/1zhelp.gif /forums/images/graemlins/1zhelp.gif /forums/images/graemlins/1zhelp.gif /forums/images/graemlins/1zhelp.gif

    P.S. My wife wants a 4 bedroom, 2.5 bath, fenced yard...etc. I told her we will get a 5 car garage with an attached house. /forums/images/graemlins/thumb.gif /forums/images/graemlins/thumb.gif
     
  2. eds77k5

    eds77k5 1/2 ton status

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    why are you waiting until spring? here, it is a buyers market and interest rates are very low right now. my wife and i didnt have any money for a down payment or closing costs when we got our home. we made a ridiculous offer on a house my wife liked, no down payment and sellers to pay closing costs, they came back with a counter offer, if we pay their asking price its a deal, so we accepted and so did they, we do not have the best credit either. the downside is that we pay a little more each month on our payments, but it is still cheaper than rent, our out of pocket expense was just a little over 300 bucks at closing, good luck /forums/images/graemlins/grin.gif
     
  3. delta9blazer

    delta9blazer 1/2 ton status

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    take the time to get a current credit report, and look closely. /forums/images/graemlins/deal.gif call any accounts that you need to. there will be accounts that are not yours. /forums/images/graemlins/eek.gif do the tedious leg-work to eliminate all bad credit marks that you can.
    pay ten cents on the dollar on the old ones, and negotiate the hell outta the rest.
    and good luck! it'll be four years in feb for us, and i still can't believe i own a house. what a completely responsible thing to do. how unlike me.... /forums/images/graemlins/wink.gif
     
  4. MudFrog

    MudFrog 1/2 ton status

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    We basically did the same thing as mentioned above.

    We needed a house and had credit but we did not have any money for closing costs or a downpayment. So we made an offer to the sellers, if they would pay all closing costs and make a contribution of $3000 to some orginazation that would in return give us a gift of $2000 for the downpayment, we would give them what they were asking for the house. It worked out great. In the end it cost us all of $64 to get into our first house.

    BTW... don't choose the house based on the garage /forums/images/graemlins/wink.gif
    We did this and ended up buying a house that is way too small. It was fine at the time, but with the recent addition of another kid we do not have enough room. Get the best house you can afford. After all, it's where you will spend most of your time.
     
  5. Sandman

    Sandman 3/4 ton status Author

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    Forget the bank and go through a good mortage broker. They will get you the best deals and will pre-approve you on the spot. I bought my first house that way when I was 23 and have bought two more since then that I rent out. I used creative financing for the second two and did not pay any out of pocket. the mortage broker will bust his a$$ to get you qualified as high as possible and make it as painless as possible for you as its good money for him (or her).
     
  6. shewheeler

    shewheeler 1/2 ton status

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    I agree with Sandman, go with a mortgage broker. They can get you the best loan. I have used the same broker now for my 1st mortage and 2 refi's. Also, get a good RE agent. I didn't know anything when I was buying my house, TG I had a good agent. You don't want to use the agent who has the house listed. Anyhow... good luck. It's a HUGE responsibility, but it's very /forums/images/graemlins/cool.gif
     
  7. bobsurf

    bobsurf 1/2 ton status

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    Just bought in June, and I agree with everything said above but want to add something. Don't just get "pre-qualified" for the $$$, get "Pre-approved". There is a big difference there. Qualifying for the $$$ means that they looked at your debt to income ratio and have given you a number with which you can now shop. The downside to that is when you see a house you like, and want to put an offer, you have to get loan approval while your house is in escrow. THIS IS WHAT MAKES ESCROW A REALLY STRESSFUL TIME FOR PEOPLE.

    The way to do it is get approved for a certain amount beforehand and avoid the stress associated with escrow. The approval process involves you collecting multiple pay stubs, 2 years tax records, 2 months bank statements, retirement accounts, and actually applying for the loan amount ($hit load of paper work /forums/images/graemlins/frown.gif). Please trust me on this one, do it beforehand. That way, you can shop for a house with a specific number that you can afford, and that a lender has already approved. There are multiple benefits to this method. As mentioned above, your escrow period (maybe 30 days) will be a lot easier, and you only have to worry about inspections, final loan transfers, etc. Plus, if you are competing with another buyer that wants to purchase the same property, the seller will ALWAYS go with somebody that is pre-approved.

    That is the route I took, and everything went as smooth as possible during escrow. All the bad/stressful things you hear about escrow happen when people don't take this route (falling out of escrow, etc.).

    Good luck, having a house of your own is one of the best things ever. Downside is that I've spent the last 3 weeks removing some nasty a$$ wallpaper and re-mudding all the walls. Blazer feels lonely.
     
  8. newyorkin

    newyorkin 1 ton status

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    I don't know if I agree on the mortgage broker, unless they're just 99% loan sharks up here.
    We met with several, one a couple years ago, I swear I thought it was John Gotti pulling up to my house... Not to mention thier cut is insane, like $8k....

    If you look into an old house (like I did), be prepared for a lot of miserable moments (unless it's all been updated and fixed up)... Hopefully they'll all pay off soon...

    I recommend you look around a lot, like a few months at least. Don't expect to buy something you want to live in for years in just a few weeks. We looked for a house fr about 5 years, and we finally ended up buying the one with the apartment we've been living in the whole time. The shoe and price just fits.

    Be sure you buy as much space as you can for your dollar, too. Don't sell yourself short going into it, cause once you're living in it, it's a b!+ch to expand (not impossible, just extra hassle).

    Someone may have mentioned it, I forgot, but there are a lot of money-saving first time home buyers programs out there. Fanny Mae is the first that comes to mind, but try a search on google for "first time home buyer" and see what comes up.

    Maybe also consider foreclosures. I just bought a house, but I'm still looking for a foreclosure to rent out so one day I can be a real estate mogul...

    Don't expect to find your dream home, either. You usually have to build into that. Part of our problem in the beginning was that I found something stupid and minor wrong with each house, then down the wroad found out there's something wrong with every house...

    Most of all, agree with your woman on whatever you buy!!
     
  9. Thunder

    Thunder 3/4 ton status

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    I just financed my third home. I did it almost completly on line.
    It was easy and fast. I used gmacmortgage.com
    No runing around filling out forms and all that BS. Or listining to some mortgage hack try to sell me more loan than I need to get his commision up. And was cheaper/better rate than any of the other banks/mortgage brokers in town.
    All corrispondence was done by E-mail, phone and overnite express which they pay for. They were ready to close my home in 3 weeks.
    They have lots of tools on their web site to figgure how much you can afford to finance/qualify for and what the monthly payment will be for various loans. Even if you dont use them its a good site to surf around in to learn about buying your home. Its best to be totally informed when you are talking about a lot of money and a home
     
  10. Chaz88K5

    Chaz88K5 1/2 ton status

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    i agree with sandman and shewheeler...i bought my house 4 years ago come this march..at the age of 19...the broker i had found me a kick ass intrest rate at that time...i had a decent down payment tho of 10,000...i had saved up 5 of it and got the other 5 from sellin off a few toys i had that i really dident need....i stayed at home untill i could aford to buy my house...i did not want to pay one day of rent anywhere...at least buyin a house you will get something out of it..just think of it of a savings acct...you will eventully get it all back + some.. for example i bought my house for 115,000 and i had it aprased last feb so i could refinance and it was aprased at 170,000..but ya gota keep in mind thats californias inflated prices..and normal place it would prob be worth under 100,000...another reason not to move to ca
     
  11. MOABDADC22

    MOABDADC22 1/2 ton status

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    Thanks for all the tips. We plan to start looking after the new year.
     

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