Buying a house.

Ericnmel99

Ericnmel99

CAGiversary!
I know most of you at this site are a bit young to do so but being that I'm in the process of doing so, has anyone on this site ever gone through the experience of buying a house? As i said we've just gone under contract and since its the first time im doing so if anyone has some tips it would help.
 
i'm kinda young... but my advice.. is to make sure you look at EVERYTHING.. when selling a house people like to try and cover up all the imperfections of the house.

if you find some shit thats messed up, dont be scared to request that they fix it.. if they're wantin to sell their house, they'll do it.
 
^ he is so right, our house that my parents bought is total shit. We have had one fire in our house because there was loose mortar in our fireplace, the firemen had to put holes in our garage to put it out(the garage is under the fireplace) Also, we had a fire because our furnace had holes in it and it caught the walls on fire.
 
Hi, I just bought a house recently.

If the house is brand new then there is nothing you need to worry, but if not then you need to check the property inspection report and pest inspection report to know exactly what is the condition of the house.
For make an offer you need pre-approved letter from the lender to make sure you are qualify to buy. Without that you are not qualify to submit an offer.
Hope this help.
 
Its not a new house... ive had an inspector come and ive had them take money off for stuff that needs to be fixed like the electric and some other things. Right now we've agreed to the price and signed the contract. Now i have to find my morgage and then wait for that to happen and then the house is ours. I didnt know if anyone had tips from that point on.
 
Its a small world - I manage a Mortgage Brokerage. Be careful - what you buy is what you get. To get financing you will probably need to get an appraisal done, which will help confirm the value of the house, but make sure that you have taken a look at the house yourself and that you know what you are getting. Also try really hard to think of anything else that might influence your decision whether or not to buy (parking, water pressure, yard condition) - they may seem like silly questions but the more you know the better off you are.
If you are looking for financing (or think you might not be getting the best deal) let me know and I'll see if I can help.
I don't post alot but I will check back occasionally to see if you need me.
 
We just closed on our house last month, and are getting ready to move in as soon as we can have the inside painted. Don't be afraid to ask the owner to take something off the price if something comes up during inspectiopn. Our house has a cement deck that the retaining wall was bowing out. The engineer told us it needed to be taken care of real soon, and we asked the owner to take off 6K, and he came down 3K. So we put 3K less on the down payment, and we have that 3k to put towards fixing the deck
 
[quote name='Indonesia']Hi, I just bought a house recently.

If the house is brand new then there is nothing you need to worry, but if not then you need to check the property inspection report and pest inspection report to know exactly what is the condition of the house.
For make an offer you need pre-approved letter from the lender to make sure you are qualify to buy. Without that you are not qualify to submit an offer.
Hope this help.[/quote]

I agree with the post for the most part, but even if it is brand-spanking-built from the ground up new, you do need to do your homework. I am in the procees of building my second house. If you're buying new you should research the builder, make sure they are in good standing with the City and the BBB. Also if you're buying new, you probably picked out options so you should make sure that you are getting what you paid for. I would suggest visiting the site every once in a while to ensure construciton is mocing along like it should be. Call the builder if you have questions or concerns about the timing or anything.

Also, with any house and as others have said, read EVERYTHING. Specially if you are signing or initialing the document. If you have questions, as, or even consider haviing a lwyer look at the docs. I will agree that buying new there is a little less to worry about, but there are still things you need to be careful of.

BTW, as far as I know you don't need a pre-approval letter to submit an offer, but it's best if you do get that letter ASAP. You have a better chance of the offer being accepted with a pre-approval and may even save some money. You can get pre-qualified, which is different from pre-approval.
 
I would double check the contract. Make sure that what is currently in the house is going to stay in the house. (refridge, washer/dryer, etc.)
 
[quote name='broke']Its a small world - I manage a Mortgage Brokerage. Be careful - what you buy is what you get. To get financing you will probably need to get an appraisal done, which will help confirm the value of the house, but make sure that you have taken a look at the house yourself and that you know what you are getting. Also try really hard to think of anything else that might influence your decision whether or not to buy (parking, water pressure, yard condition) - they may seem like silly questions but the more you know the better off you are.
If you are looking for financing (or think you might not be getting the best deal) let me know and I'll see if I can help.
I don't post alot but I will check back occasionally to see if you need me.[/quote]
Thanks for the offer. Right now I plan on getting my mortgage through SONYMA (State Of New York Mortgage Agency) Its a program that helps first time home owners to get a house with the help of a low down payment/low interest rate. Right now their rate is 4.25%, which is outstanding compared to everyone else who is about 6.6%. My biggest concern is closing costs and other misc. fees. what should i expect with that?
 
I went through a similar first time homebuyer program. Just make sure that the interest rate is fixed at the 4.25% and won't go up next year. Also, they have to disclose all of the miscellaneous fees and closing costs. If they seem too high, consult a bank or your real estate agent if you trust him/her. Congrats on the house, it's one of the best purchases that I have ever made.
 
Its a 30 year fixed rate mortgage at 4.25% and there are no points. Thanks for the concrats squirms I know what your saying. Even though i havent purchaced it yet its really an exciting time....if only it wasnt so expensive!
 
[quote name='TomCloud9']I went with fha Also and my downpayment and closing cost were like 1300. If you can check into it .[/quote]

1300??How much was the house you bought??
 
I assume you're aware, but another cost is the insurance on the home. Most mortgage companies require the 1st year payment made in full. Let your agent or whoever is handling that look at the home to give you an idea as to how much it will cost to insure. Insurance goes by replacement cost, not appraisal so it's handy to give notice at least a week before closing so they can get out there for pictures and to play with the figures.
 
Check to make sure anything attached/permanately affixed to the house stays. If it's an over the stove mounted microwave it is supposed to stay.


I know you said your not buying new but this is to add what chickenhawk said. A brand new house still has to settle. If it settles wrong your foundation screw up severely.
 
[quote name='Doylerulez']I assume you're aware, but another cost is the insurance on the home. Most mortgage companies require the 1st year payment made in full. Let your agent or whoever is handling that look at the home to give you an idea as to how much it will cost to insure. Insurance goes by replacement cost, not appraisal so it's handy to give notice at least a week before closing so they can get out there for pictures and to play with the figures.[/quote]

Also check to see that you can have an escrow set-up. I'm sure you know what it is but for those who don't it's additional money you pay with your mortgage payment that goes towards your insurance and taxes when the time comes. That makes it much easier to pay those rather than saving that money up/scrounging it up when the time comes. Usually if you insure with the same company you insure your vehicle through you get a discount on your auto insurance.
 
I just bought a house about 6 months ago. It was not an easy process but well worth it in the end. The main thing to worry about is getting the house inspected. As far as covering up imperfections and the like, I'm sure people do it but if what they are hiding is material (meaning that a reasonable person would not have bought the house had this information been known), then the sellers are breaking the law. They have to tell you everything material that they know about the house prior to your agreeing to buy it. The burden is typically placed on the sellers in this respect.

Also, a good inspector should uncover all of the major problems (termites, roof about to cave in, pipes about to burst, etc.) and notify you of them. When he signs off on the inspection he is putting his ass on the line that he did a thorough job (subject to the million disclaimers in his contract). Good luck!
 
3 more thing to consider, who will pay the real estate agent commission, buyer or seller. In Some area , seller will pay but other it is 50-50.
You need to also think about property tax.

Since may need to buy home protection for a year up front, may may need to check with your agent whether the agent is willing to pay for it or not. In my area, we have to buy home protection for a 1st year when we purchase the house and mya agent paid for it.
 
We recently bought our 2nd home and so far everything that has been said is great. We have had Wells Fargo and Charter One Mortgage, and they have the escrow built in. You will probably need to set up your own home owners insurance though. (Our first loan was FHA and that was the case.)

Closing costs - They are rough. But when all is said and done, you have got something that is the best investment. A home.

Take Care and God Bless,
Matthew
 
FHA is a great way to go if you are young and just now getting on your feet. It's also the way I went. The only thing is that if you decide to move on to a different house and you want to rent your old house out you must refinance. Most FHA's require that you are the primary resident and will not allow it to become a rental home.
 
[quote name='Ericnmel99']I know most of you at this site are a bit young to do so but being that I'm in the process of doing so, has anyone on this site ever gone through the experience of buying a house? As i said we've just gone under contract and since its the first time im doing so if anyone has some tips it would help.[/quote]

I just bought my first house back in February, what did you want to know about? Just general advise?
 
[quote name='Supernothing'][quote name='Doylerulez']I assume you're aware, but another cost is the insurance on the home. Most mortgage companies require the 1st year payment made in full. Let your agent or whoever is handling that look at the home to give you an idea as to how much it will cost to insure. Insurance goes by replacement cost, not appraisal so it's handy to give notice at least a week before closing so they can get out there for pictures and to play with the figures.[/quote]
Also check to see that you can have an escrow set-up. I'm sure you know what it is but for those who don't it's additional money you pay with your mortgage payment that goes towards your insurance and taxes when the time comes. That makes it much easier to pay those rather than saving that money up/scrounging it up when the time comes. Usually if you insure with the same company you insure your vehicle through you get a discount on your auto insurance.[/quote]

Good points....these are all things ive been told my money will go to, but i should really check into how its set up and such. Thanks.
 
[quote name='Ericnmel99']Thanks for the offer. Right now I plan on getting my mortgage through SONYMA (State Of New York Mortgage Agency) Its a program that helps first time home owners to get a house with the help of a low down payment/low interest rate. Right now their rate is 4.25%, which is outstanding compared to everyone else who is about 6.6%. My biggest concern is closing costs and other misc. fees. what should i expect with that?[/quote]

That sounds like it is an ARM (Adjustable Rate Mortgage). My loan was at 5.675% which was nice. If you can, try and get a 2 loans. 80% from one bank and a down payment from another for 20%. That will eliminate the need to carry PMI (Private Mortgage Insurance) which you have to have until you owe 80% or less on the home. It amounts to about $100-150/month and can allow you to pay the house off much quicker. Typically the 2nd smaller loan will be a 15 year term and you want to pay that off as soon as possible (extra principal).

My other piece of advice would be to make a house payment every 4 weeks instead of every month. You will get an extra payment in each year and that helps a lot. Right now my principal payment each month is only ~$185. My payment is roughly $1600. Most of that being property taxes and interest. So imagine what an additional $1600 that goes straight to the principal amount would do. That is like making 8 monthly payments. Most banks will not allow you to pay except 1 time a month so I suggest you get a savings account and move 1/2 the payment over every 2 weeks and when the mortgage is due, write a check for the full amount in that savings account. Bi-weekly payments as this is called, can knock 8 years off your mortgage loan and typically save you $50,000 in interest payments over those 22 years.
 
And remember one extra payment on your principal per year knocks off some years at the end. I think I remember it being 13 years on a thirty year loan. Someone correct me if I'm wrong. Just make sure you apply all of that extra payment to principal. There is usually not a penalty for early payoff but look into that as well.
 
[quote name='Ericnmel99'][quote name='Supernothing'][quote name='Doylerulez']I assume you're aware, but another cost is the insurance on the home. Most mortgage companies require the 1st year payment made in full. Let your agent or whoever is handling that look at the home to give you an idea as to how much it will cost to insure. Insurance goes by replacement cost, not appraisal so it's handy to give notice at least a week before closing so they can get out there for pictures and to play with the figures.[/quote]
Also check to see that you can have an escrow set-up. I'm sure you know what it is but for those who don't it's additional money you pay with your mortgage payment that goes towards your insurance and taxes when the time comes. That makes it much easier to pay those rather than saving that money up/scrounging it up when the time comes. Usually if you insure with the same company you insure your vehicle through you get a discount on your auto insurance.[/quote]

Good points....these are all things ive been told my money will go to, but i should really check into how its set up and such. Thanks.[/quote]

Escrow is not a bad thing but typically when you have 20% of the loan paid off, you are responsible for paying taxes etc on your own as they stop using escrow. You just have to be disciplined and pay your mortgage and move your taxes and insurance money into a separate account so you don't get screwed.
 
[quote name='Supernothing']And remember one extra payment on your principal per year knocks off some years at the end. I think I remember it being 13 years on a thirty year loan. Someone correct me if I'm wrong. Just make sure you apply all of that extra payment to principal. There is usually not a penalty for early payoff but look into that as well.[/quote]

See my above post, it's typically 8 years and the savings are $50,000. There are companies that will offer you deals to set this up for you for a fee of like $200-400. Just tell them to go away. They will take your bi-weekly payments, get interest on the money, and make a monthly payment on behalf of you and that is something you can do yourself. See my previous posts also.
 
[quote name='Snowcone']
That will eliminate the need to carry PMI (Private Mortgage Insurance) which you have to have until you owe 80% or less on the home. [/quote]

I forgot about the PMI. I was able to get a VA insured loan so that knocked the PMI out of the picture for me.
 
[quote name='Supernothing'][quote name='Snowcone']
That will eliminate the need to carry PMI (Private Mortgage Insurance) which you have to have until you owe 80% or less on the home. [/quote]

I forgot about the PMI. I was able to get a VA insured loan so that knocked the PMI out of the picture for me.[/quote]

Lucky dog. We couldn't come up with the money to get a 2nd mortgage as the whole deal was rushed, but we got the house approximately 10% under its market value and then the down payment knocked it down even more. Approximately 5% more and we can ditch the PMI.
 
The morrgage im looking at isnt an Arm Mortgage its a fixed rate. Theres no pre-payment penalty , and they only do 30 year mortages. I have enough for a down payment than i dont have pay PMI otherwise i would do the 80/20 mortgage.
But what your saying is that im responsible for taxes on my own? Whenever i talk to the bank about payments they include the taxes in the payment (another rediculous part of living in NY...$6000 taxes on a 3 bedroom house.) But are they just letting you know what payment will be with taxes or when you pay the mortgage do you just have to put that money they say aside?
 
If they include the taxes then you are not responsible. You will get a tax statement when the time comes to show what you are paying but the mortgage company will take care of it as long as you have that escrow set up. Also your escrow will fluctuate from year to year. Don't be alarmed, this is common. The estimate what you taxes and insurance will cost for the year and if you pay too little your escrow portion will go up the following year. If you pay too much the escrow portion will go down.
 
[quote name='Ericnmel99'][quote name='TomCloud9']I went with fha Also and my downpayment and closing cost were like 1300. If you can check into it .[/quote]

1300??How much was the house you bought??[/quote]


115,000, But the cost of living is alot more in ny , than in ohio. I also got the seller to give me 3600 in closeing cost. Her husband had just passed away and she wanted rid of the house real bad.
 
wow, maybe i should move to ohio!!! my house is $344,000. Plus about $10k for closing....thus is the price to pay to live near the city.
 
[quote name='Ericnmel99']wow, maybe i should move to ohio!!! my house is $344,000. Plus about $10k for closing....thus is the price to pay to live near the city.[/quote]

How big is a house for that much money?
 
My house was only $180,000. 3 Bed, 2.5 bath, open office that serves as a 4th bedroom if you will. My property takes this year will be $5,040. The house is 2400sqft and in a gated community. We get raped on Homeowners dues each month $45. My last house was $120/year. This year its $540. That covers our gate and presumably a lot of other crap, who knows.

Nice job with the down payment and eliminating PMI. They will let you know about taxes and homeowners insurance and who is responsible for actually paying it.
 
[quote name='Snowcone']My house was only $180,000. 3 Bed, 2.5 bath, open office that serves as a 4th bedroom if you will. My property takes this year will be $5,040. The house is 2400sqft and in a gated community. We get raped on Homeowners dues each month $45. My last house was $120/year. This year its $540. That covers our gate and presumably a lot of other crap, who knows.

Nice job with the down payment and eliminating PMI. They will let you know about taxes and homeowners insurance and who is responsible for actually paying it.[/quote]

Your homeowner fee is reasonable. Mine is $298 per month :( :(
 
[quote name='Indonesia'][quote name='Snowcone']My house was only $180,000. 3 Bed, 2.5 bath, open office that serves as a 4th bedroom if you will. My property takes this year will be $5,040. The house is 2400sqft and in a gated community. We get raped on Homeowners dues each month $45. My last house was $120/year. This year its $540. That covers our gate and presumably a lot of other crap, who knows.

Nice job with the down payment and eliminating PMI. They will let you know about taxes and homeowners insurance and who is responsible for actually paying it.[/quote]

Your homeowner fee is reasonable. Mine is $298 per month :( :([/quote]

Holy shit. Do you have women in bikini's on every corner? Is that a really tiny neighborhood or what?
 
[quote name='Snowcone'][quote name='Indonesia'][quote name='Snowcone']My house was only $180,000. 3 Bed, 2.5 bath, open office that serves as a 4th bedroom if you will. My property takes this year will be $5,040. The house is 2400sqft and in a gated community. We get raped on Homeowners dues each month $45. My last house was $120/year. This year its $540. That covers our gate and presumably a lot of other crap, who knows.

Nice job with the down payment and eliminating PMI. They will let you know about taxes and homeowners insurance and who is responsible for actually paying it.[/quote]

Your homeowner fee is reasonable. Mine is $298 per month :( :([/quote]

Holy shit. Do you have women in bikini's on every corner? Is that a really tiny neighborhood or what?[/quote]

I wish :D . Since this is CA and my house near the bay, the HA fee include eathquake and Flood insurance which are expensive. :cry: :(
 
[quote name='Indonesia'][quote name='Snowcone'][quote name='Indonesia'][quote name='Snowcone']My house was only $180,000. 3 Bed, 2.5 bath, open office that serves as a 4th bedroom if you will. My property takes this year will be $5,040. The house is 2400sqft and in a gated community. We get raped on Homeowners dues each month $45. My last house was $120/year. This year its $540. That covers our gate and presumably a lot of other crap, who knows.

Nice job with the down payment and eliminating PMI. They will let you know about taxes and homeowners insurance and who is responsible for actually paying it.[/quote]

Your homeowner fee is reasonable. Mine is $298 per month :( :([/quote]

Holy shit. Do you have women in bikini's on every corner? Is that a really tiny neighborhood or what?[/quote]

I wish :D . Since this is CA and my house near the bay, the HA fee include eathquake and Flood insurance which are expensive. :cry: :([/quote]

Ahh. Flood insurance is paid through our homeowners insurance not the HOA fee.
 
This is an interesting topic. My wife and I just bought a house too. We're excited and a little scared. We're going from paying a total of 450 a month for rent to 1400 for a mortgage. I got to save up for a lawn tractor now so I won't have any money to buy games for awhile. Maybe this will give me time to play all the cheap games I haven't opened yet... Although, with all the added responsibility I probably won't even have time to play anything.
 
[quote name='kaw']This is an interesting topic. My wife and I just bought a house too. We're excited and a little scared. We're going from paying a total of 450 a month for rent to 1400 for a mortgage. I got to save up for a lawn tractor now so I won't have any money to buy games for awhile. Maybe this will give me time to play all the cheap games I haven't opened yet... Although, with all the added responsibility I probably won't even have time to play anything.[/quote]

Your situation sound just like me. I figure i'll be hitting the trade forum for a while because i sure wont have any money to buy new games.
 
i don't have any money because my wife spends it all. Last month she spent $300 on clothes and yesterday it was $70 on a swimsuit and $90 on shoes. The madness never ends....
 
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