So my wife and I are taking the plunge into house buying. We've read a ton of materials, and took a home buying 101 course to familiarize ourselves with process, but beyond that one pearls of wisdom do you have that could help me through this process?

Views: 117

Reply to This

Replies to This Discussion

1. Do it; it's a good idea.
2. Have a house inspection, to watch for nasty surprises. May need to include a radon test.
3. Get a big enough down payment you don't have to pay for the mortgage company's insurance against your default; I think that's 20%?
4. Points are a bet that interest rates won't go down significantly (1/2% or so) after you finance. But even if they look low, they just might. I wasted money on points.
5. The amount you'll pay total (counting interest) is huge; don't be too shocked! An extra payment a year can reduce the cost a great deal.
Great advice from Will. I would add -
1. Shop around to get the best mortgage rate. This includes being careful of extra fees lenders will try to stick you with. You may get a great rate only to find extra fees attached to it. Read the fine print.
2. Don't use Billy Bob for a home inspector. Some states don't require them to be licensed. You might end up with a handyman out there. Check their references.
3. 20% downpayment is usually the minimum to avoid the mortage premium insurance (MPI).
4. Great advice above on the extra payment a year. You can easily knock off several years of payments if you keep it up.
5. Get several appraisals for the value of the house. Don't over pay. Be careful of appraisers that are friends with lenders. I found this out the hard way.
6. Negotiate to the fullest. This is a buyer's market. If you aren't comfortable with the deal. Walk away. Give it a day or five. The sellers will more than likely be willing to re-negotiate unless there are several people trying to but the house.
7. Try to get the sellers to pay some of your closing costs.
8. Definitely have them pay for any necessary repairs.
9. I'm sure you've heard this a million times - Location. Location. Location. Think long term. You may think today that you'll stay in the house for a long time but something may happen (job change, etc.) that you may want to relocate. If you buy in a bad location, now you have to find someone to take it off your hands. Busy street? Train horns nearby? Fire Station across the steet? It's all about the location.

Best of luck! Lee
Thanks for the advice fellas. We have ended up looking at roughly 50 homes and settled on a house and just got an offer accepted. We were able to negotiate at 20K below asking, seller to pay 3% at closing, and $3000 in moving expenses. The 20% would have been ideal, but we've got a little one coming and wanted to get into a place in time for the $8K first time home buyers tax credit. But we went with a conventional to avoid the 5 year mandatory PMI with a standard FHA. We are likely walking into about 40K in equity so the five year requirement could really have hurt us. Anyway thanks again for the advice.
Congrats!
I'm on the verge of buying one (whoo-hoo!). My wife told me this morning, We need a lead paint test. Deal-breaker. Which made me think: what else am I forgetting?

Here's what we're doing:
* Home inspection including lead paint test. The house is NEXT DOOR to mine, which passed a radon test, so I don't really think we need the radon test but I am not sure --?
Depending on what part of the country you're in, radon levels can vary greatly within just a few hundred feet. I'd go ahead and do a radon test. The ones you can buy at Home Depot or Lowe's and then send off should be sufficient, just to tell you what the levels are like, and then be sure to check your state EPD or the EPA for what the local levels should be.

Mold tests are good, if anything pops up on the inspection or there are unfinished areas in the home. And check the eaves and attic space for tree rats and signs of them. Furry little bastards are driving me nuts.
I would like to add something about the inspections, don't just hire a home inspecter. You can probably get a plumber, an electriction, and a heat and air specialist to come out really check out what is their specilty in addtion to the home inspecter. Our home inspector missed a lot the little things that an expert in that field would have caught.

RSS

Latest Activity

Carl Monster replied to Josh Allen's discussion If you can tell me what religion you are then you are in a prison.
"Yes, part of me is enjoying this thread immensely and will be sad when it stops. I don't have a life either, though I do try to get out once in awhile."
2 minutes ago
John Muir replied to Andrew D, USA Ret's discussion Atheism ascendant throughout the world? Evidence shows the opposite in the group The Great Debate
"Seen perhaps a little too much of the evil man can do up close and personal. Yeah, you frequently cite your combat experience What faith I have is in man doing by force what he can't do with wishful thinking.  Yeah, you frequently mention…"
9 minutes ago
Josh Allen replied to Cthulhu's Revenge's discussion Happy zombie Jesus day!
"Excellent! Never mind these uptight fools, they are just miserable. "
26 minutes ago
Josh Allen commented on Josh Allen's photo
30 minutes ago
Cthulhu's Revenge replied to Cthulhu's Revenge's discussion Happy zombie Jesus day!
"Why on earth would I apologise for? If you find it offensive/disrespectful, i'm sure there's a button you can click to report the article, or you can just not read it in the first place. It's not like i'm berating people's…"
1 hour ago
Cthulhu's Revenge replied to Cthulhu's Revenge's discussion Home Gym
"What's that?"
1 hour ago
John Lee Pettimore replied to Andrew D, USA Ret's discussion Militias, politics, anti-2nd amendment hysteria and the Bundy issue in the group The Great Debate
"I must apologize. I just now realized that I've been misinterpreting your forum name. I was thinking it meant "Retired". Now I understand. It's actually "Retard". It's your sign. Now it makes sense. "
2 hours ago
Vince posted a discussion

Request advice for Gastroesophageal reflux disease

Hello,I have Gastroesophageal reflux disease, could you give me advices for the diet and the workout that can I make daily?Thanks you!.Ps.: I started the Hero training workout, but I have problemSee More
2 hours ago

© 2014   Created by Brett McKay.   Powered by

Badges  |  Report an Issue  |  Terms of Service