First Time Home Buyer

[kingozzy]

I am in the process of looking at buying my first house, any suggestions of things I should do?

[hvnlydevil]

get pre-approved. Use the number they give you as your maximum ceiling for pricing. They tend to price you to live paycheck to paycheck. Make sure your credit is in order but don't close out any credit cards-that will only work against you. And be prepared for it to take a while. But know that in the end-it will be worth it. Good luck to you!

[jwallbank]

I have bought 5 houses in my life and I would have to say that this market is probably the best to get a deal. With Interest rate at a all time low (below 4 or right at 4 percent). I refinanced last year at 4.250 and saved myself $250 a month. I would say - Do not take the first price, or if you bid, research the area for schools (if you have kids), property tax rates, association fee's (if any), and selling price for the area for the most recent sale. You don't want to pay more than you have too. If you are working with a realtor, get one that you can trust, not just one that wants to make a sale to make a commission. And if you Bid, Bid about 5 percent lower than asking price, for ex: asking = 200,000 Bid = 190,000, you can always compromise somewhere between asking and Bid, and also make sure you get an appraisal, you pay in your closing cost for this normally around $500 but, it is well worth it. You don't want to pay more than the house is really worth. Your realtor should bring you through all these things. I think personally, in this market you can get your Bid price. I wish you luck on your Home Buying!!

[ptfunds]

First there are still some great programs out there for first time home buyers. Some of the big dollar tax incentives are no longer available, but the programs that offer no closing costs and low interest rates are still available. In most states there is a "class" that you need to take (one afternoon) to qualify for these opportunities. The second thing I would suggest is finding a really good inspector. They can be worth their weight in gold. Any offer money you have down on an offer is always subject to the outcome of your inspection. So there are good reasons to walk away penalty free at that phase of the negotiation. Also, what your inspector finds can give you more negotiating room.
This is a wonderful time in your life and enjoy it!

[cdjoergy]

I am currently looking to buy a new home.   I did not about the class for first time home buyers.  I will look it up now to what can do to in California

[kingozzy]

Thanks for the advice, I was already signed up for the class and I just finished it last night.  It was a lot of information in a short time but it was worth it.

[vmcutshall]

I am buying my first home also and I am trying to make sure I have a contractor  inspect it before I purchase the place. I don't want any surprises after I move in.

[Joeyramone]

Make sure you either have the cash or know exactly how much of a loan you qualify for before making an offer.  This will save you a lot of time and dissapointment.  Getting a home loan today is very difficult.  Good luck.

[jordandog]

I am in the process of looking at buying my first house, any suggestions of things I should do?

Yes, I have a suggestion. Talk with a realtor in the city you want to buy in. Do NOT go by advice given on here since there are state and local options you won't know about until you research them or talk to someone who sells homes. This is from my experience and having built from the ground up, bought existing, and having sold 11 homes in different states. I have actually NEVER rented a place.

[kapeh12]

I bought my first home just under 2 years ago.  It was a daunting process, but here are the steps I followed:

1.  Saved money for down payment (assuming this was done by now).

2.  Found a mortgage lender I was comfortable with and planned my budget.  Try banks and brokers - get recommendations from friends/co-workers.  You need to trust this person has your best interest in mind.  I did this about a month before I started seriously looking for houses.  Another thing I found out, when I first started out, my price range was much lower than where I ended up, as I learned about how the tax advantages allowed me to modify my W-4 allowances.  I also created a spreadsheet where I listed out every expense I could think of - from estimated mortgage payment, to utility bills, to recreational stuff I wanted to continue doing.  I used that spreadsheet to determine whether or not I could afford the place I chose over the long haul.

3.  Got a Buyer Agent - in my area, I found some exclusive buyer agents that I interviewed.  This was a fantastic decision for me.  Mine was recommended by my mortgage broker.  My agent helped point out things to look for when evaluating a house - pipes, foundation, structural things, etc.  He pointed out maintenance items he saw that might be problems for me that I would never have thought of.

(One tip I got from my mortgage broker is to make sure if you are working with an agent, that they communicate/work with the mortgage broker - makes the closing work so much smoother)

4.  Look for houses - review houses your agent finds (if you go with an agent), and do your own web searches.  Consider the neighborhood - crime, schools, city/rural.  Know what you want in a house - your "needs" vs "wants".  I found out through the process some of my needs and wants changed.  Example - I was never a fan of hardwood floors, but the house I ended up with - I actually chose because of the hardwood floors (they were a different type of hardwood floor than most of the houses, more modern looking and just "worked" for me).  Be prepared for this shift - as you start getting into the houses, you'll start to find there are certain things you keep looking for first.  Pay attention to those things, as those are most likely your real "needs".  For me - it was the kitchen - if the house didn't have a kitchen layout I felt comfortable with, it was a deal breaker.

5.  When you start finding house candidates - use local websites to look up utility costs and taxes - keep in mind, most mortgage payments include property tax payments.  Your mortgage may be within budget, but will it still be after you add in the taxes.  Doing these look-ups you may find you can afford more "house" in different areas, due to tax rates levied - some areas have lower property taxes than others.

6.  Choose your house.  My buyer agent told me when a person finds their house, it's like finding a spouse - you just "know" when you see it.  I didn't believe that at first and spent about 2 months going out multiple times a week looking at house after house.  Toward the end, I had narrowed it down to 2 candidates, and was planning to pick one of the two, but I wasn't 100% thrilled with either one.  Then a couple days before my last viewings of those houses, I did one more search on my own, and the house I'm in now popped up.  As soon as I saw it online, I knew that was the house for me.  The minute I stepped inside during the viewing, it felt like I had lived in the house for years.  Keep this in mind - particularly if you are planning to stay in the house for a while.  If not, and are planning to move out in a few years, probably a "close enough" would do just nicely.

7.  Place the offer - this can be a nerve wracking process.  Your offer could be accepted, countered or rejected.  I had a friend who was house hunting at the same time as me and he had 2 offers that ended up being rejected.  It was hard mentally to go back out again to keep searching.  He finally got his on the 3rd try.  I was super lucky and got mine after one volley of a counter offer - first try.  Just be prepared for this - don't get too attached to the house in case the offer falls through.  You'll be surprised how much you were hoping for it if you do experience an offer rejection.

8.  After offer accepted - this is the point where it becomes fun - time to finalize your mortgage papers with the actuals, get a good house inspector, get a good appraiser (typically mortgage lenders will do this for you), set the closing date.  After you now know where you will live - start anticipating what maintenance items you may need now that you are a home owner (lawn mower, snow blower, ladders, other gardening, other tools for indoor maintenance, etc).

9.  Attend the closing - I've heard these can go 2 ways.  My mortgage broker made it easy - he had me sign everything before the closing, then at the closing I just had a few extras to sign and sit and wait for the paperwork to be settled.  Others can be like a whirlwind if you have to sign everything at the closing.  I heard typical closings are only an hour, and there is a ton of paperwork to sign.  If you know you will be signing at the closing - I'd recommend seeing if your mortgage lender can go over what each of the papers mean before the closing so you don't freak out at the closing - you may literally feel like you are signing your life away and be shell shocked after your leave.  Once the paperwork is done - you get the keys from the previous owners...if you have the chance, ask for any quirks about the house they are aware of...then go to a restaurant to celebrate!

10.  Move in!   


Hopefully this is helpful for some.

[mattc4000]

I am literally about to close in the next couple of weeks.

My key learning was to make sure all your paperwork is handled through the mortgage company as quickly as possible as there always seems to be complication.  Everything takes longer than you think or they tell you so make sure you are extremely active in the process and always asking questions.

[livelife1234]

Make sure your credit is good as possible and dont get any new credit before searching.  Save money for down paymen t and sometime closing costs depends on type of loan and terms.  We bought our first home 3 years ago and it not what I expected.  It was a new home and we did not get it inspected but i do not suggest that on a new or used home.  We have sinced found problems in home  and wish we had it inspected.  Also get pre approved for a loan so you know how much of a house you can afford and what homes to look at.  Educate yourself and do what feels right

[lynnc35]

Do it now, while it is a buyers market.