1st Time Home Buyer Help

[Krandall]

So.. I've found a place I'm serious about buying. But I'm really unsure where to start. I talked to my bank a bit ago and got a home loan application. And have an appointment with them on Thursday.

I'm not one for money stuff or whatever.
What kind of questions do I need to ask in the pre-approval process?
What kind of questions should be asked once I work with the realtor in purchasing a home etc?

-Randy

[wastednuts]

get a home inspector

[Onelunglow]

If you get a real Good Realtor.... They have all the questions / answer's for you.

[GregKJ]

Ask your mortgage company...
Are there any pre-payment penalties?
How long can I lock in a rate?
What are their mortgage origination fees?

If you go with a well-established bank (e.g. Bank of America), you don't have much to worry about.  Be sure to shop around a bit to find the best rate.

Like drunknuts said, get a home inspector.  It is worth the $300 or whatever.  Ensure that you make an offer on a house that is contingent on the home inspection.  The home inspector can find things that you can modify your offer with.  If something is really wrong with the house, you can back out of the deal and not lose your earnest money.

Ask your agent...
How long has the house been on the market?  Adjust your offer accordingly.
How much are similar houses selling for?
What are the property taxes?
A good agent should be able to lead you through the process and make you feel comfortable.

I can think of a ton more things that may or may not be important to you depending on where you want to live...
How is the commute?
How are the schools?
How close are businesses?  Bank?  Groceries?  Restaurants?

You've maybe already done this, but if you haven't already, go to http://money.cnn.com/real_estate/index.html or somewhere similar.  There are a lot of first time home buying tips.  Use mortgage calculators (e.g. http://cgi.money.cnn.com/tools/mortgagecalc/index.html ) to figure out how much your monthly payment will have to be.

Good luck.

[preddy08]

Randy, I'm in the same boat as you, and looking for some good tips.


I'va alwasys wondered how much is acceptable to talk offer somone. I.E. A house that cost 250,000, can I realisticly offer 210,000?

Can this be done on new houses?

[Colorado700R]

Randy, I'm in the same boat as you, and looking for some good tips.


I'va alwasys wondered how much is acceptable to talk offer somone. I.E. A house that cost 250,000, can I realisticly offer 210,000?

Can this be done on new houses?

Simple answer is yes.  Especially in this market.  Home builders are suffering bad becuase there is a flooded market of 1-2 year old forclosures that people are gobbling up instead of buying new.  Make your offers, the worst they can say is no, and then you can choose to re-offer or walk away.

Aaron

[preddy08]

I figured that you can, but how much can I go with out offending someone? I realize that its case by case.

[Lady4Fiddy]

You can make any offer you want, if they don't like it, they will come back with a counter offer which usually is lower than what they were asking but higher than what your offer was. Another great thing to ask for is the seller's to pay closing costs, which is usually $5000 or a little higher. Even ask them to pay half the closing costs and ask your realtor about grants for first time home buyers. When I bought my house, I got the seller's to pay half the closing costs, and I got a grant from the Kenray foundation which paid the rest of my closing costs. Don't be afraid to ask a million questions, and try to get the best deal. If there is something you don't like about the house, ask them to fix it, especially if there not budging on the price. And the longer the house has been on the market the better deal you can get, the people are willing to do just about anything to get out of the responsibility of the property. Oh and if the house has been vacant for a while, request that roto rooter come in and clear the pipes of tree roots if there are trees in the area, so you dont end up with a flooded house.

[Krandall]

What about foreclosed homes? Anyone know if there's much dealing with prices when it's bank owned?

[double06]

Randy, read this..  http://money.cnn.com/galleries/2008/real_estate/0812/gallery.home_purchases/index.html

I was just looking at this on cnn today.  Definately lowball them.

Oh, and don't deal with the realtor that is listing the house.  That is the guy that has the sign in the front yard.  Go to a big name company and get your own realtor, since you are the one buying the house, it won't cost you anything.  The one listing the house ends up paying your realtor.  That way, you are 100% sure that your realtor has YOUR best interests at heart.

[dgreenbluet]

I know if i was to get a home loan from my bank(USAA) they send out their own inspector to make sure the house is worth giving you the loan you want.  So i dont have to get an inspector.  When your going thru the house you can say you want 2 grand off the price for new carpet and and grand off to paint the outside and so on and worth. This will probably only work if the house is a little older. 

[Colorado700R]

USAA Rocks  :grin_nod:

[dgreenbluet]

USAA Rocks  :grin_nod:

Yes, yes it does.  They run their whole bank online and it works really well.  You can scan checks and email it them and get deposited instantly.  Plus they do everything from retirements to car insurance, $hit i even got my wifes wedding ring from them!

Anywho good luck on the home shopping!

[Colorado700R]

USAA Rocks  :grin_nod:

Yes, yes it does.  They run their whole bank online and it works really well.  You can scan checks and email it them and get deposited instantly.  Plus they do everything from retirements to car insurance, $hit i even got my wifes wedding ring from them!

Anywho good luck on the home shopping!

For military (Current of Veteran) and family only.......Sorry Randy 

[Peelz]

Get a fixed rate mortgage!!!!!

Get pre-approved for loan at an acceptable price range(be honest), then go looking.