Might be buying a house...

plumbob

plumbob

New member
Might be buying a house, anyone got any tips for me? The Air Force has decided to extend us at this Army base for another year, so that means I won't move until 2009, my lease is about up and I'm tired of renting. I fix this place up, pay my rent on time, and the owner can't even cough up enough money to replace the screen door. The roof is shot and they told us last winter that they couldn't put tile in the bathrooms or kitchen (they are carpeted) cause she had to put a new roof on. Almost the end of summer and still no new roof. I rent it through a property management company, they are easy to work with, but the owner still has to approve work over a certain dollar figure, that is where we hit the wall. I don't mind doing work for something in return, so I am looking into buying a house. Never been down this road before, any advice out there? Thanks
 
Yeah, I live in a fairly modest area and don't have a ton to spend like some people who inevitably end up house poor because they can't handle the martgage payments and still have a life. We're in the same process - selling ours and looking for another - and here's what I have learned: Buying a house is like marrying a woman. You get a couple years into dealing with the first one before you realize you didn't know what you were doing when you bought the thing. /ubbthreads/images/graemlins/smile.gif

Seriously, good roof and good foundation. Check the plumbing and wiring to make sure one is all plastic and the other is good three wire romex. Ask when the last time the heating and A/C were checked out. Ask to see them both and make sure they're in good shape. Same goes for water heaters. How about water service lines and sewer lines? Have either or both been replaced in the past five years? Look at the electrical service line feeding the meter box and make sure it is up to code. Why? Water service line replacement - $700. Sewer line replacement- $2000-plus. New weather hood, meter box, outside breaker panel, load panel - $800 minimum. Replacing basement walls? $5000 a side, easy. Roof? Pray for hail. LOL

When it comes to figuring out what you can afford, we use the Dave Ramsey formula - no more than 25% of our gross monthly income with a 15-year note. No longer. And check with your county appraisor's office. They can tell you what the tax value of the house is as well as the last time it was bought and for how much.

The more you have for your downpayment, the less principal you'll pay interest on over the life of the note. It would do you good to talk with a financial advisor familiar with amortization schedules who won't be involved in the final dealings. I spoke with mine and he showed me a perfectly legitimate way to save over $75K in interest on an $85K mortgage and have the house paid off in less than 10 years involving holding the money we've saved and applying it to the principal a couple months after the ink dries on the bank contract.

Best advice - go to www.daveramsey.com and read up on his advice. The wife and I started along his path last year and we have all our debts but the house paid off. DR taught us fiscal discipline. We don't owe anybody anything and THAT feels good. BTW, renting is a waste and you're doing yourself a favor by buying. Closings, down payments, and appraisals can be costly, but a house will rarely lose value over any amount of time and in our town - near an Army base - prices are going crazy.
 
Thanks for the info. I am going to get it inspected, have to with me using a VA loan, and I'll check out alot of stuff myself. Thanks again
 
Plumbob

I'm no expert and I'm certain there are plenty folks here that are way more up to speed with purchasing a home than I am. Those much more qualified to point you in the right direction will be the ones to really listen to. We just closed on a home last month so things are somewhat fresh in my mind.

I just purchased a new old home, second home that is, it will be a vacation home for now with a plan to move in completely within the year.

First off, contact a lending institute to get preapproved for the amount you will be able to spend and then reduce that amount by 10 grand. That way you will be a little more comfortable in making your purchase and maybe have a few extra bucks available to make a few needed upgrades.


Secondly, sit down and list everything you want in a home, go over the list and add or remove things you really need or don't need and what is important to you. Things like, yard size, fenced yard for kids, garage/shop, how many bedrooms, air conditioning etc. etc.

Then you simply contact a realtor, don't be afraid to try a few, someone you feel comfortable with is most important. Don't contact the listing agent as they are more interested in providing the best interest for the seller. Use your own agent.

Have a goal set and a reasonable price in mind that you are willing to pay for a place. Once you find the home you would be happy with, you simply make an offer on it and if the offer is accepted then you can get technical with the little things like what stays and what you want to be gone prior to signing, like old junk cars or trash around the place. Don't get caught up emotionally with any one place, I finally did but it was only after the offer was accepted and that is when the gut starts tightening and sleepless nights occur.

Make certain you GET EVERYTHING IN WRITING.....GET EVERYTHING IN WRITING......GET EVERYTHING IN WRITING!!!!

Call for a complete home inspection and full water test and any other test or inpection you feel is needed.

Search the internet and WHEN you find an agent you like, have them put you on their e-mail list, you will get all the updates and the newest stuff on the market much faster that way.

I had two realtors looking for me, each in different states, so I was getting a lot of property listings coming through.

A realtor will answer all of your questions and you are under no obligation to work with them at all. People come and people go. My realtor was not my friend but when it came to getting stuff done she was all over it and I was able to work with her to get the job done.

Good luck in your search, it's fun, exciting and the feeling of owning your own home is the best feeling you will ever have.

JUST GET EVERYTHING IN WRITING...........DO NOT TRUST WHAT SOMEONE TELLS YOU!!!!
 
Great info Cdog911 and FALfire! You will love owning your own house. It is a life decision so be selective. Congrats, It is an exciting time.

Todd
 
Plumbob,
Go back and reread what Cdog911 and FALfire said. Then go back and read it again, do that 7 times and you should have it pretty well memorized. All others who may considering purchasing a home should do the same thing. They put alot of thought it what they have said and it was VERY sound advice. I am a Home Inspector so I have a pretty good idea of what goes on in the real estate world. Like Howler said, go modest on your first one. Sure do wish you the best, remember that buying a house can be exciting and yet a bit stressful, take your time and don't let anyone influence you to make rush decisions.
 
All good info above but the best is to contact a Realtor especially for your first home. Ask around among people you know who have bought houses in the last few years for recomedations and don't be embarrassed to have more than one working for you. A Realtor does not get paid until the house sells and then the seller pays the commission. They will cost you nothing and will guide you through all the needed inspections etc.
 
Use a Realtor but do not trust them. Double check everything they say. Many Realtors are,to be kind, somewhat deceptive.
Also, have an attorney who specializes in settlements look over all settlement documents, it is money well spent.

Jack
 
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+1 what Jack said. Just sold an investment property and the buyer's agent did not disclose that their offer was contingent upon the sale of their own residence. Fraudulent/unethical behavior indeed. An honest realtor will be very helpful to you.
 
Thanks for all the info, I'll keep in mind if this goes through. Now that I'm interested in buying one, seems that I can't find one in our price range. Did find one that looked promising, but it won't pass the VA inspection, which is probably a good ting, but I can do some work myself. Going to keep looking but it looks like I'm going to have to sign my lease for another year here soon.
 
Plumbob,
Be patience, keep looking, don't give up /ubbthreads/images/graemlins/grinning-smiley-003.gif. It may take awhile but you will get there /ubbthreads/images/graemlins/smile.gif. I was stationed in Ft. Leonard Wood back in 1966, that ought to tell you I'm a "duffer", ya don't graduate to "old duffer" until yer 75 /ubbthreads/images/graemlins/smiliesmack.gif /ubbthreads/images/graemlins/grin.gif.
 
another tip: don't let the listing agent/realtor be your agent in the process. The listing realtor has a feduciary responsibility to the seller....not the buyer. In other words...his/her job is to bring offers to the seller and get a contract signed. The realtor doesn't get paid unless you close, and that is incentive to leave something out when he is talking to you as a buyers agent.

If you have time..."101 questions every first time home buyer should ask." it is an easy read and breaks the process down very well.

Definitely add the home inspection contingency. The first house I got a contract on was looking good until I read the inspection report. THe $275.00 I spent probably saved me eight or nine grand when I backed out of the deal.

Good luck!!

WNYS
 
Well, you never need an excuse to buy your own home. Just make sure it suits your needs, and isn't too much. Buying is better than renting for many reasons. You get all the defects disclosed, you get an apraisal and home inspection. Also, most home purchases come with a home owner's warranty paid for by the seller /ubbthreads/images/graemlins/ooo.gif

If you get a good realtor, they will have listings that suit ya. The last home I bought was new from the ground up, and I've lived here for almost two years, and I'm still pretty stoked since I managed to relocate to a diferent state.

But your realtor will work in your behalf, and answer your questions as they come up. Good luck and keep us posted. /ubbthreads/images/graemlins/wink.gif
 
Survey the market and be ready for it. If its fast, you have to be shrewder, and quicker on your feet, so to speak.

I hope that you are in a market where its a little bit slower.
This way you can have a chance to "Think about it" for a day or so and the house will still be there for you.

I didnt have that chance. But even so, its working out for me.
 
The advice is great! After looking at some houses, but not really finding the one yet, we are going to just sit back and wait. Not jump into anything. I don't want to go so high that I can't afford to fix it up or anything, but really can't buy something old, cause I will have to sell in a few years. Thanks for the advice and Thanks for everything.
 
1. Be patient.
2. Buy a house that will be easy to sell.
3. Be careful of realtors. Don't show excitment in a house.
4. Don't use the home inspector the realtor recommends.
5. Have a trusted friend give their honest oppinion of the house.
 
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