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First time homebuyer

Having done this a couple of times, I think the best advice I can offer is to hire your own home inspector, independent of your realtor. Ask him/her to find everything possible and report it back to you. If simple things aren't taken care of, there are probably bigger problems lurking.

I've been bamboozled on this once. Fell in love with what was supposed to be a very nice house. Inspection came back pretty clean. It was a disaster. Never again.
 
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Walden4Prez said:
YouTube is your friend. I have saved thousands upon thousands of dollars with it. Garbage Disposals, Dishwashers, Washers, Dryers, Garage Doors....all will be ****** up and most of the stuff is easy to fix without paying somebody $100 just to show up.
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YouTube has saved me several times as well. That said, I'm not nearly as confident as you so will only take on limited repairs. Just isn't worth it to me both time-wise and sanity-wise. Your temperament (as well as past experiences) dictate a lot to do with how realistic being a DIYer is on some (many?) repairs.
 
Make sure you have thought (and rethought) about why you are buying a house. Maybe even let someone who knows what they are talking about try to talk you out of it. If they take their best shot and you think it still makes sense to buy, then proceed.

There are lots of downsides, many financial, such as if you buy high, sell low, sell too quickly, mortgage at a bad rate, and overlook upcoming expenses (like a 30 year old roof). Others are social, such as what happens to the value of the neighborhood when Tavern Hoks move in next door. It is hard and expensive to get out of a home compared to an apartment.

Of course, there are lots of people doing well with real estate transactions. And I've been a somewhat happy homeowner for 30 years. But the downsides and real cost are usually not understood well by first time home buyers.
 
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deadeyededric said:
I love my townhouse. I got a good deal on it and it is perfect for my needs.
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My first home was a townhome, loved it, it was perfect for a single guy and when my gf (wife now) eventually moved in. I only did a couple upgrades,AC, new deck, kitchen/bathroom counters and paint in 8 years. We were closed within 6 weeks of list, first offer we got was full price, ended up about 40k ahead on the deal. Best investment I made in my life, set us up really well to get in the acreage we are currently in.
 
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when you plan changes you want to make to the house, be realistic about the projects you'll want/be able to take on personally and the projects you'll want to pay for. then consider how long you're willing to wait to get those done, and how long it'll take to save up. in other words, fixer uppers are very attractive, especially if you have a S.O. that watches those shows all the time, but be realistic.
 
Whatever the bank pre-approved you for, find a house that costs quite a bit less. Unless you like living pay-check to pay-check.
 
Also, be willing to walk away. Case and point, we put an offer in on a house for a decent amount less than what it was listed for, and after going back and forth a couple times negotiating, the seller wasn't willing to come down to what we felt was a fair price. We walked away. A week later, we found the house we ended up buying that had more space, is a corner lot with a big yard, in an area easier to access than the other place, and still paid less than what either house was initially listed at.
 
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isutrevman said:
Whatever the bank pre-approved you for, find a house that costs quite a bit less. Unless you like living pay-check to pay-check.
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Agree 100%. The bank will lend you enough money to kill you.

When I built a house ~20 years ago, I figured I needed about $200k, but could qualify for maybe $300k. Bank was willing to loan me $750k, I about did a spit take.

Aren't you supposed to be the one making sure I am going to pay you back? But when you can just flip the loan to Fannie Mae, you don't actually care about getting paid back. Without getting cave-y, I think anyone who loans money should have skin in the game wrt getting paid back, to prevent perverse incentives.

Also, "Perverse Incentives" is a great name for a band.
 
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If you're in a hot market, be prepared to move fast.

Location is incredibly important. Proximity to places you will go other than your house (work, grocery store, parks, breweries) is an important consideration.
 
Just closed in April for the first time. Lots of good information in here as well. I didn't see this before but in addition to what others said I would say...

Don't beat yourself of you miss out on a place. Another will come by.

Don't be afraid to negotiate price. If they decline a lower offer, maybe tell them you'll pay more but want to keep all appliances as an example. The worst they can say is no.

Lastly, budget. Quicken loans has some great online calculators (on my phone or i would link) that help with monthly budgets or the amortization calculator showing your payments over time. Also, if you're able, pay a little extra. An extra 50 to 100 dollars per month can literally take years of a 30 year mortgage and save you thousands over time.
 
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ameslurker said:
Just closed in April for the first time. Lots of good information in here as well. I didn't see this before but in addition to what others said I would say...

Don't beat yourself of you miss out on a place. Another will come by.

Don't be afraid to negotiate price. If they decline a lower offer, maybe tell them you'll pay more but want to keep all appliances as an example. The worst they can say is no.

Lastly, budget. Quicken loans has some great online calculators (on my phone or i would link) that help with monthly budgets or the amortization calculator showing your payments over time. Also, if you're able, pay a little extra. An extra 50 to 100 dollars per month can literally take years of a 30 year mortgage and save you thousands over time.
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THIS. Go fool around with mortgage calculators and see the difference it makes in the long haul. And if you can swing it...do the 15 year or 20 year if you have that option over the 30 year. If you get a 30 year but pay like a 15 year, you're still paying more than you would have if you'd just done the 15. Really wish I'd started paying just a few bucks extra a month earlier. Also...I think some of them you can pay bi weekly. That also takes a big chunk off the end. But if you're getting paid monthly, that creates 2 times a year you're where you're paying more often than you're getting paid. Just something to consider.
 
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We looked for a good year. A few that we got excited about but just never moved on. The house we bought, we both "knew" fairly quick after seeing the first time. In summary, "you will know its the house for you, when you know." :-)
 
HGoat1 said:
I'm looking at buying my first home by the end of summer/fall. I am pre-approved for a loan and have a realtor I'd like to work with. There is a lot that comes with it, so I am looking for some advice on your experience being a homebuyer and owner.

Any house shopping tips?
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Buy on the high ground if you can. if your looking in a hilly neighborhood, try to buy on top of a hill Drier basements and less chance of flooding.
 
honestly if your buying an older home don't waste money on one of those home warranties, I got one covered for a year from the seller, buying my house last year. it has an older furnace and AC (installed in 1994, house was built in 1982.) the one issue I had with the furnace over the winter would of cost me $130 to get it looked at and fixed by the local hvac shop in town (the same ones who originally installed the whole system). I had to pay the $75 copay for the warranty agency to try to find some one to look at it for 2 days, before I just walked into the shop to ask about if they could.
 
Spend the amount you're pre-approved for.

Seriously though, don't do that. Lenders pre-approve you for way more than you'll be able to afford. Factor in taxes, insurance, and HOA dues (if applicable) in your mortgage payment.

Make sure you have some reserves left over after you buy your home (I'd recommend 5-10k). Stuff breaks down when you're a homeowner, so it helps you sleep a little better at night knowing you have some cash for those kind of things.
 
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