what do i need to think about before i buy my 1st home?

[jokerthief]

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hhmm....if there were only websites one could to in order to receive free advice about househunting.

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This is a good example of a terrible post.

There is nothing wrong with asking for advice about buying your first home on a forum that you trust.

[Queensgrad]

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hhmm....if there were only websites one could to in order to receive free advice about househunting.

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This is a good example of a terrible post.

There is nothing wrong with asking for advice about buying your first home on a forum that you trust.

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Thanks!!

I went to two open houses today to get my feet wet, the 1st was under 200k, the second was over 300k, just to see try and wrap my head around what market value is. The first thing I noticed about the more expesive one was there was nowhere to hang your jacket at the front door. I hate that.

[CardSharpCook]

Just bought my first house. Actaully, the deal closes 5/22. It's teh awesome.

[pokerbobo]

If you have the funds....make a 20% down payment so you can keep property tax money in your own interest bearing account instead of an escrow account. This will also make it so you are not required to have mortgage insurance.

If you only have 10%, you can get whats called a split second mortgage to borrow the other 10% for a 20% down payment. (this will be a shorter term loan at a different rate from main mortgage)

You will qualify for more than you can comfortably afford...so keep that in mind, and buy a reasonable home for your means. Have 1000 put aside for all the things you will need to buy for a home (lawn mower, garbage cans, paint etc)

Hope this helps.

[Spec]

^ PMI doesn't apply to Canucks

[john voight]

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i need a list of things to consider now that i am house hunting for the 1st time. FWIW, I am a graduate student so my budget is south of 200k.

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1st thing you need to think about is:

"should I be posting this in OOT or the financial/money making forum?"

[Borgland]

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websites are fine for the boring essentials, but I thought OOT could supply some creative, insightfull things that a site for mom and pop might not have.

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It's a good place to ask because you get the buyers perspective which is the most "real". The seller, real estate agent, and lender all have thier own agendas ($$$).

[Borgland]

Try to get the seller or builder to pay for part of the closing costs.

Also make sure your monthly payments are going to be what you can afford. A lot of lenders will tell you one rate but in reality it will be higher once the deal is completed. They will tell you anything just to make the loan, and thus make thier commission. Get a fixed interest rate on the loan. The adjustable is too unpredictable and could hurt your budget plans.

Have the home inspected by a professional. You dont want any nasty surprises like termites or wood rot. Not a problem if buying new.

[guids]

If you dont like cats, make sure there are no loose cats roaming the neighborhood.

[VeryTnA]

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All of the above PLUS do NOT, repeat, do NOT, give in to the temptation to over-buy, to stretch yourself to get the bigger or better house. Buy what you can afford. Don't fall for any gimmicks (teaser mortgage rates, etc) that make it appear that you can afford the bigger house. Know what you can afford and stick to it.


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Very good advise!
You can always move up later. Moving down usually means foreclosure! Buy a home that is well under your max price range. The payment should not put any stress on your budget. I see poeple in way over their head everyday.

Buy small, live large with the money you have left over! You have plenty of time to move up later.