Buying a house - First Time

[Katchupoy]

Need help.

What are the do's and dont's.
What will I do first?

Any member here that is a broker, realtor or whatever?

Maybe you can share some knowledge here...

thanks a lot...

 

[Alice]

Oh boy...you'll get almost as many opionions on this as on how to run a reef tank

Get your financing in line before you go looking. If you are looking at a previously owned home, the good ones at a decent price are not staying on the market long these days. Sometimes there are offers on them the first day of listing! Make a list of wants and want-nots and stick to it; the house you are looking for is out there. Don't let your realtor push you over your price line; they'll try. Unless King County is an absolute must for you, look elsewhere in the area. The same house in Pierce County will cost you thousands less than the one in King Co. Ask around with people you know for a good appraiser who will look after your interest, absolutely essential on a previously owned home.

When it comes time to finalize the mortgage take a look at these figures: (I just pulled a figure from the air, but you'll get the idea)

You borrow $100K @ 8% on a 30 year loan with a standard monthly payment of say $1100, you'll end up paying back a total of $240,000 with the interest.

BUT if you take that same $1100, cut that in half and make a $550 payment every two weeks, you'll save $37,000!!! in interest and have the loan paid off in 23 years. (You'll make an extra loan payment every year setting it up this way over the standard monthly payment.)

If you bump that loan repayment up to 20 years instead of 30 AND make the bi-weekly payment, you shave another huge chunk of interest off the total and you really won't have too big of an increase in your payment amounts.

Oh, and be wary of points. Mortgage companies love to give you an attractive rate and stick it to you on points.

Good luck and happy house hunting

 

[Katchupoy]

Thank you Alice for the fast reply...
Wow, I did not realize about what you mentioned... Did not know that you can pay it twice a month... I will make sure that I make a note on that.

But what about that points system that you mentioned ... Can you explain further...

Hey, I do appreciate it big time...

 

[Alice]

A point is 1% of the mortgage loan and is paid at closing. It's kinda like the mortgage company gives on one hand but takes with the other. They may offer you a very attractive rate or low down or what have you. Then they will charge you points to make up part of the difference.

There are a couple of good things about points. If you are expecting mortgate rates to rise (and they are; they won't be this low again in a very long time) you may save money in the long run by accepting the lower mortgage rate. Points are also deductable on the first years taxes; many other real estate deductions have to be taken over the life of the loan.

Also, take a good look at first time buyer programs, FHA and Fanny Mae.

 

[NaH2O]

I'll mention something to keep in mind when it comes to mortgages. If you can put 20% down, then you don't have to pay Private Mortgage Insurance (PMI), which will add to your monthly payment. Why jack up the payment more every month?

Wow - great info Alice!

 

[Scooterman]

Very Important!

On an important note:

Make SURE you have room for a REEF!

 

[MINIATUS]

I'll mention something to keep in mind when it comes to mortgages. If you can put 20% down, then you don't have to pay Private Mortgage Insurance (PMI), which will add to your monthly payment. Why jack up the payment more every month?

Wow - great info Alice!

I dint know you had PMI we have a similar program up here which they tack on. I had a set price on a home and told the realator not to show me homes other than what was in my price range. I also pay weekly which knocks about 7 years of the mortgage.Because of the neighbourhood Im in , the value of the house has increased by 10k over 2 years.
Another hint as with me ,we found a house were the couple were splitting up and needed to sell fast.

MINIATUS :lol:

 

[MINIATUS]

Re: Very Important!

On an important note:

Make SURE you have room for a REEF!

That was a a standing order on the house we wanted to buy.

 

[reedman]

Make a list of things that you must have in the house, things that you would like in the house, and other things that are interesting. When you look for a broker be sure to find one that understands that the must list is not flexible. If they try to talk you out of that, get a different agent.

Decide weather this is a house you will live in for 5 years or 30 years. This will help you decide on the type of mortgage. If you are in the 5 year bracket them an ARM (adjustable rate mortgage) may be better, but you have to stick to the 5 years and sell or you will probably loose money. If you are staying there long term then the 15 or 30 year fixed rate is best (usually).

Find an logistic area that interests you and go drive around the neighborhood. See if it really is where you want to live. How's the traffic at the times you commute? It's very different on a weekend (when most brokers take you to look at a house). How's the local store access. Do you have to drive 50 miles to the nearest Safeway? Is that OK?

Think about the resale value too. Even if you don't plan to sell anytime soon. Things can change very quickly without your planning it (we sold early because the job got transfered 60 miles away). A one bath home is worth less than a multiple bath home.

Get a good home inspector. The costly items are always hidden (foundation, roof, mold, etc.).

If you can look on the weekdays, you'll have better luck finding what you want. Like Alice said, it's a very fast market so if you don't know what you are looking for and aren't willing to look all the time, you'll have to wait longer to find what you want.

It's very stressful. Keep you wits and be patient. You'll find what you want at the price you can afford.

Good luck!
-Reed

 

[Alice]

Reed brought up a very good point. Tour the area at all times of the day over a period of a couple of weeks. You may find out some very interesting things...especially on Friday and Saturday nights!

 

[big t]

Good advice given here. I am in the same boat as Ceasar. One good think to make sure of w/ your loan is to go with a company you can walk in the door and talk to someone with if you ever have problems. Also make sure they guarantee that they will not sell your loan to another lender. I am personally planning on going with a 5/1 arm because as I am in the military it is unlikely that I will be here longer then more then 3 to 4 more years.

 

[Witfull]

Keep you wits
-Reed

Hey,,,,I'm a keeper...lol

 

[Katchupoy]

Hey everybody, I am learning a lot here...

Also, the reason I want to move to a house is because of my "REEF". [Please dont tell the wife - I told her that it is because of her ]

My landlord dont want me to go ove my existing 30G

Also, I want to take advantage of this low APR rates they have now.

At first, I was thingking of buying those low priced manuf home because thats the only thing I can afford..

A lot of people says its a big "NO NO"

But I told them.... that s the only amount I can afford without breaking my wallet...[need to leave some for my reef ] and also I think it is still better than renting....

You dont hear your neigbor snoar... or you know when somebody is using the bathroom because you can hear the flush of the toilet.....

 

[Katchupoy]

Im planning to get a house on the same location where I stay right now.... so that kids dont have to change school.... very important for them because they dont want to feel "newB".

 

[reedman]

Just don't get in upside down in the loan. Meaning, make certain that the place will appreciate in value and not depreciate over time. A manufactured home can be very nice, but do note that they do not appreciate in value as well as a typical home. That is what your freinds are trying to tell you.

As long as you are comfortable with what you are getting into and realistic about what you want to get out of the place, I don't see anything wrong with a manufactured home.

Just don't think you'll get rich buying one, fixing it up and selling it...you won't. But it can be a very nice place to live and relax without the restrictions of renting.

Good luck Cesar.

-Reed

 

[Katchupoy]

Well said Reedman....

I have a friend who bought a very nice/big home. But she went over...meaning... she has to work like really hard to keep her place and she doesn't see her kids that much because of too much work... and also her hubby too... she is a nurse...

too bad for her...

I will not do that to my reef

 

[Alice]

Cesar;

Some of the manufactured homes are really nice though as Reed stated, they won't hold their value like a traditonal home. Are you looking to put a manufactured home on a piece of property or buy one in a park/estate? Take a good look at the site lease/rental prices in a park/estate; the price will likely rise 5-15% per year. It might take only a few years until the combined price of the home and the site will equal what you could be paying for a traditional home right now with the interest rates the way they are.

Also, parks/estates have fairly strict convenants about what you can and can't do with your site and your home.

Just another thing to think about

Alice

 

[MarineDreamer]

Will a manufactured home be able to hold a tank of a good size? (Meaning the flooring?)

Trevor

 

[szidls]

Hey Cesar,
Just another 2 cents or so.......... I know it's very expensive buying real estate here in the NW. I'm not knocking the manufactured homes. What alice said is true about the cost of renting or leasing space. Price is going up every year. If you are buying property to put the manu/home on, that is something that will appreciate for you. If not it is going in the parks pocket. The biggest reasons IMO for buying a home are Personal gratification, Tax advantage, And Inflation hedge. Try and keep these in mind. Always look at your home as an investment as well as a roof over your head. Some advice my dad gave me was to always look for the most economical house in a good neighborhood. Location, Schools, Retail , did I say location?That way the money and improvments you put in the house will give you the most benefit. Especially at resell time.
Lots of good posts already about mortgage loans and such. Do your research online. You can cut out many hours of driving by narrowing your search with the puter.
Good Luck,
Scott