Buying Your First House... anyone with experience?

[ScoobyNubieToo!]

Originally Posted by SexyDSM95

I had good credit (just above 700 at the time) and put nothing down. I found a seller that did a seller's assist because the house appraised for more then what he wanted. So, I pretty much borrowed more then the original cost of the house. Your bills will quadrouple, not lying. You have so many things to look for I almost went crazy the amount of months I was researching into homes. I would say save up at least $5,000 not for a down payment either.

You need to pay for inspection, appraisal, termite inspection, radeon (sp?), and a lot of other misc. things. You also have to worry about PMI unless you go with an 80/20 loan which would cut that out, but then you are paying two different banks. I was excited about getting the house but tearing into it and all the little projects it blows. I officially know what being "house poor" is. I should have went with a newer house or built a condo for like $250k.

^Here's a girl who speaks from experience^

Here's some advice from someone on their 3 rd house and 3rd mortgage. As previously mentioned you'll need good credit which can be hard for someone at your age because you haven't been of credit earning age long enough to have a lengthy credit record and when it comes to calculating your credit score no credit history or a very short credit history can be almost as bad as a bad credit history so pull your credit report and check your score and keep in mind that the credit scoring system has changed recently. Another big thing that plays a huge part in the mortgage decision is your debt to income ratio. They usually overlook a car payment unless it's skyhigh or bad pay history since owning a vehicle is a necessity however they look very unfavoarbly upon high credit card debt. Also length of time at current job matters a lot too. Also, since you're a single guy, buy a very small house or condo....DO NOT BUY A BIGGER HOUSE THAN YOU NEED! Your rate of gain on a condo or small house vs a big house will depend more on getting a good deal, location, and the direction of the market in the future rather than whether you bough a condo or a large house. Just remember, you might be the only one living in the house but if you buy a 2800 sqaure foot house, you still have to heat, A/C and pay electric on a 2800 square foot house and you can get in trouble real quick on utilities in a large house. If your life changes in the future and you end up with a wife and kids, you sell the smaller place and buy another place that meets your needs using the gains on your old house to offset the increased cprice of the house in the future. Also, taxes will continue to increase in most areas around here most likely faster than most peoples income will so be prepared for that. More things to know:
If you put down less than 20% you will most likely have to pay PMI which can run $80-$140 until you reach 20% equity in your home. However if you're short on cash, this may be your only option. A good trick which I use (which only works if your property apparaises higher than what you're buying it for) is to haggle the price of the house to where you want it and then offer the seller $5,000 more on top of that and have them put $5,000 towards closing costs. I did that on my current house and paid only $1,600 at closing. Good luck owning home can easily be the best or worst financial decision you ever make, just like buying a car only with more severe consequences.

[CobaltGrl]

^^ He has already pulled his CBR and most banks can push ANY mortgage thru, regardless of credit. I see it everyday. People purchase CRA's with credit scores in the 500's with nothing down. However, I do agree to haggle the cost of the house with the seller. The market is HORRIBLE right now for selling a home but prime for buying. Strike while the iron is hot

[ScoobyNubieToo!]

Originally Posted by CobaltGrl

^^ He has already pulled his CBR and most banks can push ANY mortgage thru, regardless of credit. I see it everyday.

Oh, I won't disagree with that but I'm also assuming he doesn't wanna a sky-hi interest rate either..... Anybody can get financed for a car too.....if they don't mind paying 12-20% interest

[TROLL]

i think i'm kind of figuring i'll slowly get my feet wet with all of this and be in serious buying mode come summer time... i am a chronic over-researcher and i didnt want to rush into this so i planned to take my time with it.
by the way, this thread has been incredibly helpful and now i know who to contact for certain things along the way with all of this .
If 2007 is the year of the built motor and the year of the house (in that order) then wow... it'll be one to remember.

[poolmike]

Troll- I have the moving van. Oh, wait, so does your dad. Anywho, I'll assist when moving.

[ScoobyNubieToo!]

Originally Posted by TROLL

i think i'm kind of figuring i'll slowly get my feet wet with all of this and be in serious buying mode come summer time... i am a chronic over-researcher and i didnt want to rush into this so i planned to take my time with it.
by the way, this thread has been incredibly helpful and now i know who to contact for certain things along the way with all of this .
If 2007 is the year of the built motor and the year of the house (in that order) then wow... it'll be one to remember.

Troll, next time you do a 6 speed swap in my garage, we can talk more about this.....maybe we'll be all finished talking about it by the time we seperate the tranny from the motor! LOL!