I'm going to buy a house, I could use some help!

[AAlmeter]

Originally Posted by s15driftking

Well, The wife and I have been married for about 6 months now and we figured we'd take the plunge and buy our first home. Nothign too fancy, we just want to build some equity, get a decent home, and get that phat 8k check from the government. Besides, we are paying about 200 dollars less in rent than it would cost to own decent house.

I am taking advice o nthe "do's and donts" of home buying.

So far, here is what i have come up with.

A coworker of mine once worked in the realty business and calculated based on what i want to spend and told me how expensive of a house i can buy (he factored in mortgage, interest, average taxes, and insurance)

My realtor gave me a couple of loan officers numbers and i think i found a decent guy.

1. What should i look out for when shopping for a decent rate? help me out guys.

2. he made it sound like once i stepped foot in the door to try and get approved then we were in business for good, is that binding?

3. how do i shop around for the best rates? Any advice would be great!

4. in this market (nationwide) how much (percentage) can i expect to get off of a house. Lets say theres a house for 200,000 dollars, what should i offer, and what factors should i take into consideration?


Thanks for all the advice in advance guys, Im getting kind of excited to shop for a home. I have to be in contract by mid April to get the 8K.

Thanks Brothers! - Bobby

Talk things through with your mortgage broker, understand everything, sign nothing. Get a feeling for what you can afford in monthly payments and what you can put down. Try your best to put down a full 20%, and make sure you have a fixed rate mortgage (in almost all circumstances).

Once you're comfortable with YOUR budget, get pre-approved. You may get approved for more or less than what you feel is appropriate, shop with the lower number in mind. Generally speaking, a pre-approval is necessary to get in with a realtor.

Most brokers will shop a variety of lenders and will work to get you the best deal. Make sure you use an honest broker (assuming you use a broker). If you find one with references that you're comfortable with, stick with them. The credit checks they will run are hard inquiries, each one will count against your credit rating, costing you more money in the long run.

Be sure to always keep closing costs in mind. Both your realtor and broker will be able to give you a good faith estimate of the costs, and figure out whether you will pay them, the seller will, or you'll roll them into your mortgage.

There are too many factors to consider in giving a value on a house. Supply/demand, condition, location, quality, appeal, etc. Your realtor will help you and be sure to educate yourself. Take a look at the comparables in the area, they'll tell you the asking and sale price of homes in the area that recently went. Some websites can also give you info (trulia.com being one).

Good luck