z1ggy
Lifer
- May 17, 2008
- 10,004
- 63
- 91
Total noob here and I just started to research. I thought I'd start asking questions here. I live in Northern NJ and look to buy around that area within reasonable commute to our work in Jersey City and NYC.
When to buy:
1. Is it true that mortgage rates will be going up- why & how? Can you provide any substantiation? Someone told me govt will be increasing it soon which subsequently lenders will.
1b. If true, who/what exact government body sets the rates?
1c. Is this true? Govt set rate + lender margin = lendee's rates
Under these impressions, wife wants to buy our new home asap (within 3-6 mos) because the increased interest will have a significant impact.
1d. Well, just what is the significant impact? How much % do we foresee going up? And on a 400k loan (100k down) with 30 year term, what is the high-level impact?
How to buy:
2. Is my method of engagement correct? Look up zillow/trulia/CL -> find what I like initially -> contact their realtors -> see the homes -> see other homes by realtor -> enter home buying process (which is a huge process on its own). So generally, is this fine? What else am I missing in terms of searching?
3. Basically sellers have a listing price. How the hell do I know if that is a good price or not? When I make a counter-offer, do I basically just pull a number out of my ass? Where do I accomplish a baseline?
Others:
4. Other great resources / community / forums / calculator for home buying?
Let's start with these first, thanks in advance.
1.I believe the Federal Reserve ultimately sets the rate, but it's not like it goes up hugely all at once. They purposely hike the rate up slowly. But yes I hear it is supposed to be going up in the future.
1d. Don't be lazy, you're a smart guy. Go into excel into the loan amortization spread sheet and look up how much changing the rate affects your payment.
2. Honestly, I'd just hire a Realtor and sit back and let them do 100% of the work. There's no point of you putting in much effort when they have all the insider hook ups (if they are good) and are already trolling Zillow/MLS/Trulia for you anyway.
3. Comps. Again, the Realtor should be experienced enough and have had already looked up the comps in your area to know what a fair market price is. I wouldn't attempt to do much work in this area, too. You have a budget... You stick to it unless you see reasons to deviate.
4. What do you mean by "calculator"? If you're trying to predict your mortgage, you can again, get a pretty good feel for it by using the loan amortization sheet in excel. Don't forget property taxes and insurance though. For me, my mortgage includes all of these things, and tends to fluctuate year to year due to rising or falling property taxes. So far though... It's only gone up every year....
Buying a home ultimately comes down to two big things: How much are you willing to pay, and what are your special requirements. You should define how many beds and how many baths you want, along with any additional home features and a ceiling price. Ie, Zeze & wife was a 4bedroom, 2bath house, with at least a 1 car garage, and no less than 1800sqft, for no more than $400k. The realtor can run with that, and will likely end up showing u some 3 beds, or 4bed 1.5baths etc, at a much lower price or a combination of other amenities that could be enticing.
Hope that helps.
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