first time homebuyer in need of some general advice

[spacejamz]

Originally posted by: Capt Caveman

Originally posted by: spacejamz
make sure you get pre-qualified, not pre-approved...there is a big difference...

getting pre-approved is just a rough guess based on how much you make versus your expenses. Typically, this pre-approval amount is more than most can comfortably afford.

when you get pre-qualifed, you have turn in paycheck stubs, W-2's, etc and they will give you a realistic number that you can provided to potential sellers. getting pre-qualified will give you a leg up on other buyers as it confirms that you have your financing already lined up.

You have them reversed. Pre-qualified does not verify your sources while Pre-Approved is the more thorough process.

semantics that vary by lender maybe??? Wells Fargo pre-approved me as well but I didn't get a pre-qualification letter until after I turned in my paystubs etc...this was in 2003...ending up going through my credit union though.

Edit: looks like pre-approval is the more thorough process, but according to this page, the terms are interchangable:

These terms are interchangeable in the industry so make sure to ask which of these types of approvals that you are receiving.

 

[mugs]

Originally posted by: Aharami
wow. was digging thru NJ tax records and found out that this is the original owner and they paid 149K back in 1999. Crazy profit even in a crappy market

Wow. The house I'm in the process of buying only went up ~50% since 1989.

 

[mshan]

I'm not sure what the law in New Jersey is, but it's possible that you are obliged to pay the realtor who showed you the interior of those houses a commission, even if you buy using someone else. So before you view interior of any other homes, you need to determine whether you want to work with that realtor, or find someone else. But you're still probably stuck with realtor who showed you those homes if you want to buy any of those homes that he showed you the interior of.

Before you do anything else, I suggest you educate yourself with the following easy to read books:
http://www.amazon.com/Home-Buy.../ref=pd_ecc_rvi_cart_2
http://www.amazon.com/Mortgage.../ref=pd_ecc_rvi_cart_1

You first need to determine what true value (not list price) of homes you're interested in by going into newspaper archives or getting data from realtor of actual comparable sold homes and look at things like peak price, how much appreciation has taken place since say 2000, and what current price trend is. Then you could determine what sort of discount from true fair market value you want to offer. e.g. list price is ultimately set by seller, irrespective of informed realtor saying price is unrealistic, and you often see people just taking highest sold price as their list price.

You may need 20% down, even with your FICO, to get a great mortgage rate. Historically, 30 year fixed rates were 1.5 - 1.75% above 10 year Treasury Rate, but that risk premium has increased dramatically during subprime crisis.

Historical Affordability Data:
http://realestateconsulting.co...tter=Local/local200706
http://realestateconsulting.co...tter=Local/local200803


Garden State MLS:
http://www.gsmls.com

 

[Aharami]

Originally posted by: spacejamz
did you get pre-approved or pre-qualified? did you turn in W-2's, paycheck stubs, did the lender pull your credit report, etc? If they didn't do any of this, you need to do that ASAP to see how much the lender will actually loan you...

pre-approved. bank checked out credit history/scores and gave us a letter saying what we can afford

 

[Aharami]

Originally posted by: Elbryn
honestly, i'd say this is the time to be cheap. you as a buyer have the advantage and it's time to get the best deal you can. whats the worst thing that can happen? you take your money, hang onto it a little longer and find another house? dont get locked into a particular house, trust me, there are plenty more out there to find that will fit your requirements. lowballem. i'd say throw out a 275k offer and see what happens.
heh in the fabulous art of relinking here
takem for all you can, you've got the negotiating leverage here.

Originally posted by: mshan
I'm not sure what the law in New Jersey is, but it's possible that you are obliged to pay the realtor who showed you the interior of those houses a commission, even if you buy using someone else. So before you view interior of any other homes, you need to determine whether you want to work with that realtor, or find someone else. But you're still probably stuck with realtor who showed you those homes if you want to buy any of those homes that he showed you the interior of.

Before you do anything else, I suggest you educate yourself with the following easy to read books:
http://www.amazon.com/Home-Buy.../ref=pd_ecc_rvi_cart_2
http://www.amazon.com/Mortgage.../ref=pd_ecc_rvi_cart_1

You first need to determine what true value (not list price) of homes you're interested in by going into newspaper archives or getting data from realtor of actual comparable sold homes and look at things like peak price, how much appreciation has taken place since say 2000, and what current price trend is. Then you could determine what sort of discount from true fair market value you want to offer. e.g. list price is ultimately set by seller, irrespective of informed realtor saying price is unrealistic, and you often see people just taking highest sold price as their list price.

You may need 20% down, even with your FICO, to get a great mortgage rate. Historically, 30 year fixed rates were 1.5 - 1.75% above 10 year Treasury Rate, but that risk premium has increased dramatically during subprime crisis.

Historical Affordability Data:
http://realestateconsulting.co...tter=Local/local200706
http://realestateconsulting.co...tter=Local/local200803


Garden State MLS:
http://www.gsmls.com

Thanks for the links!

 

[Schwan]

marked

Also looking to get into my first home.