Looking to purchase a first home....

[isekii]

What should I look for in a realestate agent ?

Also the seller pays all the agent fees correct ?

Any other advice for a first time home purchaser ?

 

[Scarpozzi]

1. If a real estate agent tries to sell you a house....I mean, like push it on you, either pick a new real estate agent or note that they're just in it for the commission and don't care about finding a house that suits you.

2. The only fees you need to worry about are closing costs on the loan, down payment, and the costs of turning on your utilities.

3. Try to pay down what you can and don't fall for the financing deals out there. If you can get a fixed rate mortgage, you'll be a lot better off because rates are only going to go up in the next 5 years.

 

[Garet Jax]

Originally posted by: isekii
What should I look for in a realestate agent ?

Also the seller pays all the agent fees correct ?

Any other advice for a first time home purchaser ?

You need to figure out the financing behind the house. Do you have money to put down. If not, there are some options - find a mortgage guy who you are very comfortable with.

 

[Scarpozzi]

Inspect the homes you view:
1. Check the roof....look for warping in the decking. Redecking a roof costs a lot more than just putting on new shingles. Also look to see how many layers are up there to begin with.

2. Check the subfloor. Look for mold, weak spots, rotten wood, etc... Especially under bathrooms and kitchen fixtures. You may be able to find where old leaks were, or where current ones are.

3. Remember if you buy a fixer-upper... Kitchens and bathrooms are the most expensive to replace. Everything else can be replaced relatively cheap.

 

[isekii]

I'm looking to put down about $50k towards the house.
The house is listed for 520k which i'm gonna negotiate down to under 500k

From the reading I have done, it seems like the buyer usually has a realestate agent representing the purchaser and one representing the buyer.

Is this correct ?

Also i'm looking at a 30 year year loan with a set rate. With the option to pay couple hundred bucks a month extra if it allows.

 

[patentman]

Originally posted by: Scarpozzi
Inspect the homes you view:
1. Check the roof....look for warping in the decking. Redecking a roof costs a lot more than just putting on new shingles. Also look to see how many layers are up there to begin with.

2. Check the subfloor. Look for mold, weak spots, rotten wood, etc... Especially under bathrooms and kitchen fixtures. You may be able to find where old leaks were, or where current ones are.

3. Remember if you buy a fixer-upper... Kitchens and bathrooms are the most expensive to replace. Everything else can be replaced relatively cheap.

For number 1 and number 2, hire a home inspector. It costs a couple hundred bucks, but is well worth the money.

 

[bctbct]

You have two options for agents. Hire one to find a house for you or find a house and deal with the agent the has the listing.

I have hired a buyers agent twice. The first time the guy tried to sell us anything close to our reqests, he basiscally only cared about selling a house and did not root out stuff we wouldnt have looked at had we known what it was.

Second guy was a friend and did a good job researching and not wasting our time.

Either way, REs are in it for the money so take what they say with a grain of salt.

Seller pays RE fees, you will have to pay closing costs on your mortage loan.

Best advice I can pass along is to research where you want to live, pick a price and stay with it. Dont fall in love with a place and pay to much.

Get an inspection.

GL

 

[isekii]

Originally posted by: Scarpozzi
Inspect the homes you view:
1. Check the roof....look for warping in the decking. Redecking a roof costs a lot more than just putting on new shingles. Also look to see how many layers are up there to begin with.

2. Check the subfloor. Look for mold, weak spots, rotten wood, etc... Especially under bathrooms and kitchen fixtures. You may be able to find where old leaks were, or where current ones are.

3. Remember if you buy a fixer-upper... Kitchens and bathrooms are the most expensive to replace. Everything else can be replaced relatively cheap.

yea i'll definitely get an inspector to check out the condition of the house.

Also, the house isn't in the most perfect condition, It needs a little work hence the price is kinda low.

I dont mind putting in the elbow grease

 

[patentman]

Originally posted by: isekii
I'm looking to put down about $50k towards the house.
The house is listed for 520k which i'm gonna negotiate down to under 500k

From the reading I have done, it seems like the buyer usually has a realestate agent representing the purchaser and one representing the buyer.

Is this correct ?

Also i'm looking at a 30 year year loan with a set rate. With the option to pay couple hundred bucks a month extra if it allows.

1. 50k is a pretty good down payment on a 500k house, but 500k for a house is not "low" no matter which way you slice it.

2. Typically both sides in a real estate transaction are represented by agents. These agents are contractually bound to either the buyer and seller, and must work to achieve their best interest. As a buyer, it can't hurt to have an agent, because the homebuying process can be confusing and a bit overwhelming, especially if you've never done it before. Don't sign any exclusive agreement with a buyer's agent unless it is under 1 month long. You may hate the agent and want to get rid of them sooner than your contract may allow. Note that even if you get ridf of them, if they show you a house and you end up buying it (you work a deal out on the side with the seller wihtout the agent), YOU will be held lkiable for the buyers agent fees (that's part of most buiyers agent contracts).

The seller also has an agenbt working for them. The sellers agent's job is to market the home, do open houses, and guide the home through closing from the sellers perspective. A sellers agents goal is to try and get purchase offers for the highest dollar amount and with the lowest contingencies (such as home inspections, home warranties etc.). Your buyer's agent can help peer through the fluff you are sure to be told by a sellers agent should you meet them. If possible, I would recommend seeing a house for the first time at a time when the sellers agent is not there, so you can get an unadulterated view of the property without some ninny yapping in your ear about how great the house is.

3. If you want to pay extra principal on your mortgage each month, make sure your loan has no prepayment penalty clause. Most standard mortgages do not, but there are some companies (ahem! countrywide! ahem!) that will sneak a prepayment penalty clause in there. If the lender you are talking to only offers loans with a prepayment penalty, I'd look for a different lender.

 

[frankie38]

location, location, location....

I would decide where you want to live first!

 

[thepd7]

Originally posted by: isekii

Originally posted by: Scarpozzi
Inspect the homes you view:
1. Check the roof....look for warping in the decking. Redecking a roof costs a lot more than just putting on new shingles. Also look to see how many layers are up there to begin with.

2. Check the subfloor. Look for mold, weak spots, rotten wood, etc... Especially under bathrooms and kitchen fixtures. You may be able to find where old leaks were, or where current ones are.

3. Remember if you buy a fixer-upper... Kitchens and bathrooms are the most expensive to replace. Everything else can be replaced relatively cheap.

yea i'll definitely get an inspector to check out the condition of the house.

Also, the house isn't in the most perfect condition, It needs a little work hence the price is kinda low.

I dont mind putting in the elbow grease

LOL kinda low. Could get a brand new custom 3000 sq ft house on 2-3 acres here in dallas for 500k.

 

[funboy6942]

Your Down Payment, is what I paid for my home

 

[HeroOfPellinor]

Originally posted by: funboy42
Your Down Payment, is what I paid for my home

I suspect he's not going to be living in Assend, Tennessee.

 

[MrWizzard]

1. 50k is a pretty good down payment on a 500k house, but 500k for a house is not "low" no matter which way you slice it.

Yea it is if you slice it a California (Stupid Value) way. I am looking at a 1800 sq ft. TOWNHOUSE right now for $600k.

Stupid property Taxes.

 

[PingSpike]

Originally posted by: patentman

3. If you want to pay extra principal on your mortgage each month, make sure your loan has no prepayment penalty clause. Most standard mortgages do not, but there are some companies (ahem! countrywide! ahem!) that will sneak a prepayment penalty clause in there. If the lender you are talking to only offers loans with a prepayment penalty, I'd look for a different lender.

Does paying a few hundred extra bucks (or any amount) reduce your required monthly payments afterwards at all in these situations?

 

[funboy6942]

Originally posted by: HeroOfPellinor

Originally posted by: funboy42
Your Down Payment, is what I paid for my home

I suspect he's not going to be living in Assend, Tennessee.

Yupers, ah huh, I lives in assend TN, with my cows, chickens, n pigs, bitch go make me some pie, and while ur at it, fetch me anuder budwiser. Me and Luke are going into town in da General Lee to pick us up some more corn for the still.

 

[imported_sicko]

That 50k you are using towards your down, make sure you have a few extra bucks on the side for closing costs (title fees, mortgage recording fees, mortgage tax (at least for NY), bank attorney fees.) If you want to pay less out of pocket on closing day, try to close towards the end of the month so you don't have to make any mortgage payments until 30 days later.

To give you an idea, I bought a house last week and at closing I had to pay the following fees:
1, interest from the day of closing until the end of the month (because my next mortgage payment is June 1st. (about $3500 there)
2, title fees (few thousand), mortgage tax (1.8%), mansion tax (1%), recording fees (couple hundred bucks) ($45k there)
3, my attorney fee, bank attorney fee (my attorney was more, bank attorney was like 500 something)
4, Commitment fee, application fee (about $1000, Citimortgage gave me 500 Citigold credit so comes out to about $500 afterall)

Ask the attorney to get a copy of the HUD-1 showing all title fees, bank fees, bank attorney fees a day before closing so you bring enough money to the closing table.

I also noticed that you are putting 10% down instead of 20%, I know a lot of banks are willing to do 100% financing with piggybacks for people with stable income decent credit, however you might still be able to get a better rate with a lower loan to value ratio (I might be wrong but in my few investment properties that I have purchased last year, each time I offered less down I get quoted a higher rate), so YMMV.

As for finding a house part, unless you are interested in NYC real estate, I really don't have much advice, shop around for your mortgage, get a few different quotes from different banks.

 

[IHateMyJob2004]

LOCATION, LOCATION, LOCATION

THat's all that matters.

And do a fixed rate loan. e-loan.com works fine.

 

[imported_sicko]

Originally posted by: IHateMyJob2004
LOCATION, LOCATION, LOCATION

THat's all that matters.

And do a fixed rate loan. e-loan.com works fine.

This e-loan outfit, are they some kind of subprime lender? NINA loans?!

Less paperwork and hassle. By controlling the loan process in-house E-LOAN has eliminated extraneous steps and documentation. With E-LOAN, the required documentation is limited-no income or asset verification is required-appraisals are usually fully automated or drive-by only, and processing time is reduced to just 10-20 days to fund your loan!

 

[patentman]

Originally posted by: PingSpike

Originally posted by: patentman

3. If you want to pay extra principal on your mortgage each month, make sure your loan has no prepayment penalty clause. Most standard mortgages do not, but there are some companies (ahem! countrywide! ahem!) that will sneak a prepayment penalty clause in there. If the lender you are talking to only offers loans with a prepayment penalty, I'd look for a different lender.

Does paying a few hundred extra bucks (or any amount) reduce your required monthly payments afterwards at all in these situations?

Generally no, although I imagine that there are loan products out there that allow this. In a lot of cases people want their loan strucutred opposite the way you are talking about. I.e., A doesn't make enough money to pay for house X now with a 30year loan, so he gets an adjustable rate mortgage or similar product that keeps his payments low for 5-7 years, and at the end of 5-7 years, when he is making more money, the payment increases.

If you want to make your payment smaller after a number of years paying down your loan with extra principal, you most likely will have to refinance the loan, which means paying another round of closing costs. If you get a significantly lower interest rate and plan to stay in the property for a while after refinancing then paying these costs is Wothwhile.

Oh, one last thing, most lenders will not want you to spend more than 30% of your net pay on housing. If the payment on the house you are talking about exceeds that % of your net income, you might want to consider a cheaper house. It won;t matte rhow nice the place is if you can't furnish it, have some fun in your free time, take a vacation, etc.... due to being "house poor."

 

[patentman]

Originally posted by: MrWizzard

1. 50k is a pretty good down payment on a 500k house, but 500k for a house is not "low" no matter which way you slice it.

Yea it is if you slice it a California (Stupid Value) way. I am looking at a 1800 sq ft. TOWNHOUSE right now for $600k.

Stupid property Taxes.

No, half a million dollars for a house is a freakin lot of money, california or no. Granted, in California that may be considered a cheap house by market standards, but $500k is still a hell of a lot of money. And I feel your pain re: real estate. I am relocating from DC to Boston in August and houses are freakishly expensive up there as well. 600k in the city will buy a 1000-1200 square foot condo.

 

[patentman]

Originally posted by: IHateMyJob2004
LOCATION, LOCATION, LOCATION

THat's all that matters.

And do a fixed rate loan. e-loan.com works fine.

OR, if you want to talk to a live person you could PM me and I could give you the name and number of a buddy of mine who is a mortgage broker. He is based out of Richmond VA but he is helping me with my loan for a purchase in MA, so I don;t see why he could not help you.

 

[alkemyst]

Originally posted by: Scarpozzi

3. Try to pay down what you can and don't fall for the financing deals out there. If you can get a fixed rate mortgage, you'll be a lot better off because rates are only going to go up in the next 5 years.

It's still a gamble. The market is a mess with all the speculating and over development slanted towards investor's over the last 4-5 years.

 

[Rogodin2]

There is no way in hell I'd pay 500000 for a suburban home.

There has to be less expensive homes that need some work that are closer/as close to you.

Rogo

 

[imported_sicko]

In your truth in lending document, it will tell you if you are getting into a loan that has a prepayment penalty, if there is there should be a rider behind your notes.