New House

[Catwoman]

My husband and I have been approved through our bank for a house loan. Does anyone have any tips for a first time buyer? We are considering building...but buying an existing house hasn't been ruled out yet. Sorors and SF I would appreciate any advice.

Thanks!
Sisterly
Catwoman=^..^=

[AKA2D '91]

Congratulations... with the amount I am paying for a one bedroom, one bath...I need to be in your shoes. Good luck with whatever decisions you all make.

[AKAtude]

Congratulations! My fiance could give you lots of advice on this subject. He bought his second home a year ago. He is so ambitious. I'll ask him for some tips and send you an e-mail.

[Taykimson]

Soror Catwoman,

My husband and I made a list of everything our house must have, for example, a certain amount of square footage, brick exterior, age of the house, PRICE (big deal ) etc, etc.

That helped us when dealing with...how do I want to say this..."very assertive" real estate agents that try to convince you a certain house is great, will meet your needs, is a "steal" even though the price is outrageous, etc, etc.

Reviewing your list will be a sanity to check for you and your husband.

I don't have any advice for building. Good Luck!

-----------------
Alpha Kappa Alpha
17-Alpha Phi-91

[This message has been edited by Taykimson (edited July 20, 2000).]

[BFulton]

Good luck! I just sold the first place I owned. Did learn a few things buying it, hope they can help you and your husband!

-Seriously consider getting a home inspection (usually the real estate agent recommends this, well-worth it to know what you're getting into, imho!)
-When you figure what you can afford, figure in plenty of $$$ for the little things - curtain rods, paint, tools you may not already have, roof leaks , etc. All the kinds of things landlords take care of that now come out of your wallet! I was sure glad my mortgage was reasonable when it came time to pay the plumber, etc.!

Enjoy the process! It is so fun to have somewhere you can do up the way you want it!

There are some web sites both on building and on buying an existing house - probably even chat forums. Good luck!

[Catwoman]

Thanks for the advice. We will use it!
AKAtude...did you send the email?

[Eclipse]

Catwoman,
Congratulation on this next phase of your life. Purchasing a home was, for me, one of those "I'm really an adult!" moments.

I second BFulton's recommendation to get a home inspection...whether the house is new or a resell.

Get the title insurance that the closing agent will recommend. In the grand scheme of things, it's relatively inexpensive. There are a couple of people in my subdivision that did not and now they are facing liens because of the previous homeowner or the builder.

To expand on Taykimson's idea about making the list. My hubby and I did our lists separately (without discussing with each other before hand) and divided it into 3 catagories...Must have, nice to have, definately don't want. Again, it helps you keep things in perspective.

If you are looking at resales, try not to get caught up in their decorating style, paint/wallpaper choices or other things that are easily changed. On the same note, be realistic about what cosmetic changes you are going to make immediately, like changing flooring, cabinets, etc.

Talk to the neighbors and see what they like/don't like about their house, the neighborhood. Also, I recommend going to the neighborhood at different times of the day/week. Go early one morning to see what the traffic patterns are like going to work, drive through on a Friday night around midnight to see if there are a lot of loud parties, go on a Saturday morning to see if Bay-Bay's kids live next door, etc. (you get the picture)

Looking at model homes (if you are going to build) can be a lot of fun (my husband & I still do it--for the decorating ideas), but make sure you know what is standard and what is an upgrade. Most model homes will have thousands of dollars worth of upgrades that make the house beautiful. As you start adding the upgrades though, it may take the price out your range.

Make sure you ask if the neighborhood has restrictive covenants, and if so, what they are. Get a copy before you sign a contract. Some covenants can be kind of silly (i.e. no satalite dishes without approval, can't leave your garage door open, the kind of mulch you can use in your flower beds etc.) but most are there to perserve your property values.

Make sure your realator finds out what similar houses have sold for in that area/neighborhood recently. It will help you with your offer.

Remember that everything is negotiable (sp?) and don't be afraid to ask the seller for anything (pay your closing costs, repaint rooms, leave the refridgerator/drapes, etc.). All they can do is say no.

DO NOT close until all of your conditions have been met. There are a lot of unscrupulous (sp?) builders out there who will say we will fix the hole in the wall, rip in the linolium, leak, etc. after the fact, and you never see them again.

Sorry it got so long.....I know there are more but that's all I can think of right now. Like someone else, said...have fun!!

Oh yeah...when you get to the closing table:
1. Don't forget the downpayment check (I did! DUH!!) and
2. DO NOT look at that final number of how much you will have paid after 30 years. It will just depress you and make think about the kind of house you could have purchased if you could pay cash!!

[Eclipse]

Daaaaang, Why didn't someone tell me to shut up before I wrote a book?!?! LOL

[AKA2D '91]

ttt

Any tips for potential home buyers?

[Wonderful1908]

Well I am so excited to be able to reply!!Our house was built in September! Buying a house right NOW is something everybody who is renting should be considering. The rates are the lowest in decades and there are tons of programs for everybody from good credit, bad credit, single, married, young and old. Also you would be surprised how little money you need to buy a home. Don't think you have to have perfect credit and $25,000 set aside for a down payment. A soror just bought her first home at 26 in New Orleans and she is single and my single 24 year old brother is about to purchase a home. I am 27 and married, but my Mom just bought her first home a condo and she is 46. So I really think everybody should look into it. Like my Mom says let someone tell you no don't assume.


1. I would run my credit ( do not be afraid) and take it to various lenders mortgage borkers to have them review it and SECURE financing first. You can't shop truly without an idea of what you qualify for.

2. Research the rates and programs for people in similiar situations such as yourself.

3. Decide where you want to live and consider the areas around that area. I live in Houston and the closer to the SW side the higher, I live on the north side which is quiter and cheaper. In real estate the first rule is location, location, location! Good schools also are an indicator of price.

4. Consider new and resales. Here in Houston we had our house built, because it was basically the same price as a resale. I loved being able to pick out my carpet, tile, lot, options, etc. Resales are cool though because they usually have things like established yards, neighborhoods, fixtures, etc.

5. What do you like? One or two story, big yards, home, or condo? Make a list of what you have to have, like to have, would be awesome to have. Find a house that meets those needs. I had to have 3 bedrooms, 2 1/2 baths, breakfast area. But ended up with a 2 story, 4 bedroom +gameroom, 2 1/2 bath, nook, dining room, living room (but thats a seperate thread on the blessings of God)

6. Take your time, the housing market is hot and will be there this will be your largest purchase ever. If you live in a hot area like Cali or NY you need to be more aggressive but if your somewhere like down South its your market. Also keep in mind what incentives you can get. Alot of sellers will cover closing costs and alot of builders will give you upgrades and free options. (Sidenote if giving the choice take the closing money) Our builder paid most of our closing costs.

Most importanly pray and make sure when you pull into your driveway you are happy! Good Luck!!!

[Conskeeted7]

We are closing on our new house in a few weeks!!
If I'd known a few years ago what I know now, I would have had a house right out of college. Even if it wasn't my dream house, the equity I would have built by this time would have been worth it.

I agree with Soror Wonderful about getting with a lender and figuring out what you are eligible for. That makes the search realistic. Why waste time looking at $4 million mansions when you're approved for $100K? Also, you are never too young or old.

You have to think a lot about your situation too. If you know you aren't going to stay in the area, you have to think about the possible resale of this home. Is it in a desirable area? Will it take a long time to sale?

Don't buy on impulse either. Just because you love the first house you see, doesn't mean make an offer that day, unless you're in a really hot market. Shop around.

Hope that helps.

[DC_Zeta1920]

this is great info. Myself and the s/o are talking about purchasing a house as well. I will have send some of these comments to my printer

Good luck Catwoman!

[SummerChild]

I had a contract last spring but cancelled it b/c the bar exam and graduation was a little too much to deal with at the same time. At any rate, I have some tips.

YOU (not lenders, brokers, etc.) run your credit from each of the three major credit agencies and dispute anything that you think is wrong. Lenders and brokers that you talk to will say that they have to run your credit before discussing with you what you qualify but it's not true. All they need is your credit score (which will appear on the credit reports that you run) and your debt to income ratio and a couple of other pieces of info like how long you've been at your job.

if you run it, it won't hurt your score. if they run it, you have something like three times in a 30 day period to have it run but it will still drop your score a little. so be sure of who you want to go with *before* you let *them* run your credit. you can run your own at fico.com. also, some credit card companies offer a free report once a year (but you want to see all three b/c the information may vary oddly enough - mine did, and the scores did as well).

to find out who you want to go with, do research by calling around to different banks, lenders AND YOUR CREDIT UNION. credit unions often have the best rates and if you don't belong to one, join one for $5 and then you instantly have all of the benefits. ask about what their interest rates would be based on your credit score. you take the middle score, not the average of the three, the middle one is the one that they will use. albeit not terribly scientific and a bit random, that's the one that they use. if you're over 680, you qualify for the best rates (the same rates as anyone with 700 or above). if you've between 620 and 679 or so, you have middle-tier credit and will have a higher interest rate, etc. Just shop around. There are lots of first-time homebuyer programs, no money down programs, etc. Magic Johnson has a program through Washington Mutual for instance that allows folk with scores lower than 679 or 620 (one of the two) who purchase in economically depressed areas (that may or may not be being revived) to get some ok terms on the loan. A few percentage points in an interest rate can raise the mortgage payment (and the interest paid over the life of the loan) significantly so shop around, just like with buying a car or anything else and don't go with the lender located at a development that you may be looking at necessarily. They may not have the best deal and basically may be just preying on people who are either too lazy or not saavy enough to know that getting a loan is like anything else that one purchases and one must shop around.

Back to credit report: dispute anything that is negative also. The company has the burden of proving that you were late and often, even if you may have actually been late, the company won't bother to prove it and it gets removed. It's really as simple as that. You can dispute it over the telephone (you don't have to write letters), just call up Equifax, Transunion and Experian and get to disputing anything that is negative. The company has 30 or so days to respond and if, after that time, they do not prove that you were late, it comes off.

ETA: invest $500 and get a good real estate attorney. it's a small price to pay to ensure that all of your contingencies are in the contract and that your interests are being protected. anything that you want done to the place, have your atty put it into the contract as one of the contingencies for the deal to go through. that's the *only* way that you are even mildly guaranteed that the seller will do what the seller says (even if the seller is a developer). with a contingency clause, if it doesn't happen, you don't ahve to close and the atty should draft the clause such that you don't lose your earnest money either. also, have *your own* inspection done by a professional (even if it's a new property). don't rely on the builder's or seller's inspection b/c, again, you want someone who will be on your side telling you what's wrong with the place. also, even new developments have issues that come out in inspections, esp b/c many developers now are cheapskates that may or may not even been building houses for some time, and the place may not be up to code, or the foundation may be weak, etc. even though it looks nice. in a condo in one development that i was looking at for instance, my agent and i were walking the place and he found a hole under the carpet just by walking and bouncing up and down on an area of floor that he noticed "gave" a little too much when we walked on it...and this was a brand new gut rehab.
i talked to owners there (who had already purchased and moved in) and they said that they were trying to get the developer to come back and put in foam in the ceilings b/c they could listen to tv at their neighbor's house (while they were in their own house). again, a brand new gut rehab.

also, get your *own* agent and ensure that your agent is a "buyer's agent" NOT THE SELLER'S AGENT. They *have* to tell you if they are also repping the seller. You want someone who might be halfway impartial so get your own agent. And interview your agent. If your agent won't run comps for you (comparisons of what similar homes in the community have sold for - to give you an idea of a fair offer) then you have a lazy agent and push on. Also, if your agent is only doing it part time and actually has other employment too (trust me, I experienced this) push on.

Originally posted by AKA2D '91
ttt

Any tips for potential home buyers?

[SummerChild]

Soror, did you consider buying a plot and having someone that you identify build it? I am looking into this option and wonder how hard it is and whether there are significant cost savings.

SC

Originally posted by Wonderful1908
Well I am so excited to be able to reply!!Our house was built in September! Buying a house right NOW is something everybody who is renting should be considering. The rates are the lowest in decades and there are tons of programs for everybody from good credit, bad credit, single, married, young and old. Also you would be surprised how little money you need to buy a home. Don't think you have to have perfect credit and $25,000 set aside for a down payment. A soror just bought her first home at 26 in New Orleans and she is single and my single 24 year old brother is about to purchase a home. I am 27 and married, but my Mom just bought her first home a condo and she is 46. So I really think everybody should look into it. Like my Mom says let someone tell you no don't assume.


1. I would run my credit ( do not be afraid) and take it to various lenders mortgage borkers to have them review it and SECURE financing first. You can't shop truly without an idea of what you qualify for.

2. Research the rates and programs for people in similiar situations such as yourself.

3. Decide where you want to live and consider the areas around that area. I live in Houston and the closer to the SW side the higher, I live on the north side which is quiter and cheaper. In real estate the first rule is location, location, location! Good schools also are an indicator of price.

4. Consider new and resales. Here in Houston we had our house built, because it was basically the same price as a resale. I loved being able to pick out my carpet, tile, lot, options, etc. Resales are cool though because they usually have things like established yards, neighborhoods, fixtures, etc.

5. What do you like? One or two story, big yards, home, or condo? Make a list of what you have to have, like to have, would be awesome to have. Find a house that meets those needs. I had to have 3 bedrooms, 2 1/2 baths, breakfast area. But ended up with a 2 story, 4 bedroom +gameroom, 2 1/2 bath, nook, dining room, living room (but thats a seperate thread on the blessings of God)

6. Take your time, the housing market is hot and will be there this will be your largest purchase ever. If you live in a hot area like Cali or NY you need to be more aggressive but if your somewhere like down South its your market. Also keep in mind what incentives you can get. Alot of sellers will cover closing costs and alot of builders will give you upgrades and free options. (Sidenote if giving the choice take the closing money) Our builder paid most of our closing costs.

Most importanly pray and make sure when you pull into your driveway you are happy! Good Luck!!!

[Wonderful1908]

Originally posted by SummerChild
Soror, did you consider buying a plot and having someone that you identify build it? I am looking into this option and wonder how hard it is and whether there are significant cost savings.

SC

Soror,

We did not look for lots of land and pick an independent builder we picked out our lot from the lots availbale in a new home community. I am not sure about finding an independent builder and building on a lot you have independently purchased. I have a co-worker who is building her house like that (on some land her parents had) and you simply are hiring independent contractors to do the various tasks in building a home, which is what the builder is doing anyway. I would imagine it would have to be cheaper since you are handling the tasks that need to be done.