But let's leave the Buffalo in New York, shall we?
McStudly and I are going to buy a house (we're probably at 85% sure, right now - is that normal?). So...
HELP!!!
Whew... we have NO clue what we're doing. I mean - where do you start? What do you do first, and what do you have to know? How much money do you need IN pocket? What about VA Loans - how do they work, and how do you get them? How do you know what types of places to look at? What's important to make note of in the houses when you see them? What should I avoid? Who's the best mortgage company? What if something goes wrong right after we buy it? What if the housing market gets even worse, and we're stuck? What if we get hit by a horrible storm and the house is levelled? How much does home owners' insurance typically cost each month? What about taxes - how does that work? How do you do the whole escrow thing, adn how much do you have to put away each month? Does it work liek a bill - where they send you something every month and you send it back with a check? After buying the house - how do you afford to FURNISH the house? What about painting... should you do it before you move in? Are we too young to buy right now? What if someone loses a job - how do you keep paying for it? What if the oven, fridge, and dryer break the week after you move in - do you have to pay to fix it? How do you convince sellers to pay closing costs? How much money is typical for a good EMD? What is acceptable and unacceptable to ask for form the sellers when making an offer - I mean... can I ask them to leave their bedroom set, or is that tacky - but it's really nice!!
SO MANY QUESTIONS!!!
Okay - so I'm NOT really freaking out nearly as much as it seems, but I am a woman, and every possibility and every question IS running through my mind right now. PLUS - you've got Hotpants McStudly, over here, who's worse than I am, and want's to weigh the pros and cons, all the while really focussing more on the cons. ha ha... boy are we funny!!
So - I've said all of that really just to say this: Got any advice?
PS - the agent we're going to use is awesome, so I'm sure she'll answer questions when we finally get to sit down with her, but I'm inpatient, and this girl needs answers, people!! I want to feel liek a real estate genius, and I don't want ANY surprises when stuff starts rolling. Help a sister/first-time-home-buyer out!
McStudly and I are going to buy a house (we're probably at 85% sure, right now - is that normal?). So...
HELP!!!
Whew... we have NO clue what we're doing. I mean - where do you start? What do you do first, and what do you have to know? How much money do you need IN pocket? What about VA Loans - how do they work, and how do you get them? How do you know what types of places to look at? What's important to make note of in the houses when you see them? What should I avoid? Who's the best mortgage company? What if something goes wrong right after we buy it? What if the housing market gets even worse, and we're stuck? What if we get hit by a horrible storm and the house is levelled? How much does home owners' insurance typically cost each month? What about taxes - how does that work? How do you do the whole escrow thing, adn how much do you have to put away each month? Does it work liek a bill - where they send you something every month and you send it back with a check? After buying the house - how do you afford to FURNISH the house? What about painting... should you do it before you move in? Are we too young to buy right now? What if someone loses a job - how do you keep paying for it? What if the oven, fridge, and dryer break the week after you move in - do you have to pay to fix it? How do you convince sellers to pay closing costs? How much money is typical for a good EMD? What is acceptable and unacceptable to ask for form the sellers when making an offer - I mean... can I ask them to leave their bedroom set, or is that tacky - but it's really nice!!
SO MANY QUESTIONS!!!
Okay - so I'm NOT really freaking out nearly as much as it seems, but I am a woman, and every possibility and every question IS running through my mind right now. PLUS - you've got Hotpants McStudly, over here, who's worse than I am, and want's to weigh the pros and cons, all the while really focussing more on the cons. ha ha... boy are we funny!!
So - I've said all of that really just to say this: Got any advice?
PS - the agent we're going to use is awesome, so I'm sure she'll answer questions when we finally get to sit down with her, but I'm inpatient, and this girl needs answers, people!! I want to feel liek a real estate genius, and I don't want ANY surprises when stuff starts rolling. Help a sister/first-time-home-buyer out!
1 comments:
OK, Cory and I have BEEN here and seen FRIENDS here...So as your SISTER I will answer as many of these questions as I can.
Where do you start? - Get a RE Agent and get pre-approved
What do you do first? - Meet with your RE Agent and get all your wants and needs and desires in check and your questions answered. What do you have to know? - You don't HAVE to know anything, you will and should learn alot from your RE Agent...however ask TONS of questions and not just of your RE Agent, talk to other people and alot and listen. These other people have bought homes and have been where you are. That is how you learn.
How much money do you need IN pocket? - As far as what you bring to the table, that ranges. From $0-$20k, it all depends. Usually on what you can honestly swing...if $0 is it, then $0 is it. And you will probably look closer at homes that offer clsoing help.
What about VA Loans - how do they work, and how do you get them? - This one I am not to helpful on...Email as many friends as you can and ask if any of them have done a VA Loan and ask then for advice and wisdom.
How do you know what types of places to look at? - You have to be open. Start at the top...location. I have been told to pick no LESS then 5 cities local to where you are looking. Then you decide on your HOME NEEDS - it needs to have a dishwasher, it needs to have 3 bedrooms, etc. Then you decide on your HOME WANTS - I want a big backyard, I want hardwood floors. Your NEEDS are your no-comprimise areas and your WANTS are your comprimise areas.
What's important to make note of in the houses when you see them? - In all honesty, DO not go alone. Take someone who owns a home...Cory and I, Mom and Dad other friends that you are close to that own. We have seen the water heater bust and the basement flood and the AC go down...we know what to look for.
What should I avoid? - Avoid AS-IS homes unless you are willing to go into a fixer upper which can turn more into a money pit and I woudln't recommend for a first-timer. Also avoid homes with no home inspection or warranty. but your RE Agent will be smart enough to tell you that!
Who's the best mortgage company? - this varies right now...and you probably will not know your Mtg company till after you sign the paperwork, due to your loan being SOLD. That's how it ususally works.
What if something goes wrong right after we buy it? - that is why you get a Home Inspection and/or Warranty. It covers alot of stuff and make sure you READ your contract and that it is air tight.
What if the housing market gets even worse, and we're stuck? - you won't be stuck. You will be owning a HOME. Just don't, don't, don't get an adjustable rate mortgage or an interest only or ARM loan. And you are fine. No one can take that from you unless you stop making payments.
What if we get hit by a horrible storm and the house is levelled? Home Owner's Insurance my dear.
How much does home owners' insurance typically cost each month? - It depends on the amount of your homes worth and what is covered. Ours is not bad at all really.
What about taxes - how does that work? - Determined by the government and again not THAT horrible.
How do you do the whole escrow thing, and how much do you have to put away each month? - Your escrow amount will be worked out before you get your final mtg payment. My advice, pay your Home Owners Ins and Taxes out of escrow each month. It is literally a smaller bite from your pocket each month, your mtg company pays it for you and it's two less bills.
Does it work liek a bill - where they send you something every month and you send it back with a check? - You CAN do it that way, but like mentioned above...but working it through your mtg payment is so much easier.
After buying the house - how do you afford to FURNISH the house? - Slowly you afford it. Do not think that you need to afford to furnish the entire thing in the first month. My advice, if you need furniture, get used or loaner furniture from friends till you can replace it with what you want. Your whole world may not match at first, but trust me that will coem in time!!
What about painting... should you do it before you move in? I would AT LEAST put a coat of fresh white paint on the walls when you move in. Just seems cleaner and more like YOUR OWN BLANK SLATE to work with. But if you know your colors, then go for that as well! BEFORE you move in is REALLY helpful, but not neccessary.
Are we too young to buy right now? - NO, you are not to young to buy now. Setting yourself up with a home now will help in the future. When you really find that dream house, think of the funds you can take from the sale of this house to pay for your next one and so on. Or you can have a rental property and earn extra $.
What if someone loses a job - how do you keep paying for it? - You move on and get another job. You persevere. God will take care of you if you take care of him.
What if the oven, fridge, and dryer break the week after you move in - do you have to pay to fix it? -Unless there is a clause in your contract, then yes you have to fix it. Allow me to introduce you to the ding-n-dent store. Sears has this store with tons of appliances discounted because there is a little 'ding' in the BACK of it, that no one can see and they are for CHEAPO...no need to buy BRAND new...these are NEW off the truck. So worth it!
How do you convince sellers to pay closing costs? You don't CONVINCE them, they usually offer it or not.
How much money is typical for a good EMD? - These are not neccessary. Cory and I have never done it. And with this market people just want to SELL so it's not like you gotta show them how serious you are. Your pre-approval letter means more to most people. If anything, just offer a little more than the average bear, that will show your serious.
What is acceptable and unacceptable to ask for from the sellers when making an offer - I mean... can I ask them to leave their bedroom set, or is that tacky - but it's really nice!! - Yeah no. Can't do that. Usually only appliances and blinds etc convey (stay with the house). :) Nice try though.
HOPE THAT HELPED!!!! *the world's longest COMMENT!!! yeah!!!*
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