So I'm in the process of buying my first house:rockin:! I will be submitting the contract to the loan officer this week and the ball will finally be rolling. The process seems a little daunting but I'm confident that it will all go smoothly. I'm just curious if there is anything that you home owners have as far as advice/suggestions? Maybe even some things that you wish you would have known/done that you weren't aware of prior to your home purchase. I appreciate any feedback regardless how basic it may seem. One thing I know for sure, I will be brewing my first 10 gallon batch once I get settled in to break in the new pad.
First time home buyer
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danorocks17
Well-Known Member
If you have saved a lot of money for a down payment, save some of it. Our lender told us to do that and I"m glad he did because we needed the money for various improvement projects the first year we were in the home. Granted, our house was 50 years old when we bought it, but I would still recommend saving a few grand for unexpected "issues".
PA49erFan21
Well-Known Member
Resale value........resale value........resale value.....
If you have kids, how are the schools? Any homeowner association fees? Approximate utility costs. Local and School taxes. Is the kitchen big enough? Is there enough storage and closets? It's a big purchase and one you'll have for at least the next 5 years if you want to at least break even when you go to sell it. Make sure you love it and it has what you want.
If you have kids, how are the schools? Any homeowner association fees? Approximate utility costs. Local and School taxes. Is the kitchen big enough? Is there enough storage and closets? It's a big purchase and one you'll have for at least the next 5 years if you want to at least break even when you go to sell it. Make sure you love it and it has what you want.
broadbill
Well-Known Member
I'll add: how much do you and your wife like your jobs, and how stable are they? How much do you like the area in which you live...are you OK having to stay there for a long time? A house is all well and good, but will become a huge liability if you lose your job(s), have to/want to move, etc.
In the old days people brushed this sort of stuff off, counting on the fact they could unload a house and maybe make a little money in the process...not sure that sort of thinking applies anymore.
In the old days people brushed this sort of stuff off, counting on the fact they could unload a house and maybe make a little money in the process...not sure that sort of thinking applies anymore.
Congrats! I hope it goes smooth.
Make sure your realtor wraps a house warranty (http://www.ahs.com) into the deal. Usually the sellers will pay for it. Look into it, well worth the (small amount) of money imo. Covers a ton of things, I've bought a few homes and made my money back time and time again.
Make sure your realtor wraps a house warranty (http://www.ahs.com) into the deal. Usually the sellers will pay for it. Look into it, well worth the (small amount) of money imo. Covers a ton of things, I've bought a few homes and made my money back time and time again.
normnmiles
Active Member
BE SURE TO LOOK AT THE PLOT SURVEY before closing!!! Double check all easements or other right aways on your property to avoid any surprises. You don't want to close on a house with a big back yard only to be informed that it is all easement and your use of that land is restricted.
Good luck.
Good luck.
amen to that
ReverseApacheMaster
Well-Known Member
Looks like a ripoff to me.
Definately be sure of the zoning around the house. Any mixed or non-residential is a big red flag.
First house is a ball. Make sure to make friends with the neighbors - it's really important, especially when they find your kids on their roof or painting their car tires.
Instead of big house projects, concentrate on painting each room, one at a time. Paint is the cheapest but most effective change you can make.
Spend a day and figure out what improvements are tax deductible. Make a folder NOW and you and your wife start tossing receipts in there. You won't find them at the end of the year if you don't do that.
Paint the garage before you move in. It's almost impossible to do this later... it will collect some serious crap fast.
Get into the attic and consider how you can put simple plywood flooring up there if it isn't already present. I can't believe how many people don't take advantage of this huge storage space.
Enjoy!
First house is a ball. Make sure to make friends with the neighbors - it's really important, especially when they find your kids on their roof or painting their car tires.
Instead of big house projects, concentrate on painting each room, one at a time. Paint is the cheapest but most effective change you can make.
Spend a day and figure out what improvements are tax deductible. Make a folder NOW and you and your wife start tossing receipts in there. You won't find them at the end of the year if you don't do that.
Paint the garage before you move in. It's almost impossible to do this later... it will collect some serious crap fast.
Get into the attic and consider how you can put simple plywood flooring up there if it isn't already present. I can't believe how many people don't take advantage of this huge storage space.
Enjoy!
That's why you get the seller to pay for it.
Make sure the neighborhood is good. Nearly anything about a house can be changed except for the location. If I could do it over, I would have gone for a 15 year or 20 year mortgage right away instead of refinancing for one later.
A lot of good advice here. Thanks for all the replies. I will be getting the house well below the appraised value so it will have instant equity. That is one of the main reasons that I am choosing to buy it. I will definitely be looking into some of the suggestions made though.
Make sure it's not in a flood plane/zone. Home owner Insurance in those area's is insanely expensive, even if there hasn't been a flood in 20 years.
I almost bought a house once that turns out was near a creek, which the city zoned a floor plane. The insurance for that house was so expensive. And you don't usually find out about insurance cost until near closing.
I almost bought a house once that turns out was near a creek, which the city zoned a floor plane. The insurance for that house was so expensive. And you don't usually find out about insurance cost until near closing.
TexasAggie
Active Member
How important is it to have 20% down payment? Anyone get by on a smaller percentage down without the PMI getting too expensive? Is 5% or 10% a deal breaker?
You are going to be amazed at what you will need to buy to get started. I'm talking appliances, brooms, mops, lawnmowers, rakes, shovels, shower curtains, etc... If you're married add nicknacks and lots of pictures to the list. If you're single you can go ahead and put a pool table in the living room. Make sure you have some spare cash for that stuff. I wasn't ready for it at all.
Also, you will have at least one crazy neighbor. Be prepared...
Congrats - there is nothing better than having your own house.
Also, you will have at least one crazy neighbor. Be prepared...
Congrats - there is nothing better than having your own house.
This. We have underground utilities. Last 5 feet to the back fence is a no build easement. Not a big deal, fire code says 6 feet from property lines anyway. But rather than risk having our veggie garden torn up mid season if the power line needs work, it too is 6 feet from the fence.
What wasn't on the plot, or plat, was the comm wires buried in the yard. If you find thin, plastic coated wires a few inches under the ground, those are markers for the real wires further down.
For sure make nice with neighbors. I got into home brewing that way.
Plan your work and work your plan. We got way over ambitious way too fast. Still fixing stuff. And re fixing stuff.
Prime before you paint. Oh, but I'm painting over white. Uh-huh. That's what I said too. Prime before you paint.
Unsealed popcorn texture on a ceiling, that junk rolls right off, onto your paint roller. Seal, remove or spray paint that junk. And the older stuff could contain asbestos.
And while you're in the attic, check for insulation.
No flood plain here, but the way the other yards slope makes our yard a lake in real heavy rains. Try to eyeball for that stuff. Otherwise, you'll be digging French drains and maybe even putting a sump pump in a bucket in your backyard.
And get a home inspection before signing.
And pay attention to the foundation. Cracked mortar, cracked sheet rock and a floor that looks like a wave pool are not good things. We passed on several for that reason.
Oh yea, if you are a vet make sure to buy all your stuff at Lowe's. 10% off everything forever off with an old ID card.
bosdave
Well-Known Member
A few thoughts.
1. It is most certainly NOT a rip off to get the home warranty. A home inspection will most often only check if appliances work. Not if they are actually operational. Also, as mentioned, make the sellers pay for it.
2. It is really hard to do, but pay attention to the small details, get up close to the wall paint and look for shortcuts, do this with as much of the house as you can. I assure you that if corners were cut on the simple stuff (painting) then they will likely be cut on any larger, more important things.
3. There is no such thing as one perfect house. Do not trick yourself into a bidding war, or quick purchase, because you 'fall in love' with a house. There will be another one just like it, probably for less money nearby.
4. It is easy to get ambitious on home improvement projects both before you buy a house and after you buy a house. Know yourself, if you are an electrician, plumber, and construction worker, etc. then buying a fixer upper may be a good idea for you. If you aren't then don't buy something that needs any sort of a remodel. Small projects are fine, but it is very easy to bite off more than you can chew.
5. Do NOT be afraid to ask the seller to do EVERYTHING that the home inspector brings up as an issue, no matter how big or small. At the very least it is a good starting point for negotiations, at the worst, refer back to point 3.
6. Require that the sellers have the house and carpets cleaned by professionals. Require that you agree on which service they use. If you don't they will have a Russian guy with a 1975 Diesel Mercedes sedan out front using a carpet cleaner that he rented from Home Depot. Be a jerk if you have to, you will likely never see these people again and you will regret it if you don't.
7. Refer to point 3.
8. Enjoy! Buying your first home is an exciting time!
For what its worth, I bought my first house about 11.5 months ago and all of the above were either lessons learned or good planning.
1. It is most certainly NOT a rip off to get the home warranty. A home inspection will most often only check if appliances work. Not if they are actually operational. Also, as mentioned, make the sellers pay for it.
2. It is really hard to do, but pay attention to the small details, get up close to the wall paint and look for shortcuts, do this with as much of the house as you can. I assure you that if corners were cut on the simple stuff (painting) then they will likely be cut on any larger, more important things.
3. There is no such thing as one perfect house. Do not trick yourself into a bidding war, or quick purchase, because you 'fall in love' with a house. There will be another one just like it, probably for less money nearby.
4. It is easy to get ambitious on home improvement projects both before you buy a house and after you buy a house. Know yourself, if you are an electrician, plumber, and construction worker, etc. then buying a fixer upper may be a good idea for you. If you aren't then don't buy something that needs any sort of a remodel. Small projects are fine, but it is very easy to bite off more than you can chew.
5. Do NOT be afraid to ask the seller to do EVERYTHING that the home inspector brings up as an issue, no matter how big or small. At the very least it is a good starting point for negotiations, at the worst, refer back to point 3.
6. Require that the sellers have the house and carpets cleaned by professionals. Require that you agree on which service they use. If you don't they will have a Russian guy with a 1975 Diesel Mercedes sedan out front using a carpet cleaner that he rented from Home Depot. Be a jerk if you have to, you will likely never see these people again and you will regret it if you don't.
7. Refer to point 3.
8. Enjoy! Buying your first home is an exciting time!
For what its worth, I bought my first house about 11.5 months ago and all of the above were either lessons learned or good planning.
My local HD only honors discounts to vets on Vets day and maybe a few other holidays. I think they only give year-round discounts to active duty.
broadbill
Well-Known Member
Personally, I'd steer away from Lowes/HD for most things. Some of their stuff is acceptable quality (for example, lumber is lumber)...some of their stuff is crap. Their mid-price point product tends to be build of lesser quality than what you would typically find at an independent seller/hard-ware store. Things like lawn mowers, wheelbarrows, hoses...that sort of stuff.
Just my personal experience...
Just my personal experience...
Erroneous
Well-Known Member
I'd like to add don't purchase any kind of home improvement projects on credit. If you can't pay for it right out then save for it.
ajlee
Well-Known Member
Kikshaaz said:
All this advice is good, but this is the best one. Also, if your following this you can self insure through the things the home warranty covers by adding money to a repair/replace fund each month. Nice thing about that is, if things don't break and the fund gets to be too large you get to keep your money and use some of it for something else. Money spent on a home warranty contact is just gone.
Find a reputable home inspector, make sure they have a construction background, not a certificate from an online course. If you can't find one, call a good local general contractor to do the inspection for you. Be there when they do the inspection and ask plenty of questions.
And I will second the most important advice, location. I bought a really nice house for a really nice price in a neighborhood I didn't know much about, worst mistake I ever made.
And I will second the most important advice, location. I bought a really nice house for a really nice price in a neighborhood I didn't know much about, worst mistake I ever made.
Darwin18
Well-Known Member
My advice would be to NOT purchase a home at the maximum value that you've been qualified for. I purchased my home in 2009 with the thought in mind that if my wife or I were laid off that we could pay the mortgage on one paycheck. That did happen two years later to us. Oh and enjoy the shopping around - house hunting was fun for me.
+1000. If you can, live light and put extra $$ on the principal.
Learn to do basic remodeling and save your self a bunch of $$ in simple repairs that can make a house a nice place to live.
Things break down. I hope you are handy or rich.
When you do a project, never finish it. Nothing says "This is MY house!" like unfinished drywall.
More great responses. I am pretty handy and I enjoy DIY projects so I plan on doing a lot of things myself and saving money where I can. I'm not sure if I mentioned but the sellers are family friends and the house hasn't been put on the market because they wanted someone they knew to get the house. They are selling it WAY below value so I believe I should have a bit of equity from the start. I was over there today and meet one of my possible future neighbors. Real nice older guy and sounded excited for me and the fam to be moving in. He also mentioned a few other neighbors and that they had been in the neighborhood for quite some time. I'm still not rushing it but as time passes I'm feeling better and better about this. Thanks again for the input guys, I will be using quite a bit of what's been suggested.
bosdave
Well-Known Member
This is only partly true. Put everything on credit that you can, but don't buy something that you couldn't pay for in cash.
Make your money work for you!
Erroneous
Well-Known Member
Sorry didn't realize anybody got interest anymore
True enough though if you can make money off cash in hand make it until your payment is due. Get a better credit rating to boot. I just know even my crappy savings account gets no interest.
True enough though if you can make money off cash in hand make it until your payment is due. Get a better credit rating to boot. I just know even my crappy savings account gets no interest.
Make sure you love the house before you buy.
Get the biggest garage you possibly can. The only thing I would change about my house is for it to have a bigger garage.
Check out the city you're moving to before you buy. I love the city I live in. All my utilities except gas are on one bill. My power has never gone out for more than a few hours because the city has it's own linemen. Free brush pick up. I need to get a tree cut down and since it's in the parkway the city will take care of it for free!
Never buy a condo or in a sub division. I didn't but I personally don't want to deal with a homeowners association. My inlaws lived in an area with a homeowners association and it sounded like a total pain in the ass for them.
Get the biggest garage you possibly can. The only thing I would change about my house is for it to have a bigger garage.
Check out the city you're moving to before you buy. I love the city I live in. All my utilities except gas are on one bill. My power has never gone out for more than a few hours because the city has it's own linemen. Free brush pick up. I need to get a tree cut down and since it's in the parkway the city will take care of it for free!
Never buy a condo or in a sub division. I didn't but I personally don't want to deal with a homeowners association. My inlaws lived in an area with a homeowners association and it sounded like a total pain in the ass for them.
Erroneous
Well-Known Member
HOAs are good and bad. They can help keep home values up by preventing owners from destroying their homes, but on the other hand they can be a pita. If it has a HOA check their rules and fees first so you know what you're getting into. Ask the owners or neighbors what they think about it. That said my neighborhood doesn't have an HOA
broadbill
Well-Known Member
....and that right there would be a big warning flag for me. Call me a cynic but there is any number of ways this deal could go bad for you. Family friends? Selling WAY below equity? Why? If that house meant so much to them, why are they selling? Why do they care who ends up in it?
Emotion has not place when making the largest financial decision of your life. At least protect yourself and get an inspection, appraisal, and a home warranty. Cheap insurance in case somebody has decided to take you for a ride. Just my 0.02
rifraf
Well-Known Member
broadbill said:
+1000
Darwin18
Well-Known Member
Well said. This is a major financial decision for yourself and the current homeowners. Emotion really shouldn't come into play here. The fact that they are selling it below current value as a "favor" for you is something you should be suspicious of. They may be great family friends but most people will not give away equity during a sale...You need to ask yourself why they are doing this and have a very thorough inspection done. It really does throw up a lot of red flags.
Your neighbors may also be happy you're moving in but I guarantee you that when they find that the current owners are selling well below value that they will not be pleased.
I agree with you 100%. I don't let emotion shape my decisions and am somewhat cynical myself. I have been pouring over this for some time now looking at the facts, mainly what could go wrong and have had many of them put to rest. I just meant that I'm feeling more like this is a safe decision. The bank requires an appraisal so I'm covered there and I am definitely getting a thorough inspection before the deal is done. The family friend that owned the house passed away earlier this year and her children said they just wanted to sell the house quickly because having to deal with the house is making it difficult to move forward at this stage of the grieving process. They said with the price where it is they could pay off the rest of the house and each of the children would still get a decent amount to put away. All that said, I am still moving forward cautiously. Hopefully it is all what it seems and we can all benefit from the situation. Again, I appreciate all the discussion. I think multiple viewpoints are necessary especially on a big commitment like this.
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