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any tips for a first time home buyer?
- Thread starter Realtor
- Start date
IF you are buying an occupied home, make sure to get some earnest money to keep aside to help insure the the original HO takes away everything they are supposed to, make any repairs that were agreed upon etc.
I dealt with a HUD a few years ago. It wasn't a horrible experience. The house needed some work don't get me wrong, but over time we got most of it done. Just make sure there is nothing major wrong. The house is now worth over double what it was bought for and turned out to be a good investment.
Make sure you get a real estate attorney to close and at all costs get title insurance can certainly help if anything pops up on the title later, property boundaries, do not work with a real estate agent that is dual agency that means if you slip up and state we could go another$5,000.00, she runs and tells the seller this. Dual agency agents never a good idea. If has a well on the property require that it be tested.
You will do fine, just carefully plan your walk through, maybe have 3-4 to find things you did not see before.
Good luck and welcome to home ownership.
You will do fine, just carefully plan your walk through, maybe have 3-4 to find things you did not see before.
Good luck and welcome to home ownership.
I purchased my first home recently, closed in June. Here's what I learned...
- Interview a few different agents that will be working FOR you. It's important to use an agent that understands your needs. You'd be surprised how many agents don't know crap about houses. A crappy agent won't give you accurate comps. Comps will tell you who are neighbors are, how much they paid for their house, etc...
- Get preapproved for a loan. Even if you get preapproved, the loan can still fall through. A good loan officer is AS important as a good real estate agent. You can negotiate loan officers fees.
- It's easier to get approved for a loan if the loan officer and underwriter work for the bank.
- Home inspectors look for general problems. They don't do a comprehensive inspection (under the siding, behind plants outside, etc...) When you look at a house, do an inspection yourself and look EVERYWHERE.
- If you can, visit the house when it's raining. Watch where all the water goes, on the roof, the siding, on the property itself. Look who the yard drains, gutter leaks, improper siding installation around windows and doors, etc... Water is b****.
- Closing costs are about 4% of your loan that is out of your pocket unless you negotiate it in your offer. This does NOT include other fees (filing fees, etc...). So figure approximately 5% to cover it all.
- Interview a few different agents that will be working FOR you. It's important to use an agent that understands your needs. You'd be surprised how many agents don't know crap about houses. A crappy agent won't give you accurate comps. Comps will tell you who are neighbors are, how much they paid for their house, etc...
- Get preapproved for a loan. Even if you get preapproved, the loan can still fall through. A good loan officer is AS important as a good real estate agent. You can negotiate loan officers fees.
- It's easier to get approved for a loan if the loan officer and underwriter work for the bank.
- Home inspectors look for general problems. They don't do a comprehensive inspection (under the siding, behind plants outside, etc...) When you look at a house, do an inspection yourself and look EVERYWHERE.
- If you can, visit the house when it's raining. Watch where all the water goes, on the roof, the siding, on the property itself. Look who the yard drains, gutter leaks, improper siding installation around windows and doors, etc... Water is b****.
- Closing costs are about 4% of your loan that is out of your pocket unless you negotiate it in your offer. This does NOT include other fees (filing fees, etc...). So figure approximately 5% to cover it all.
What he said^^^ I have learned this the hard way. Take your time and don't get in a hurry. Have house inspected and make sure it is what you want. Also talk to the neighbors. As far as a room mate make them understand house rules, when rent is due, etc. Don't let him take advantage of you, good friend or not I have dealt with this also!! Good Luck!!
Try to close at the latest part of the month as possible to save a lil $ on closing costs (insurance)
If you are buying savvy enough, use a Redfin agent and they give you a cut of their commission. After buying one home, all I need a buyer's agent for is to pull the comps and do the negotiating since a seller's agent won't directly negotiate with you.
My only tip is don't overbuy. Meaning don't let the real estate agent push you into buying a house that is above your budget. I've had them try to do it to me both times I have bought a house.
Oh wait...second tip: If a RE agent tells you what you want doesn't exist in your price range...tell them to hit the road. I did when a 'friend of the family' RE agent told me that I couldn't get a basement in a house in my price range. Guess what...I've been living in said house for the past 13 years, and yes it has a basement, and yes it was at the exact price point I told the RE agent I wanted to spend. Glad I told her to take a hike and went back to the agent I used to buy my first house!
Oh wait...second tip: If a RE agent tells you what you want doesn't exist in your price range...tell them to hit the road. I did when a 'friend of the family' RE agent told me that I couldn't get a basement in a house in my price range. Guess what...I've been living in said house for the past 13 years, and yes it has a basement, and yes it was at the exact price point I told the RE agent I wanted to spend. Glad I told her to take a hike and went back to the agent I used to buy my first house!
