any tips for a first time home buyer?
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Some good advice most of which I'd concur. My few points of dissention from the masses...
1) While I will always get an inspection, I put almost zero value in them. I know it sounds contradictory but every house I've owned the inspector never made mention of what I would consider pretty major and obvious issues. Heck the one I'm in now had obvious previous foundation work (which I then had to pay to have more work done recently) and no mention was made in the inspection report. Having said that, I'm sure the first time I don't get one I'll regret it.
2) Someone said put as little money down as possible... WHOA! You said you have 10% saved. Though the mortgage you are looking at is not huge by industry standards, you need to find out what the private mortgage insurance (PMI) premium will be each month (it varies by percentage put down). It is materal (relative to the loan amount). If you already have 10% saved, putting down that extra 10% (you need 20% for no mortgage insurance) will eliminate the mortgage insurance all together. That is by far the biggest scam of all. They insurance premium does not go down once the loan is given until you've reached 20% equity per the ammortization schedule. Now if the marekt goes up you can request another appraisal to see if you reached 20% equity but then you get to fight with the insurance company to eliminate the insurance. They don't like giving up easy money. You can do your own estimates here of what PMI will be. http://www.goodmortgage.com/Calculators/PMI.html Look at it this way, the insurance premiums you do NOT pay are like GUARANTEED interest earned on the extra down payment you do pay. I promise you, whatever your numbers tell you, it'll be more than you can get on a guranteed return anywhere today. (If this doesn't make sense, PM me and I'll be glad to walk you through it).
3) This may not apply for you living in Cartersville, but if you have a daily work commute to make. Go to the house you are thinking about buying and drive that commute at the times you're likely to be commuting each day! What might be a 20 minute drive on a weeked during house shopping could be a NIGHTMARE during rush hours.
4) Finally someone said "talk to the neighbors". AMEN!!!! While you may not get all the info you'll eventually get when you live next door, first impressions are very valuable. A so-so house can be great with great neighbors. The nicest house in the world can be a nightmare with crappy neighbors! Also just ask them about the neighborhood in general.
5) I'll be happy to run any financial scenarios you'd like. While I'm not in the mortgage business I am in the 'numbers' business (career in corporate finance).
Good luck!
1) While I will always get an inspection, I put almost zero value in them. I know it sounds contradictory but every house I've owned the inspector never made mention of what I would consider pretty major and obvious issues. Heck the one I'm in now had obvious previous foundation work (which I then had to pay to have more work done recently) and no mention was made in the inspection report. Having said that, I'm sure the first time I don't get one I'll regret it.
2) Someone said put as little money down as possible... WHOA! You said you have 10% saved. Though the mortgage you are looking at is not huge by industry standards, you need to find out what the private mortgage insurance (PMI) premium will be each month (it varies by percentage put down). It is materal (relative to the loan amount). If you already have 10% saved, putting down that extra 10% (you need 20% for no mortgage insurance) will eliminate the mortgage insurance all together. That is by far the biggest scam of all. They insurance premium does not go down once the loan is given until you've reached 20% equity per the ammortization schedule. Now if the marekt goes up you can request another appraisal to see if you reached 20% equity but then you get to fight with the insurance company to eliminate the insurance. They don't like giving up easy money. You can do your own estimates here of what PMI will be. http://www.goodmortgage.com/Calculators/PMI.html Look at it this way, the insurance premiums you do NOT pay are like GUARANTEED interest earned on the extra down payment you do pay. I promise you, whatever your numbers tell you, it'll be more than you can get on a guranteed return anywhere today. (If this doesn't make sense, PM me and I'll be glad to walk you through it).
3) This may not apply for you living in Cartersville, but if you have a daily work commute to make. Go to the house you are thinking about buying and drive that commute at the times you're likely to be commuting each day! What might be a 20 minute drive on a weeked during house shopping could be a NIGHTMARE during rush hours.
4) Finally someone said "talk to the neighbors". AMEN!!!! While you may not get all the info you'll eventually get when you live next door, first impressions are very valuable. A so-so house can be great with great neighbors. The nicest house in the world can be a nightmare with crappy neighbors! Also just ask them about the neighborhood in general.
5) I'll be happy to run any financial scenarios you'd like. While I'm not in the mortgage business I am in the 'numbers' business (career in corporate finance).
Good luck!
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In cartersville look around, you may be surprised that you can find a house that qualifies for a USDA loan. We did a USDA loan, no money down and no PMI. We got our house in Dawsonville in a subdivision and it qualified.
