Hello,we were thinking of buying a house.We are first time home buyers and don’t know much about the processes,fees and all the things associated with buying a home.
I would greatly appreciate if you all can share your tips with us.I need as many tips(A-Z) as you can give.It will really help us in decision making.
We were considering Raleigh in NC.
Thanks in advance.
Get a pre-construction home. This means its still being built. Youll have to wait to move in, but its worth it. Heres why:
You get it before it accumulates equity, so you pay a lower price for it.
It accumulates equity as you wait. Sowhen you move in, you already have a few thousand in equity.
You dont pay ANYTHING until you close. So you can pick out a house, get a contract and then save money to move in.
You can customize it. Let the contractors know what you want and theyll put it in. Paint, countertops, window treatments, lighting, everything. This adds more equity and the costs are rolled into the mortgage.
A contract doesnt mean you have to buy the house. Think of it as layaway, but you can back out anytime before closing without losing a dime.
Other notes on buying a house:
Figure out what you can afford. Heres an online calculator: http://www.ginniemae.gov/2_prequal/intro_questions.asp?Section=YPTH
"buy" at a lower interest rate. Talk to your lender and to buy mortgage points. It costs money (depends on the points bought) but it saves so much more.
Get what you want… period.
Dont settle. If you dont want it because of the area, quality, size, etc, no one else will either. This is essential if the home will be sold later, but it is also important if you stay. BUY A HOME, NOT A HOUSE. Buy something comfy, relaxing, etc. Remember, most areas have strict remodeling rules. So dont say, "we’ll just remodel". Research first – stake out the area, look up city regulations.
Paying it off early without spending more:
See my previous answer on:
http://answers.yahoo.com/question/index;_ylt=ApVriSYAy.CGCmuX4OOJj4Pty6IX;_ylv=3?qid=20071112070735AAieA5j&show=7#profile-info-cyyFu65raa
Make a down payment. Even if its not necessary, do it. Every cent towards the down payment will remove interest. 5,000 on a 30 year fixed mortgage (5%) is closer to 10,000 by the time its payed off.
Shop for your loan. Start with your current bank. They have a history with you and will give you a good deal. Then shop for better offers.
Avoid large purchases prior to buying. This increases your debt-income ratio. Also, keep your money where it is. Dont change banks etc. This makes it easier to verify income.
Now is a great time to buy. Why? Because the sellers market s*cks. Which means they are pulling out all the stops to get you to buy their house versus someone elses. So relax, youre in the drivers seat. Just remember to play nice.
Heres some links:
http://www.hud.gov/offices/hsg/sfh/buying/buyhm.cfm
http://www.nw.org/network/training/homeownership/homebuyingguides.asp
http://money.cnn.com/magazines/moneymag/money101/lesson8/
http://www.americanhomeguides.com/homebuying_tips.html
Here is a great home buyers tutorial.
http://wefixrates.com/Home_Loans_101.htm
Happy house hunting.
Edit:
To the person that advises not to go to the site, he/she obviously did not look at it. It in fact, covers all the basics on what you need to do to prepare for the process INCLUDING setting a budget. My suggestion for them would be to not comment on things they know nothing about.
Ask your friends, relatives, and co-workers for referrals to experienced Realtors and loan officers who are best equipped to guide you through the process and answer all of your questions.
First off don’t go to that website. If you are a first time buyer that site will scare the hell out of you. Don’t put the cart before the horse. Know your budget and what you can afford per month. Be realistic! I have several clients that tell me for their first home they want brand new 2500 sq ft in the most expensive neighborhood and want to spend 600 per month. I tell them the reason I don’t drive a mercedes amg s65 is because I can’t afford the payment. So be realistic.
Once you know what you would like to spend you need to speak with a lender. Don’t waste time looking at homes if you don’t know what your payments will run. Why look at homes you can’t afford? Once you get a commitment from a lender contact an agent to show you homes in the area you want to be in your price range.
As far as choosing a lender I always recommend you try your bank first. Usually banks have better rates for conforming loans because they don’t make as much yield. A lot of big banks get paid on volume so you will usually get better rates.
Hope this helps.
JassyMink Do U have banks? Ask yours 4 help. HUD, FHA
Hello JassyMink — What about financing, etc @ Ur bank? Get helpful, Knowledge-able advice. Home buyer classes?
Hey Jassy M Get good advice dont rely on Yahoo hacks. — Pumpkin Good ideas, but What is americanHomeGuides?