Looking to buy a house... any advice??

[mpb218]

So it has come that time that I need to start looking at a proper house (with a garage for man stuff). I have a good job (career?) going and we just got a contract for 8 more submarines so I am set with job security. I have been getting advice from alot of people, family, friends who have been through it, but more is better. So, I ask of you all, any tips? Such as what to look for, things that might not seem like a big deal but can be, things you don't think about but wish you did, etc. I know this forum has a wide variety of folks that are very helpful, so just getting some opinions. Thanks in advance.

 

[SergeantG1]

Don't jump at the first house you like. Be picky...with this market you can be very picky. Have a reputable inspector come in and check the place out. If he says anything needs to be addressed, make sure they fix it before you buy it. If they want to argue about it...walk away. It's exciting buying a new house, but keep your wits about you and stick to your guns in regards to what you want and what your willing to pay. Given the economy, you should pay under the fair market value on just about every house your interested in.

Good Luck....Happy house hunting!

 

[mellofelow]

Congrats!! How's the housing marking in CT area? If price is still falling, I'd wait until it stabilizes. Unless, you can purchase a home at a substantial discount, for example, 25% less than comp. Otherwise, you'll be flushing your mortgage payments down the toilet.

So Cal for example, an average home price is falling at a rate of approx $1,500 a month. So if you were to buy now, you would be paying all interest with hardly any amount apply to principle while the home depreciates. On top of that, you have to pay property tax and home insurance... plus regular maintenance costs.

But if you decide you must buy, the interest rate is at its all time low. Make sure you lock in at fixed rate.

Good luck.

 

[mpb218]

Yeah as hard as it is to pick the first one I know it's better to wait on it. The housing market is down, prices I mean, but being from Pittsburgh these prices are still wacky high. I guess it's all relative.

 

[Fred]

A detached garage is a great thing. It keeps the house from smelling like carb cleaner, paint or whatever chemicals you were using in the garage.

This will make the missus happy.

 

[reiobard]

just make sure that you can picture yourself living in everything, don't be afraid to go in and pretend what you would change, But keep track of all the things that you would change and make sure that you don't want to change too much, since that will be costly renovations in the future.

Moving into a house is the greatest thing and i wish you the best of luck!

 

[Damnitsjeff]

Fixed rate!!! Also don't go over your head some banks tell you can afford more than you really can. :spank:

 

[Red Wazp]

Put down enough $$ so you wont need mortgage insurance, that's a killer payment for nothing.

 

[mpb218]

Yeah, a proper garage is a necessity for me. Not that I'm a gearhead but I'd like to be able to tool around with stuff. I know 20% is the desired down payment, but I've also heard of programs for first time home buyers. Also, I plan on getting a 'fixer-upper' so the value can only increase (aside from whatever the market does).

 

[rdoucet]

Make sure the house is built on a good foundation; look around the outside if you can and see if any dirt is washed away from the foundation and or cracks in foundation (can indicate bad slope and for sure will flood). Water getting into a house is bad - if it has an ejector or sump pump I would change it asap - and get a back up pump as well (I would change the pump so I new it was new - did that in my house and it was only 4 years old at time). If you have a strong foundation, anything else can be repaired. Also, look at the roof and see if any shingles are curling - sure sign that you will need to budget for a new roof. Finally, I would not buy a house in a valley or ravine - try not to be the lowest home on the block; everything will flow to you.

Just my opinion - Good Luck!!!!

 

[doc_simple]

So far all good advice, but they have not mentioned the fixer-upper. I turned 4 houses in five years and subsidized our living habits with $125,000 "extra". If you have skills and can from a dump into a castle I would say remember the first three rules of home buying:

1. Location
2. Location
3. Location

Buy a fixer in a nicer neighborhood, then when the market turns around yoru hard work will yield double the returns of making your house the nicest in the ghetto. Look at the "bones" of the house. Is the foundation solid? Are there any infestations? If the answer to these questions is yes, no respectively then it might be worth the years off your life a major home rebuild will cost you.

Best of luck, it's a damn hard thing to do but its also one the most damn rewarding. :thumbup:

 

[keira]

I will echo mostly everyone, but since you are looking for a fixer there are a ew things you should keep in mind.

First, will you be living in said fixer? If so, make sure there are at least a functional kitchen, a functional bathroom, and a well-kept room that you can sleep/live in while you fix the rest.

Second, make sure your renovations will not price you out of your house. Drywall and fixtures get expensive, and added on to a "pushed to the limit" mortgage, can stall home improvements in their tracks.

Third, do not buy the nicest home in the worst neighborhood, but rather the worst home in the nicest neighborhood. This goes with the location piece, but it isn't something I thought of in my own house hunt until my mom told me. The last thing youw ant to do is a beautiful renovation in a crappy neighborhood that will never show you the return on your investment.

Fourth, have fun!!! Like Rob said, move into every house you look at. Pretend youa re living there, decorate in your head with your furniture and really picture what you want to do with the place. We had such a good time "moving walls" in our house hunt that our realtor got into it with us and started doing it too. A house hunt shouldn't be a chore, but it should be something you look forward to!

Good luck and enjoy!

Edit to add: Make sure you like the basic footprint of the house, and it has a solid foundation and roof. You can easily change pretty much every aspect of a house except the foundation, which makes up the basic footprint, and you definitely want a good roof in CT int he winter!

 

[FZyLarry]

The locationX3 rule is important! You may buy a house thinking that you'll sell it in a few years and move to a nicer neighborhood. Sometimes life throws a curve and you can't move and then you start regretting living in a place that isn't really what you wanted.

We bought a house on a cul de sac, it came with a bit of a $$ premium because you don't have the traffic & all. That part is great but if the cul de sac is small, parking can suck and sound bounces around like a ping pong ball. Speaking of sound, go to your perspective house at different times of the day & night and different days of the week. Sit around and listen for a while - are there a bunch of barking dogs after dark? Can you hear the freeway in the evening when all the other noise is down? Is the street out front a drag strip in the morning rush?

All those things may seem insignificant - until you have to put up with them for a while. In any case, good luck house hunting, it's a great feeling to own!

 

[Red Wazp]

Couple more things. Ask around from people you know for a referral of a good realestate agent (lots of bimbo's out there who will say anything to get the sale). Also look for a solid local lender ( a good agent usually knows a few) and get prequalified for a loan so you will know how much you can borrow.
Once you find a house your interested in get the inspections (termite / whole house insp.) any problems you know will either say no way or use this knowledge to bring down the selling price. Do not recommend buying a house "as is" , just general ideas as each state has different laws reguarding home purchases

 

[steveindenmark]

If you turn up at a house where there seems to be too many windows open or the place reeks of air freshener, ask yourself why??? It is usually to hide the smell of damp.

When you walk into a house and just think "Yes, this feels like a home" then it probably is the right place.

Steve

 

[bcityroller]

Make sure you find a good house inspector - they all cost about the same but a good one will walk with you, point things out (good and bad) and give you some input on what you really need to worry about today (read go back to the seller's about) versus just work through as you get into renovations. They also have useful experience to share - like hey a spare sump pump that's battery operated is good to have in the house since the one you have always seems to stop working overnight on a Sunday and you only know it's dead because the basement is getting wet. I even got a print out report from my guy before he left.

Outside of that, figure out how much you're comfortable spending every month (taxes, insurance and all that good stuff that goes up overtime) and stick to it. Someone will lend you more than that number so it's on you to limit yourself. Good luck - having your own space is way better than renting.

 

[LERecords]

Yeah, a proper garage is a necessity for me. Not that I'm a gearhead but I'd like to be able to tool around with stuff. I know 20% is the desired down payment, but I've also heard of programs for first time home buyers. Also, I plan on getting a 'fixer-upper' so the value can only increase (aside from whatever the market does).

hey man.. where in ct are you looking??? i had a great experience with me buying a first house 2 years ago..

1. apply for a first time home buyers morgage - you will get a killer % rate and wont have to put down more than 3%. but the more you put donw the better, but i dunno your finances - btw, you can only apply for a first time home buyers loan if you never have bought a home before (duh)

2. locate a chase morgage office. you'll thank me. they have all sorts of info and are more than happy to take time to explain things. very great company to deal with.

3. find a good location and make sure the house will not need anyhting major (like roof, foundation work, flooded basements, yada yada..)

4. for the people to do inspections, ask your morgage person, they usually have the best people availible who will give you the "strait up" truth.. listen to them and document things that are problems with the house.

5. have someone that has bought a house before go with you. they will think of things that you dont to ask or look into. if its the parents, then take them with to look at houses..

and most important - dont jump on the first look. act like you've seen everyhting this house has to offer before you step inside. dont be a jerk, but act like its not a big deal. it makes the agent sweat and im sure people are fighting tooth and nail to sell a house. so just act like, yea its nice i guess. even if you are in love with it.


i also agree with the buy a crap house in a good location. you dont want to buy something in a bad neiborhood just to get into something, and there are alot of bad locations down by where they are building the subs. you might want to look into having to drive 20-30 mins for work. besides you'll get to ride the bike

if you want any of my contacts for chase shoot me a pm, they were great for me and i went from no house to house in 3 weeks. :thumbup:

oh and the houseing market is pretty good in ct still.. hasnt fallen tons, but now is a good time to buy here, the prices wont be going that much lower.. mine might have lost 2-3k in value. nothing compared to the rest of the county

 

[bcityroller]

Oh yeah, one other thing too. When you find a place you think you like try and go by the neighborhood a bunch of different times (days, evenings, weekends, school days/not school days) - amazing how that neighbor who works all day and was never there during business hours when you're viewing, inspecting, and closing suddenly has raging poker parties every Sat night and does wheelies/burnouts up and down the street while he's tinkering with his super loud Harley once you move in.

I know that example sure sounds fun, but imagine 5 years from now when your kid's supposed to be taking a nap and it's every weekend. Don't ask me how I know :banghead:

 

[FZ1inNH]

All great advice!

Don't buy a home that eats all your income! Example: We bought a smaller house that fit our needs, not the house I would call my dream home, BUT when the crap hit the fan, I was able to maintain the mortgage through a few hard times while neighbors that built the BIG luxurious houses had to IMMEDIATELY place the "For Sale" sign on the lawn and bail since they couldn't make the next month's mortgage. I've been through three layoffs in this house and one of them, I took 5 months off and we still made all the bill payments.

Live well within your means with enough pay left to fund a savings account. Typically, you want 3 to 6 months of FULL pay sitting in the bank for unexpected changes in life.

With this in mind, find a place that you can expand as well. Don't buy a place that is tight on expansion or offers no room to grow.

RE: the PMI insurance (80/20% rule)... Some banks will easily sponser you for a 1st/2nd mortgage to pay a house in full and avoid PMI. You sign two loans at closing for the 80% and what ever percent is left after your downpayment.

Bid according to the market. When I bought, it was a sellers market. I didn't have a choice at the time. I got lucky and found a new development that was seeking a few starter folks to get the subdivision moving to attract others. I got in cheaper being one of the first 5 houses than everyone after us. Today, it's a lot more of a buyers market. Do not be afraid to go in and nitpick a house to death and make an offer based on that bullet list. Make the offer low with the stipulation you will repair these items then wait for their response. No one flat out refuses and they typically will counter-offer with a compromise such as a middle-ground price and an offer to repair parts of your list. This works WELL with houses that have been listed the longest as the sellers are more motivated to unload the house.

Check taxes on the property. Are they current? Are there any other leins on the property?

Check with neighbors and ask about the nature of the house and the people who left. Did they have a lot of problems and decided to patch them and sell? Did they complain a lot about anything, such as water in the basement?

Ask the prior owners about the heating (and cooling if applicable) systems and for any maintenance receipts as of recent.

It's a big decision and a life changing event to purchase a house so protect yourself well and ask as many questions as you can throughout the process.

Good luck and let us know when the house warming is! :steve:

 

[necrotimus]

I will echo some of the others and add my own...

1) don't fall in love you will over pay... in this market you can walk away and it will be there if you come back
2) home inspection!! when it was booming some houses had clauses that they couldn't be inspected prior to sale... DO NOT BUY A HOME WITHOUT INSPECTION... PERIOD!
3) dont be afraid to look at houses other than the one your realator is showing you... they are often in the business of selling homes
4) get your credit score... could you improve it if you waited to buy for 6 months?... the interest rate you get is tied to how 'trustworthy' a borrower you are... if you have a high car payment or some high credit cards you may end up with a higher rate because you are riskier... that single percentage point will cost you for 30 years when waiting 6 months could save you... close accounts you no longer use and pay down existing accounts
5) DO NOT BUY A HOUSE YOU ARE NOT WILLING TO LIVE IN BECAUSE IT IS A DEAL OR YOU WILL SELL TO UPGRADE IN 5 YEARS... 10 years from now when youa re still livign there you will be wishing you never bought it
6) the first thing I look for in anyones house now is where would my tv fit... make sure your important stuff has a place in your new home...
7) hold some money back or that new furniture you HAVE to buy will be 3 years away
8) Home owners association? dues? good? bad? rules?
9) Good luck!
10) Don't listen to anyone's advice