Real Estate Gurus????

Discussion in 'Bowhunting forum' started by tnts79, Jan 22, 2008.

  1. tnts79

    tnts79 Senior Member

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    Any real estate experts on here? First time homebuyer looking for a house with some timber acreage. I have found a few places that are considerable, now what. What kind of incentives are out there for first time home buyers?:dizzy:
     
  2. NerdHick

    NerdHick New Member

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    There are many things out there for first time home buyers, only problem is that they all have strings attached to them.

    Some say you can get a grant but the house has to meet all sorts of standards, others state that you have to live in the house for x number of years. Others say that you have to take classes and those cost money!

    You are best to research them all, I put in for and got a 5K grant as a first time home owner and I had to take the classes, 500 bucks, and I had to live in the house for x number of years and so on...anyway, the house didn't meet the standards for other grants but I was happy to get the 5K and netted 4500, that amount paid for the closing costs.

    Your best bet is to find a banker you can trust and they will help you out...that is where I got all my info...a good banker can go a long way.
     

  3. NerdHick

    NerdHick New Member

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  4. tnts79

    tnts79 Senior Member

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    thanks for the input, you are the only one offering any advice!
     
  5. Dredly

    Dredly Site Guru

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    Go look on AT I wrote a fricken novel for ya over there! :laugh:
     
  6. Dredly

    Dredly Site Guru

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    I dunno about "Guru" but I follow it pretty closely and recently bought my home

    - I would suggest securing financing now, don't take out the mortgage, just "secure it" this is normally done just by expressing interest to your bank, they will run the numbers and tell you what you are eligible for. Make sure the number they give you is reasonable.

    ex: if you and your wife (don't buy a house unless you are married or sign some sort of agreement, things get messy otherwise!) make 60K a year and the bank approves you for 450K there is something wrong. If you make 60K and they approve you for 200K as your max you are where you want to be. Watch the interest rate. No house is worth taking a 7 - 8%+ interest rate if it will cost you an extra 200 - 300 a month.

    This will give you the ability to jump on that "perfect house" quickly. As first time home buyers your "market" is going to be VERY competitive. Houses under 200K are typically considered "starter homes" and will normally sell very very quickly. Having the money already waiting for you will put a lot of people at ease and will accept your offer over others who are "questionable"

    - If you can save up the money DO SO! Average closing costs would shock most non-home buyers. Just for an example when I purchased my home (165,500) we mortgaged 100% of it and our closing costs were approx 11,000.00, we did not pay any realtor fees and we waived inspections. Inspections and realtor fees can raise that quickly.

    - If you can save up 30 - 40K before buying your house you will have a leg up. If you mortgage 100% you have to carry additional insurance which will add onto the price of the monthly payment. If you mortgage 80% you don't need this extra insurance. DO NOT EVER TAKE 2 LOANS OUT! Your mortgage should be all in 1 loan, if the bank tries pulling an 80/20 loan tell them no. Basically an 80/20 loan means you have your normal 80% mortgage and then they give you a second loan (always at a higher interest rate) and you will go broke in no time paying for it. Its better to pay the insurance and have one loan then get 2.

    - a "fixer upper" means something is wrong with it. Most people just getting involved in a first time home don't realize how insanely expensive it is to fix up houses. Especially if they are looking to go high up. Figure at least 10 - 20K for a kitchen redo, at least 5K for a bathroom redo. Assume at least 1 - 5K for any room that needs completely redone.

    - It is important to get as much home for your money as possible. You can always change walls, layouts... etc assuming you have the space for it. Buying a house that you like the kitchen on or like the bathroom but it is small will cost you eventually when you want to change.

    - Make a checklist of exactly what you want and what is important to you. Make sure you plan for 3 - 5 years down the road and buy accordingly. For example you may "NEED" a master suite with a big tub and a large back yard may be a waste now, however in 3 years you may have 3 kids and that tub is useless but the backyard would be crucial, likewise it may be important to have a large kitchen and family room, but you'll lose bedrooms to make room and who knows when you'll need them. Buying a house that you are not happy with is going to make you miserable and you'll want to move quickly, which will end up hurting your profit potential.
     
  7. MichiganHunter

    MichiganHunter Senior Member

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    i just went thru all this a few weeks ago. we were looking to buy a new house and we found one we liked. it was owned by the bank. the good thing about buying a house thats owned by the bank is right now everyday that they own it they are loseing money on it. they just want to get rid of it as fast as they can. we got the bank to drop the price big time. we gave them a low ball bid, they came back with one. we uped ours a little bit and they accepted it.
     
  8. tnts79

    tnts79 Senior Member

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    Thanks Dred, saving 30-40K sounds like a stretch, but 200K is the upper limit of my price range. I have been looking at incentives for first timers like grants and such to cover closing costs etc. Why are closing costs so high?:noidea: :doh: I wouldn't be paying realtor fees on this house, as it is for sale by owner, as for inspections.... I don't know if I would want to wave them or just have it inspected and have some peace of mind!.. Lot of decisions still to be made. Thanks for the advice.
     
  9. NerdHick

    NerdHick New Member

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    Dredly,

    GREAT POST...I failed to mention the pre-approval thing...
     
  10. Dredly

    Dredly Site Guru

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    If buying by owner:

    RULE #1: GET A VERY GOOD REAL ESTATE LAWYER!!!!!!!!! I cannot stress this enough. Often times people SBO because they think it is the same as selling a car or an item in the classifieds. Nothing can be further from the truth.

    RULE #2: GET ALL INSPECTIONS DONE!!! DO NOT USE THE PERSON SUGGESTED BY THE HOME OWNER! A lot of times the reason they aren't selling it through a realtor is because something is seriously wrong, things like drainage, water damage, mold, termites... etc. All can be easily concealed to the point where a casual buyer doesn't see it but that a trained inspector will. Ask the home owner for a suggested inspector, then use someone else. Chances are if they are suggesting them it is because they know them (ie: may have already spoken/worked with them)

    RULE #3: MAKE DAMN SURE YOU DO A LIEN CHECK!!!! This is so insanely important it isn't funny. Liens can come from all kinds of crap from owed taxes to work not done to lawsuits to failed business deals... It follows the property, not the owner. If you buy the house without investigating the liens and you buy it you are responsible for the money owed.

    RULE #4: SEE RULE 1 AGAIN!!!!
     
  11. Dredly

    Dredly Site Guru

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    I knew the guy I bought my house from, he moved in less then a year before he sold (divorce is hell, most marriages fail in less then 2 years). He had the place inspected before he bought it. not much is going to change in a year and he kept the place up well.

    I would definitely get anything you are buying inspected and make sure the inspector signs off on it. You may be able to find one that will warranty their work and cover a percentage of the cost if they miss something. Get in inspected before you make an offer! It will cost you a few hundred bucks for a good one but it could save you 10's of thousands in the future.

    Your inspector will be crucial for you. If its allowed I would strongly suggest accompanying him while he does his inspection. If he misses anything, even a single closet I would be concerned. its amazing what people can do to their rooms and where issues can occur and where rotting can occur or mold. My buddy bought a house where they didn't inspect the floor close enough, the previous owner had a fish tank with a steady leak that they never noticed, of course they got rid of it before they sold the house. They had to replace a significant piece of the floor, carpet, flooring and part of the wall on the next floor down due to mold... it was a mess and cost several grand.

    Closing costs typically include:

    - LOTS of taxes (its amazing how much the gov't gets!)
    - Your first and second month mortgage payments
    - Escrow account. When the taxes are due the home owner is responsible. If they are due on Nov 1st and you move in on 10/1 you are responsible for a years worth of taxes.
    - "Investigation" fee, liens, issues, history check etc...

    - Lender fee (due on signing over the check)

    - "Notary Fee" someone has to validate that everything is okay and legit

    - "Filing fee" - yes there is a fee to file the paperwork that says you bought the house. In PA its something like 100.00 or so.
     
  12. Dredly

    Dredly Site Guru

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    Grants and such are nice... lemme know how that works out for ya :noidea: I tried looking when I got my house but gave up. the only grants we could find were for urban areas or houses that were HUD... etc. basically unless you want to live in the city we were SOL.

    Make sure you know TOTAL MONTHLY COST! Mortgage costs are only 1/2 the battle. Make sure you know the taxes estimate. Make the current owner show you his mortgage statement if possible. Taxes, Insurance, and Escrow will all vary drastically depending on where you live. Ask for estimates (and proof if possible) of electric bills, include the cost of Heating (current rate of heating oil is over 3.50 / gallon, gas is 3.75 / pound). An estimate of pounds/gallons used should get you where you a good estimate. Always estimate high, its the classic measure twice cut once and always cut long... same thing.

    If you don't have a budget made now you better get your ass to work one and make sure its realistic, make sure you also make note of your cars, food, and estimated "entertainment spending" before you decide what can be spent on a mortgage. Document everything down to estimated cost of gas and maintenance. If you are running a "tight ship" and something happens you need to make sure you will have money to fix it.

    Watch for Home Owner Association fees and HOA rules and regs. Some HOA's in "okay" area's are more then 300 a year and may have lots of stupid requirements, especially watch for "grandfathered" items. This happens if the house you are buying was in place before the HOA moved in and they just said "okay you can leave it like that as long as you own the home". Things that will often get you dinged on these items are like house color, siding type, landscaping, out buildings, garage doors, roof color, driveway topping, size of the house... yes I'm not kidding, some HOA's actually require your house to be a certain size and the new owner will need it to match requirements.

    I know its a lot but keep in mind, you are taking out more debt in one signature then you have ever incurred in your life. The only time your work will ever be done on the house you buy is when you sign it over to the next buyers and then you start on a new house.
     
  13. Dredly

    Dredly Site Guru

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    Thats the way to do it! if you can.

    Around here the housing market is still very active, foreclosures are normally sold within minutes unless it is trashed. The Realtor companies actually buy them up, clean em up so they are presentable and then sell them. Its a pretty clever scheme that makes them a fortune. (buy at foreclosure rates, sell at market rate)
     
  14. jdawg240

    jdawg240 BOWNUTS

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    Im sure this in one of dreds post but stay the hell away from an adjustable rate, it's goign to bankrupt a bunch of lenders by years end.
     
  15. QSA

    QSA One eyed/Gutless wonder

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    Niamya Program is what it is called I think. We used it to get into our house. It is a program where if the seller pays the down payment, Then they will get you financing, and all the other closing stuff. What we did was found a house, made and offer, the sell took it. So I really gave home 5000 less then he wanted. Then we make it look like he paid 5000 down for use, but not really. and the program did the rest. Good payments and all. The are no balloon payments on the end like the fanny may stuff. All this program does is all the legal stuff, and gets you the money
     
  16. FSBO - definitly get the home inspection!:amen:
     
  17. Shortshaft

    Shortshaft Member

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    You're getting some good advice there son. here's some more.
    1-Set a limit on how much you will spend-borrow and don't get talked out of it don't forget you need insurance and tax money too!!
    2-again go fixed rate and the more you can put down the better rate you should get. Shop around for the best rate. I ended with a local credit union that had the lowest rate at the time in the whole country (4.75% 15 years) and they don't sell the paper-meaning they hold on to your mortgage you don't end up dealing with someone 1000 miles away if you have an issue or problem.
    3- It's a buyers market right now don't be afraid to make a low offer(the worst that can happen is they call you a bad name):censored: Good luck. Ss
     
  18. QSA

    QSA One eyed/Gutless wonder

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    By 2 people. :doh: :doh: :doh:
     
  19. tnts79

    tnts79 Senior Member

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    Good info. guys, I appreciate it.