Purchasing a House Tips/Tricks

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{X}Hitman

Veteran XV
OFN I am sure. I searched but did not find anything real helpful. Anyway....

I have went to the bank a few months ago. I am sure shit has changed from that time until now on the loan front. I don't know what the fuck you need to offer now to get money.....fist born? I am a first time home buyer. I think I am going to go for more money down to try to get a fixed rate as opposed to a variable rate 30 year. Going to get the bimonthly payment. I crunched some numbers on that and it seems like it would save you a ton in the long run of the loan. I do not have a realtor yet, I am looking for a place myself. Do I really need one?

Anyone have any tips/tricks to throw in? I am assuming the rates on these are pretty much the same from bank to bank? Anything contract wise I shoud throw in? Is a house bid like a car bid (should I start pretty low)?

I am sure I will come up with more stupid questions in a few minutes.
 
If you can afford it, throw extra dollars towards each payment. It will shave years off of the mortgage by the end of it.
 
0% down, and grab a subprime mortgage... best way to save money.. make sure the house is at least 5x your yearly income.
 
Many lenders charge a fee for being on the bimonthly payment plan that pretty close to negates the benefits.

Just paying 10% extra each month accomplishes the same end goal.
 
In this market, look for short sales or foreclosures of investor property. Chances are you can pick up a good deal there and the place won't look like shit. But if you want to do those types of transactions, I'd go and get a specialist, not a regular Realtor. They'll help you with the whole bidding process and the unique transaction that is a short sale or foreclosure.

And absolutely go for a fixed mortgage and pay as much extra as you can afford every month.

Finally, don't buy a home unless you're planning to live there for at least 5-7 years. You're better off renting if you're not sticking around for a long time.
 
Lock in a 30 year fixed, don't do the bi-monthly payment if they charge you for the "service" (you can just send in extra payments, or increase your monthly payment for the same result).
 
telos said:
Many lenders charge a fee for being on the bimonthly payment plan that pretty close to negates the benefits.

Just paying 10% extra each month accomplishes the same end goal.
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I don't know if they charge a fee, but yeah there's no point. Just pay more on your monthly bill, and that way you aren't contracted to pay more money than you have to. So if things get tight, you don't have to worry about it.
 
Well the company that holds my mortgage wanted to charge for the bimonthly service.

So I just pay 10% more. I'm also on a 15year fixed so that pretty much forces me to get it over with quick.
 
First time home buyer? Okay, here's some tips.

1. TW is the wrong place to ask. Go to the bookstore, and get a copy of Home Buying for Dummies. I'm serious. I would give you my copy but it's 12 years old.

2. Don't get an ARM loan. The payment changes. Get a 30 year fixed rate loan.

3. FHA is your friend. FHA will enable you to get a loan with less of a down payment. Non-FHA loans typically require at least 20% down payment.

4. Lenders are your friends. They will help you through the process. If you have okay-to-great credit, a loan won't be a problem. They are not the enemy, nor will you need to negotiate with them. Find a lender with a good rate and low fees - they're all fairly similar, although it pays to shop around.

5. Your maximum monthly payment should be 20-25% of your net pay. So if you make $3000/month net, you can afford a $750/mo mortgage payment.

6. A get a real estate agent since it's your first time. They will guide you through the process. Get an agent who does NOT list a lot of houses in your target neighborhoods - that way there's no conflict of interest.
 
old_skul said:
5. Your maximum monthly payment should be 20-25% of your net pay. So if you make $3000/month net, you can afford a $750/mo mortgage payment.
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I wish it were possible in my market but even after the crash that's just not feasible.
 
old_skul said:
A $750/mo payment will buy you a $120k house. Which may not be feasible in some areas. Solution: MOVE TO A CHEAPER CITY.
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No houses for $120 in the DC Metro area. You'd be lucky to get a 1BR condo foreclosure in the ghetto for that price. Moving to a cheaper city usually implies a reduction in salary.
 
Fool said:
No houses for $120 in the DC Metro area. You'd be lucky to get a 1BR condo foreclosure in the ghetto for that price. Moving to a cheaper city usually implies a reduction in salary.
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If that's the case - then you simply can't afford a house yet. It's that simple.

Granted, the salary rule of 20-25% is variable for some cities (like, um, DC, NYC, SF, LA, SD) but for the rest of the country, that's the basic rule.
 
Problem with housing in general is that it doesn't scale appropriately. It starts off too high and narrows as you go up in price. A decent starter condo/townhouse in my area will run you $200-300k non-foreclosure, but for $350-400k you're getting into single family homes that are not only bigger, but potentially cheaper due to a lack of $200-500 a month HOA or condo fees.
 
borlaK said:
foreclosures
fixed mortgage (duh)
-
but really, unless you have a family to support, don't even bother getting a house. lots of extra work, market is fucked right now.

re-evaluate your reasons for wanting a house and take a good hard look at what owning and taking care of one actually means and will cost you. it's not just a monthly payment.
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Single still but I am in a 4 years plus relationship with my gf......so it is coming to that time. I turn 35 this year; I would like a kid eventually. I pay ass to nothing in the place I rent. It is pretty sick. I have been there for 10 years now. I rent form friends and they love me more because I have paid this damn thing off for them.... I and tired of throwing money in someone else’s bucket. With the fucking market where it is at now I almost wish I would have not put 15 years into IRAs and stocks and went more towards a house. I know that is short term thinking and stupid lol.

Really good info though so far guys, thanks. My credit is pretty decent (820), so thinking the bank issue should be no problem. I think I will go shop for that book today skul, ty. I am just an information whore. I like to think I am making an educated decision based on all the facts.
 
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