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First time home buyer questions

Discussion in 'Road Side Pub' started by mikecobra01, Dec 28, 2012.

  1. mikecobra01

    mikecobra01 Active Member Established Member

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    Whats up guys

    Well I have a few questions. Me and my girlfriend have been saving up alittle money for the past few months and we feel like we are ready to try and get a home loan. Were not looking to get anything real fancy ( under 100k ). My questions are:

    What are good companies to get loans from for first time home buyers?

    What kind of things should we expect to have to pay out of pocket for? Or would getting a loan pay for anything we would have to pay for?

    What are the step by step processes in getting a home?


    Sorry for all the questions but I am a newb when it comes to this stuff lol.

    Thanks in advance
     
  2. vinny89gt

    vinny89gt On The Reg Established Member

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    1. It doesn't really matter what company you get a loan from. You'll find that your loan will probably get sold many times. Meaning if you initially get a loan from Metlife, they'll sell the loan to Citi etc etc. You can look into a first time home buyers loan. Basically, the rate will be slightly higher than a standard loan, but the money you have to put down is less (I think it was 3% when I purchased).

    2. I'd say the best move I made in my first home was a home warranty. The cost is relatively minimal and, in this buyers market, you'll probably be able to get the seller to provide this. This allows for things like your HVAC system/water heater/well pump (if you have one) to be covered if anything breaks. All you pay is a set (usually $50 or $100) fee when the company comes to repair.

    As far as out of pocket expense, it's all up to you. You can buy a fixer upper, but you have got to know going in what you can afford to fix up yourself. When I purchased my first home, because I was getting an first time home buyer loan, I was not able to roll improvement costs into my loan.

    3. The first step is to find a realtor. My fiance and I lucked into someone with whom we got along very well. You have to be very honest with your realtor about what you want/don't want and all of your expectations. You can look at homes online, but realtors have access to many more homes on their databases.

    Lastly, I would say don't settle. The first home I bought I was rushed due to my rental agreement being up soon and I settled for something. It ended up working out, but you get my point.

    Good luck. You'll have lots of fun looking for houses. You'll soon be consumed with looking on housing websites.
     
  3. black92

    black92 Hot rod Lincoln Established Member

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  4. Mikeyb619

    Mikeyb619 Cobra Commander Established Member

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    Get quotes on potential homes for the home insurance just to see what it would be. Might find a dream home that has ridiculously high rates due to proximity to firestations or other factors. Always good to know before you pull the trigger.
     
  5. 7998

    7998 Well-Known Member Established Member

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    Don't forget you'll have closing costs which is title fees, points, transfer tax, etc. They can add up quick and it is best to pay them upfront and not finance them. My closing costs were around $8k if I remember correctly. Also get a home inspection done if you aren't very mechanically inclined or savvy to the trades. The last thing you want to do is pay a premium for a "move in condition" house only to find out it really was a fixer upper that someone painted and carpeted over.
     
  6. Blackness03

    Blackness03 Well-Known Member Established Member

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    You're messing up already. Do you live together now?
     
    Last edited: Dec 28, 2012
  7. DaleM

    DaleM T$45GOATMAGAMen Established Member

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    USAA will assign you a Realtor in the area you are looking for. They want to satisfy you and get rich all at the same time.
     
  8. vinny89gt

    vinny89gt On The Reg Established Member

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    Again, in this buyers market, closing cost is almost gauranteed to be covered by the seller.

    And, home inspections are something, at least here, that are required.
     
  9. lobra97

    lobra97 PIITB since 1984 Established Member

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    +1 they gave my next door neighbor $250 to use the USAA realtor, bastard.

    yeah your loan will be sold, one company had ours then sold it to Wells Fargo, i have no complaints again WF, they have been pretty easy so far, least from what I have experienced. The VA made me get the house under my name alone thank god, so all the resp is mine which is great, no woman can be like "shawwwwty that's my crib too" .


    I got mine for $85k, everything with escrow is $640.10 a mth with WF......:rockon:
     
  10. mikecobra01

    mikecobra01 Active Member Established Member

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    Thanks man for all the info, alot of good advice.

    Thanks ill check into that, ive heard good things about them.

    Lol yeah we've lived together about 2 years now.

    Thats good to know, im hoping to not have to pay alot out of pocket. Thanks!

    That sounds like a good deal, thats around what we want to pay too. Thanks for the info!
     
  11. assasyn

    assasyn Active Member Established Member

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    Who's name is the house going to be under? Are you both signing the loans? How serious are as a couple?
     
  12. notorious p.i.g

    notorious p.i.g New Member Established Member

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    Not sure what the area you live in or are moving to is like, but the U.S.D.A has %100 financing if you buy a home in a rural area. I didn't want to live in the city so finding out about that loan worked out perfectly for me. I believe they have a map of what area's do or do not qualify, definitely worth looking into if you want to live in the country.
     
  13. LostPony

    LostPony New Member Established Member

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    As someone who just bought and sold a home, don't count on closing costs being paid by seller. We gave nothing on closing costs and got full asking price for the home we sold. The house we bought was a Fannie May property and they gave nothing on closing either. We also paid asking on that home because the seller, Fannie, would not negotiate . The house was already under market value, so we considered it a good price.

    Buying a home theses days will try your patience like nothing else you have ever done. Be prepared to document EVERYTHING for them. Second, get a good realtor. If you have USAA, use them. The realtor on our deal at both ends left much to be desired, and I remembered too late that I could have just used USAA to handle everything.

    I also purchased the house with my GF. The home is in BOTH names, and so is the loan. This protects both of you, and gives both of you some "skin in the game" so to speak. Having at least 20% down will make things easier as well, and you can avoid PMI.

    Good Luck.
    Oh, try Franklin American Mortgage, they were able to take care of us.
     
  14. lobra97

    lobra97 PIITB since 1984 Established Member

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    remember if you and your gf decide to split and have it in both names it'll be rough, no one wants to give up their house.....good luck (voice from Taken)
     
  15. YMMV

    YMMV In your wife Established Member

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    You can through any bank. I went through Weichert Financial.

    Closing costs, Home Owners Inspection, Septic Tank Inspection (If applicable) Lawyer fees, First years home insurance (They might just work that into the mortgage payment - but I paid my first year straight up).

    Also make sure you put down the min 15% or you will get slapped with a PMI charge. The higher the d/p the better which can also knock down points on your APR rate.

    First timer? Get a realtor.

    This is what I went through in NJ. Not sure all states are same.

    They say buying your first home will be one of the most stressful moments in your life. They weren't kidding.

    Always make an offer + counter offer, never accept asking. I know its common sense but plenty of people in this world lack it.

    Not sure I would invest in a house with a girlfriend... what happens when you guys break up?

    Both my houses I own are under my name and only mine. Ill be damn to have someone take it all right out from under me for all my hard work.


    The truth.

    I had to give records of everything. Also, if yo have family members help you with a d/p, they will want their bank records and yearly income as well. They will ask for everything... yes including **** size too.
     
    Last edited: Dec 28, 2012
  16. Ill_W1N

    Ill_W1N Well-Known Member Established Member

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    First things first.

    Go to a broker (USAA or whoever your using) and get pre-approved for an amount. THEN get a realtor. Then the fun begins. Looking at houses over and over and over and getting frustrated and happy and frustrated and happy again. It's a vicious cycle. Interest rates are excellent right now. Considering you have decent credit + income to debt ratio.

    Also, make sure you know each others credit scores. They will take the lower persons score. So if you or your gf have shit credit, forget about it. Or if one has a lot better than the other, then they can try and get the loan by themselves.

    Good luck on your first home purchase!
     
  17. vinny89gt

    vinny89gt On The Reg Established Member

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    Great point.

    My first house was purchased with my then girlfriend. Things didn't work out and, because the house assessed for less than what I owed, I had to pony up $10k in cash to buy her out.

    No bueno.
     
  18. mikecobra01

    mikecobra01 Active Member Established Member

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    Thankyou everyone for the tips and advice.

    I was searching on wellsfargo's website since I have an account with them. I saw that they have a FHA loan program thats suppose to be great for first time buyers, anybody have any expirience with that?
     
  19. lobra97

    lobra97 PIITB since 1984 Established Member

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    might be a good deal, i know a buddy who got a better deal with FHA then the VA loan, couldn't hurt to ask.

    Vinny88gt- that sucks man, girl here at work, her parents passed and her and her bro got the house, well he wanted to sell it, she had to borrow $40k on it to by him out
     
  20. STAMPEDE3

    STAMPEDE3 SAULS BROTHER Staff Member Super Moderator

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    Do NOT buy a house together with a GF.

    If she wants to house shop with you and give ideas fine.

    I don't care how good the relationship is now it is not a smart things to do.
     

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