Wow I wasnt expecting to get all the "dont move in with your girlfriend" replies, im starting to second guess myself now lol.
First time home buyer questions
- Thread starter mikecobra01
- Start date
Not if their name is on the deed of trust.
Talk about a nest of snakes, buying a house with the current GF. Don't do it.
moving in ain't the problem, it's the "buying a house together" part that could very well become a problem, unless you carefully consider the legal aspects and protect yourself beforehand. buying real property is a big investment, but usually a worthwhile one if you play your cards right.
best of luck :beer:
The process of buying a home is still VERY fresh in my mind, as we are now closing on our house on Jan. 18th, 2013.
First off, find a realtor. Once you find a realtor, and you decide on a home, the next step is to make an offer on the house. Once the offer is accepted and both the buyer and seller agree on what they both want out of it, and the price, you then need to put down earnest money. Usually you put down $1,000 initially, then after you have a home inspector come in and contact a lawyer and finalize the agreement, you put down the remaining $4,000 or so, depending on the stipulation of your real estate agent's office.
After the inspect comes back, and everything is agreed upon, you go through a brokerage company that will handle your loan application. There are many in each state, so I suggest you find one you are comfortable with and is reputable. At this point, you go to the bank now for financing.
Now, one gentlemen mentioned to put down 15% of the down payment to avoid a PMI charge. I am not sure what your budget is, or how expensive of a house is, but, if you are looking at something close to what we did (approx. $200,000) a 15% down payment is roughly 30K Vs. up to a $1,000 PMI charge. Not very smart if you ask me....
Now, if you have good credit, go with a conventional loan. You can put 5% down, however, the bank will require you to have an Escrow account at time of closing. Usually, it is $3,500 for the escrow.
To give you an idea on the closing costs, here's what it will look like.
$3,500 - Escrow
$2,000-$2,500 - House Title
$300 - Appraisal cost of the house per the bank.
There are many misc. charges, but, to be approximate on this, closing costs alone are going to be near $8,000-$10,000, not including the down payment. If you are lucky, you can get locked in for a 3.375%-3.50% rate for a fixed 30 year term.
Stay away from FHA loans. What you don't realize up front, is even though you are only required to put down 3.5% of the down payment, you will end up paying a penalty/fee to the government for the FHA loan itself, which is 3%, or $3,000-$4,000.
Expect to wait about 2-3 months before you are able to close, provided you are buying from a home owner, and not on a foreclosed or short sale. Personally, I would stay away from Foreclosed or Short Sales. Even though some people got lucky, if you are not a patient man, it is a tremendous hassle. My agent just completed a deal that started in Feb. of 2012, and closed in December of 2012 on a short sale. The banks drag their ass, and there is so much to go through.
Good luck!
First off, find a realtor. Once you find a realtor, and you decide on a home, the next step is to make an offer on the house. Once the offer is accepted and both the buyer and seller agree on what they both want out of it, and the price, you then need to put down earnest money. Usually you put down $1,000 initially, then after you have a home inspector come in and contact a lawyer and finalize the agreement, you put down the remaining $4,000 or so, depending on the stipulation of your real estate agent's office.
After the inspect comes back, and everything is agreed upon, you go through a brokerage company that will handle your loan application. There are many in each state, so I suggest you find one you are comfortable with and is reputable. At this point, you go to the bank now for financing.
Now, one gentlemen mentioned to put down 15% of the down payment to avoid a PMI charge. I am not sure what your budget is, or how expensive of a house is, but, if you are looking at something close to what we did (approx. $200,000) a 15% down payment is roughly 30K Vs. up to a $1,000 PMI charge. Not very smart if you ask me....
Now, if you have good credit, go with a conventional loan. You can put 5% down, however, the bank will require you to have an Escrow account at time of closing. Usually, it is $3,500 for the escrow.
To give you an idea on the closing costs, here's what it will look like.
$3,500 - Escrow
$2,000-$2,500 - House Title
$300 - Appraisal cost of the house per the bank.
There are many misc. charges, but, to be approximate on this, closing costs alone are going to be near $8,000-$10,000, not including the down payment. If you are lucky, you can get locked in for a 3.375%-3.50% rate for a fixed 30 year term.
Stay away from FHA loans. What you don't realize up front, is even though you are only required to put down 3.5% of the down payment, you will end up paying a penalty/fee to the government for the FHA loan itself, which is 3%, or $3,000-$4,000.
Expect to wait about 2-3 months before you are able to close, provided you are buying from a home owner, and not on a foreclosed or short sale. Personally, I would stay away from Foreclosed or Short Sales. Even though some people got lucky, if you are not a patient man, it is a tremendous hassle. My agent just completed a deal that started in Feb. of 2012, and closed in December of 2012 on a short sale. The banks drag their ass, and there is so much to go through.
Good luck!
Look up home path in your area. It is for fannie repos and first time home buyers get the first 15 days on the market over investors. Ask for a realtor who is also a real estate investor. Tell him that this is your first RE purchase but you are interested in potentially buying investment properties as you become able to. Agent will take much better care of a guy he can make repeat money off of and if he is an investor he will know of what is available in your market that is below market but not what he may want to flip or manage. Your first home purchase alone would allow you and your GF to eventually purchase a second one in her name alone. We make cars fast. We can fix a house. Don't fix your first house up like it will be your last house. It probably wont and the next buyer wont give two bits about how well you overspent to overbuild. Get the worst house in the best neighborhood, not the best house in the neighborhood. Trust me on this. I have been in both spots and all the money from the gain on the worst house inproved is pissed out the window on the fancy house. A good agent could change your life. Most agents are just used car salespeople. Shop for your agent well.
Steve
Steve
I'm a Realtor here in Cali. Read above what I did. PM if you have more questions, I'll be happy to help.
Ruben
this!
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