looking to buy first house...any tips?

06-11-2001, 05:41 PM

The subject line pretty much says it all. I'm a first-time buyer, banged-up credit in the past, little money to put down, but I have a very low debt-income ratio, clean credit for the last year, and a secure job working for the State of California.

Any pointers? Two-car garage is a given...

------------------
Greg
bits and pieces of a 91 LX Convertible

exgmguy · 06-11-2001, 06:31 PM

I just bought my first house. Have not even moved in yet.

I have typical "guy credit" my mortgage guy told me. I bought a 100,000 house in a Detroit suburb with 2,800 total out of my pocket to move in.
I got an FHA loan. It is a loan somehow backed by the government. You can get in for 1,000 down plus closing costs, (which I split up with the seller)

Nice clean 3 bedroom ranch on a crawl with a 2 1/2 car heated garage, fenced in yard, etc... I don't know what 100 grand gets you in California but I am just a few miles from the GHETTO now!!!!

------------------
1988 Mustang GT
12.0 @ 122
1992 BadAzz Wrangler
1993 Explorer

Five0 · 06-11-2001, 06:44 PM

Yea, get one with a garage.

Sorry no other tips

------------------
James Cox
nochevy@hotmail.com
1991 Mustang LX
12.565 @109.38mph 1.764 60ft

Maroon 5.0 LX · 06-11-2001, 09:40 PM

Check with your Realtor and ask to see the list for the VA homes. These are usually repossessed homes from the Veterans Admin. Most are in decent shape and you can save a bundle. Low down payment. Some are in bad shape, but a lot are really nice.

Ask him for a copy of the list or call the VA and they will mail it to you every couple of weeks. Take the list, check the areas you desire, and go look on your own. When you find something you like, get together with the realtor. You have to move fast, as the nicer ones don't stay on the market too long.

I bought a VA home several years ago and saved about $30K.

Stay away from the HUD homes, they are usually pretty much trashed.

Good luck.

------------------
'89 LX 5.0 - 5 speed. Original Owner
'94 E-150 Conversion Van

Moxie · 06-12-2001, 10:41 AM

Hmm, well some things vary by state. That said, here are a few things to watch out for:

Try to avoid a house on a corner lot. Often property taxes vary with the amount of footage touching the street. A corner house will have higher property taxes.

Try to avoid what I call a 'border house'. That's a house with a large amount of empty land directly behind it or next to it. You could purchase the house only to have a strip mall go up next to you in a few years.

Try to avoid a house that has neighboring houses much smaller or larger. If you buy a house and the house next door is huge in comparison, this will hurt resale value, because your house will look puny. If your house is huge compared to the house next door, your home value will probably wind up overinflated. Great at selling time, but your insurance and taxes will be higher in the meantime.

I hope this helps.

------------------
Moxie Racing

The Nitrous Oxide Information Site

ronny50 · 06-12-2001, 11:13 AM

Definitly look into FHA loans.

That's what My wife and I did and made the Down payment alot easier to afford..

They also send a inspector which checks for repairs and damage cost that you will accur in the first couple of years.

------------------
1990 GT 5k Original miles!!
Ripper,Pullies,73 MM C&l Mass Air,8mm Wires,Piaa Headlights,MAC Cold Air (Fender)

06-12-2001, 11:39 AM

Thanks for all of the advice so far guys. All good stuff...keep it comin'

------------------
Greg
bits and pieces of a 91 LX Convertible

Harry · 06-12-2001, 01:04 PM

When you find one, definately have a whole house inspection done, and get it done quick after you make your offer. That way, if anything needs to be repaired, you can request the sellers to have it repaired before closing on it.

Try to buy the most house you can. It may strap you for money right now, but in the years ahead, you will be making more money, and the payments will be easier to make. And seeing that this is your first house, remember that you will probably be moving in 5 - 8 years.

Good luck!!

------------------
See my 1985 Mustang GT

Ripper · 06-12-2001, 01:34 PM

Get a committment letter from your bank/lender before signing anything. This will tell you how much $$ you can borrow. Also, as mentioned earlier, look into FHA mortgages for 1st time home buyers. If your dealing with a real estate agent, they should be able to refer you to an attorney to represent your interests and handle title searches and arrange for the home inspection. You should get an estimate of the closing costs, which should be given to you by the bank/lender. As far as worrying about corner lots and taxes, neighboring houses being small or big, that's going a little overboard. Your real estate agent, or look up on the internet, what neighboring homes are selling for and property taxes can be an itemized deduction on your income tax return so it can reduce the amount of income tax you pay. You can also find out what the person you're buying from paid for the house by going to your Town Hall (not sure which office I used to look this up but someone there can point you in the right direction). Before I forget, don't trust real estate people, they only make money when they sell a property and the more they sell it for the more $$ they make. Good luck!

[This message has been edited by Ripper (edited 06-12-2001).]

btr · 06-12-2001, 01:41 PM

Quote:

Originally posted by Moxie:

Try to avoid what I call a 'border house'. That's a house with a large amount of empty land directly behind it or next to it. You could purchase the house only to have a strip mall go up next to you in a few years.

I disagree if it is the edge of town. You can check to see what the area is zoned for (although that can change). A big empty area or farm land means fewer neighbors and a bigger area to play. We enjoy watching the wildlife in our extended backyard.

Quote:

Originally posted by Moxie:

Try to avoid a house that has neighboring houses much smaller or larger. If you buy a house and the house next door is huge in comparison, this will hurt resale value, because your house will look puny. If your house is huge compared to the house next door, your home value will probably wind up overinflated. Great at selling time, but your insurance and taxes will be higher in the meantime.

I think it is exactly the opposite. The larger neighbor's house will pull a smaller house's value up (including taxes). Having the biggest/nicest house in the neighborhood tends to have the value pulled down. These mainly come into play when building a new house. The effect is probably already built in when buying a used home.

One other thing I'd recommend is to same up enough $'s so you don't have to pay mortgage insurance (PMI). It is expensive and does nothing for you. It only insures the lender in case you default.

exgmguy · 06-12-2001, 02:18 PM

Without 20% down you will have to pay the mortgage insurance.

06-13-2001, 09:43 AM

Well, there's no way I can save up a 20% down payment. Does this mortgage insurance go for the life of the loan (30-year mortgage), or only for a few years?

------------------
Greg
bits and pieces of a 91 LX Convertible

Moxie · 06-13-2001, 11:07 AM

btr, like I said, some things vary depending on where you are.

Quote:

I disagree if it is the edge of town. You can check to see what the area is zoned for (although that can change). A big empty area or farm land means fewer neighbors and a bigger area to play.

I live in metro Detroit, so there is no edge of town anywhere nearby. No farm land, either. A big empty lot around here means condos, office space, or strip malls will occupy it shortly. In this area, people are filling every square inch of space they can find. As for zoning, I have personally watched zoning for a particular lot change almost overnight. All the developer needed was a few friends in the right places, and some well placed 'donations'.

As for the size of the house, you may be correct, depending on the neighborhood. My point was that it may not be prudent to buy the one house on the block that sticks out.

Quote:

We enjoy watching the wildlife in our extended backyard.

So do I, although I think our definitions of 'wildlife' may differ slightly...

------------------
Moxie Racing

The Nitrous Oxide Information Site

Skyman · 06-13-2001, 02:05 PM

How much are you lookin to spend and where to?

Exgm- damn thats a good deal on a home! CA is ridiculous. I couldn't buy a tool shed for $100k. The crappy little homes around here go for $280k.

Sky

------------------
-1989 Saleen Mustang #406- TFS Heads, E-303, edelbrock intake,70MM TB, 73mm MAF, off road H, headers and 3chamber flows.
12.55@107mph
50-175 Nitrous Works WET Kit just added.

06-13-2001, 02:35 PM

Sky-

I'm in the Sacramento area, where the "starter" homes go for about $150K. Some are a little tight on room but in a nicer area, and others have a nice lot but are in cracktown.

------------------
Greg
bits and pieces of a 91 LX Convertible

Ripper · 06-13-2001, 02:50 PM

You will pay mortgage insurance, aka PMI, until you've paid 20% of the amount borrowed (principal). However, the bank/lender doesn't have to tell you when you reached this point so keep on top of it. If your home starts to appreciate, your equity will grow, and then you can have the value of the home reassessed. If your equity, which is the value of the house minus the mortgage amount, is then more than 20% of the amount borrowed, you can cancel the PMI.

I hope I made some sense.

06-11-2001, 05:41 PM	#1
cleangreenmachine Guest Posts: n/a	looking to buy first house...any tips? The subject line pretty much says it all. I'm a first-time buyer, banged-up credit in the past, little money to put down, but I have a very low debt-income ratio, clean credit for the last year, and a secure job working for the State of California. Any pointers? Two-car garage is a given... ------------------ Greg bits and pieces of a 91 LX Convertible

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06-11-2001, 06:31 PM	#2
exgmguy Registered Member Join Date: Feb 1999 Location: Utica, Michigan Posts: 2,631	I just bought my first house. Have not even moved in yet. I have typical "guy credit" my mortgage guy told me. I bought a 100,000 house in a Detroit suburb with 2,800 total out of my pocket to move in. I got an FHA loan. It is a loan somehow backed by the government. You can get in for 1,000 down plus closing costs, (which I split up with the seller) Nice clean 3 bedroom ranch on a crawl with a 2 1/2 car heated garage, fenced in yard, etc... I don't know what 100 grand gets you in California but I am just a few miles from the GHETTO now!!!! ------------------ 1988 Mustang GT 12.0 @ 122 1992 BadAzz Wrangler 1993 Explorer

06-11-2001, 06:44 PM	#3
Five0 Registered Member Join Date: Apr 2000 Location: middleburg, fl, usa Posts: 1,134	Yea, get one with a garage. Sorry no other tips ------------------ James Cox nochevy@hotmail.com 1991 Mustang LX 12.565 @109.38mph 1.764 60ft

06-11-2001, 09:40 PM	#4
Maroon 5.0 LX Registered Member Join Date: Mar 2001 Location: Southern Maryland Posts: 471	Check with your Realtor and ask to see the list for the VA homes. These are usually repossessed homes from the Veterans Admin. Most are in decent shape and you can save a bundle. Low down payment. Some are in bad shape, but a lot are really nice. Ask him for a copy of the list or call the VA and they will mail it to you every couple of weeks. Take the list, check the areas you desire, and go look on your own. When you find something you like, get together with the realtor. You have to move fast, as the nicer ones don't stay on the market too long. I bought a VA home several years ago and saved about $30K. Stay away from the HUD homes, they are usually pretty much trashed. Good luck. ------------------ '89 LX 5.0 - 5 speed. Original Owner '94 E-150 Conversion Van

06-12-2001, 10:41 AM	#5
Moxie Registered Member Join Date: Aug 2000 Location: Plymouth, MI Posts: 254	Hmm, well some things vary by state. That said, here are a few things to watch out for: Try to avoid a house on a corner lot. Often property taxes vary with the amount of footage touching the street. A corner house will have higher property taxes. Try to avoid what I call a 'border house'. That's a house with a large amount of empty land directly behind it or next to it. You could purchase the house only to have a strip mall go up next to you in a few years. Try to avoid a house that has neighboring houses much smaller or larger. If you buy a house and the house next door is huge in comparison, this will hurt resale value, because your house will look puny. If your house is huge compared to the house next door, your home value will probably wind up overinflated. Great at selling time, but your insurance and taxes will be higher in the meantime. I hope this helps. ------------------ Moxie Racing The Nitrous Oxide Information Site

06-12-2001, 11:13 AM	#6
ronny50 Registered Member Join Date: May 2001 Location: madison, WI Posts: 70	Definitly look into FHA loans. That's what My wife and I did and made the Down payment alot easier to afford.. They also send a inspector which checks for repairs and damage cost that you will accur in the first couple of years. ------------------ 1990 GT 5k Original miles!! Ripper,Pullies,73 MM C&l Mass Air,8mm Wires,Piaa Headlights,MAC Cold Air (Fender)

06-12-2001, 11:39 AM	#7
cleangreenmachine Guest Posts: n/a	Thanks for all of the advice so far guys. All good stuff...keep it comin' ------------------ Greg bits and pieces of a 91 LX Convertible

06-12-2001, 01:04 PM	#8
Harry Registered Member Join Date: Oct 1998 Location: Dayton, OH USA Posts: 678	When you find one, definately have a whole house inspection done, and get it done quick after you make your offer. That way, if anything needs to be repaired, you can request the sellers to have it repaired before closing on it. Try to buy the most house you can. It may strap you for money right now, but in the years ahead, you will be making more money, and the payments will be easier to make. And seeing that this is your first house, remember that you will probably be moving in 5 - 8 years. Good luck!! ------------------ See my 1985 Mustang GT

06-12-2001, 01:34 PM	#9
Ripper Registered Member Join Date: Jan 1999 Location: Danbury, CT, USA Posts: 273	Get a committment letter from your bank/lender before signing anything. This will tell you how much $$ you can borrow. Also, as mentioned earlier, look into FHA mortgages for 1st time home buyers. If your dealing with a real estate agent, they should be able to refer you to an attorney to represent your interests and handle title searches and arrange for the home inspection. You should get an estimate of the closing costs, which should be given to you by the bank/lender. As far as worrying about corner lots and taxes, neighboring houses being small or big, that's going a little overboard. Your real estate agent, or look up on the internet, what neighboring homes are selling for and property taxes can be an itemized deduction on your income tax return so it can reduce the amount of income tax you pay. You can also find out what the person you're buying from paid for the house by going to your Town Hall (not sure which office I used to look this up but someone there can point you in the right direction). Before I forget, don't trust real estate people, they only make money when they sell a property and the more they sell it for the more $$ they make. Good luck! [This message has been edited by Ripper (edited 06-12-2001).]

06-12-2001, 02:18 PM	#11
exgmguy Registered Member Join Date: Feb 1999 Location: Utica, Michigan Posts: 2,631	Without 20% down you will have to pay the mortgage insurance.

06-13-2001, 09:43 AM	#12
cleangreenmachine Guest Posts: n/a	Well, there's no way I can save up a 20% down payment. Does this mortgage insurance go for the life of the loan (30-year mortgage), or only for a few years? ------------------ Greg bits and pieces of a 91 LX Convertible

06-13-2001, 02:05 PM	#14
Skyman I need 110mph Trap Speed! Join Date: Feb 1999 Location: So, CA Posts: 4,315	How much are you lookin to spend and where to? Exgm- damn thats a good deal on a home! CA is ridiculous. I couldn't buy a tool shed for $100k. The crappy little homes around here go for $280k. Sky ------------------ -1989 Saleen Mustang #406- TFS Heads, E-303, edelbrock intake,70MM TB, 73mm MAF, off road H, headers and 3chamber flows. 12.55@107mph 50-175 Nitrous Works WET Kit just added.

06-13-2001, 02:35 PM	#15
cleangreenmachine Guest Posts: n/a	Sky- I'm in the Sacramento area, where the "starter" homes go for about $150K. Some are a little tight on room but in a nicer area, and others have a nice lot but are in cracktown. ------------------ Greg bits and pieces of a 91 LX Convertible

06-13-2001, 02:50 PM	#16
Ripper Registered Member Join Date: Jan 1999 Location: Danbury, CT, USA Posts: 273	You will pay mortgage insurance, aka PMI, until you've paid 20% of the amount borrowed (principal). However, the bank/lender doesn't have to tell you when you reached this point so keep on top of it. If your home starts to appreciate, your equity will grow, and then you can have the value of the home reassessed. If your equity, which is the value of the house minus the mortgage amount, is then more than 20% of the amount borrowed, you can cancel the PMI. I hope I made some sense.