First Time Home Buyer (Any Advice?)

[pilferk]

get a home inspection done. it will be the best $300-$500 you'll spend in the process.

I 100% agree.  If you can afford the cash (and I'd try to find a way) up front, do it.

We had one done...found some minor things, but we got the seller to give back some $$ so we could pay to fix 'em.

If you find MAJOR things (roof or basement/slab problems, water intrusion, that kinds stuff) it's a red flag to run, screaming, in the other direction.

[LunsJail]

They usually come with better interest rates and lower closing costs. $8000 on a $72,000 loan is absolutely ridiculous. It should be about half that or lower.

My first question to the lender/broker would be "what's the origination fee". 

The origination fee is how they get paid basically. It will also lower your interest rate about .25%.  Also, I agree with getting the home inspection. Your average real estate agent can't spot major problems with the house.

[PolarBearWitchHead]

here's what u do

you'll either get an FHA loan which requires 3.5% down, or if you can i recommend a rural development loan if the house you want qualifies for it, you'll have no down payment and no pmi.

keep in mind to qualify for the tax credit you have to have your house closed before the end of November, and in my area files are taking 60 days to close, and just count on all the title companies being slammed at the end of November with Thxgiving and this tax credit thing.  So the latest I'd have a contract is Sept. 15 imo.

Also about closing costs, just ask the seller to pay them, even tho they shouldn't be 8k, more like 2700 on that loan amount.

[PolarBearWitchHead]

oh and getting a home inspection is something you obviously have to get.  You won't be able to ask the seller for repairs without one.  and btw, getting a house passed an FHA appraisal is gonna be fun, prepare for that to push back closing also while you wait for the seller to scrape paint and fix the roof

[pilferk]

The origination fee is how they get paid basically. It will also lower your interest rate about .25%.  Also, I agree with getting the home inspection. Your average real estate agent can't spot major problems with the house.

Sorry, I should have been clearer.

I know "what" the origination fee is, in term of why it exists.

I meant: "What's"  the origination fee, in terms of "how much".  That would be my first question.

[Loaded NightraiN]

OK well as soon as I get home i'll have a bunch of questions, based on all of the comments...

Closing costs include ESCRO, pro rated taxes, etc....

I got another quote from a bank today and the closing cost total was about $5500, but this was based on a $65,000 loan... Still alot better than the previous

[sandman]

i just read the first time home buyer credit got extended, AND that there's a NEW $6,500 credit for existing home owners (IF you meet the criteria of owning current home 5+ years, below certain income level, etc.)

QUESTION: does everyone that meets the criteria for the first time home buyer get the FULL $8,000. or is the actual amount based on the home price?

i read something that said "up to $8,000" and i sorta remember hearing something about some % of the purchase price.   

any info would be appreciated. 

[Loaded NightraiN]

QUESTION: does everyone that meets the criteria for the first time home buyer get the FULL $8,000. or is the actual amount based on the home price?

i read something that said "up to $8,000" and i sorta remember hearing something about some % of the purchase price.  

10% of the purchase price up to $8,000...


Do you know when it got extended to?

[sandman]

QUESTION: does everyone that meets the criteria for the first time home buyer get the FULL $8,000. or is the actual amount based on the home price?

i read something that said "up to $8,000" and i sorta remember hearing something about some % of the purchase price.  

10% of the purchase price up to $8,000...


Do you know when it got extended to?

thanks for the info. i found some articles today that make the 10% figure very clear. i never realized that, and based on conversations i have had, there are many others that assumed it was $8,000 as well.

it got extended until April 30. binding contract (purchase agreement) must be signed by April 30 and you have to close by June 30.   

[Loaded NightraiN]

^ Thats great... My house closing was originally scheduled for Oct 29 but its been pushed back so far, i'm still waiting to close... I was was sweating the Nov 30 deadline, but this eases my mind a little bit, even though it looks like I might close the end of this week anyway

thanks for the info. i found some articles today that make the 10% figure very clear. i never realized that, and based on conversations i have had, there are many others that assumed it was $8,000 as well.

Yeah i've noticed that too... When I first heard about it, thats what I thought it was, until I seriously started looking into buying... Either way its not a bad deal...

[pilferk]

i just read the first time home buyer credit got extended, AND that there's a NEW $6,500 credit for existing home owners (IF you meet the criteria of owning current home 5+ years, below certain income level, etc.)

I know you probably know this, but want to make sure it's clear:

The $6,500 tax credit is for existing home owners who have been in their house for 5 (of the last years as a primary residence...AND WHO ARE SELLING THAT HOME AND BUYING A NEW ONE to be their primary residence.   Income limit is 125k for singles, 250k for couples.

Again, I'm sure you know..but don't want anyone to get confused.  You don't get the $6500 simply  because you currently own a home.  That's probably pretty obvious to most people, but in the interest of clarity, I figured I'd expand a bit to make sure.

What I've got someone looking into is if you might be able to sneak a loophole into the works with a refi during the stated time period.  I dont' think it will...but the language in the actual bill might just make it possible to do.  I'll let you know when I hear back from our tax prep guy and their lawyer.

[Loaded NightraiN]

5 (of the last years

How many years was that 

[pilferk]

5 (of the last years

How many years was that 

Stupid emoticons!!

5 of the last 8 years. 

In my defense, I copied and pasted the eligibility from a .gov site.  Blame them!

[Loaded NightraiN]

Stupid emoticons!!

5 of the last 8 years. 

In my defense, I copied and pasted the eligibility from a .gov site.  Blame them!

So who do you blame for "emoticons", what is that an erection for the emotions??

lol sorry i'm never the spelling nazi, but this was just to easy....

Carry on

[pilferk]

Stupid emoticons!!

5 of the last 8 years. 

In my defense, I copied and pasted the eligibility from a .gov site.  Blame them!

So who do you blame for "emoticons", what is that an erection for the emotions??

lol sorry i'm never the spelling nazi, but this was just to easy....

Carry on

Actually...I think "emoticons" is spelled right:

http://en.wikipedia.org/wiki/Emoticon

 

[Loaded NightraiN]

Well who's the asshole now 

[MrMojoRa]

My advice, find a Realtor you can trust that will answer all of your questions.

[IKnowWhereIAM]

1.  Skylights suck (they will leak eventually, and waste heat)
2.  Block foundations absorb water, if you live in a cold region you know what water does when it's cold. (make sure it is properly sealed/waterproofed)
3.  Shingles/roof will go to shit about 30 seconds after warranty expires.

Don't take anything for granted...I somehow missed a broken concrete patio hidden under my deck, when I bought my house...break caused a slope toward foundation, directing  all water against foundation...you know where that goes.  I had to remove deck to remove patio and regrade earth around foundation.  Realtor lied about age of roof too...within 2 years of purchase shingles were falling into gutters..only trust what you have in writing, officially (since most 'listings' or fact sheets will have a disclaimer attached) - That may be the best advice.

[sandman]

i said it once and i'll say it again. get a home inspection done. it's the most important part of the process. all your other efforts could be wasted if you do not get one done.

mold, foundation problems, flooding issues, termite damage...these are issues that run you tens of thousands of dollars.

[IKnowWhereIAM]

i said it once and i'll say it again. get a home inspection done. it's the most important part of the process. all your other efforts could be wasted if you do not get one done.

mold, foundation problems, flooding issues, termite damage...these are issues that run you tens of thousands of dollars.

Yeah, and if your 'inspector' shows up with an old leather doctors bag that contains only a flathead screw driver and a flashlight - and he wanders around the homes interior for 5 minutes and says 'looks good'...get another inspector.  Truuuussssst me!  I think there are higher qualifications for mall security in my area.