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| Buying a house. | |
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| Topic Started: Feb 8 2012, 09:37 PM (289 Views) | |
| Assassin | Feb 8 2012, 09:37 PM Post #1 |
Field Marshal
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This is for the people who own a home. I'm looking to buy a house. I have a few thousand saved up, and an average credit score. I've never bought a home before, and frankly it scares the shit out of me. But, I'm tired of renting and I want a place to call my own. Basically a small little starter home. Nothing crazy. Like the 80-90k price range here in upstate new York. So my question here is this. How do I go about it? I assume I need a broker. And I can get the closing costs and shit paid for by the VA. What's the process I need to go through? Where can I read up on this type of shit? Pros and cons, stuff I should look out for, etc? I just don't want to do something dumb here. |
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| meh | Feb 8 2012, 09:53 PM Post #2 |
1st Lieutenant
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Build your own. http://www.youtube.com/watch?v=iYJKd0rkKss |
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| Assassin | Feb 9 2012, 02:28 AM Post #3 |
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Field Marshal
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That would defeat the purpose of a starter home. |
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| Tristan da Cunha | Feb 9 2012, 06:29 AM Post #4 |
Science and Industry
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Watch out for problem neighbors. In Upstate New York that would be crystal meth labs and trashy people in general who will drag land values down. Consider renting out a room to generate some extra income. |
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| flumes | Feb 9 2012, 10:16 AM Post #5 |
CLEVELAND ROCKS!
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I don't own a home, but Real Estate is my thing. I forget all the specifics of a VA loan, but I do know you get a VERY good deal (rightly so) with a VA loan. You are almost sure to get a loan with the price range you are looking at because the government guarantees up-to 25% of each VA loans made which wipes away a ton of risk for lenders. Because of this, you can probably negotiate a great interest rate (and they are already at record lows!). Additionally, you don't have to pay Private Mortgage insurance if you don't put 20% down, because again, the VA will guarantee it... Very nice. I'd start by going to the VA. They will provide you with forms saying you're eligible and can explain the benefits I didn't mention. I wouldn't be as concerned with who you broker is, but rather who your agent is. You really only see the broker when you sign the final paperwork. The agent is the one who will show you the various houses and stuff.. It wouldn't hurt to look at homes a bit on your own first, that will help you know what you want and if you can find one without an agent that will save money on commission. I do realize looking for a house is huge pain in the rear so using the agent might be worth the money to save the hassle. I don't know if you are looking rural, suburban, or urban, but look for an up-and-coming neighborhood if applicable... If you don't get an agent and are in an urban area, make sure the house has its copper electrical wiring. That will wreck the value of a home and that has been a big target of thief's the last couple years... |
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| New Harumf | Feb 9 2012, 11:01 AM Post #6 |
Bloodthirsty Unicorn
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I am in the process of selling and buying right now. Here are the steps I would suggest: 1. Select the neighborhood you are looking to buy in, and find a realtor who if VERY familiar with that area. 2. Ask the realtor to suggest someone to PRE-APPROVE your loan. With a VA loan, they will want a credit score of 620 or above (in that range), proof of employment, copies of your 2009, 2010 and (if you have done them) 2011 tax w2's and 1040's, copies of your last two paystubs, a copy of your drivers license. 3. Once you are pre-approved, your realtor should be able to produce a financal form to show exactly how much you need to bring to the table for closing at that pre-approved amount; also what your mortgage, taxes and estimated other payments will need to be. 4. Only then do you start looking for a home. Remember, as the buyer, you are not required to pay your agent's commision - that is the sellers job. 5. When you find the property you want, make an offer under the asking price (you are negotiating here) - also, since it is a VA loan you will need to get an inspection and an apraisal (I would recommend this regardless - also a radon test). The VA likes to see energy efficent homes, so the more EnergyStar crap the better. Your offer will have contingencies on passing the inspection, apraisal and any other tests you want. 6. Avoid short sales - they can take months to close. 7. Anything brought up on the inspection and tests should either be repaired by the seller, or they should offer you a cash consession to make the repairs yourself. The VA will NOT let you buy a mega-fixer-upper. 8. Wait, then go to the closing. |
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| NRE | Feb 9 2012, 04:44 PM Post #7 |
Map Tsar and Southern Gentleman
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Though I've never bought one personally, I have had family in recent years to buy homes and I feel these two things are certainly key, well more to the point, the inspection. I'd suggest having it done professional over say, doing it yourself to save money or having a buddy do it for you. My brother in-law did his own inspection the first time around and boy did that house turn into more than he thought when he went to sell it himself. |
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| Assassin | Feb 9 2012, 05:36 PM Post #8 |
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Field Marshal
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Oh, I'm definitely going to get an inspection and radon test. The radon test isn't mandatory in my county, but I might as well to be safe and say I have it done. I also checked my credit scores to be sure of them so I don't get bent over a table. Found some stuff that is effecting them that shouldn't be as they were taken care of years ago. |
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| flumes | Feb 11 2012, 12:56 PM Post #9 |
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CLEVELAND ROCKS!
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Although this is usually true, it does depend on the contract with the agent. |
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| Paradise | Feb 12 2012, 10:23 AM Post #10 |
Resident bureaucrat
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Only in the US you can find a 80-90k house (thanks to the crumbling real estate market). My brother is looking for a house too in Rimouski (my hometown) and the starting price is 200k, mean price around 250k. I tried to discourage him from buying a house right now because the prices are largely over-rated... And it's worse in Quebec City, here you can't find anything below 300k ... Oh well, I just hope the real estate market doesn't crumble here like in the US. I wouldn't want my brother to go bankrupt... |
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| New Harumf | Feb 12 2012, 01:53 PM Post #11 |
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Bloodthirsty Unicorn
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80 to 90K for a starter home was par for the course, even before the housing bubble crash, provided you were not looking in a major metro area like NYC, SF, LA or Chicago. Canadian costs are VERY inflated compared to the actual building costs. |
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| Paradise | Feb 14 2012, 11:39 AM Post #12 |
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Resident bureaucrat
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Indeed, and because of this "bubble", the residential construction sector is still going very well. In fact, it's one of the only private sectors that did not suffer from the 2008-2009 recession. What's worrying though is that if you increase the residential stock while actual prices remain over-rated, then any negative shock on the real estate market will be increased proportionnally. That's actually what happened in the U.S, the unoccupied house kept rising which in return continued to reduce the real estate prices. It's a vicious circle. Oh well... At least, if the real estate market crashes and brings the economy down with it, I may be able to get an interesting bargain on a house. |
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11:34 AM Jul 13