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wolf · 12-20-2004, 05:36 PM

I can tell you my wife and I just are trying to close on our first house this week. What a bitch. You think it is all going to be easy, but there are pitfalls which first time home buyers should be careful of.

First, shop around for a mortgage, don't just look at local banks, look at mortgage brokers as well, they usually have a wider range of programs vs banks which are limited to what that bank can offer. However, don't let anyone get pushy (and they will) let them know up front you are shopping around, if they say that they will not release their rates or work with you at all unless you sign on, move on.

Next, shop around for a realtor, just remember (present company excluded) next to used car salesmen, and sometimes before, some realtors are the lowest scum on the face of the planet, you think they are in it for you? NO NO NO, they are in this business for one thing, and it ain't you. Money my friend money, if they are carrying the house they get full commission which can be anywhere from 10$-15% of the price of the house. So when you see how much the houses you are looking at, take a look at 10-15 percent and it's a nice chunk of change, make 'em work for it. Screw this, "oh, I'll come to your office to sign forms", nah bro, make the lacky come to you. They're getting paid, not you. Don't let them push you around, or tell you that you're price range isn't feasible, take a look at the real estate transactions in your local paper, they usually run once a week in the local paper and usually on Saturday as that paper is usually smallest unless someone big buys the farm and a whole bunch of people actually give a fuck. Check those bad boys and see how much houses are going for, then talk to the mortgage rep and give them a bunch of numbers to run, tell them you want to see what the monthly payment would be for each price, then do out your finances and see what you can afford. Don't forget the biggies, like home owners insurance (you'll have to pay for your first year in full), closing costs (will run you between 3,000 to 5,000) see if you can get the seller to pay these. INSPECTION - MAKE SURE TO GET THE HOUSE INSPECTED BEFORE YOU BUY!!!!! I know in the back of your head you're thinking, well duh!!! Well, I saw a buddy of mine pay over 500k for his house and he didn't have it inspected, he thought because the house cost so much it must be good right? WRONG! The pipes were all lead and needed to be redone, the basement leaked like a sieve, the roof needed redoing, oh I could go on, but I won't.

My best advice is to know what you are looking for and don't let anyone tell you no, and don't let them push you around.

12-20-2004, 05:36 PM	#16 (permalink)
wolf Ravenous Location: Right Behind You	I can tell you my wife and I just are trying to close on our first house this week. What a bitch. You think it is all going to be easy, but there are pitfalls which first time home buyers should be careful of. First, shop around for a mortgage, don't just look at local banks, look at mortgage brokers as well, they usually have a wider range of programs vs banks which are limited to what that bank can offer. However, don't let anyone get pushy (and they will) let them know up front you are shopping around, if they say that they will not release their rates or work with you at all unless you sign on, move on. Next, shop around for a realtor, just remember (present company excluded) next to used car salesmen, and sometimes before, some realtors are the lowest scum on the face of the planet, you think they are in it for you? NO NO NO, they are in this business for one thing, and it ain't you. Money my friend money, if they are carrying the house they get full commission which can be anywhere from 10$-15% of the price of the house. So when you see how much the houses you are looking at, take a look at 10-15 percent and it's a nice chunk of change, make 'em work for it. Screw this, "oh, I'll come to your office to sign forms", nah bro, make the lacky come to you. They're getting paid, not you. Don't let them push you around, or tell you that you're price range isn't feasible, take a look at the real estate transactions in your local paper, they usually run once a week in the local paper and usually on Saturday as that paper is usually smallest unless someone big buys the farm and a whole bunch of people actually give a fuck. Check those bad boys and see how much houses are going for, then talk to the mortgage rep and give them a bunch of numbers to run, tell them you want to see what the monthly payment would be for each price, then do out your finances and see what you can afford. Don't forget the biggies, like home owners insurance (you'll have to pay for your first year in full), closing costs (will run you between 3,000 to 5,000) see if you can get the seller to pay these. INSPECTION - MAKE SURE TO GET THE HOUSE INSPECTED BEFORE YOU BUY!!!!! I know in the back of your head you're thinking, well duh!!! Well, I saw a buddy of mine pay over 500k for his house and he didn't have it inspected, he thought because the house cost so much it must be good right? WRONG! The pipes were all lead and needed to be redone, the basement leaked like a sieve, the roof needed redoing, oh I could go on, but I won't. My best advice is to know what you are looking for and don't let anyone tell you no, and don't let them push you around. __________________ Thousands of years ago, cats were worshipped as Gods. Cats have never forgotten this.