First Time Home Buyer

[Shannacore]

Originally Posted by SamwiseRed [You must be logged in to view images. Log in or Register.]

also why you wanna perma live in abq. santa fe so much nicer.

A house of the same size / quality in Santa Fe will cost like 3x what it does in the good ol' ABQ!

Plus y'know, I work and go to school here~

[Orruar]

Just bought a home a year ago. It was my first time, so I'm by no means an expert, but here's some tips:

1) If you can put 20% down, that's nice, but not really necessary. The Fed's manipulation of interest rates means the current mortgage rates aren't much different than inflation, meaning borrowed money is essentially free.

2) FHA minimum is 3.5% down, standard mortgage is 5% down. FHA will require extra mortgage insurance though, which is money being pissed away. Do not take out an FHA loan, pay at least 5% down and go with the standard.

3) You want to be informed when houses hit the market immediately. Good deals will get scooped up within days or 1-2 weeks tops. My realtor did this for me with some automated system, though I'm sure plenty of websites do this as well.

4) Start looking immediately, but don't put offers in for at least a month. You won't have a feel for what a good deal is until you've been watching the market for a while. It's really tempting to start bidding immediately as you're excited about buying a house, but that would be a mistake, and you'd almost certainly end up with a regrettable decision. It took me 3 months to find the right place at the right price.

5) If you don't mind putting a little work into the place, a foreclosure can be a good deal. You pay a premium for move-in ready homes.

[Ephirith]

Didn't you just buy a new car? Which you're presumably still making payments on?

You go to school? Got a scholarship, generous parents, or student loan debt?

I don't know what you do but I find it hard to believe your income can safely support car payments, a down payment, and possibly the cost of school or student loans. Safely is an important word because like any investment, the purchase of a home has risks-- appreciation may not keep pace with your expectations, you could lose your job, unforeseen medical expenses could come along, and suddenly an income which was capable of just barely supporting all these expenses comes up short and you lose everything.

I wouldn't do it unless you're positive you can handle all the payments and still save money. If you're not the type who usually saves money, I would recommend you not purchase a home at all until you somehow rustle up a sizable down payment, or some of your other debts are paid.

[Stinkum]

Typical overweight American living beyond her means.

Glad the lessons of the housing market crash have not been learned.

[Shannacore]

Originally Posted by Ephirith [You must be logged in to view images. Log in or Register.]

Didn't you just buy a new car? Which you're presumably still making payments on?

You go to school? Got a scholarship, generous parents, or student loan debt?

I don't know what you do but I find it hard to believe your income can safely support car payments, a down payment, and possibly the cost of school or student loans. Safely is an important word because like any investment, the purchase of a home has risks-- appreciation may not keep pace with your expectations, you could lose your job, unforeseen medical expenses could come along, and suddenly an income which was capable of just barely supporting all these expenses comes up short and you lose everything.

I wouldn't do it unless you're positive you can handle all the payments and still save money. If you're not the type who usually saves money, I would recommend you not purchase a home at all until you somehow rustle up a sizable down payment, or some of your other debts are paid.

I make $50k-60k a year, no student debt, and my schooling is paid for by my job. Car was paid for through a bit of money I was left in my dad's will.

I have no debt, and ~$15k saved up for a down payment (Not a huge amount, but it's a start). Think I can handle it!

Originally Posted by Hasbinbad [You must be logged in to view images. Log in or Register.]

Stuff

Hadn't thought of some of that. Before I go out and actually look at a place I hope to find a person or two who actually knows what to look AT!

Originally Posted by Galanteer [You must be logged in to view images. Log in or Register.]

More stuff

I'm not a very "firm" individual per se, so I hope to have someone help me barter. I know what I THINK I want to spend, but really that's just all speculation until I go say 'wut up' to a bank.

[Ephirith]

Originally Posted by Shannacore [You must be logged in to view images. Log in or Register.]

I make $50k-60k a year, no student debt, and my schooling is paid for by my job. Car was paid for through a bit of money I was left in my dad's will.

I have no debt, and ~$15k saved up for a down payment (Not a huge amount, but it's a start). Think I can handle it!

In that case, go nuts! Check for lots of foreclosed property in the surrounding area, that can be bad for business.

[Hasbinbad]

Have the foundation checked by someone who isn't an idiot. A cracked foundation can cause all kinds of problems and can be extremely hard to find.

Likewise, have the roof thoroughly inspected. Don't be afraid to get out the hose and hose the roof down while someone else is in the attic checking for leaks.

These two things are crucial.

TALK TO THE PEOPLE IN THE AREA!! Ask the neighbors about stuff like flooding, pests (I'm pretty sure you don't want to buy a house built on a scorpion colony), and police misconduct in that specific area.

Is the house wired for a network? Is there a ton of wifi/cell interference in the walls? DO YOU EVEN GET RECEPTION?!? What are the cell/cable/internet providers that service that area, and what packages do they offer? What packages do your neighbors have, and are they satisfied? How far away is the nearest switchbox?

If you plan on creating demons, is there a demon indoctrination center nearby which conforms to your demon-training standards?

I could go on, but let me know if you want me to. :P

[Galanteer]

I just put in a bid for my first place --did tons of research beforehand though. I'm only offering 30% of the asking price (long story) and think I have a good chance of getting it at that.

Don't be intimidated by the sellers agent, and don't be afraid to set your own price --and be prepared to walk away from any one particular property.

Also anticipate the ancillary costs -taxes, lawyer fees, in the states I think titular insurance may be a good idea.
---make sure you do you "due diligence", one person I know lost 200k due to toxic waste cleanup on his new property. Another person I know found (covered up) mould in the basement, a 20k cleanup....

A cost benefit analysis comparing rent to cost of owning often puts owning as a good option around the three year mark, assuming you make a good purchase.

[Hitchens]

This is how variable rate mortgages happen.

[katrik]

Go for it..!

It's a fantastic time to buy. You can get ALOT of house for not alot of money. You probably already know you want to shoot for a 15 year fixed, hopefully you have the credit for a good interest rate. And yes, please please please have it inspected thoroughly.