Calling all Home Owners: Please share tips and advice

[enayes]

My wife and I have started discussing the possibility of buying our first home. We're not ready now but could potentially try within the next year.

We're currently living in Portland, Maine.

To all current home owners: Please share any advice/insight you have into the home buying process. Anything will help.

:cheers:

[UK2K]

As someone who just bought my first home April 1 (no, I'm not fooling), I can tell you that the biggest surprise I had was how much the home cost me AFTER I paid for it.

I spent like $4k in closing costs (split between me and seller) and inspection fees, then spent almost $15k remodeling it, then ended up spending another few grand on furniture to fill the house up.

I thought I had a lot of shit in my apartment, but I was wrong.

After the home inspection (if you want to do it right), you've got the HVAC inspectors, the plumbing inspectors, a roof inspection (this was free), locksmith fees (change your locks and garage code). It adds up real quick. Then there will be other things you find out... a vent doesn't blow air. A pipe leaks. A window leaks. The list goes on.

So if you've only got $X amount saved up to spend on the house, don't spend it all on the house. I used about 76% of the loan I was qualified for to purchase my house. If you get excited and go nuts and spend every dime you qualified for, you're gonna be hurting. Right now my girlfriend and I pay an extra $200 on our mortgage every month, plus set aside $6-800 a month for emergencies (replacing the roof, or a/c, or whatever). If I had bought some wild ass house I didn't need, I couldn't afford to do that and then when something did break, I'd be pulling from my own pocket.

Also, since this is your first home, look for homes in locations with high resell value in 10 years (or however long you plan on keeping it). I chose a place a mile away from another town, where the property taxes are double (so my property taxes are halved). I also know that in the next few years, there are several super stores (IKEA, Gander Mountain, etc.) opening up just up the road. With my nice sized yard, my house will become a premium once the area starts to be built up.

Also, keep in mind, having a house is a 24.7 business. There's constantly shit that needs to be done. But its yours so you don't mind it.

Good luck my friend, and congrats! If you have any other questions, fire away. I closed on my house a few months ago so the process is still fresh in my mind.

[Long Duck Dong]

You said you started your job not too long ago right? Good luck qualifying with less than 2 years steady employment from the same job unless your wife's income is carrying the house or you have a large downpayment.

[UK2K]

You said you started your job not too long ago right? Good luck qualifying with less than 2 years steady employment from the same job unless your wife's income is carrying the house or you have a large downpayment.

That's another thing too OP...

They're going to scrutinize the **** out of your finances. I had to write a story for every deposit or withdrawal (other than my paycheck) over $1,000 for like three months. They'll need tax returns, tax statements, addresses and employers, bank account statements, anything and everything on your credit will be questioned.

If you don't have the 2 years of employment, don't even bother.

[COnDEMnED]

Bought another house last week. It's a bank approved short sale. Could take 2 weeks, could take 2 months to close. I've been holding onto this money for almost 8 months. Be patient and don't buy the first house you see because it has a bitchin man cave with a fireplace and built in bar, but water and fire damage (I almost bought this house). Best advice I would give is for both of you to make a "wish list". What's the top 5 most important things you want in a house, and what's your spouses.

My wish list was I wanted in a certain location. I wanted over an acre. I wanted to be close to family ( I got within half a mile). I want to be close to a body of water/fishing (less than a mile away). I didn't want to spend over 215k ( I got it for 185k ). The only thing on my wish list I didn't get is I wanted stick-built. Since I got everything else on the list I overlooked that for a pre-fab (built in sections in a warehouse, shipped to property and reassembled).

I looked at dozens of houses. I visited multiple communities. Drive around and get familiar with the surrounding area so you can make an educated decision on where you hope to end up. When you begin looking, make sure you get an experienced realtor. I had one lady for 8 months who lied about her credentials. Turns out she's only been doing this for 2 years. She didn't help me find shit. I fired her and hired a different lady. NEW chick has 15 years experience. I bought a house with her in less than 24 hours.

[DukeDelonte13]

get a good home inspector and take your time.

[andgar923]

get a good home inspector and take your time.

this

It can cost you pains and headaches in the long run. Make any renovations before you move in. My wife and I weren't sure when or if we wanted to make renovations so we waited until almost a year, and it was a hassle.

Get all the painting, renovating, flooring, etc. outta the way before you move in.

[UK2K]

this

It can cost you pains and headaches in the long run. Make any renovations before you move in. My wife and I weren't sure when or if we wanted to make renovations so we waited until almost a year, and it was a hassle.

Get all the painting, renovating, flooring, etc. outta the way before you move in.

I decided to get it all finished before I moved in. I closed on the house on April 1, and ended up moving in the last weekend in May.

So glad I did it sooner rather than later.

[sd3035]

Build your own house. There's nothing better than moving into a brand new house that you've designed

[Facepalm]

My wife and I have started discussing the possibility of buying our first home. We're not ready now but could potentially try within the next year.

We're currently living in Portland, Maine.

To all current home owners: Please share any advice/insight you have into the home buying process. Anything will help.

:cheers:
If you buy a used home get a maintenance warranty (unless you are a handyman)

[glidedrxlr22]

I don't know OP. You're getting good advice here, but you might just try to pull one of your scams/getting the most bang for your buck thorough loopholes routine.

[KyrieTheFuture]

What all your credit card hustling hasn't afforded you enough extra cash to buy a home?

[Meticode]

I probably won't ever own. We're not well enough off and the energy and money put in versus the reward isn't enough for me. Here's a decent video I watched recently that reinforced what I felt about it. I understand if you have kids and stuff and you need the space, but we have 1 daughter and a duplex is 100% fine for us with not worrying about having to pay for unexpected costs like root repair, furnance repair, etc, etc.

Is Renting Always a Complete Waste of Money vs Buying a House (https://www.youtube.com/watch?v=KAMeI4uHAFE)

Good luck on buying your home.

[highwhey]

the other posters are right, owning a home is such a time-consuming venture. it's worth it of course, but prepare for it. my ex's father taught me a lot, every time I would visit her, and i do not exaggerate, he was outside cutting wood, drywall, tile, etc or making some modification to his house. he built that house from the ground up but has spent almost every day since fixing or adding to it. i left that b1tch because she already had high expectations because of her father.

[Long Duck Dong]

Build your own house. There's nothing better than moving into a brand new house that you've designed

Unrealistic for most people unless you are A) Wealthy or B) Build homes themselves or have a close family member willing to do it for cheap.

New homes come with all kinds of new regulations and fees. You can remodel an existing home and add up to 50% more space in most states without having incur the permit fees and comply with new home regulations.

[enayes]

What all your credit card hustling hasn't afforded you enough extra cash to buy a home?

It has. Which is the main reason we are going to start looking soon.

Thanks for the all the replies so far, good advice.

As far as 2 years of "steady" employment goes, do they really need 2+ years at the same job? What if you were at a job for 1.5 years, switched to a "summer job" then took a couple months off because you got married and then had 4 different jobs over the next several months?

[dazzer87]

It has. Which is the main reason we are going to start looking soon.

Thanks for the all the replies so far, good advice.

As far as 2 years of "steady" employment goes, do they really need 2+ years at the same job? What of you were at a job for 1.5 years, switched to a "summer job" then took a couple months off because you got married and then had 4 different jobs over the next several months?
4 job over several months.....? Good luck this is not 2007....

[Meticode]

As far as 2 years of "steady" employment goes, do they really need 2+ years at the same job? What of you were at a job for 1.5 years, switched to a "summer job" then took a couple months off because you got married and then had 4 different jobs over the next several months?
It won't look good because of the change if income. That's 3 changes of jobs in the course of 2 years. Changing jobs, quitting jobs or becoming self employed in the last 2 years when applying for a loan is a big commandment.

They'll prefer salaried employees over hourly. Also some people even if they have the same job over 2 years have trouble getting loans because some jobs make most of their money on overtime. There was one guy I know that made about 45K a year regularly on his regular 40 hour a week pay, but he had actually been making 100K+ the last 3 years because of all the overtime he had done.

[SpecialQue]

get a good home inspector and take your time.

Can't stress this enough. My gf and I rushed into buying a place years ago and had a real estate agent talk us out of getting the inspection. Thankfully we got a small place where the repairs aren't too expensive, but several years into it and I'm still finding shit that I didn't know about that I WOULD have if I just got the damn inspection done.

[enayes]

It appears that the "normal" down payment is 20%....

20%!?!! :eek:

I was under the impression that if you had around 10% to put down you were in good shape.

So on a $200K house, they want $40K down? :biggums:

Are people really able to do this?

:confusedshrug:

[Hawker]

It appears that the "normal" down payment is 20%....

20%!?!! :eek:

I was under the impression that if you had around 10% to put down you were in good shape.

So on a $200K house, they want $40K down? :biggums:

Are people really able to do this?

:confusedshrug:

I would think DINK (dual income no kids) couples that are good with money can easily come up with that kind of cash if they have semi-decent paying jobs and living below their means and save.

[dazzer87]

It appears that the "normal" down payment is 20%....

20%!?!! :eek:

I was under the impression that if you had around 10% to put down you were in good shape.

So on a $200K house, they want $40K down? :biggums:

Are people really able to do this?

:confusedshrug:
Really dont know if you are trolling or not..... 40k is not alot of money. 200k for a house by any chance you are in Detroit or OKC? 2005-07 wouldve be perfect for you.

[DCL]

acquire some handiman skills.

if there's no one to teach you, go teach yourself from youtube.

if a high school drop-out can repair house shit, so can you.

because shit around the house WILL break occassionally. nobody is coming over to fix it for free.

you'll save a lot of money if you can do it yourself.

[FashionIssues]

pull out one of your credit cards and show em you good!

[tomtucker]

Also, keep in mind, having a house is a 24.7 business. There's constantly shit that needs to be done. But its yours so you don't mind it.

Good luck my friend, and congrats! If you have any other questions, fire away. I closed on my house a few months ago so the process is still fresh in my mind.

no doubt....right now i am in a fight with a lot of swallows that are trying to build nets everywhere and forcing themselves into cracks.........driving me fukking insane :banghead: .......im going up ladders 24/7, shooting BB guns left and right .....motherfukkers are attacking me !...and shitting everywhere....relaxing summer my ass !

[UK2K]

It appears that the "normal" down payment is 20%....

20%!?!! :eek:

I was under the impression that if you had around 10% to put down you were in good shape.

So on a $200K house, they want $40K down? :biggums:

Are people really able to do this?

:confusedshrug:
Without a 20% down payment, you're going to pay PMI.

5% is about the lowest they'll accept, unless it's a VA loan and then they don't require anything.

[sd3035]

lots of 9-5/credit slaves here. It's not hard to make money

[UK2K]

lots of 9-5/credit slaves here. It's not hard to make money

Money doesn't buy you a house though...

Credit does.

Unless you are paying cash, your credit is everything.

[nightprowler10]

It appears that the "normal" down payment is 20%....

20%!?!! :eek:

I was under the impression that if you had around 10% to put down you were in good shape.

So on a $200K house, they want $40K down? :biggums:

Are people really able to do this?

:confusedshrug:
IMO, if you can't do this, don't buy a house. Just rent and save as much as you can. Buying a house isn't the end of it. You have to maintain it, do little projects, etc. It all costs money.

[KyrieTheFuture]

It appears that the "normal" down payment is 20%....

20%!?!! :eek:

I was under the impression that if you had around 10% to put down you were in good shape.

So on a $200K house, they want $40K down? :biggums:

Are people really able to do this?

:confusedshrug:
Jesus you should not even be considering buying a house

[UK2K]

IMO, if you can't do this, don't buy a house. Just rent and save as much as you can. Buying a house isn't the end of it. You have to maintain it, do little projects, etc. It all costs money.

Honestly, if you can't save for a year to work up, ATLEAST, a 10% down payment, then you shouldn't be buying.

You are going to pay PMI regardless, but if you can't afford THAT, then you won't be able to afford the house.

The mortgage is cool and all when you look it up on Zillow, but then you have taxes added into that (a few hundred a month) and then insurance included as well (another $150 or so a month), plus interest. Plus utilities. Plus upkeep.

Then you've got to buy items you didn't have before... a lawnmower, weed eater, tools, furniture. You're going to need to replace light fixtures and fix minor issues. Then you get to have all your big ticket items inspected.

Then, holy ****, your roof needs replaced. Easily $7k. Your a/c goes out? Another $4k.

Your 'mortgage' may be like $700 a month. After taxes and insurance and all that, your new mortgage is $1100 a month. Plus utilities and cable and all that good stuff, then you're talking $1600 a month.

Plus groceries. Plus living.

It adds up really quickly.

[enayes]

Really dont know if you are trolling or not..... 40k is not alot of money. 200k for a house by any chance you are in Detroit or OKC? 2005-07 wouldve be perfect for you.

Post proof of your income or GTFO

:coleman:

[dazzer87]

Post proof of your income or GTFO

:coleman:
Dude really please stop. 40k is not alot. What does income has to do with saving up 40k. But like others are saying its best you keep renting cause you are not ready ($$$) to purchase a house. Like I said back in 2005-06 you could gotta a house with zero down but that time is long gone now.



Or maybe you could open enough CC to to earn those awards points so you could turn them into cash and put that down for your 20% on a house.

[COnDEMnED]

I just got a call from my realtor. I have termite inspection, home inspection, and septic inspection/cleaning on August 3rd. The sellers want to close on September 3rd. If all goes well I start renovations on September 4th. :banana:

My realtor is a superstar. She set all that up for me. The lady I had before her wouldn't even return my calls until the next day or later, even if I sent her links to houses I wanted to look at. That's right, I sent HER houses I wanted to look at, not the other way around. :cry:

All's well that ends well I guess.

[Derka]

Girlfriend and I are going to start looking for a house in October/November so this is all good stuff to read.

Funny to see someone shocked about the down payment part. Both of us qualify for 100% financing at two of our local banks and the amount we were pre-pre-approved for is waaaaay over the amount we're actually looking to spend...but we're still going to save up enough to put 20% down because of course we are.

Its just not worth it to rent here since the rents are at mortgage levels or higher out here, whether its a single-family home, condo or townhouse. For what we'd pay in rent/utilities/etc., we might as well own it.

[stalkerforlife]

We tried to buy a trailer, but they denied me.

They said a year on the job is mandatory and our credit card utilization is too high.

[UK2K]

I just got a call from my realtor. I have termite inspection, home inspection, and septic inspection/cleaning on August 3rd. The sellers want to close on September 3rd. If all goes well I start renovations on September 4th. :banana:

My realtor is a superstar. She set all that up for me. The lady I had before her wouldn't even return my calls until the next day or later, even if I sent her links to houses I wanted to look at. That's right, I sent HER houses I wanted to look at, not the other way around. :cry:

All's well that ends well I guess.

If your realtor isn't sending you 8-15 houses a day, she's not doing a good job. She should be doing everything, thats why you pay her. If you want to see a house, she should make time. If you call her, she should call back the same day.

Glad you found a better realtor. It makes for a much smoother process.

[Dragonyeuw]

Where I live we aren't subject to all the inspection and regulatory fees that come with U.S real estate, but I can say this simply after being a homeowner for 14 years( bought my home at 24 years old): It's your responsibility when shit breaks, and it will often at the most inopportune times for your budget. If you're not comfortable with that idea, you probably shouldn't buy a house.

[n00bie]

How much is the average detached home where you live?

I'm glad you don't live in Toronto. Average house prices are going up by 20% each year with no sign of stopping.

Buying a piece of shit house here cost over a million. :facepalm

[enayes]

I just got a call from my realtor. I have termite inspection, home inspection, and septic inspection/cleaning on August 3rd. The sellers want to close on September 3rd. If all goes well I start renovations on September 4th. :banana:

My realtor is a superstar. She set all that up for me. The lady I had before her wouldn't even return my calls until the next day or later, even if I sent her links to houses I wanted to look at. That's right, I sent HER houses I wanted to look at, not the other way around. :cry:

All's well that ends well I guess.

These are all things that have their own fee that you have to pay for, correct?

Or is it all part of the "realtor" package/experience?

[COnDEMnED]

These are all things that have their own fee that you have to pay for, correct?

Or is it all part of the "realtor" package/experience?
All separate fees, but you have the option to do them or not. With that much money invested, best not to **** around and just get it done.