Buying a home - experiences?

Ask the seller if you can take it for a test drive, just to spend a week in it before making an offer.

 

A down payment (or some severe other conditions like ijag has) is a requirement nowadays. No-money-down is what pumped up the market leading to the crash -- people "owned" houses they couldn't afford but really didn't own them because they had nothing into it.

Pay for the schools. "Worst house in best neighborhood" is the old saying about what you should be looking for.

 

The premium you pay for a good school district is built into the home's value and is more than likely not to be lost and will be certainly cheaper than private school tuition.

 

My realtor certainly didn't advise against it.

Decided to make an offer on a home listed at $155,000 a little over a year ago. Figured I would offer $140,000. Realtor told me to offer $130,000.

 

With a FHA loan, something like the trim around the house must be painted or the inspector will not approve. I hae to buy some paint and slap it on (nothing special my realtor said) to make sure the deal can move forward.
I guess FHA considers that "neglect" and not fucking old paint coming off wood. You'd figure they'd be able to differentiate between the two, you know, seeing as it it their job.

 

Get preapproved first. Never use all of it.
If you want to stay there, check out the school.
Be sure to be there when the bus drops off the kids. If you can live with the little bastards it contains, that is a big step.
Go to the neighborhood a few hours after dark and see who is walking around.
Buy the worst home in the best neighborhood, not the best home in the worst neighborhood.

 

Watch out for kids shooting hoops in their driveways.
Especially if you are in Canada.

 

Just know that the bank won't tell you the amount you need to bring to closing until the very last second. It's extremely frustrating. Along the way, you'll keep seeing or hearing different amounts from your loan officer, the good faith estimate, etc.

We've experienced that on both our originial closing and our refinancing.

 

Ask for the seller to cover 3% of closing costs.

 

Don't undersell yourself. We could have afforded more than we paid for the house when we bought it. We've made up for it with house additions -- in-ground swimming pool, sun room -- but know what you can afford.

And if you're getting new construction, be sure that all the things such as sewer, water, etc., are taken care of before your move-in date. Our contractor and the landowner had a dispute over the sewer, and the result was they put us up in a temporary (read: yucky and old) house for two weeks before we could move in. That is depressing when you're pumped up to get into your new home.

Watch out for kids shooting anything in their driveways.

 

Also try and ask yourself - will this be a house that I expect my young kids to graduate from high school in? If so, pick a solid place.

That doesn't mean you need 2,300 sq feet or 4 bedrooms.

It means a place where everyone in your family has the necessary room but, more importantly, in a good school district. Let's say in my city, $160,000 gets me a split level in the best school district and $160,000 gets me a palace in the worst. Give me the split level. 101 times out of 100. Fewer worries about the future. Neighborhoods can go from good-to-so/so or so/so-to-bad. They never go from bad to good.

The rates are really low, especially for a 15-year mortgage, which I would strongly advise if you can swing it.

What else to avoid (the usuals): a busy street. Even a secondary street that is busy I wouldn't live on with small children. If you are in an area where most people park their cars on the street but are also close to one where they park their cars in driveways instead, I'd go with the latter -- for safety for your kids and for resale value. Mature trees or newer subdivisions? If for the long-term, I would suggest the newer subdivisions -- the trees will grow there in time.

I would also mildly suggest to "cool your heels". If you are currently renting and looking... you're the prime customer. No house to sell. No baggage. I would strongly recommend that you go to every open house in the neighborhood you want to live in. Regardless of the home's price. Look at $75,000 shacks. Look at $550,000 mansions. Take it all in. Enjoy this process now. Perhaps the house you buy will be unexpected.

In each of our first three houses, I remarked "I hate this damn house!" at least once. Sometimes it was the small size. Sometimes it was small size and lower-class end of town. Yet, in our current home, sure it isn't the biggest on our street even but I love the location, love the house and don't mind paying for the upkeep.

Your house will be your largest expense in life, unless you're really into hookers, cocaine or German cars. I place a premium not in possessions like cars or jewelry but I do put a lot of stock in "how does this home make me feel?" when I pull up in the driveway after a long day. It's not a huge house by any means -- but it fits our needs very well.

Happy hunting.

 

IF you're thinking about new construction, buy the floor-plan books. Steal ideas. I wanted a sunken living room setup, and was able to get it by working with my builder. Didn't really cost much more at all.

The great-room concept sounds good and all, but think about how you live before you go that route. You may want a secondary room for TV watching, a living room for entertaining, etc.