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Buying my first home UPDATE: offer accepted, now what?

Discussion in 'Anything goes' started by Human_Paraquat, Apr 15, 2010.

  1. mustangj17

    mustangj17 Active Member

    Re: Buying my first home in a buyer's market

    That's one of the top reasons I want a house, need to have a hose available to wash my car in the private drive.
     
    Last edited by a moderator: Jan 1, 2015
  2. JackReacher

    JackReacher Well-Known Member

    Re: Buying my first home in a buyer's market

    I hear ya. Ideally, I'd like a detached house, too. I grew up in a small town and EVERYONE had a detached house. It's just the way it was. Today is a different day, especially in the DC area. There are plenty of detached houses; they just cost way too much. Correction. There are plenty of affordable ones, but they're about 30 miles south of DC and the commute would not be worth it. Not even close.
     
    Last edited by a moderator: Jan 1, 2015
  3. 93Devil

    93Devil Well-Known Member

    Re: Buying my first home in a buyer's market

    Yeah, you gotta do the burbs to have a yard. I'm guessing inside the Beltway is a little pricy.

    And the burbs in DC are, well, hell.
     
    Last edited by a moderator: Jan 1, 2015
  4. JackReacher

    JackReacher Well-Known Member

    Re: Buying my first home in a buyer's market

    The burbs in DC? You mean outside of DC? Cause DC is just...DC.

    There are some very nice neighborhoods in Arlington and a few other towns. But yeah, very pricey for not much space. We were looking in Woodbridge, where you can get an absolute mansion for 300K, which would be fine. But the commute would be brutal. I refuse to make that commute into DC. Just won't do it. No matter how nice the house is, mainly because I'd never be home.
     
  5. Lugnuts

    Lugnuts Well-Known Member

    Re: Buying my first home in a buyer's market


    If you're really sure you will move within 5 years, I would look at a 5/1 ARM. The interest rates on those are currently in the 3s. Just make sure it's a prime-based loan and a good product. We just refinanced for a rate in the 3s. It is fixed for 5 years, and there's a cap on what it can adjust to, which we didn't find unacceptable at all.

    Location (no yellow line road) and schools are the big factors for me.

    I don't know what you do for a living, but if your job is relatively secure, I wouldn't go too much under what you were pre-approved for. Banks and mortgage companies are being really stingy as an overreaction to the mortgage crisis, so they're not going to let you get yourself into trouble.
     
  6. 93Devil

    93Devil Well-Known Member

    Re: Buying my first home in a buyer's market

    You are correct there.

    Outside the Beltway would not be an option for me either, and to be honest, you are not getting a ton of open space there either.

    If you wanted a home on a nice acre or half acre, I would change metro areas.
     
    Last edited by a moderator: Jan 1, 2015
  7. JackReacher

    JackReacher Well-Known Member

    Re: Buying my first home in a buyer's market

    You can get plenty of space outside the beltway. Just depends on how far outside you're willing to go. You can get a nice-sized place with a big yard just outside the beltway. You'll just pay for it. I mean, Manassas is considered "outside the beltway" and you can get a really nice place there for a decent price.

    I love NOVA. Just a matter of finding a job close to a part of NOVA I'd like to live so that I could afford to buy a house.
     
  8. 93Devil

    93Devil Well-Known Member

    Re: Buying my first home in a buyer's market

    I guess a big yard is a relative term.

    I need to have trees (that actually have shade) as well.

    Before I was married, I dated a bunch of women that lived up there. I always felt overwhelmed with the amount of home afer home after home after home after subdivision after subdivision after subdivision nature of the area.
     
    Last edited by a moderator: Jan 1, 2015
  9. maberger

    maberger Member

    Re: Buying my first home in a buyer's market

    i just closed on my place two weeks ago. i think there's some sound advice through this thread and i'd offer these things to anyone looking.

    1. there is no real way to tell if housing will go lower or higher, but one thing is for sure: borrowing money will never be cheaper than it is now
    2. no one seems to have mentioned being aware of what your credit score earns you. right now, 720 as a middle score will get you the best rates -- and if you can afford to buy points down from there (and remember, if listed as a percentage of interest charged, points are tax deductible) you're even better off
    3. BUT -- do not let anyone repeatedly run your credit, as this will LOWER your score and INCREASE the cost (interest) of your loan. That is, do not go to several mortgage brokers and ask them for their best rates (that goes for originators too)
    4. The web is your friend: bankrate.com for mortgage rates, realtor.com for listings (altho i prefer redfin.com if you live anywhere they service; ziprealty.com isn't bad either)
    5. The agent is NOT your friend. A good one will safeguard your interests, but never forget their motivation is to get a deal done at the highest possible price. And when they say, "Don't worry about the commissions, the seller pays them," ask your realtor where the seller gets the money from.
    6. To that end, you should be paying no more than five percent commission for the total transaction (both sides), and really you should be negotiating for less.
    7. Do not underestimate what your costs will be at closing. If you live in an escrow state, you must pay the escrow agent. If not, you must pay your attorneys (and the title companies, and the transfer taxes, etc ..) Assume you will pay 2 percent of your loan in closing costs.
    8. Be prepared for the loan process. Have all your documents ready to go (last two years of tax returns, last two months of pay stubs, last statements from any accounts you are using to prove the cash you have.
    9. If you have an iphone or something similar, get a cheap app for a mortgage calculator. this way, when you see properties you like, you can instantly know if you can afford them
    10. read the loan documents carefully. read the offering documents and contracts carefully. understand that you will be asked to perform in a timely fashion and can lose your deposit (or worse) if you do not.
    11. Be cold-eyed and hard-hearted toward any property you are interested in. this is a huge financial transaction and you must be as rational as possible

    There's tons more. just keep asking questions
     
  10. BRoth

    BRoth Member

    Re: Buying my first home in a buyer's market

    This is important.

    I went onto Equifax and printed off my credit report. When I went to a bank (I only checked with two before picking one of them), I handed them a copy instead of having them run my score. The only time someone else ran a credit check was during the final loan process.

    Not sure if all places will be cool with this, but the loan officers I worked with were pretty easy going.
     
  11. Pancamo

    Pancamo Active Member

    Re: Buying my first home in a buyer's market

    "6. To that end, you should be paying no more than five percent commission for the total transaction (both sides), and really you should be negotiating for less."

    The buyer doesn't have any say in the compensation of the Realtor. The contract between the seller and the selling agent will specify the breakout of the commission. While you are accurate when you say the Realtor is not your friend, having a very strong buyer's agent is important. You don't want someone who will tell you "that offer is too low, it's will insult the seller." Tough shit. It's called a negotiation.

    Also, if you are going to go FHA, understand that there is a 2.25% upfront Mortgage Insurance fee that is usually financed into the loan amount. On top of the principal, interest, taxes, insurance (HOA if applicable) there will be a monthly MI payment that will run about $80 per month on a 100K purchase.
     
  12. maberger

    maberger Member

    Re: Buying my first home in a buyer's market

    the buyer has every say in the compensation of the realtor because it's his money. he can push his agent to take less, and his agent can push the selling agent to take less to get the deal done. very usual here in california.

    you are certainly right about agents who understand making realistic offers, and now is a great time to push for those. gone are the days -- again, here in california at least -- where an open house resulted in multiple offers that afternoon, all with no contingencies.

    good point about the PMI, if putting down less than 20 percent. anyone considering buying must do the math, and then do it again and again.
     
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