NT Home owners: What are the things you look for before signing your life away

[jimmy blanco1983]

I'm currently in an apt in Dallas, but with the way rent is increasing my fiance and I are thinking about purchasing a home. Yeah I've seen the shows on HGTV, but what are some tips on what to look for in a home? We are approved for $250,000, but dont want to spend that much.

 

[mrkane]

1. Can u afford it (assuming that u would still have more than enough money left over after mortgage)
2. do u absolutley love the home
3. fixed rate mortgage
4. hire your own inspector, and appraisal person not the one a realator may offer. (real estate is a shadey business)

 

[cabron james 23]

jacuzzi?

 

[ph8]

What mr Kane said^

 

[eiddyfouw]

Originally Posted by mrkane

1. Can u afford it (assuming that u would still have more than enough money left over after mortgage)
2. do u absolutley love the home
3. fixed rate mortgage
4. hire your own inspector, and appraisal person not the one a realator may offer. (real estate is a shadey business)

Most important thing. 
it's not just just the monthly mortgage you're paying. 

Maintenance.  Can you afford to pay for:

-Keeping the garden in good shape? 

-Repainting the house every few years?

-If you live in an estate, or development, any fees that may be applicable every month?

-Replacing things that break in the house? e.g. that marble tile may look nice, but can you afford to re-do the floor if it cracks?

-Afford to furnish the house adequately after buying?  

 

[boomshipit]

oh HGTV. that damn show got me thinking u can DIY everything. i bought a house that we pretty much redid everything to save like maybe 15k. just make sure u love the house and think long and hard, it seemed like every house i looked at i wanted to make an offer so just make sure u take a few days to think about it and write down its pros and cons.

 

[megatron]

Originally Posted by Jimmy Blanco1983

I'm currently in an apt in Dallas, but with the way rent is increasing my fiance and I are thinking about purchasing a home. Yeah I've seen the shows on HGTV, but what are some tips on what to look for in a home? We are approved for $250,000, but dont want to spend that much.

Move towards tcu

 

[Renaldo Balkman]

get married first IMO

 

[scientific method]

Do you have 20% for a down payment? Because if not, PMI (look at it as a penalty for not putting at least 20% down) is a !%*%! I was mislead about how much it would be, thinking about $50-75 bucks, but mine is $160 a month. My tax is also another $150 which sucks and puts me well over $1100 a month for my new house. In Oklahoma money, that's kind of much. If you can afford it, get a new or less than 10 yrs old with builder's warranty. No matter what, make sure you get an appraisal and inspection and demand those things be fixed before you sign anything. My house was brand new so there wasn't much on it, but minor touch up stuff and they regrouted the fireplace but I still made sure to present the builder the inspection report.

Also, check what homeowner incentives exist. I got 3.5% grant from the Oklahoma Housing Authority that I don't have to pay back (as long as I don't move for the first 5 yrs).

 

[sillyputty]

Just curious, how many months behind can one get on their rent before legal action is usually taken?

I just wonder because it seems that so many are technically still residing on back-payments.

There is no way everyone can be meeting their mortgages monthly.

Originally Posted by rayray3thousand

get married first IMO

Thus the system reinforces itself...

 

 

[mojodmonky1]

Originally Posted by sillyputty

Just curious, how many months behind can one get on their rent before legal action is usually taken?

I just wonder because it seems that so many are technically still residing on back-payments.

There is no way everyone can be meeting their mortgages monthly.

it can differ from state to state and situation to situation, but general answer is.

FOR-EH-VOR.

well.  correction.  the banks may take legal action, but as far as getting foreclosed/evicted, it could honestly take forever.

I work in in the subprime lending sector (not mortgages) and I see applications come across my desk every single day where people are 120+ days past due on their mortgage and they are still living in the house.  Hell, a lot of people actually believe that you have to be grossly past due on your mortgage, just to force the bank into structuring a loan modification for you.

If you live in a state like FL where real estate took a nose dive and a ton of mortgages are underwater, I wouldnt be too concerned about getting foreclosed and evicted.  It doesnt really make sense for banks to spend the time, effort, and money to foreclose when you owe more than the house is worth and they already have a ton of foreclosed homes in inventory.

back on topic.

OP, dont buy a house.  Just keep renting.  Buying sucks.  Before, when my toilet broke I just called the landlord and he sent the handyman in to fix it right up.  Now?  toilet breaks, BAM $150 out of my own pocket.  General maintenance is a mofo.  I honestly have to put the blinders on sometimes, just so i dont stress about all the stuff I still need to take care of.  If you are buying an older home or property RIP, its gonna be worse.  My place isnt terribly old (built in 2004) but there are still a buncha little things here and there that I have to take care of.  Homeownership is a never ending headache.

  

 

[crcballer55]

1. Wait until your married first.  There are many financial reasons why this should be the first prudent step.  Rent an apartment for the first couple years, let the market sort itself out while you save for the down payment.
2. Put down at least 20%.  PMI is a waste of money.  It'll cost you about $70/mo. for every $100K you borrow.  It's just insurance you're paying the mortgage company for their losses in case you foreclose.  Not only that, but you'll get a better rate by putting more down also.
3. Look at a lot of houses.  You'll fall in love with the first couple you see.  Don't let your emotions drive the decision.  Look at a lot and you'll start to figure out what you want and what you can live without.
4. Get a home inspection.  If anything goes wrong after the signing, it's going to be on you.
5. Don't get a payment that's more than 25-30% of your take home income on a fixed rate mortgage.  If you can make one extra payment per year on the mortgage, it'll turn a 30 year into a 15.  ARM's are very tempting right now, but rates have not been this low EVER, so chances are when the ARM breaks after 5 years your payments will only be going up.  Lock in a fixed rate and you'll be set for as long as you own the home.

 

[BANLEU]

I'm guessing you mean more of the physical things to look for in the house and not the financial aspects right?

If so, my advice is on plumbing and HVAC. Those are two of the most important aspects to look for because each of them can cost you a lot in terms of unforseen repairs.

Things to look out for with the plumbing are:
-How fast does the water get warm in different rooms of the house.
-The water pressure when you turn the knobs
-Smells or taste if any
The first two indicate how well the boiler is working. If the water takes more than 45 sec's to several minutes or if the water doesn't come out at regular intervals, than the boiler may need to be replaced or repaired. The third one indicates that your pipes may be old/rusted, clogs or previously been clogged, or dangerous chemicals are leaking into the water.


Things to consider with HVAC are:
-How old the outdoor A/C unit is
-How old the indoor furnace is
-The efficiency level of both
-The type of thermostat
To determine the age of the units it is best to open them up and check the data plate. The Serial number of the unit usually contains the date in one of the first four digits. For example, if the serial number is 0213XXXXX than it the unit is from 2002 because we aren't in 2013 yet. Similarly, if the serial number is 1302XXXXX than again it is from 2002.

If you can't open the units up to check the plate than you can just eyeball it. Darker units that are old will lose their color and lighter units will show rust or other signs of wear. It is important to consider age of the unit because replacing them becomes a problem when they're 12+ years old, and these units are not cheap to replace.

The age and type of thermostat also tell you how efficient your system is going to be, which indicates how expensive your utility bills will be.