First time homebuyer

Discussion in 'Off-topic Zone' started by Supercowboy1986, Jun 1, 2013.

  1. Supercowboy1986

    Supercowboy1986 Well-Known Member

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    I am looking to purchase my first home. I've found a few candidates that I really like but am a little un sure what to do. So knowing that there are a lot of educated professionals on here I figure I'd ask for some advice.

    Should I do an online application off the Coldwell banker website or should I go to office itself and tell them I am interested. Or do I get the financing first then contact the realty company? Thanks in advance for your input.
  2. WPBCowboysFan

    WPBCowboysFan Well-Known Member

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    If you are going to buy a home everyone will tell you that being pre-approved for your loan is important.

    You have the internet so you can do much of your own research. Its still good to have a RE agent to work with tho. I would take advantage of an agent as the buyer. It costs you nothing. And they can save you a lot of time because they know the game - assuming you have a good agent.

    Just be real clear and upfront with the agent so they know what you want.

    And, if you start with an agent and dont like him/her, get a different one. Its your money and your time. Loyalty is important but you being happy with your agent is more important.

    Maybe talk to several agents before committing to one. Look at local real estate ads. Talk to other people you know who may have bought/sold a home recently. The agents that pay for big advertising might not be the best/hardest worker for you as a buyer. If they advertise a lot they are good for you if you are selling, but they might not spend the time on you as an individual if you are buying.

    As far as financing, you can secure your own by selecting a mortgage broker. Once again check around. If you find a good RE agent that agent will almost certainly have a mortgage person they work with on a regular basis. The advantage to the agents broker is they know each other and know the ins and outs and may be able to get you in a better situation. You may get a better deal on your loan, but then again you have to look at all the various loan costs so its good to compare. DO NOT hesitate to shop around for your loan even if you've got a broker lined up.

    One thing about RE is there are a lot of BS costs. Way more for the seller, but some for you as the buyer. Everybody is looking to make money on the deal. RE agents, loan officers, title people, inspectors, etc. Be smart and do your homework and compare costs.
  3. VirusX

    VirusX Well-Known Member

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    First off, get yourself an agent. Meet with them, discuss your needs and wants. They will help you find houses that are not on some of the sites right now. ZipReality is pretty quick about updates etc... Might give them a look.

    Make sure you like your Realtor and trust them to steer you in the right direction. If they don't talk to the owner etc.. Probably want to find a new agent.

    Second, financing is something you shop around for. You might find lenders that will pay closing costs etc... Just make sure you do your homework. It could save you thousands if not tens of thousands. Depending on your income and the locations your buying in you can apply for USDA loans if available etc... Also look into and crunch numbers on MCC if your lender supports it depending on your location. You can get some cash back as a credit to apply to your principal etc...

    Hope this helps. I am by no means a professional in this field but doing some extra legwork can save you a lot of hassle and money.
  4. Passepartout

    Passepartout Active Member

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    Good luck to you. Sure you are both scared and nervous at the same time. As hope it will workout for you my friend.
  5. big dog cowboy

    big dog cowboy THE BIG DOG Staff Member

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    Shop for a morgage - get preapproved.

    Shop for a real estate agent.

    Determine exactly what you want. Something newer (meaning no repairs for a while) or a house needing a lot of repairs. Also keep location in mind.

    Shop for a house - don't jump immediately into something. Shop shop shop. Take notes and pictures for future reference. Soon you will know a good deal when you see it.
  6. Shunpike

    Shunpike Well-Known Member

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    As a buyer, your first priority should be do some online research about home buying. This will help you tremendously.

    Second, please make sure to use a reliable Real Estate Agent. As a buyer, you won't pay a fee to the RE Agent. If you can find a good one, things will be easier for you. If somehow you don't like the RE agent you picked, dump him/her right away. Don't be stuck with the same agent if you don't think you are getting the help you need.

    Second most important thing is financing. Find out how much mortgage you can pay comfortably. Please consider possible expenses after you buy the house. You might have a leaking roof or a broken furnace down the road. Or some other expenses.

    Let's say you are bringing home $3000 net monthly. List all your expenses like this

    -Car Payment
    -Some unexpected monthly expenses etc

    Put down all your expenses and leave around 20% if possible. Like for a $3000 all your totals including mortgage shouldn't exceed 2400.

    Also make sure to get a good lawyer. It is around $1000 for a good lawyer.
  7. DFWJC

    DFWJC Well-Known Member

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    A lawyer to buy a house?
    If you have a good agent and get a reliable inspection, I'm not so sure that is needed.

    I've bought a ton of houses over the years and have never used an attorney.
  8. WPBCowboysFan

    WPBCowboysFan Well-Known Member

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    Some states a RE attorney is more valuable than others. A few states used to have RE attorneys involved in the sale/closing/transaction. NY comes to mind as one. Not sure if thats the case anymore.
  9. NorthTexan95

    NorthTexan95 Well-Known Member

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    This is really good, concise advice.
  10. WPBCowboysFan

    WPBCowboysFan Well-Known Member

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    Thanks man, just based on some experience in the business.
  11. DallasCowpoke

    DallasCowpoke Fierce Allegiance

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    :eek: GLWAT!
  12. respectdatstar

    respectdatstar Member

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    I just looked at houses on real estate sites. I use Zillow, myself. I put in what I wanted in a search engine, it spit out things that matched what I wanted and then I clicked the button to have an agent contact me about the homes. Within 30 minutes they were calling and picking me up to show me the ones I liked. I was completely shocked at how easy it was.
  13. WPBCowboysFan

    WPBCowboysFan Well-Known Member

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    RE is a dog eat dog business. If agents need biz, they will be on clients like vultures.
  14. Shunpike

    Shunpike Well-Known Member

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    2 of my previous houses failed inspection. My lawyer had corrected contracts beforehand so I could get out of the contract easily. Yes a good agent should help but it gives me piece of mind all the time.

    I know

    I hope he brings home more than 3K if he is living in a big city. :)
  15. Denim Chicken

    Denim Chicken Well-Known Member

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    I had an attorney that handles the title / title insurance instead of a title company. Much better protection for your investment.
  16. morasp

    morasp Well-Known Member

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    In terms of picking a house I would get the one with the most land. Unlike a lot of things land is real and doesn't go away. You can use it to grow healthier food, create wildlife habitat etc. I don't think there is anything more rewarding than getting up in the morning and walking your property.
  17. CashMan

    CashMan Well-Known Member

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    I think that depends on your age. If you are in your 20-30s you are looking at resale value, and land isn't necessarily going to be a selling point, if you are in your 40-50s, land might be more important.

    As for Zillow, I am pretty sure, it doesn't tell you if a property is a short sale or not, find a realtor, they usually have websites that are connected to the company they work for, IE Remaxx.

    In Illinois, a lawyer is needed for the closing and to make sure the title is clear, even if a state does not require this, I am pretty sure you can shell out $500-$1000 just to be safe, and ALWAYS get a home inspection, even if the property is AS IS or a foreclosure(which is usually sold as is). I would go as far as getting two different ones if the property is being sold as is, there are always problems.
  18. morasp

    morasp Well-Known Member

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    Not a lot of land but somewhere between an acre or two. I may be wrong but I'm thinking with all the money they're printing that land will start to recapture it's monetary value along with it's intrinsic values. I was watching an investment guru right after the real estate crash saying he was buying up farmland in the Appalachians.
  19. noshame

    noshame I'm not dead yet...... Zone Supporter

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    Well, I am a realtor(r). I can give you a few tips. Find a good realtor, ask how many homes they've sold this year, should be a couple a month or so. Ask for references from their past clients. Ask how many homes they'll show you, the answer should be something like" we'll look at as many homes as it takes to find the one you like" if they say we'll look at least 20, or some other number, say thanks but no thanks.

    Second, if you pick an agent and don't feel good about the service, switch.

    Do not sign a "buyer’s agreement" which ties you to an agent, it's not required, if they're a good agent, you'll want to stay with them anyway.

    Third, the agent’s services to you are free, his commission is paid by the seller of the home you buy, and a good agent will save you lots of money during negotiations.

    Say you go to an open house,
    Don’t buy from the same agent that is selling the home, he represents the seller and cannot help you get the best deal. It's a conflict of interest.
    Google your local MLS (multiple listing services) they often have a public site where you can search for houses. They are required to keep their homes up to date, other sites are not. They seem to be great at adding homes, but when they sell, they leave them on the site, sometimes up to a month or so. Boo.
    Get pre-approved, not pre-qualified, pre-approved means they run your credit and you are ready to go. Most realtors laugh at pre-quals as they are only as good as the info you give them i.e. "of course I make 100k a year!"

    If you are honest with a pre-qual it will at least give you an idea of what you can afford, but that's all they're good for as of late.
    lastly, look until a home says (buy me)you'll know the one.

    PM me if you have questions.

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