We're buying a house.

[Sammie]

Lovely home, Steve. And like DS says, Make your offer contingent on that home inspection, which can help you avoid buying into big repairs. It'll cost around $500, and you'll want to be there. And if I were you I'd get info[FONT=Verdana, Arial, Helvetica, sans-serif] about neighborhood prices. Don't want to get fooled into paying too much.[/FONT] Are you already pre-approved and know your credit score? That way you already know your price range and you're the big dog at the table.

Also, as a first time buyer, take your time with the mortgage info. Both my daughter and son-in-law let their homes go as they didn't understand it going in. A 15 or 30 year fixed with 20% to 25% down is a good way to start if you can swing it. The 3/1 ARMs and 5/1 ARMs is what got so many folks in a bind. ( The rates are fixed for 3 or 5 years, then God knows what on the 4th or 6th year).

Good luck, bro!

 

[stevetheupsguy]

Lovely home, Steve. And like DS says, Make your offer contingent on that home inspection, which can help you avoid buying into big repairs. It'll cost around $500, and you'll want to be there. And if I were you I'd get info[FONT=Verdana, Arial, Helvetica, sans-serif] about neighborhood prices. Don't want to get fooled into paying too much.[/FONT] Are you already pre-approved and know your credit score? That way you already know your price range and you're the big dog at the table.

Also, as a first time buyer, take your time with the mortgage info. Both my daughter and son-in-law let their homes go as they didn't understand it going in. A 15 or 30 year fixed with 20% to 25% down is a good way to start if you can swing it. The 3/1 ARMs and 5/1 ARMs is what got so many folks in a bind. ( The rates are fixed for 3 or 5 years, then God knows what on the 4th or 6th year).

Good luck, bro!

Thanks, Sammie, yes we're pre-approved and getting a great deal. I'll definitely be up the guys butt tomorrow, during the inspection. I'll keep this updated.

 

[beentheredonethat]

Nice looking house.

I'm glad you are having it inspected, and I hope he's a pro. If it's already built I'd see if I could get in touch with any of your future neighbors and meet them and hopefully get some info that you could use. For ex. Do they have any issues in their house that cost them money recently. (Roof needed to get fixed recently, Septic system, electrical problems, cracking drywall etc.) In most developments the same builder built multiple homes, if you find other people with similar homes and they've had good luck great. If they had some issues, make sure your inspector checks, double checks and triple checks those areas of the house. If it's relatively minor, at least you can get the cost reduced of the house etc. If it's major, walk away.

Hopefully everything will turn out well for you. Good luck.

 

[stevetheupsguy]

Nice looking house.

I'm glad you are having it inspected, and I hope he's a pro. If it's already built I'd see if I could get in touch with any of your future neighbors and meet them and hopefully get some info that you could use. For ex. Do they have any issues in their house that cost them money recently. (Roof needed to get fixed recently, Septic system, electrical problems, cracking drywall etc.) In most developments the same builder built multiple homes, if you find other people with similar homes and they've had good luck great. If they had some issues, make sure your inspector checks, double checks and triple checks those areas of the house. If it's relatively minor, at least you can get the cost reduced of the house etc. If it's major, walk away.

Hopefully everything will turn out well for you. Good luck.

Very good info, and I will do that. Thanks for all the great advice, so far, I'll keep you all posted.

 

[bubsdad]

Congrats, stug. Only advice I would have is to have your insurance and taxes taken out of your escrow so you don't have to come up with the lump sum every quarter or half. Also, and I'm speaking from experience (bad of course), have someone that you know go through the house with you to see if they can point out anything that's wrong or in need of attention. I know when I bought my first house there were things I didn't notice until the excitement and newness wore off. A home inspection won't even note some of these things. Looks like a very nice place, though.

 

[UnconTROLLed]

Congrats Stevo!!

 

[rod]

Very nice looking home. I'm glad to see I'm not to only one trying to keep the economy going. I would only caution you that once you move in no matter how much the little women loved the place at first she will want to paint every room, change curtains and basicaly redo every room from the ground up. I don't know why they do this but be prepared to "remodel" every 5 years or so. I've lived in my new house for 5 years now (brand new - built to our specs.) and the master bedroom has been painted 3 different colors. No wonder husbands drink

 

[satellitedriver]

Nice looking home.
The advice given before is dead on.
Inspection is key.
My advice is to pay it off as soon as possible.
Buy into the back of the loan.
All home loans are amortized, interest first and principle last.
Every month send what ever you can afford, in a separate check with the notation "for principle only".
It does not matter if it is $5, $50 or $500. The interest payment money you will save over time is truly amazing.
Good Luck,
and make that house a Home.
As Always,
Steve

 

[brownmonster]

I bought my first house at an interest rate of 10% and I thought it was a good rate. Why is it now that people get an ARM at 3.5% and after 3 years it goes up to 6.5% they are doomed? In the early eighties rates were at 18%. Don't get it.

 

[Dagoof]

Its a good Idea to go and talk to your new nehbors and find out if they know of any problems with your house. People tend to talk about their problems to each other. Then you can have your inspector check those areas that might have been fixed or even just covered up to sell the home.

 

[MechanicForBrown]

Steve, so glad to hear you and the fam are making a first time buy on a home!! Very happy for you! All the advice given thus far is very good stuff! My wife and I just made our first purchase this past January and it is a very exciting time. Just one piece of advice I've been given is: Although you'll be tempted to purchase new things for the home and around the home and for the home, DON'T. This is so important, you'll move in and then 6 weeks later you'll need something you didn't expect, oops then you realize there is no money!! ouch, I just went through that my self, bought all new and had to have Bling Bling now I realize the old good used stuff I had could've lasted a lot longer than I thought. Now I have no money to replace a really bad set of windows in my sons room, Money will fly out the windows in that room this summer when the A/C is on. Thats it though, hope things are in your favor and you and the Family have the best of times in that house! I always wanted to stand on my own back deck cooking a large thick steak on the grill and drinking my favorite beer... nothing beats the feeling, good luck.

 

[RockyRogue]

Nice house, Steve!! -Rocky

 

[UPSNewbie]

Wowee, Steve! That's a nice house.

As bubsdad mention, get someone unbiased about the house to walk through with you to point out details you might miss from excitement. I've been on a couple of walk through's that saved some cha ching.

 

[bubsdad]

Nice looking home.
The advice given before is dead on.
Inspection is key.
My advice is to pay it off as soon as possible.
Buy into the back of the loan.
All home loans are amortized, interest first and principle last.
Every month send what ever you can afford, in a separate check with the notation "for principle only".
It does not matter if it is $5, $50 or $500. The interest payment money you will save over time is truly amazing.
Good Luck,
and make that house a Home.
As Always,
Steve

Good tip, satellite. There are also equity accelerator programs offered by some lenders. The one I was in split my payment to bi-monthly when I refinanced. I went from 8 to 5% but continued paying the same amount. More of the payment is directed toward the principle when you pay bi-monthly and any extra over the payment is paid on the principle. Could save you years of mortgage payments.

 

[stevetheupsguy]

I would say don't borrow against your 401k.I know you want someone to say that...but after last years hard hit, what does anybody know..Good luck..

It was that, or trade some stocks, and we all know where that would get me.

Buying a house and going on a cruise. Holy wallet size batman.

I'm in charge of the lotto pool at work and the guys always think that I'm secretly putting the money away for my children's college fund. If they only knew, LOL

Very nice looking home. I'm glad to see I'm not to only one trying to keep the economy going. I would only caution you that once you move in no matter how much the little women loved the place at first she will want to paint every room, change curtains and basicaly redo every room from the ground up. I don't know why they do this but be prepared to "remodel" every 5 years or so. I've lived in my new house for 5 years now (brand new - built to our specs.) and the master bedroom has been painted 3 different colors. No wonder husbands drink

This happens with rentals, as well, rod.

Nice looking home.
The advice given before is dead on.
Inspection is key.
My advice is to pay it off as soon as possible.
Buy into the back of the loan.
All home loans are amortized, interest first and principle last.
Every month send what ever you can afford, in a separate check with the notation "for principle only".
It does not matter if it is $5, $50 or $500. The interest payment money you will save over time is truly amazing.
Good Luck,
and make that house a Home.
As Always,
Steve

very good advice, sat, this is something I will definitely do, thanks!

Nice house, Steve!! -Rocky

Thanks Rocky, where ya been?

 

[trplnkl]

I would also look very seriously into a separate life insurance policy that will pay off the home if you or your spouse were to (God forbid) die before the home is payed for. You can get a policy that is payed for out of escrow or one that you pay separately.

 

[UpstateNYUPSer(Ret)]

I would also look very seriously into a separate life insurance policy that will pay off the home if you or your spouse were to (God forbid) die before the home is payed for. You can get a policy that is payed for out of escrow or one that you pay separately.

Tex, is this the same as MIP?

 

[helenofcalifornia]

Most important, will your bike commute to work be the same? How old is the house? How many square feet? Any gators around? And you are still going on the cruise, right?

 

[stevetheupsguy]

Tex, is this the same as MIP?

I think he meant, R.I.P.

Most important, will your bike commute to work be the same? How old is the house? How many square feet? Any gators around? And you are still going on the cruise, right?

The commute will increase by just over a mile, each way. 2136 sqft under air, 2500+ sqft total. Built in 2000, concrete block (no basement), lol. Huge lake in front of the community, and this being Florida. I spoke to a neighbor, as others weren't home. Says he's there 5 years now, knew the neighbors well, and never heard them say anything bad about the house.

House has been sitting vacant for 2 years, as they were asking quite a bit. We're buying it for $120k, as is. Inspected today, structurally sound, needs a bit of cosmetic help, but I'm pretty handy. Other than this, I'll be uploading pictures later for all to see. YES, we're still going on the cruise, Helen, we're booked and waiting.

 

[UpstateNYUPSer(Ret)]

Steve. MIP is Mortgage Insurance Protection.