Buying a house...where do I start?

Question

I want to buy a house... what do I do first? Do I buy a new home? perviously owned? what a good interest rate? I don't know were to start! Every agent I speak to wants to sell me one of their listings. I just need some honest help on what to look for and what questions to ask, whats a interest rate, a good motrgage payment, etc. My credit is pertty good about 750 & I make about 70,000/year, have a few large bills like tuition, car payment & some mics, stuff. to pay. IS that goos enough to buy a home? What price range should I be looking for? I live on the border of Texas & NM. Any web sites that can help a first time home buyer? Help me with real estate jarjon, etc...

Answer 1

First, you need to figure out what’s important for you in a house. I suggest creating a “nice to have” list and a “don’t care about” list. In other words, make a list of what is important for you in a house. Are great schools a major factor in where you want to live? Is access to public transportation important? Nearby parks? Proximity to your job? Do you prefer urban, rural or suburban living? What isn’t important to you? Make this list and then you’re ready to start

Start with open houses in an area where you might want to live. You can walk through homes and get a feel for what’s on the market. Then, you also may want to consider a buyer’s (real estate) agent, but, that’s not really my area of expertise.

What I can help you with is “the basics” of shopping for a mortgage. Keep in mind, the interest rate isn’t really as important as the impact on your monthly budget. How much of a payment (don’t forget to include taxes and insurance!) can you afford each month? Knowing the answer to this question will help you find out your target home price. And don’t forget to include in your home-buying budget expenses such as closing costs, appraisals, fees, ect. You really need to talk to a mortgage professional as soon as possible to get specific information.

Overall, your credit score and income sound solid, but don’t forget that there are four parts to getting approved for a mortgage: income, credit score, assets and the property itself.

Check out the link below for a complete walk-through of the first-time home buyer’s process. I think you’ll find most of your questions answered there. I hope this information helps.

Answer 2

Decide what you want and what you can afford. The interest rate is the interest on the amount you borrow. The principal is the actual amount you borrow. You can find mortgage calculators online that will help you decide what you can afford. Remember to figure in taxes and insurance. Do you have a down payment? How many bedrooms, bathrooms do you want? How much land? Do you need to live in a certain area for work? Lots of variables there. A real estate agent is a sales person, keep that in mind. Don't get sold on something you don't want. You need to read up on mortgages and interest rates, just educate yourself. Of course the lower the rate, the better. My advice for a first time home buyer is buy on the low end of what you can afford, remember a home will always need repairs and you have to budget for that as well. Something is ALWAYS breaking. I would find a site online, they are a great way to look for homes. You can see pictures and get details about the space. Pick a few that you like and can afford and start hunting..

Good luck :)

Answer 3

Start with your credit, you DO NOT want to go into a 30 year marriage and be strapped for cash, decide what you want, 3/2 house condo, what are you plans for the long run, it is always best to get a 3BR/2bath because of the resale value and it will sell faster than a 2BR/1bath, if you decide later on you wan to move. Don't even talk to a Realtor until you are sure of what you want, they are like car sales, they just want to make money off you. Think about school do you want to live close? think about miles driven you want to be a little closer to the places you go the most. This web site that I found help you guesstimate what it will coast you...
http://www.bankrate.com/gookeyword/mortgage-calculator.asp?unroundedPayment=864.8932437329372&loanAmount=130000.00&nrOfYears=30&nrOfMonths=360&interestRate=7.00&startMonth=8&startDay=24&startYear=2006&monthlyPayment=864.89&monthlyAdditional=0&yearlyAdditional=0&yearlyAdditionalMonth=8&oneAdditional=0&oneAdditionalMonth=8&oneAdditionalYear=2006&paidOffDate=Sep+24%2C+2036&submit.x=65&submit.y=7

Remember too, the taxes and insurance because down here in FLA we are paying ALOT! Plain house .25 acher land taxes are about 3,000 a year and what the seller paid for taxes will not be what you pay, but it will give you an idea, if the seller has lived there for 10 years, there taxes are based back then, they may have went up, but not like a new purchase-you buying it- and insurance has went up a great deal- just find out all the info you can, avoid the real estate office until you deside what YOU want and more important what you can afford comfortably with out having to jump in over your head to start with. Take your time, it is worth finding everything before you sign anything. Good luck!!!

Answer 4

Desk check - before leaving home, decide what you would want for a home and for a neighborhood. Write it down.

Road check - drive around a few neighborhoods that you think would make you happy, make a note of the phone numbers for the agents and the addresses of the properties.

Call the agents and find the asking prices. Some agents will ask you to come into the office - just insist that you need the price. Dont get drawn into what you can afford.

Mortgages are not related all that much to specific homes. You find a home then independently get a motgage on it. As a sweepingly broad generalization, take your gross income and multiply by 3 so, in your case $210,000 More than that and you will be over stretched and headed for forclosure.

This is a terrible time to be buying from an agent. Look for forclosure properties, there should be a lot on the market in West Texas.

Answer 5

First get qualified. Interview a few loan companies and get some quotes. Do not shop for a home before you get financing.

Personally...forget about interest rate for now. Get a true idea of what you can afford on a monthly basis and make a few contingencies based on that. Meaning, are you willing to take a smaller place or a place that is not your dream home temporarily? If so, get a shorter term fixed rate (2,3,5 year fixed) this will make your payments more affordable.

Real estate jargon? After you have a "pre-approval" from a reputable lender, start talking to agents in their offices. Don't waste their time looking at houses unless you plan to use their services. Go into the office and be upfront. You are looking to buy a house and are interviewing agents. Ask them how long they have been in business, how much they know about the area, do they have references. Let them worry about the jargon after you find one you can trust and don't be bullied into a single showing.

After you find the agent you like, schedule time to view homes and stick with the agent until you close on a home.

Answer 6

Start by going to visit the bank first.
I was a lending manager and its best to know exactly what the bank is willing to lend depending on your income and expenses and they will tell you how much money/deposit you need to contribute to the purchase.
Although your income sounds great, You may fine that you don't have enough deposit and will have to go away and save for that before going any further.
i live in Aust and I'm assuming the criteria is different so I cant go on too much.
The Bank should help with price range, I cant help with real estate jargon, but the web is great and keep doing your own home work before getting too confused with pushy sales people.
I hope it helps a little
Also, in regards to interest rates, visit major banks in your area and they normally will try to out do each other to win your business, one again, that's what they do here in oz, I'm assuming the same there.
Sometimes, although the bank cant give advice, they will always give their opinion on the questions you are looking for.

Answer 7

You contact mortgage companies and get a pre-approval letter. You will then know what you can afford. Then you shop with a real estate agent you like! When you find what you like, make an offer. If it's accepted, you arrange for a home inspection. If all is well and once paperwork is done, you have a closing where the property is transferred to you. Usually people hire a real estate attorney to deal with all the legal mumbo-jumbo.

Answer 8

We usually starting by looking through newspapers, real estate magazines or even online for what was available, so you can also begin to see what's out there and decide what you want and can afford. Most real estate agents will want to pre-qualify you to see how much house you can afford first. Talk to your family/friends to get names of agents that you can trust. Looking online can really help...

Answer 9

Hi Becky,

Do you live in Texas or New Mexico? This will help determine the next step.

Thanks