When buying a home, what are the biggest things I should look out for?
Meaning, where could I end up spending more money than I should?
- Closing costs?
- Taxes?
- Etc?
This is my first home and I'm a bit nervous -- any advice would be greatly appreciated.
Answers
4075 points
EthanR answered one year ago …
Hi NY, I am a Realtor in Florida, and will try to give you some good advice. Number one, always work with a Realtor as a buyer. If yoiu don't, you will have nobody to make sure that you are paying the correct closing costs, and not paying things you shouldn't be. It costs you nothing to have a Realtor as a buyer. Second, make sure you get a thorough home inspection done by a reputable inspector. If you live in a state with termites, also have a Wood Destroying Organism (WDO) inspection done as well. You may also want to get your home checked for Radon gas if you live in NY.
Make sure you deal with a reputable mortgage company or bank, not some shyster outfit who had a low interest rate advertised on a web site. Remember that fees can often add up and make a low interest loan actually more expensive. Lenders often try to charge discount points and loan origination fees on their loans. Each of these is equal to 1% of the mortgage amount. You DO NOT have to pay for these, but it will make your interest rate slightly higher. Above all, get a Good Faith Estimate (GFE) from your lender at FIRST MEETING. Do not let them say they will get it to you later. I have seen people who didn't see their GFE until they were at the closing table. This is not only a disgrace, it is illegal.
Remember, it is a buyer's market right now. Take your time, find the right house, and then don't be afraid to submit a lower offer. However, do not insult the seller or get his back up by making the offer too low. That may turn him off and nix the deal completely.
Good luck with your house hunting!
1130 points
sundarkambam answered one year ago …
I agree with Ethan.
Have a look at the following for additional information
http://moneyfor20s.about.com/od/financialrules/ht/buyahome.htm
951 points
Grudun answered one year ago …
The biggest thing you could end up spending money on that you don't expect is repairs and upgrades. Make sure to get a in depth home instpection(go for a reputable company with a long track record, get multiple referals) spending a little extra on the inspection could help find the easily overlooked foundation problem or water leak. Also make sure that you plan on all the little upgrades you might want to make(especially if you or your family watches too many home improvement shows) becasue these projects have a way of growing and can easily eat up a lot of money.
The other things to look into are the falling market and financing. For finacing look up first time home buyer programs in your area at every level(city, county, state and federal). Also look at private programs(Acorn housing is a good one in some areas).
Good luck.
699 points
7million7years answered one year ago …
You should always listen to expert that advice ... that is advice that come from (a) somebody who understands the game - that would be EhanR, and (b) somebody who has made a lot of money in real-estate - that would be me ;)
Follow what Ethan says, but don't be paralysed with fear ... if you find the house that you like and can afford the payments, go ahead an BUY. Just be sure to lock in a 35 year mortgage at current rates.
Time will 'cure' any mistakes that you do make, despite following all of the good advice that others will give you. And, owning your own home is the START of your path to wealth.
3930 points
MNSL answered one year ago …
Really above answers are very useful for frist time home buyers. No body can cheat us if we follow above mention advise and we can invest wisely.
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