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[VTXGRL]

Well, we're finally gonna do it.  We're gonna try to become grown ups!    Our lease is up in May and we can't believe we've wasted money for this long.  But things always work out the way they're supposed to.  The housing market and rates are exactly where we need them right now.  We're pre-approved for a fixed rate, have our loan amount, now we get to work with a realtor and begin!  Since this is our first time to buy, I was hoping you guys could give me some pointers.   First off, we're going to buy way below our loan amount and means.  That way if one loses a job, the house won't be at risk.  Plus, saves long-term money for repairs, updates, BIKE MODS...   

So here's what I've come up with so far:

Open a money market acct for annual taxes so I can benefit from the interest instead of the gov't.
Interview our realtor, ask for established history, references, views on earnest money.
Always take a lower rate over points
Try to negotiate with seller to cover closing costs, or at least split
Don't let the Closer rush the signing, read every line and find out what all line item charges are for.
Try to get home warranty included in closing costs or get seller to pay.
Check every prospective houses' value on the tax appraisal site, check out previous ownership, find out what other houses in neighborhood valued at, find out other houses selling histories (not sure how to do that last one).
In addition to bank's chosen home inspector, hire our own to check: structural, mechanical, plumbing, pests, termites.

What all am I missing?  Are there general negotiating rules?  How do I look for forclosed properties/how does buying one work?  We'd like to stay in Grapevine, but for the price range we want to be in, we get more bang for our buck in Euless.  Who lives in Euless and what are the pros/cons? 

Wow, putting all this in print really sinks it home that this is gonna be a LOT of work!  Stay calm... stay calm... 

Any advice?  We're getting our loan through USAA and they use Coldwell Banker, so I'm not sure if we can switch realtors.

[gsboriqua]

If the house is furnished when you look at it don't be afraid to look behind the furniture or appliances.  Look under the sinks and check the cabinets for water damage etc.  Also take pictures of the house once you pick it, because they sometimes damage the flooring or walls when they move out (if its furnished still obviously).  You can recoup costs for repairs if this happens.  Otherwise its your word against theirs and  you will be sol.....

Foreclosures are a pita.  You pretty much have to have a good chuck of change to throw down and a lot of negotiating with the bank as to what they will settle for (they will nickel and dime the price up the longer it takes to negotiate) .  Unless you find one at auction and they will generally sell for 50% of their value.  BUT you will be going up against folks with cash on hand to buy the home.  You need to do lots of research on the foreclosures at auction so you know what your getting into, even then you could be in for a big surprise once its yours (as far as problems).  Some homes look like a quick fix, some fixtures, paint etc.  Then you find out you have major plumbing problems or structural damage etc.  You really need someone who deals with foreclosures to help ya out.

Its a pretty big jump and congrats on the move!!  Good luck in finding that home, it really is a buyers market right now!

[Christbiker]

VTXGRL  PM me and I'll respond with a phone # you can call me.  I don't have all the answers by any means but I am a home builder and have bought and sold many.  I will tell you that you have really thought this through and are advanced in your thinking.  Go to stepbuilders.com if you want you can reach me by that # 

[ruger9mm]

You seem to have pretty good idea on how to get going.  Do not get to hung up on opening an account and paying the taxes yourself.  The interest you make will not be a whole lot and you need to make sure put in whta the mortgage company would put in escrow every month.  I Found that at most I would make between $70 and $85 a year interest.  I let the Mortgage company deal with the taxes and paying the insurance.
If this house is long term pay $75 to $100 per month towards principal.  If you know you are going to move again put that money in a hands off account for the next house.
Everyone on here will give you their opinions and it helps to know potential pitfalls but take your time.
My one peeve on buying a house is I look for a street that doesn't have through traffic "cars that don't belong"  This way my kid doesn't have to dodge those cars.  I would use my own inspector regardless if the bank provides one.

[VTXGRL]

VTXGRL  PM me and I'll respond with a phone # you can call me.  I don't have all the answers by any means but I am a home builder and have bought and sold many.  I will tell you that you have really thought this through and are advanced in your thinking.  Go to stepbuilders.com if you want you can reach me by that # 

PM on the way!  And btw, you build some very nice looking houses 

[jmdaniel]

Well, we're finally gonna do it.  We're gonna try to become grown ups!    Our lease is up in May and we can't believe we've wasted money for this long.  But things always work out the way they're supposed to.  The housing market and rates are exactly where we need them right now.  We're pre-approved for a fixed rate, have our loan amount, now we get to work with a realtor and begin!  Since this is our first time to buy, I was hoping you guys could give me some pointers.   First off, we're going to buy way below our loan amount and means.  That way if one loses a job, the house won't be at risk.  Plus, saves long-term money for repairs, updates, BIKE MODS...   

First of all, get this book:

http://www.amazon.com/Home-Buying-Dummies-Eric-Tyson/dp/0471768472/ref=pd_bbs_sr_1?ie=UTF8&s=books&qid=1202320408&sr=1-1

Tons of good info, and the time to read, and minimal $ to buy, will be paid back many times over.

Now, to your questions:


Open a money market acct for annual taxes so I can benefit from the interest instead of the gov't.

It's actually the mortgage holder that would be holding the money for your taxes, not the government, but the general idea is correct. Just make sure you are setting aside enough, and ideally, do this automatically, so you have no inclination to skip a month or two, and put yourself behind the 8-ball. Not commenting on you personally, as I don't know you, but I know a lot of folks in this country are shitty money managers.

If you buy new, be sure and get a statement that outlines expected taxes, and use that to determine how much money you need to set aside. Taxes on an undeveloped lot, which is what new homes are built on, are a lot less than they will be after that first year. You don't want to be caught with a big tax bill....
btw, taxes and insurance are both usually handled in the escrow account, so you will be wanting to set aside money for insurance as well.

Interview our realtor, ask for established history, references, views on earnest money.

Interview multiple realtors. As you are only buying, the % rates won't mean much, if anything, to you, but the service you get will. Earnest money isn't really something a realtor has an opinion on. You will want to keep it as low as possible, without disqualifying your offer in the eyes of the seller. It's a buyer's market; I would think 1% would be fine. 

Always take a lower rate over points

Nothing is an "always".... do the math, with a big factor being how long you expect to stay in the house. The longer you expect to stay, the more attractive buying the rate down with points is. A good mortgage broker will show you the options, and work with you to optimize your situation. btw, you say you are using USAA for the loan, did you shop any other mortgage brokers? USAA may or may not be the best for you. And a mortgage is just a financial instrument, don't go with a broker because they have cookies in their office, or are really nice. It's rates, rates, rates.... once you sign the papers, the broker is on to the next, and most likely, your note will get sold over and over.

Try to negotiate with seller to cover closing costs, or at least split

Just one of the pieces that is negotiable. What matters is the final price, including closing costs. If you get a great deal on the price of the house, and you pay closing costs, it's the same as a split on CC, and a bit higher price, right? I would personally rather drive the price down, as that can set a lower basis for your property taxes the next year.

Don't let the Closer rush the signing, read every line and find out what all line item charges are for.

Perfect. Also be ready to walk if something comes up that you don't like. I bought a house in Minnesota in 2000 from a couple who were both lawyers. The sales contract specified that any and all assessments were paid in full at the time of closing. There had been a $2500 assessment against the property for repaving the street, repayable over 10 years. That part of the contract was missed by the sellers, and when it came up at closing, they refused to pay it. We were shuffled in different rooms by our respective realtors, and when I was asked what I planned to do, I told them that I was heading back to work, if they didn't want to sell the house that bad. As they had the house packed and moved, they caved and signed. 

And always walk the property immediately before closing. AppleSauce happens during move-outs...

Try to get home warranty included in closing costs or get seller to pay.

Again, a negotiable item. Home warrantys can be good for big items, but results vary.

Check every prospective houses' value on the tax appraisal site, check out previous ownership, find out what other houses in neighborhood valued at, find out other houses selling histories (not sure how to do that last one).

Not sure why you would care about the history of other houses in the neigborhood. Neighborhoods, by their very nature, are full of different stories. The realtor and the appraisal district website can get you the rest of that info, and it is very handy.

In addition to bank's chosen home inspector, hire our own to check: structural, mechanical, plumbing, pests, termites.

The bank isn't going to choose an inspector for you, and really has no right to. They will require an inspection, by a licensed inspector, but can't tell you who to use. And you really only need one inspection, if you pay for two, (which you would if the bank had one done, believe you me), you are paying twice for the same service.


Anyways, those are just some thoughts. Big Daddy RD probably has a few good tips as well.

I'm not a Realtor, but I did stay at a Holiday Inn Express last night....   

[Morgan Buchanan]

I am UBER against overpaying your mortgage.  You're so much better off putting the money into a liquid account.  Equity doesn't help you if life hits you, you have to sell the house or pay the bank to borrow your own money (equity) to use it.  You're better off taking the tax advantage of the mortgage payment and earn interest in a reasonable vehicle like an annuity that can't lose money.....just IMO.

[youngblood]

We was in our house for over 10 years when Wells Fartgo bought out our loan. We almost quit paying for our house because Wells Fartgo messed up our payments and our credit. Long story short we got back on track with alot of complaining.

The only advise that we can give you is stay away from Wells Fartgo, and once your in the home keep up with the maintenance.

Congrat's and Good Luck.

[VT-XS]

Understand all of those elements of homebuying that you list, but get with a realtor bottle it all up and lead with a soft edge.

If the property is lousy and/or desperate, then they will be receptive to any prospect that you present, any way that you present it.

If the property is a good one and you present a long list of items that you want discounted, you may push the seller towards someone else if the seller has any options.

Get with a realtor, consider everything, package it up and make a clean offer that is not complicated to deal with.

Scavenger mode:

go to realtytrac.com.  try to find a property that is pre-foreclosure. Make an offer to bail the about to foreclosed owner out.  That may be easier to say than do, but it might work.

Semi scavenger mode:

Find a not large builder with a lot of inventory in the 100-200k market. Try to get a house out of his stock for the loan value. He may take it just to get a loan paid down. Approach him without a realtor and keep try to keep the transaction off of MLS.

Good luck.

[mudfrogg]

 
As a three time loser in the wifey deal.  I would suggust to put the house in her name right off the bat.  Saves time and expense during the divorce.
I call my three ex's Housewives

[jmdaniel]

As a three time loser in the wifey deal.  I would suggust to put the house in her name right off the bat.  Saves time and expense during the divorce.
I call my three ex's Housewives

Pre-nup, baybee, pre-nup!   

[Snake Doc]

If you use USAA's Mover's Advantage program you will receive some of the commission the seller pays the agent.

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Receive up to $1,550 cash back when you buy or sell your home through MoversAdvantage. Get up to $3,100 when you do both.

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$150,000 - $249,999 $950
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USAA does not sell its mortgages.  It does use outside companies to service them.  If you are in the Guard or Reserves USAA has programs to help on a case by case basis.

USAA does not have "junk" fees.