Just prequlaified for X amount of $$ to buy a house. Won't disclose the amount, but I will say that I was pre-qualed for well more then I am looking to spend......
Give me your home buying advice if you will......
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After I was pre-qualed, I started checking into payments,other bills,insurance,etc. I found out it would have all been more than I really made. Just REALLY be sure you will be able to afford everything. Homes are not selling real good right now,and they just want to make a sale. Foreclosures are at an all time high,many people get in too deep. Be careful.
Roger that...I gotcha.......Thanks for the input. I'm actually looking at $30K less than I pre-qualed for (yes I just ended a sentence in a preposition, my own pet peeve..LOL).
I just wonder...with apartment rent (down here) being a couple of hundred a mnth if not more than my what buddies are paying monthly for a house payment, is renting really worth it if you are at a point where you are trying to settle down?
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There's no one more thankful to sit at the table, than the one who best remembers hunger's pain.
Owning is great. But ya gotta remember,when the water heater heater goes out,or the roof starts leaking,YOU gotta fix it. On the other hand,rent won't go up,you really have a place that's yours,and can't be sold out from under you. If you can do it,go for it. I own my place,and it's paid for. About all I have to worry about is paying the taxes,general up-keep,and the home owner's Assn. Nazis. (watch those home owners groups) Good luck 1*.
As a longtime homeowner I've got just a few quick tips.
Think about your present lifestyle while renting. How much of that are you willing to cut back on when buying? How much time will you have for home maintenance? There's other obvious considerations, too.
As far as buying...buy the house as if you were in the market for it to be resold. Sounds simple but here's what I mean. Keep in mind the four principles of marketing...product, price, place, promotion. These apply to house buying as well.
Is it in a desirable location? Schools available? Are there other amenities close by to add value like swimming pools, shopping centers, distance to entertainment, etc. Have you had a pre-mechanical inspection by someone you trust...definitely not one recommended by the real-estate agent. Is it likely for the house to appreciate? Is the neighborhood past maturity or is it still growing?
(Product) Does the house have the right size, types of rooms, and other requirements that you need/want?
(Price) Only you know what you can afford. Can you afford the upkeep? Do you have time to do maintenance or does the home owners association take care of these? Can you live with the rules of a homeowners association if there is one where your potential house is located?
(Place) Then consider the location. Would it be desirable for someone else to buy from you at a later date? Is it close enough to amenities for you? Will it affect the amount of time you've been used to for commuting to work?
(Promotion) How much of what you've been looking at or reading regarding your potential house is strictly high quality advertising to entice you to buy their house? Don't be oversold.
I'm about through. Since most people move every few years (don't know these stats exactly but I think it's around seven years) is the house likely to appreciate at a satisfactory rate for your investment? A good purchase should be one of the best investments in your life.
Bottom line...when you are looking at a potential home keep thinking about my original statement...how well will this house sell to the next owner?
Oops! Forgot the main thing. Make sure your wife is happy with the spacial arrangement of rooms, room sizes, kitchen cabinet arrangement, clothes closets, etc., and other areas of her special interest. You'll only be happy if she's happy.(ha)
Down here, there are various "inspections" that are supposed to be signed off on - water, electric, sewage/septic tank, etc. The A#%$@le I bought from didn't do any of that, for me or the neighbor who also bought from him. We ended up spending too much, and having to deal with stuff that shoulda been done already.
But on the other hand, I like the area - my shooting range is literally just down the road, I was able to pay the whole thing off up front (thanks, Dad!) - no stinkin' mortgages! Easy drive in to work.
But then too, previous owners sure put a lot of concrete into the ground - it's taken the better part of a year to get the property looking good - landscaping, grass growing, new out buildings going up (gotta have a shop!).
Once I get a decent fence up, then I can get a good dog.
1*, congrats on the approval to buy your own place!
Oxford has pretty much said everything you need to consider. It's a joy to have a place you can call your own. The first couple of years are a little rough, as you have to make some changes in the way you spend your money. But, once you get started, it's really pretty easy.
My main concern was the yard. I didn't want too much to mow. When I lived with my parents, their "yard" took over 4 hours to mow with a riding mower. No way do you want that!
On the other hand, I can't stand the neighbors' house being too close to mine, either. My rule of thumb is if I can hear them closing their car doors, they're too close.
I'm in that situation now, but only for about 4 more years, and I am moving back to Kentucky. 56 acres, and I can put my house right smack in the middle of it!
It's your money, and advice is more fun to give than receive. What works for the rest of us may not be right for you. It's going to be your biggest investment, and, as Ox said, make sure you are going to get a return on that investment.
Good luck! When you do buy and get moved in, let us know when the house-warming party is gonna be. :cheer: :drink: :guitar: :guitar:
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Watch out for termites! It seems that the contractor did a crappy job of building my back wall and now I have to replace a bunch of sheet rock in 2 rooms.Interestingly, the bugs seem to like the sheet rock much more than the studs, so it may not end up to be all that expensive, though it will be a lot of work. The termites seem to be the subterrainian variety, with the main colony outside.
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Eddie Haskel's mom puts out!"
Going with Ox on this, the two most important things are PRICE and LOCATION. Right now price can be a little tricky, as the low interest rates resulted in a run up of prices, but the prices have started to come down, and in places that experienced layoffs it can be dramatic. Just because the house you looking at sold for 100K two years ago doesn't mean that that is now the base price, some places in KC suddenly dropped 20% to 30% in just a year. With Sprint laying off right and left and everyone else feeling a little uneasy the housing market has taken a big hit. The house we now own was actually a bank repo, needed a lot of work, but must of it was stuff we woud have done to almost any place we bought, new paint inside and out, carpets and storm windows.
LOCATION - remember you probably won't spend the rest of your life there. Just because you don't mind a busy street or the railroad tracks doesn't mean it wont effect the value. Someday your going to need to sell this place too. The best move is to buy the crappest house on the block and bring your house up to the level of your neighbors. Buy the best house on the block and your neighbors will always look trashy.
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All great advice gentlemen....and I thank you.....I am printing this out so I can use it for reference.......a good thing is that my wife is in real estate ao our agent is also a friend.
We are not far enough in the process to even think about throwing bids.....we were just pre-qualed two days ago. We have a bunch of houses to look at and six months left on our lease.....
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There's no one more thankful to sit at the table, than the one who best remembers hunger's pain.
First, I'd like to echo Klaus' thing about termites.
Here in Arizona they are the subteranean type too and state law requires treatment after construction. My house was on the market almost a year before I bought it so I insisted on the name of the pest company from the builder to CONFIRM that a termite treatment was done and got it in writing what chemical was used...something I'd suggest you do....so, if there was a problem on down the line the company was liable for any damage. But, there wasn't. Since the treatment is good for only about five years we just pumped out almost $2000 to have it done again.
Keep in mind that if you disturb the barrier around the house (by digging, planting, building, etc.) the treatment might be compromised. So, be careful.
One thing I did wrong was buy a house that was new and, so, there were no improvements (like others eluded to)...in that I had to put out another $2300 for a fence, pulled out tons of cacti, spent nearly $4000 paving the driveway, put up a shed/barn, etc. Something you might want to consider....what improvements YOU have to, or don't have to, worry about.
As far as qualification goes, I we were approved for $210,000. I knew that if I got that type of house the payments would've been more than we could honestly afford on my retiement and my wife's imcome. At least, in terms of being strapped after the payment is made.
One other point that someone mentioned....keep in mind, in Arizona anyway, your taxes, insurance, etc. is tacked onto what the mortgage company is going to tell you what your monthly payment is going to be.
Every year, when I do our taxes, I smile when I look at my return versus years and years ago when I rented.
If your home is a new one make sure that the contractor gives you a statement of appliance, AC/heat, roof, etc. warranty in the event they go bad. In Arizona, new construction has to have a minimum of a 5 year warranty on everything. Get that warranty in writing and signed.
If the house is older, insist the seller provide a warranty.....even if it means they have to buy the insurance. We sold a house last year in the valley and, being 23 years old, I paid almost $500 for that warranty/insurance....but it sure helped sell it faster. Plus, after they do the roof inspection, wiring inspection, plumbing, AC/heat, etc. it was good knowing that they were in good enough shape that I had no problem getting the warranty to offer the new buyers.
Good luck, guy....having your own home is a true right, a blessing and, sometimes, a pain in the butt, lol. But, it sure beats renting.
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Roger on all the points presented!!! also you have the added + of being a peace officer, you can find out the locations to avoid, and those which are better.
"LOCATION - remember you probably won't spend the rest of your life there. Just because you don't mind a busy street or the railroad tracks doesn't mean it wont effect the value. Someday your going to need to sell this place too. The best move is to buy the crappest house on the block and bring your house up to the level of your neighbors. Buy the best house on the block and your neighbors will always look trashy."
Also, the comments by others regarding inspections for termites couldn't be more accurate.
And definitely...general inspections of home features, beside mechanical inspections which I suggested, are equally important. These types of inspections may vary greatly in different parts of the country.
One item which I don't believe I've heard in this thread, though, is about the real estate agent. My bother, who was a real estate, agent told me about the following item that can make a lot of difference in your purchase, too. And some of you who are more versed in real estate sales can correct me if I'm off base. Knowing that your wife is a real estate agent you probably already know a lot about this...but for what it's worth...be sure that the agent you're buying from is "representing your interests" rather than the sellers. I'm of the opinion that agents have to declare who they're representing up front, which is different from past years.
Get everything the selling agent and the seller agrees to in writing. A "self-serving" letter to the seller listing all the seller's agreements to you really reduces/eliminates misunderstandings about who's doing what. Promises are worthless when it comes to arguing about who's responsible for items on the "punch list". If possible take photographs of items you want on the "punch list". Document everything. Then when the items are supposed to be completed you've got proof of their original condition.
Some items of importance for inspections are:
-Mechanical: HVAC system...Buy the highest efficiency rating you can afford for the furnace, water heater and AC unit. Electrical...make sure the main power box has all circuits clearly marked and is there an extra space allowance in the box for added circuits later? Plumbing....there's lots of differences in quality /price for faucets in toilets/wash basins, etc. Decide what's important for you.
-Structural: Foundation and basement walls(of course some geographical areas don't have basements due to various reasons)...no cracks allowed, roof trusses all in alignment(need to look into the attic for this item), walls all bolted properly in place, "I-Beam" in basement is properly installed.
-Finish: Be sure all paint the surfaces of all materials are properly finished. Were all nail holes filled before painting. Was masking tape all removed. Were windows proprly cleaned after painting?
-Low voltage elecrical systems: Intercom, door bell, furnace controls, and others...are they adequate in the right place for your needs?
-Masonry inspection: Driveway has proper grade away from the house, is not cracked, and has a proper finish applied to the surface, sidewalks are in excellent condition, patio concrete has proper grade and finish, entryway marble, if present, should be in excellent condition.
-Landscaping inspection: All agreed upon landscaping must be completed in a workmanship manner as per the sales agreement.
-Roofing: Personally, I prefer "Timberline" composition shingles over wooden shakes. Some homeowner covenants require shakes. Many insurance companies charge more to insure homes with wooden shakes. Get at least a 10 year warranty on the roof. This means a manufacturers warranty against material quality and also an installers warranty against quality of workmanship concerns.
-Siding: Many new homes are being sold with siding applied versus the practice of installing cedar plywood with wooden batting, or other types of siding materials and paint. May cost more in the beginning but it's worth the investment I think. You'll need to decide which type of siding you want...aluminum, vinyl, or steel. Study pro's and con's of each type. Aluminum dents when hit by hail. Vinyl expands/contracts a lot and could result in problems, steel I'm not familiar with it's adv/disadvantages. Probably costs more but I've not seen it installed.
-Insulation: R-21 or higher is the standard for insulation in my area (k.C,) but this may vary. I believe this should be the minimum amount and you might want more. It pays for itself in lower fuel bills. Many outside stud walls in new homes are framed using 2 x 6's rather than 2 x 4's as older houses were built. This allows more insulation and should add more structural strength for some of the huge homes built today.
That's enough for now. However, if you're focusing on a used home, there's a totally different list of items to be pre-checked before signing a purchase agreement.
I'm laughing so hard I bought the best looking house on the block & the neighbors still look trashy. And I live right next to the railroad tracks. You couldn't have hit that one any closer OX.
I used to think paying for a home inspector was a waste of money, but I've changed my mind lately. Around here it's $200-300 based the size of the house, but that investment could save you thousands. A few things you might forget to ask or check out: are the hot water tank & heat/furnace gas or electric, is the roof decking plywood(how thick) or pressed, or best 2x's, see if the seller will pay any points towards your closing...they pay a point or so & you get a lower intrest rate. Best of all if you itemize on your tax return you get to deduct the intrest every year! Good luck!
Congratulations Oneastrix! 
I bought the best looking house on the block & the neighbors still look trashy. And I live right next to the railroad tracks. You couldn't have hit that one any closer OX.
