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Old 05-05-2013, 06:45 AM
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An advice for first time home buyer?

Tired of paying rent and have saved up a decent chunk of change, enough to put down at least 15% on something in the 60k range. No wife, no kids, so I don't need much. If the numbers make sense, I'll probably rent out whatever I buy later on down the road.

So, what advice do you guys give to someone looking for their first home?
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Old 05-05-2013, 07:25 AM
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Have a home inspection done before any purchase.
Don't stretch yourself thin on how much you can pay. Stay within reason. Your payment is not set in stone if you consider insurance and taxes.

Make sure you have a "cusion" as there will be unexpected fairly large expenses sooner or later.
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Old 05-11-2013, 04:42 PM
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as said, get a home inspection, and go over the house with a fine tooth comb to see what may need attention in the future or immediately. there is nothing worse than moving in and having an immediate major expense/repair. also look at the heating system and factor in how much it will cost each year, for example a wood stove could be fairly inespensive if you cut your own wood, where as heationg fuel(like i have) can get pretty expensive.

when you do get a place save all you can. stuff can pop up that you would never expect. i'm like you, no wife or kids and just bought my first house bout a year ago. always keep in mind to live within your means so you never have to worry about makin the house payment each month or paying bills. i personally like to keep a good "buffer" in the bank "just in case", but its also been said that i'm so tight i squeak when it comes to money. something else to maybe try is when you get the house just stick with the basics at first, water, sewer, and power, then once your in for a while and used to things then look at internet and cable to see what service you can afford. i went for 6 months before i got either of them.
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Old 05-11-2013, 05:54 PM
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I'd try and put 20% down to avoid PMI
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Old 05-11-2013, 06:50 PM
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Typically if your a first time home owner you don't need any money down.
3X hire a good inspector and go with him during the inspection and ask questions. Some inspectors will just pencil whip it and want your money.

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Old 05-13-2013, 08:44 AM
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Quote:
Originally Posted by hucorey View Post
Typically if your a first time home owner you don't need any money down.
3X hire a good inspector and go with him during the inspection and ask questions. Some inspectors will just pencil whip it and want your money.

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Why wouldn't you need money down? My credit situation is very good and doubt I'll have many questions for financing, but even then I'm not sure I can get by without some sort of dp.
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Old 05-13-2013, 08:59 AM
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As a first time home buyer, there are loans available at 100% finance or, no dp. This doesnt mean you SHOULD go that route. It only makes it possible for someone without a chunk of change to get into their first house. Then hopefully build equity before wanting another/different house. If you have the money for a dp, I say use it. It usually lowers the interest rate and definitely affects how much interest you will end up paying over all those years.

As said, it will also help you avoid the worthless *** PMI insurance that has nothing to.do.with covering you! It is an insurance the bank holds against you in case of default but the laws have allowed them to charge us for it. So, if you pay PMI, you are paying their insurance premiums against yourself.
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Old 05-13-2013, 09:58 AM
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Quote:
Originally Posted by Turbostang500 View Post
As a first time home buyer, there are loans available at 100% finance or, no dp. This doesnt mean you SHOULD go that route. It only makes it possible for someone without a chunk of change to get into their first house. Then hopefully build equity before wanting another/different house. If you have the money for a dp, I say use it. It usually lowers the interest rate and definitely affects how much interest you will end up paying over all those years.

As said, it will also help you avoid the worthless *** PMI insurance that has nothing to.do.with covering you! It is an insurance the bank holds against you in case of default but the laws have allowed them to charge us for it. So, if you pay PMI, you are paying their insurance premiums against yourself.
If your credit is good to great and first time home buyer, you may not even have to worry about PMI either.

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Old 05-13-2013, 10:02 AM
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Quote:
Originally Posted by hucorey View Post
If your credit is good to great and first time home buyer, you may not even have to worry about PMI either.

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The benefit of maybe not using your down payment is it's nice to keep a large sum of cash in the bank and use that money to help personalize your new house. Maybe there are some things that need attention or you would like changed/added on to the house. I.E. new deck, separate shop, furniture, or whatever the case may be.

Or as said, a nice DP also puts you that much closer to paying it off.

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Old 05-13-2013, 10:29 AM
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As far as I looked into it (quite a ways because it just pissed me off) there was no.way around PMI on a 100% finance loan. I guess I did buy in 07 and things have changed since then. The only way to avoid it was to owe less than 80% on the appraised value of the home either by a dp, buying cheap, or paying down the principal.
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