First time home buyer

mxnate116 · November 21st, 2011, 07:59 PM

so ive been looking for a home to purchase for a while now, started saving some cash up for down payment, then the trans went out in my truck. i dont have much for a down payment, what are my lending options?

the house im looking at is here, 3117 W Lacrosse Ave, Spokane, WA 99205 MLS# 201125323 - Zillow

i think its an awesome find, ive been looking for a fixer in the 80k price range, but this is perfect and has a giant shop to work in.

i tried getting a hold of the realtor, but he didnt answer, i left a message. I have no idea what im doing in the home buying process. talked to my bank(credit union) and they only offer 15yr mortgages, with 20% down. neither of which will work for me. tomorrow im going to hit bank of america to see what they have to offer.

what are some things i should look for as a first time home buyer? any tips or advice on the home ownership process?

03SonicBoom · November 21st, 2011, 08:11 PM

Things to look for would be a fixed rate mortgage with a low rate. You don't want an adjustable rate mortgage right now. It doesn't benefit you at all.

Take your purchase agreement to a lawyer and have them look it over for you. Purchase agreements are written by some realtor association and they are written to benefit the realtors. The listing realtor is there to maximize their profit which means getting the best deal for the seller. "Your realtor" is there to maximize there profit for them and their company. Remember, you're not paying the realtor and they aren't working for you. You need someone to represent you and your interests, this would be your lawyer.

Whatever you want to put on the purchase agreement, the realtor is required to write down. I went through this when I was looking to buy a house. I said I wanted the seller to fix the issue, give me the money, or remove the money from the selling price. I had to argue w/ "my realtor" to put all 3 of those in the counter offer agreement b/c she wanted me to choose one. She even told me that I had to choose one b/c the seller wasn't allowed to choose (I also had a shitty realtor at the time).

Always get the house inspected by a reputable company.

That's about all I can think about right now.

mxnate116 · November 21st, 2011, 08:18 PM

awesome ill keep that in mind sonic, reps

im looking at low down, 30 yr fixed rate mortgages right now, just gotta go talk to some banks i guess

craigdavey · November 22nd, 2011, 08:25 AM

Right now is the best time to buy. If you have even decent credit you should be able to get approved for a 30-year fixed loan.

I bought my house 3 years ago, had semi-decent credit, and only made ~$17/hr at the time and I was approved for over 100k with a 30 year fixed loan and I only had to put ~$2,000 down. I did some shopping when I was looking for a bank and Wells Fargo was the best choice for me. But there are plenty of banks always looking to loan money.

TheUNZippee! · November 22nd, 2011, 08:37 AM

Well I had a whole big thing typed up about making sure you do a proper inspection, but the forum swallowed it when I clicked Post Reply...

Do a proper inspection. lol

03SonicBoom · November 22nd, 2011, 08:51 AM

I'm also going to add this. Determine what you can afford BEFORE going to the bank. The bank will tell you that you can afford a house of $XXX,XXX. But you have to remember that the bank is trying to maximize their profit and that means giving you as big of a loan as they can.

When I got pre-approved for a loan, It was about $80k more than I felt that I could afford. But that's because I still wanted to have money to buy toys and go on vacations. You need to determine your budget, not the bank.

1FastFox · November 22nd, 2011, 10:08 AM

Honestly, If you dont have much to put down and are a first time home buyer ( which no established equity to turn over in an existing property ) you are going to have a problem getting a loan. If you are looking to spend $80k I would guess and say they will want $8k down at the bare minimum.

Originally Posted by craigdavey

Right now is the best time to buy. If you have even decent credit you should be able to get approved for a 30-year fixed loan.

I bought my house 3 years ago, had semi-decent credit, and only made ~$17/hr at the time and I was approved for over 100k with a 30 year fixed loan and I only had to put ~$2,000 down. I did some shopping when I was looking for a bank and Wells Fargo was the best choice for me. But there are plenty of banks always looking to loan money.

You cant use things from 3 years ago as points today. 3 years ago you barely had to even have a job to buy a house. Things have tightened up so much now after the housing crisis that its much tougher to get a loan.

Originally Posted by 03SonicBoom

I'm also going to add this. Determine what you can afford BEFORE going to the bank. The bank will tell you that you can afford a house of $XXX,XXX. But you have to remember that the bank is trying to maximize their profit and that means giving you as big of a loan as they can.

When I got pre-approved for a loan, It was about $80k more than I felt that I could afford. But that's because I still wanted to have money to buy toys and go on vacations. You need to determine your budget, not the bank.

THIS! Its is the buyers duty to do his due diligence on what he can actually afford rather than letting the bank decide. This is what led up to the housing collapse... Do the math now ( based on what you make now and not taking into account the possibility ( regardless of likelyhood ) of additional income in the future ) and calculate what you can currently afford and dont spend a dime more than that. I see too many people who do this and know they can afford a 100k house but then go out and spend 150k because the bank approved them for it and they got blind to reality. Doing this makes for some tough and financially strapped years ahead.

brokenweasel · November 22nd, 2011, 10:18 AM

Other things to add to the equation: with a loan like you're describing you'll most likely be required to carry mortgage insurance (another monthly payment) and don't forget about property taxes and homeowners insurance (yet another monthly payment).

So if you're the kind of person who gets starry-eyed at low monthly payments (who doesn't? lol) keep in mind there are other things to consider.

MyGT · November 22nd, 2011, 10:24 AM

Get ready to be financially violated lol. The process is very drawn out now a days, they'll want everything you've done financially since the beginning of time.

Also, like everyone else said they're going to approve you for far more than you're planning to spend. Stick with your budget, contact the property tax office to verify what your taxes are and make sure to get multiple insurance quotes.

And once you're in the house don't forget to file for homestead if your state offers it.

1FastFox · November 22nd, 2011, 10:26 AM

The PMI (mortgage insurance) will be factored into the loan if he doesnt put down 20%. But good point on the property tax and homeowners as those are commonly neglected items when calculating how much you can afford.

chocolate · November 22nd, 2011, 10:58 AM

I have nothing to say about the home buying process.

But

Good luck hope it works out and it does look like a decen't fixer. Just be ready to work.

Any ideas of what you wanna do to the house. You should factor that into your budget also. That 1950-1960's stove has got to go.

Jaa1456 · November 22nd, 2011, 01:07 PM

As for the house it looks pretty good, and the garage looks bigger than the damn house. As for the realtor, go look for a different one, they are a dime a dozen, but you still need to find one you are comfortable with and trust. When I bought my house my first realtor was a POS just trying to make a quick buck, I went through 6 of them before I found one that was actually working for me and with me as far as what I wanted and being truthful. I don't see you needing 8 grand down on a 80k dollar house. Also things work different all over the country, there are goverment programs going on and banks are willing to work with new buyers because of how much property is setting out there from the economy crash. I have seen Interest rates as low as 3% right now in my area. Defintely go with a fixed rate and haggle the rate as low as you can get it. Those things are not set in stone. Mine was 5% when I started, got it down to 4% after 2 years in the house and now im working on getting it down again, and most likely at a 2% rate, without refinancing. Also take into consideration the taxes as mentioned, insurance and not sure what you will be moving out of, like an apartment your parents or whatever, but all the bills to run the house plus any maintence and upkeep cost in the future.

1FastFox · November 22nd, 2011, 01:24 PM

How exactly do you get a fixed rate mortgage down to a lower percent without refinancing?

As for the down payment, I think that is pretty close to what the bank will want. The banks did end up with a lot of properties after right and left foreclosures. But the thing is that its cost them money to foreclose on a house and are probably selling it for less than what the note was and what they paid. They want you to have atlest 8-10% equity in the house so if you do end up bailing on the house they have a little cash to comp their expenses.

Jaa1456 · November 22nd, 2011, 01:53 PM

Originally Posted by 1FastFox

How exactly do you get a fixed rate mortgage down to a lower percent without refinancing?

As for the down payment, I think that is pretty close to what the bank will want. The banks did end up with a lot of properties after right and left foreclosures. But the thing is that its cost them money to foreclose on a house and are probably selling it for less than what the note was and what they paid. They want you to have atlest 8-10% equity in the house so if you do end up bailing on the house they have a little cash to comp their expenses.

Well the first time I lowered it, I just kept calling and calling and they finally lowered it down to 4%, it was pretty much the going rate for over a year, and with all the people bailing on their houses the beanks were willing to go with it. I did have to make one extra payment but that is far from refinancing, and right now I have all the paper work in to get it lowered again, but this time it is because I bought my house when they were high and the banks are willing to lower the interest rate to accomodate the change in value, I owe 65 grand more than my house appraised for 2 months ago, When I bought it in 06 it appraised for the 65 plus another 10. So now they are working the rate in the neighborhood of 2-3%. I still have the orginal years left from 06, so I went with a 30 year and Im now down to 24years and never refinanced. Im going to wait 6 months for the 2-3% to be in effect and then try to go for a 15 year, which will most likely be a refinancing issue, but only if I can stay at 3% or under, I have to do all the #'s first when it comes time, but I might not have to refinance. Also dropping the rate from 5% to 4% lowered my payments by nearly 500 bucks a month. Hoping this new rate will drop at least another 200-300 a month.

Jaa1456 · November 22nd, 2011, 01:55 PM

Forgot to add, while the economy drop and the housing market crash hurt many people that bought homes as in the people that lost them, it really opened up a lot of doors for people who were able to keep their homes through all of this and purchased a home from 2002 and later. Trust me if I would have lost my job I would have never been able to keep this house, I got lucky I guess.

03SonicBoom · November 22nd, 2011, 02:17 PM

Originally Posted by 1FastFox

How exactly do you get a fixed rate mortgage down to a lower percent without refinancing?

I would like to know also.

1FastFox · November 22nd, 2011, 02:31 PM

Exactly, your mortgage is a contract between you and the bank. Once its printed and signed their is no negotiating it. You agreed to pay what you signed and the bank agrees to finance it at what they signed. End of story...

To get a lower rate you have to get out of your current contract, negotiate a new interest rate, and sign into a new contract (aka refinancing).

For them to adjust the rate either way on a contract without resigning (refinancing) by both parties is in fact illegal.

iPAPKE · November 22nd, 2011, 04:07 PM

Seems expensive for a HUD home

Jaa1456 · November 22nd, 2011, 04:31 PM

Originally Posted by 1FastFox

Exactly, your mortgage is a contract between you and the bank. Once its printed and signed their is no negotiating it. You agreed to pay what you signed and the bank agrees to finance it at what they signed. End of story...

To get a lower rate you have to get out of your current contract, negotiate a new interest rate, and sign into a new contract (aka refinancing).

For them to adjust the rate either way on a contract without resigning (refinancing) by both parties is in fact illegal.

That is not refinancing at all, It is only changing the interest rate. There is much more to refinancing a home, like paying closing costs, other fees as well as the length of the loan, it is not the same at all, not even close to refinancing. Read up on refinancing before you tell me that's what I did when in fact it is not what I did at all. It's more like just calling up the bank telling them hey I want you to look at my property and what I owe and what it's worth. If there is more than a 10 grand difference they will work with you. It's has to do with un upside down mortgage and is NO WHERE NEAR THE SAME AS REFINANCING. Read up on it.

03SonicBoom · November 22nd, 2011, 05:10 PM

Originally Posted by Jaa1456

That is not refinancing at all, It is only changing the interest rate. There is much more to refinancing a home, like paying closing costs, other fees as well as the length of the loan, it is not the same at all, not even close to refinancing. Read up on refinancing before you tell me that's what I did when in fact it is not what I did at all. It's more like just calling up the bank telling them hey I want you to look at my property and what I owe and what it's worth. If there is more than a 10 grand difference they will work with you. It's has to do with un upside down mortgage and is NO WHERE NEAR THE SAME AS REFINANCING. Read up on it.

So what did you do and what is it called so I can read about it? I wouldn't mind dropping a percent or two on my mortgage without refinancing.

November 21st, 2011, 07:59 PM	#1
mxnate116 Hardcore Enthusiast SVTfocus, F250 Join Date: Jun 2007 Location: Spokane, WA Posts: 2,971 iTrader: 1 reviews	First time home buyer so ive been looking for a home to purchase for a while now, started saving some cash up for down payment, then the trans went out in my truck. i dont have much for a down payment, what are my lending options? the house im looking at is here, 3117 W Lacrosse Ave, Spokane, WA 99205 MLS# 201125323 - Zillow i think its an awesome find, ive been looking for a fixer in the 80k price range, but this is perfect and has a giant shop to work in. i tried getting a hold of the realtor, but he didnt answer, i left a message. I have no idea what im doing in the home buying process. talked to my bank(credit union) and they only offer 15yr mortgages, with 20% down. neither of which will work for me. tomorrow im going to hit bank of america to see what they have to offer. what are some things i should look for as a first time home buyer? any tips or advice on the home ownership process? __________________

November 21st, 2011, 08:11 PM	#2
03SonicBoom Moderator 2003 Grand Cherokee Join Date: Jul 2008 Location: Indiana Posts: 6,621 iTrader: 0 reviews	Things to look for would be a fixed rate mortgage with a low rate. You don't want an adjustable rate mortgage right now. It doesn't benefit you at all. Take your purchase agreement to a lawyer and have them look it over for you. Purchase agreements are written by some realtor association and they are written to benefit the realtors. The listing realtor is there to maximize their profit which means getting the best deal for the seller. "Your realtor" is there to maximize there profit for them and their company. Remember, you're not paying the realtor and they aren't working for you. You need someone to represent you and your interests, this would be your lawyer. Whatever you want to put on the purchase agreement, the realtor is required to write down. I went through this when I was looking to buy a house. I said I wanted the seller to fix the issue, give me the money, or remove the money from the selling price. I had to argue w/ "my realtor" to put all 3 of those in the counter offer agreement b/c she wanted me to choose one. She even told me that I had to choose one b/c the seller wasn't allowed to choose (I also had a shitty realtor at the time). Always get the house inspected by a reputable company. That's about all I can think about right now. __________________

November 21st, 2011, 08:18 PM	#3
mxnate116 Hardcore Enthusiast SVTfocus, F250 Join Date: Jun 2007 Location: Spokane, WA Posts: 2,971 iTrader: 1 reviews	awesome ill keep that in mind sonic, reps im looking at low down, 30 yr fixed rate mortgages right now, just gotta go talk to some banks i guess __________________

November 22nd, 2011, 08:25 AM	#4
craigdavey Enthusiast Join Date: Jul 2010 Location: Columbus, OH Posts: 652 iTrader: 0 reviews	Right now is the best time to buy. If you have even decent credit you should be able to get approved for a 30-year fixed loan. I bought my house 3 years ago, had semi-decent credit, and only made ~$17/hr at the time and I was approved for over 100k with a 30 year fixed loan and I only had to put ~$2,000 down. I did some shopping when I was looking for a bank and Wells Fargo was the best choice for me. But there are plenty of banks always looking to loan money. __________________ 2004 3.9L Vert (sold)

November 22nd, 2011, 08:51 AM	#6
03SonicBoom Moderator 2003 Grand Cherokee Join Date: Jul 2008 Location: Indiana Posts: 6,621 iTrader: 0 reviews	I'm also going to add this. Determine what you can afford BEFORE going to the bank. The bank will tell you that you can afford a house of $XXX,XXX. But you have to remember that the bank is trying to maximize their profit and that means giving you as big of a loan as they can. When I got pre-approved for a loan, It was about $80k more than I felt that I could afford. But that's because I still wanted to have money to buy toys and go on vacations. You need to determine your budget, not the bank. __________________

November 22nd, 2011, 10:24 AM	#9
MyGT Hardcore Enthusiast 2004 Mustang GT 13.1@105 Join Date: Oct 2007 Location: Houston Posts: 2,237 iTrader: 7 reviews	Get ready to be financially violated lol. The process is very drawn out now a days, they'll want everything you've done financially since the beginning of time. Also, like everyone else said they're going to approve you for far more than you're planning to spend. Stick with your budget, contact the property tax office to verify what your taxes are and make sure to get multiple insurance quotes. And once you're in the house don't forget to file for homestead if your state offers it. __________________ 2009 Super-Stangs Fantasy Football League Champion Thanks Brees!

November 22nd, 2011, 10:26 AM	#10
1FastFox Skirt Chasing Phallus Phondler Kit Car/Ducati/Explorer Nike Fast Join Date: Mar 2007 Location: Indiana Posts: 10,495 iTrader: 4 reviews	The PMI (mortgage insurance) will be factored into the loan if he doesnt put down 20%. But good point on the property tax and homeowners as those are commonly neglected items when calculating how much you can afford. __________________ QUOTE OF THE DAY (5/25/12): “Don’t play what’s there, play what’s not there.” ‐ Miles Davis

November 22nd, 2011, 01:07 PM	#12
Jaa1456 Enthusiast 2000 GT Join Date: Aug 2011 Location: Central NJ Posts: 840 iTrader: 3 reviews	As for the house it looks pretty good, and the garage looks bigger than the damn house. As for the realtor, go look for a different one, they are a dime a dozen, but you still need to find one you are comfortable with and trust. When I bought my house my first realtor was a POS just trying to make a quick buck, I went through 6 of them before I found one that was actually working for me and with me as far as what I wanted and being truthful. I don't see you needing 8 grand down on a 80k dollar house. Also things work different all over the country, there are goverment programs going on and banks are willing to work with new buyers because of how much property is setting out there from the economy crash. I have seen Interest rates as low as 3% right now in my area. Defintely go with a fixed rate and haggle the rate as low as you can get it. Those things are not set in stone. Mine was 5% when I started, got it down to 4% after 2 years in the house and now im working on getting it down again, and most likely at a 2% rate, without refinancing. Also take into consideration the taxes as mentioned, insurance and not sure what you will be moving out of, like an apartment your parents or whatever, but all the bills to run the house plus any maintence and upkeep cost in the future.

November 22nd, 2011, 01:24 PM	#13
1FastFox Skirt Chasing Phallus Phondler Kit Car/Ducati/Explorer Nike Fast Join Date: Mar 2007 Location: Indiana Posts: 10,495 iTrader: 4 reviews	How exactly do you get a fixed rate mortgage down to a lower percent without refinancing? As for the down payment, I think that is pretty close to what the bank will want. The banks did end up with a lot of properties after right and left foreclosures. But the thing is that its cost them money to foreclose on a house and are probably selling it for less than what the note was and what they paid. They want you to have atlest 8-10% equity in the house so if you do end up bailing on the house they have a little cash to comp their expenses. __________________ QUOTE OF THE DAY (5/25/12): “Don’t play what’s there, play what’s not there.” ‐ Miles Davis

November 22nd, 2011, 01:55 PM	#15
Jaa1456 Enthusiast 2000 GT Join Date: Aug 2011 Location: Central NJ Posts: 840 iTrader: 3 reviews	Forgot to add, while the economy drop and the housing market crash hurt many people that bought homes as in the people that lost them, it really opened up a lot of doors for people who were able to keep their homes through all of this and purchased a home from 2002 and later. Trust me if I would have lost my job I would have never been able to keep this house, I got lucky I guess.

November 22nd, 2011, 02:31 PM	#17
1FastFox Skirt Chasing Phallus Phondler Kit Car/Ducati/Explorer Nike Fast Join Date: Mar 2007 Location: Indiana Posts: 10,495 iTrader: 4 reviews	Exactly, your mortgage is a contract between you and the bank. Once its printed and signed their is no negotiating it. You agreed to pay what you signed and the bank agrees to finance it at what they signed. End of story... To get a lower rate you have to get out of your current contract, negotiate a new interest rate, and sign into a new contract (aka refinancing). For them to adjust the rate either way on a contract without resigning (refinancing) by both parties is in fact illegal. __________________ QUOTE OF THE DAY (5/25/12): “Don’t play what’s there, play what’s not there.” ‐ Miles Davis

November 22nd, 2011, 04:07 PM	#18
iPAPKE iPoopke Regular 2004 Mustang Join Date: Aug 2011 Location: Michigan Posts: 835 iTrader: 0 reviews	Seems expensive for a HUD home

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