The Fiancé and I have finally gotten our pre-approval letter from our lender after shopping around. What is some advice that you guys have for us and the entire process?
OT: Home Buying Advice
- Thread starter PA_Panther
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Just when I thought the process was done they always asked for "one more thing." Anyway, I was very patient to make sure I found a place I really liked and am still happy with the house I found.
If you are looking at older homes with projects, unless you are handy and have tools those projects are much larger than you are thinking.
Be patient and take someone with you who has owned a house before and knows what issues are big vs. small. For example: bad windows - big, terrible wall colors - small. Keep school district in mind because it directly affects resale value. Good Luck!
Not sure what you are looking for (i.e Starter home, something the family can grow into, Urban/Suburbs/Country/ Etc) but some advice I have.
1) do your best to put 20% down to avoid PMI. The least I would consider is 10% down.
2) According to Financial Guru Dave Ramsey your mortgage payment should be about 25% of your pay.
3) Never buy a home that was a flip. These guys are notorious for cutting corners. Not all of them, but too many of them. it is better to buy a fixer upper than a flipped home imo. Do not confuse this with someone who lived in a home and fixed it up along the way. That is how it should be done.
4) Get an inspection but don't expect it to be the end all be all of truth. They miss things
5) If you looked at houses in one price range, then decide to look at the next price range up, look at a few of the houses in the new price range. Don't jump on the 1st house you see in that range because it was better than you were previously looking at.
6) Put the least amount of hand money down as you can. Don't let your real estate agent talk you into offering more to show "How serious of a buyer" you are.
7) If you get in a bidding war on a house you like, try not to be emotional.
This advice is free so take it with a grain of salt but this is the information I would give my son.
Good luck
1) do your best to put 20% down to avoid PMI. The least I would consider is 10% down.
2) According to Financial Guru Dave Ramsey your mortgage payment should be about 25% of your pay.
3) Never buy a home that was a flip. These guys are notorious for cutting corners. Not all of them, but too many of them. it is better to buy a fixer upper than a flipped home imo. Do not confuse this with someone who lived in a home and fixed it up along the way. That is how it should be done.
4) Get an inspection but don't expect it to be the end all be all of truth. They miss things
5) If you looked at houses in one price range, then decide to look at the next price range up, look at a few of the houses in the new price range. Don't jump on the 1st house you see in that range because it was better than you were previously looking at.
6) Put the least amount of hand money down as you can. Don't let your real estate agent talk you into offering more to show "How serious of a buyer" you are.
7) If you get in a bidding war on a house you like, try not to be emotional.
This advice is free so take it with a grain of salt but this is the information I would give my son.
Good luck
Make sure you take real estate taxes into conisderation when budgeting.
Also, if it seems like the real estate taxes are low relative to the area, assume the home will be reassessed.
Make sure you understand how much money you will *really* need at closing.
Also, if it seems like the real estate taxes are low relative to the area, assume the home will be reassessed.
Make sure you understand how much money you will *really* need at closing.
If you are buying a single-family home that is currently occupied, you might be surprised the deals on furniture you can get because owner’s don’t want to bother moving something. When you go through the house after you have a contract (usually the inspection), take note of large items that might look difficult to move and make an offer. We once got at least $15,000 in furniture for a mere $1,500 all because the owners didn’t want to pay to have them moved.
I would also say, at the moment this is clearly a buyer’s market so I wouldn’t be afraid to ask for some seller assist funds at closing. When there are multiple offers, it’s unlikely that your offer will be accepted, but in this current climate it’s worth a shot.
I would also say, at the moment this is clearly a buyer’s market so I wouldn’t be afraid to ask for some seller assist funds at closing. When there are multiple offers, it’s unlikely that your offer will be accepted, but in this current climate it’s worth a shot.
Is it really a buyers market? A good friend is a realtor and at least up here in the north inventory is at an all time low. According to her a lot of people who were considering a move have decided to stay put in the current environment. FWIW - It is only one realtors opinion.
It is not a buyer's market at all actually. The inventory has decreased nationwide and more people have been cleared for loans because the rates are so low that a lot of people have went to get pre-approved. So, it is a selective seller's market unless you have a property that is inundated with similarly situated properties (ex: if everyone in your condo complex is selling, you are not going to get the benefit of a seller's market unless you wait others out).
Look for properties every day and put them into buckets: 1) stuff to see today; 2) stuff to see this weekend; 3) maybe; and 4) no. The stuff that you put in buckets 1 and 2 WILL go very fast. Both of my houses were on the market for less than 24 hours and had multiple offers. People generally list houses on Thursdays for a Saturday-Sunday open house but if you see something great, you MUST go see it on Thursday.
Be suspicious of anything that has been on the market for more than 30 days.
Really picture yourself living in the property. I visited one house that was absolutely perfect but the master was on the main, had one window that my neighbor's driveway would have looked into and the walk in closet had a window out to the street in front of the house. Perfect place, just not enough privacy when I considered dressing for work at 5am. Also consider things like environmental noises from major roads nearby (it'll be louder in the winter without leaves to deaden the sound) and line of sight issues with things like electrical poles.
Don't buy a house on emotions. Remember, this is supposed to feel perfect. If it doesn't feel perfect, walk and wait on the next one.
Be suspicious of anything that has been on the market for more than 30 days.
Really picture yourself living in the property. I visited one house that was absolutely perfect but the master was on the main, had one window that my neighbor's driveway would have looked into and the walk in closet had a window out to the street in front of the house. Perfect place, just not enough privacy when I considered dressing for work at 5am. Also consider things like environmental noises from major roads nearby (it'll be louder in the winter without leaves to deaden the sound) and line of sight issues with things like electrical poles.
Don't buy a house on emotions. Remember, this is supposed to feel perfect. If it doesn't feel perfect, walk and wait on the next one.
Take these 3 pieces of advice and sleep well.
1) buy in the best school district u can afford. Even if it means taking less house to get in. You have not experienced anxiety until you have attempted to sell a house with little luck. Buying in a preferred SD limits this aggravation. Less house in say Hampton Twp is a far better move than more house in Shaler. I know. I live (lived) in both.
2) prepare your budget for unexpected home repairs but equally as important, property tax hikes. The Covid has busted local government coffers and they will have to raise taxes at some point
3) you will undoubtedly do home remodeling projects. While recapturing your costs is an issue, your enjoyment comes with no price tag. If you want a bigger deck than everyone else do it.....if you will get the enjoyment out of it.
I just refinanced. The guy that did my appraisal played baseball for Pitt. We must have talked Pitt football for 45 minutes. I learned quite a bit about homebuying and refinancing from him.
1) buy in the best school district u can afford. Even if it means taking less house to get in. You have not experienced anxiety until you have attempted to sell a house with little luck. Buying in a preferred SD limits this aggravation. Less house in say Hampton Twp is a far better move than more house in Shaler. I know. I live (lived) in both.
2) prepare your budget for unexpected home repairs but equally as important, property tax hikes. The Covid has busted local government coffers and they will have to raise taxes at some point
3) you will undoubtedly do home remodeling projects. While recapturing your costs is an issue, your enjoyment comes with no price tag. If you want a bigger deck than everyone else do it.....if you will get the enjoyment out of it.
I just refinanced. The guy that did my appraisal played baseball for Pitt. We must have talked Pitt football for 45 minutes. I learned quite a bit about homebuying and refinancing from him.
Thanks for the advice everyone! Most of this is what we’ve heard from both her and I’s parents but is helpful to hear it from another source! We both work in the downtown area now, so it’s been kind of hectic narrowing down where exactly we want to live in the area.
Well I’m only going off my own experience, having sold and bought a new home during this pandemic. It all depends on where you are located, I suppose.
Lots of good advice here. My two cents, try to envision what will be important to you in 5-7 years from now and incorporate a bit of it into your decision. What I think/thought I want/wanted out of a property seemed to change in about 7 year increments.
I've lived in 7 different cities and bought homes in them all (including Mt. Lebanon). I agree with almost all that has been said.
I would only add that my wife and I also knocked on all future neighbors' doors. You can learn a lot about them and the neighborhood.
Some good advice. I just had a house built within the last 5 years. I learned some things.
1) The school district/tax thing is important. If I had to do it all again, I would not live where I am living, my house is nice, but the school district is not the greatest and very high taxes. I would have built about 5 miles away in a better school district, lower taxes, more property.
2) When it is new.....there are alot of things you don't have to worry about, however, you will be doing things, just as you would with an old house, and putting in landscaping, fencing, maybe a deck and patio set up, maybe a pool that all are costly. So consider (and budget) that. Probably not going to do everything that first year, but you will want to get it done.
3) Here's something never thought of, and with just a vacant lot and no house, something that is easily overlooked that years later you will curse yourself. My backyard, deck, patio faces exactly due west. So this time of year, it can be pretty hot, and the sun blinding if you don't have a tree line blocking it. If I had to do it all over again, I would have my house oriented front to back in a north/south direction. It is amazing how much difference this would make. Obviously applies to an existing house.
4) Also with a new development.....I was one of the first houses built in my section. It was great, just a couple of houses around, pretty quiet and private, sitting out back at night, seeing deer and turkey, etc... Now? It is full up and I swear to god, most fertile sets of parents I ever have seen as almost every household has 3 or more kids.
1) The school district/tax thing is important. If I had to do it all again, I would not live where I am living, my house is nice, but the school district is not the greatest and very high taxes. I would have built about 5 miles away in a better school district, lower taxes, more property.
2) When it is new.....there are alot of things you don't have to worry about, however, you will be doing things, just as you would with an old house, and putting in landscaping, fencing, maybe a deck and patio set up, maybe a pool that all are costly. So consider (and budget) that. Probably not going to do everything that first year, but you will want to get it done.
3) Here's something never thought of, and with just a vacant lot and no house, something that is easily overlooked that years later you will curse yourself. My backyard, deck, patio faces exactly due west. So this time of year, it can be pretty hot, and the sun blinding if you don't have a tree line blocking it. If I had to do it all over again, I would have my house oriented front to back in a north/south direction. It is amazing how much difference this would make. Obviously applies to an existing house.
4) Also with a new development.....I was one of the first houses built in my section. It was great, just a couple of houses around, pretty quiet and private, sitting out back at night, seeing deer and turkey, etc... Now? It is full up and I swear to god, most fertile sets of parents I ever have seen as almost every household has 3 or more kids.
I realize that there are different norms, and rules for home inspections depending on the area, but I would never use a home inspector recommended by your real estate agent. I would shop around to find a good one through friends / family /co-workers / etc.
Along the same lines, the real estate agent you use makes a difference. Shop around.
Also, the attorney fees can vary a LOT. I would shop around for that service, too.
Along the same lines, the real estate agent you use makes a difference. Shop around.
Also, the attorney fees can vary a LOT. I would shop around for that service, too.
Find a good and experienced home inspector. Not someone who has a check list of 500 little things. An inspector who can spot the potential expensive fixes. Don't mess around here just to save a couple hundred dollars.
When looking at homes, pay attention to the little things that are not fixed. Those are reflective of how the owners took care of the home and there will certainly be 10x more problems then you see when viewing the house. So if some of those bedroom doors don't' close right, and the faucet seems to be flowing slowly... there will be plenty of more problems lurking.
When looking at homes, pay attention to the little things that are not fixed. Those are reflective of how the owners took care of the home and there will certainly be 10x more problems then you see when viewing the house. So if some of those bedroom doors don't' close right, and the faucet seems to be flowing slowly... there will be plenty of more problems lurking.
Get a registered home inspector to go over the property and provide a written report. Make the closing contingent upon the results of the report. No reasonable seller will object. If they do, then they are hiding something. It is well worth the couple hundred bucks. Trust me, it’s worth it. I have purchased 5 different houses in three different states. It has always paid off for me.
I want to say don't get married but you're not going to listen.
Start with the pre qualification process and get a cost sheet based on a hypothetical listing you had identified. The 1st step is to know that you are qualified and know the costs.
Interest rates are close to all times low and there is no guarantee the feds will keep buying 42B/mo to help stimulate home buying. It is a seller's market in the Pgh area as demand exceeds supply.
Next put together your wish list! This list should include:
Areas you want to live in
# of bedrooms
# of full and half baths
Basement finished
Kitchen references
back yard
Pick an experienced realtor and ask hard questions
Enjoy the process!
Interest rates are close to all times low and there is no guarantee the feds will keep buying 42B/mo to help stimulate home buying. It is a seller's market in the Pgh area as demand exceeds supply.
Next put together your wish list! This list should include:
Areas you want to live in
# of bedrooms
# of full and half baths
Basement finished
Kitchen references
back yard
Pick an experienced realtor and ask hard questions
Enjoy the process!
I've owned homes for the past 43 years and have learned a few things that would have helped me in the beginning, if only I knew them then.
1) A minimum down payment should be 40%. That's minimum. If you can go higher, it will save you money and increase your equity.
2) Only do a 15 yr. mortgage, no 30 yr. stuff.
3) Keep your mortgage payment to no more than 25% of your TAKE HOME pay each month.
4) Check into any homeowner restrictive covenants in your neighborhood.
5) Always know what your tax liability will be and pay them directly to the taxing authority, not to an escrow account.
6) No mortgage insurance...ever.
7) Make sure you have term life insurance to cover any loss of income your family would suffer if you were to pass, and multiply that by 10.
1) A minimum down payment should be 40%. That's minimum. If you can go higher, it will save you money and increase your equity.
2) Only do a 15 yr. mortgage, no 30 yr. stuff.
3) Keep your mortgage payment to no more than 25% of your TAKE HOME pay each month.
4) Check into any homeowner restrictive covenants in your neighborhood.
5) Always know what your tax liability will be and pay them directly to the taxing authority, not to an escrow account.
6) No mortgage insurance...ever.
7) Make sure you have term life insurance to cover any loss of income your family would suffer if you were to pass, and multiply that by 10.
I would also add to keep in mind commute routes. You say that you both work downtown? Do you fly a lot? All those things are important in considering the area to live in - no one wants to sit in massive traffic everyday.
My advice...... don't be cheap. A home is a good investment and you will build equity as you make your payments. Better to buy a nicer home than a car. Cars go to zero, homes don't.
Along the same lines, buy something you won't be looking to move out of in 4 or 5 years. Nothing eats your savings and equity like paying real estate fees, transfer taxes and closing costs.
Along the same lines, buy something you won't be looking to move out of in 4 or 5 years. Nothing eats your savings and equity like paying real estate fees, transfer taxes and closing costs.
40% down payment and 15 year mortgage while paying less than 25% of your take home pay?
Buy a really nice tent.
All of which will be going up, as shortfalls due to Covid leave taxing bodies no choice.
Put me in the camp that says a 15 year note is not smart
Money is historically cheap. The spread between 15 and 30 is not much at all.
But more importantly, a 30 year note with an option to increase payments is the way to go.
I took a 30 year. Certain months, I pay more into principal. Summer months, I make the min and take the family on vacation. In the winter, if the furnace needs repaired or replaced, I have some extra dough.
And if nothing else is going on in my pathetic life, I pay down the principal.
But I'm not locked into it.
Money is historically cheap. The spread between 15 and 30 is not much at all.
But more importantly, a 30 year note with an option to increase payments is the way to go.
I took a 30 year. Certain months, I pay more into principal. Summer months, I make the min and take the family on vacation. In the winter, if the furnace needs repaired or replaced, I have some extra dough.
And if nothing else is going on in my pathetic life, I pay down the principal.
But I'm not locked into it.
It's not that hard of you are willing to save before buying the home. Now if you are buying a $600K monstrousity it's probably more challenging. This is easily doable at $200K.
I used to call our place in Pine "Fertility Farms". Turned out great, as our surprise daughter #4 (Serial wives) had lots of pals. Great people with only 1 exception in 29 years. Partied like crazy, in good ways.
Find a neighborhood and house you like
That’s it
You can’t control every variable .
to me - my time is my most precious resource so I’m don’t choose to live far from where I’d work and spend free time
20-30’ year is a better bet
You can always pay off sooner (make bi-weekly payments to mitigate interest.
Don’t stretch - ya never know when life throws a hurdle at ya and you are stuck with a higher payment than you needed
How do you assume those are mutually exclusive ?
Perhaps not being gone 11-12 hours a day due to commute is part of that scare resource of time to spend with my son while he’s a child ?
Nah
You’re bad at this
Avoid busy roads, airport pathways, and commercial areas. Be careful of noisy neighbors re: condos/duplexes. Check crime in the area. I buy on running trails, golf courses, and behind gates/ gated communities
When starting out, Never buy the nicest house on the block. Buy a poorer house on a nicer block and improve it.
If you can swing a 15 year mortgage, you get a lot more equity and pay a lot less interest for not that much more money when it is amortized out.
When starting out, Never buy the nicest house on the block. Buy a poorer house on a nicer block and improve it.
If you can swing a 15 year mortgage, you get a lot more equity and pay a lot less interest for not that much more money when it is amortized out.
Good advice. I always paid additional on our principal every month - sometimes it was as little as $50, but every bit helps. (You must note that the extra payment is for principal ONLY.) We accelerated incrementally every year and paid off our 30 year in 19 years.
We never intended for this to be our final home with our kids - always thought we'd go bigger at some point, but it's nice owning your home especially in times like this.
My only advice is this; if it is even remotely possible, lock yourself into a 15 year fixed rate. Rates are so low right now, they are not likely to go lower and if you can find a way to swing a 15 year payoff, you will be very very happy in the long run.
Cruzer
