1st time home buyer - need help

[Ja Rhule]

I need suggestions. In regards to a loan and anything else I need to know to make a wise decision. I'm planning on buying my first house sometime this year and I do not want to deal with any surprises. Any suggestions?

[DoWorkBson]

I would buy a foreclosured property and take out a construction loan as well to fix it up if you can get approved for both at good rates. Wish thats what I would have done 2 years ago. especially if you can do minor projects yourself.

[Ja Rhule]

I want to put 0% down on my house and just do monthly payments. What loan is a way to go?

[DoWorkBson]

I couldn't get 100% financing and I don't think theyre to common anymore. I had to put around 3% down. Just make sure you have to pay no closing costs as part of the purchasing agreement.

[DoWorkBson]

Also I think the mostly do fixed rates now no more arm poo anymore. The rates are so low now even if you can get an arm dont.

[Ja Rhule]

I should be approved for $200,000 loan. My wife to be and I both got good jobs. I don't want to put anything down because I'm getting married and wedding will cost me plus I want to have few K on my bank account.

[DoWorkBson]

Good luck with the 0% I didnt have any. The one think I've seen is some housing companies selling brand new houses offering 100% financing. You may get approved for a lot but they will approve you for way more then you can afford. stay at least 10-20k less then what they approve you for. I got approved for like 180k which was ridiculous and id be out on the street if I spent that much.

[Ja Rhule]

Good luck with the 0% I didnt have any. The one think I've seen is some housing companies selling brand new houses offering 100% financing. You may get approved for a lot but they will approve you for way more then you can afford. stay at least 10-20k less then what they approve you for. I got approved for like 180k which was ridiculous and id be out on the street if I spent that much.

I want to get a loan for about $200k. I should be able to afford it. Thanks for the help. Rep.

[d-run]

I got a 100% USDA loan, but there are a bunch of eligibility requirements and it has to be in a rural environment. Also there are limits on the amount of the loan. In my county it is like 170,000.

This is a good website that gives info about the USDA loans, but I am pretty sure it is not affiliated with the actual program so don't give them any of your info:

http://usdaloanapproval.com/

[DoWorkBson]

It's definitely a time to buy provided you don't have anything to sell. I wish I would have waited another year, but that 8 grand was to good to pass up.

[charlotte49er]

As a former real estate broker, I can offer up a few pointers.

You MAY be able to get "0" down if you buy a new home from a builder in a subdivision. Otherwise, be prepared to pay some percentage down. the "0" down on an a existing home is what got the banks into trouble in the first place.

DO NOT GET a construction loan! Construction loans are short term loans meant primarily to fund money while you are building a home. Since they are short term loans and are meant to be converted into long term loans, they carry a higher percentage rate. Often 2-3 times that a 30 year conventional loan. (Banks are going to get their money on a loan that is meant to last under a year, usually 6 months.)

IF you buy a foreclosed home that needs fixing up. Take out a home equity loan. Provided you have equity in the home after buying it. If you are getting a loan from the bank who owns the foreclosed home, they are more likely to work with you on the closing costs.

If you are buying a home from an individual, you can always ask for the seller to pay closing costs. Whoever pay closing costs can take a huge percentage off on their taxes!

Talk to a bank or credit union, start where you are your future wife bank. They will give you a good indication on how much home you can buy. To often I saw people wanting to buy a $200,000 home, but their income will only support a $150,000. Therefore, they couldn't get a loan.

It's always good to know before hand and get pre-approved for a loan. There are different levels of pre-appoval too. Some just look at your earnings and other look at your credit history. (It's best if they look at your credit history and therefore no surprises.)

If you are going to borrow money from Parents, have them loan you the money ASAP. Lending institutions really frown on money that just "pops" up into an account. Especially if you are "kitting" money.

{Since I am no longer a real estate broker, I can tell you this. It's illegal!!!!! "Kitting" (kite-ing) is when you can get Parents to "lend" you money so your bank accounts look better/bigger than they really are. Once you close on the home, you then give the money back to them. This is "kitting" and is highly against the law!!!! Several lending intitutions got in trouble years ago for doing this. Again, it's against the law! However, it can make your bank accounts look better and therefore get you a loan.}

Lending institutions have really tightened their belts after the home loan fiasco.

You can bid on HUD homes.

http://www.hudhomestore.com/HudHome/Index.aspx

Sometimes you can get these for $10,000's below "value". But beware. People steal everything that is even bolted down. I have seen people gut homes knowing they are going to get foreclosed on. Even the bathroom, sinks, toilet, cabinets, kitchen cabinets, sink, fridge, etc. I have even seen the people plug up all the drains and turn on all the water! So you have to repalce all the carpeting, drywall, trim, etc. Yes you get it cheap, but the repairs will kill you!

Here's a home that is $100 in closing costs and they give you a $3,500 repair escrow.

http://www.hudhomestore.com/HUD/PropertyDetails.aspx?caseNumber=381-572385&sLanguage=&zipCode=&city=&county=&sState=NC&fromPrice=0&toPrice=0&fcaseNumber=&bed=0&bath=0&street=&buyerType=0&specialProgram=&Status=0&OrderbyName=SCASENUMBER&OrderbyValue=ASC&sPageSize=10

My Brother-in-Law has made a living out of buying HUD homes, fixing them up and selling them. (That and teaching.)

Also, get a Buyer's agent. Buyer's agent work for you! Thay can steer you clear of a lot of mine fields! They get paid by the Seller! So it doesn't cost you a cent. (Unless you want a FSBO -For Sale By Owner.) They are usually too cheap to pay the 3% for a Buyer's Agent. Then it's Caveat Emptor! (Buyer Beware!) If a FSBO is too cheap to pay for a Buyer's Agent, they are usually trying to hide something! Like the home is in the flood plane! Or it's on the approach to the airport! Or there is a new Mall going in behind you. etc.

There are levels of foreclosure too. Most homes have been thru the banking system and the lending institution will make a quick decision. If it's a "Short Sell", I have seen it take up to 2 years before a bank will make a decision. Also if it's a foreclosure, it's doubtful that you will get any money for closing. (Again, unless your loan is thru the bank that holds the foreclosure.)

I hope all this helps.

The best advice I can give you is to, get a Buyer's Agent!

[Panthro]

Youre going to need a min of 3.5% down. That qualifies you for a FHA loan. If you cannot wait until you can...don't start your marriage off by forcing yourselves into one house. Also I would see what just one of you qualifies for and look for houses in that range. That way if something happens you can survive on one income for a while

[Ja Rhule]

Youre going to need a min of 3.5% down. That qualifies you for a FHA loan. If you cannot wait until you can...don't start your marriage off by forcing yourselves into one house. Also I would see what just one of you qualifies for and look for houses in that range. That way if something happens you can survive on one income for a while

min 3.5%? I probably be able to come up with it. Thanks guys.

[Panthro]

If you both qualify for $200k consider buying a $150k house. We are in a cool little house near Plaza Midwood and are saving about $500 a month vs renting a comparable property. We only plan to be here for about 5 years so no need to blow your wad on your first house.