First time homebuyer?

I'm looking to purchase my first home in the next few months. This is what I know:
I know the area/areas I want to live in,
I know my budget and what I can live with paying,
I have a 740 credit score
I don't have much for a down payment
I'm looking to get a house in the 60-105k range.
I don't have any kids or wife.
I'm about 95% sure I'm going to use the VA home loan that I'm entitled to thanks to the generosity of the .gov and my appetite for abuse.

But other than the very very basics, I have no clue what I'm getting into. With all you old farts floating around, I figure there's a lot of advice on what I'm getting myself into and what you did/wished you did differently. I'll take any advice that you guys have to offer.

Hopefully someone on here can recommend a quality home inspector in your area. You will get an inspection, or you will suffer for not.

Be sure and plan on spending quite a bit on home and yard stuff. If you buy in the fall you can put off some of the yard equipment. Depending on how much yard you get a mower can get expensive unless you are willing to spend a lot of time mowing. You also may need to buy a few appliances. Of course a good home inspector(s) are a good idea. I personally like using specialist for some of the inspections. A good realtor can may the process a lot easier, try and get references for a realtor in the area you are interested in.

I'd definitely recommend a good realtor, it can help the process immensely. I'm sending you a PM regarding this.

Things to keep in mind, coming from a recent first time home owner:

1- Insurance, get quotes, and expect and budget for it increasing.

2- Property tax. If it hasn't sold recently, then the tax value may not reflect current value. What we learned was that if the house is sold, they can raise immediately the tax amount to reflect current value. So the amount that was paid last year may be dramatically lower than what you will have to pay. Ours went up 50% the first year.

3- Inspection. Like defnestor said, get a good one. Ours missed some stuff; fortunately we had gotten a good enough deal that that didn't put us upside down on it, but it still added to what we expected to have to do on the house.

I am a Realtor®

Call me 405-823-7330

Appliances and yard equipment are something few consider prior. Good call jrusling. A quality realtor that you feel comfortable with and don't feel as though they're pushing you in any specific direction but the one you request is paramount. Pick an area you'd like to live and consider the area around it. Is new construction of houses/shopping/eating areas occurring which will raise the value over time? Pay careful attention to the condition of the neighbor's houses. It will tell you a lot about who you will be dealing with day in and day out.

When looking at houses, given what you listed, you can go bachelor pad and stay on the lower end with a smaller place, or go toward the higher end of your spending limit and not feel cramped should you marry and have a child. Realize your house payment will go up over time due to property tax and insurance costs. It shouldn't be much, but my first house had the payment jump $100 a month. That hurt. Air conditioning units, I've been told, last generally 15-25 years. Replacement and bringing to code will run about $10k.

You can never have enough storage or parking. A 2 car garage is a commodity that I personally couldn't live without on my houses. Having just built a house, we went with a 3 car.

Realize this will not be the house you live in forever. Let it be a starter home and don't be tempted to over buy.

Defnestor said:

Hopefully someone on here can recommend a quality home inspector in your area. You will get an inspection, or you will suffer for not.

Click to expand...

I got to church with these guys: http://www.inspectingoklahoma.com/default.htm all good guys with a real interest in helping people.

HoLeChit said:

I'm looking to purchase my first home in the next few months. This is what I know:
I know the area/areas I want to live in,
I know my budget and what I can live with paying,
I have a 740 credit score
I don't have much for a down payment
I'm looking to get a house in the 60-105k range.
I don't have any kids or wife.
I'm about 95% sure I'm going to use the VA home loan that I'm entitled to thanks to the generosity of the .gov and my appetite for abuse.

But other than the very very basics, I have no clue what I'm getting into. With all you old farts floating around, I figure there's a lot of advice on what I'm getting myself into and what you did/wished you did differently. I'll take any advice that you guys have to offer.

Click to expand...

Make sure you select a lender who participates in one of the many down payment assistance programs available through the Oklahoma Housing Finance Agency, Rural Enterprises and county home finance authorities such as those in Oklahoma & Tulsa counties. I am fortunate enough to serve on the board of the Oklahoma County Home Finance Authority and I am a lender that offers each of the DPA programs as well as VA loans. VA requires no down payment but you still have to cover closing costs and pre-paid expenses unless your seller is willing to do so. DPA can cover that easily.

PM me if you would like to discuss this further or have me refer you to a participating lender in your area.

Check with your local government, many towns have first time home buyers programs that will pay your closing costs or down payment up to about 5k. We did it when we bought our first, and it was big help.
Most home loan programs require 20% down these days, but FHA and possible the VA loans allow for 5%. You usually have to have something. We used the city of Stillwater first-time homebuyer program to get our DP.

Are you self-employed? That will really bungle things for you, as you will definitely need the 20% down. We bought our last house in 07, and it was nearly impossible to get a loan as a self-employed person, it is even harder now, even with a 740.

Be prepared for 2 months of stress and headaches once you find the house and make an offer. It typically takes 45-60 days to close. It can be done fast, but it usually doesn't.

Save up some money for earnest money. This is the money you pay after the seller accepts your offer/counter-offer. It is non-refundable. If you walk away from the deal, they keep it. It is the guarantee for them as they will take the house off the market. If they walk away, you get it back.

Unless you are desperate or really want the house, make your offer as low as you can. let them counter. Doesn't always work, but when we bought our first home, it had been on the market for 45 days, an exceptionally long time in Stillwater, and we offered 60 on a 90k asking price. He countered within an hour with 75, and we took it. Sold it 5 years later for 135k.

Don't be afraid of sweat equity. You can save some cash if the house needs carpet, paint, etc. Let the seller reduce the price and you out in the work, usually saves both of you some dough.

Get the HVAC and plumbing checked out. Those are the 2 items that will break your bank if they need repairs.

Home warranties- this is a 50/50, I don't buy them, but if the seller is offering as a throw in, it can be useful. Don't buy one on your own.

Roof- FHA requires any roof more than 10 years old to be replaced. Get the roof checked out by a reputable roofer. If you are looking into an FHA loan, they will send one out to check their stuff.

If the appliances are included, you need to know the lifespan of those items-
Fridge- 10 years
stove- 7-10
Dishwasher 3-5 years
Disposal 5 years
microwave 5 years

These are accepted lifespans of these major appliances. That does not mean they don't last longer, but on average, they start breaking down around this time. All of my apps were brand new when we bought our last home 8 years ago, and I have replaced the microwave, dishwasher and stove in the last 3 years, spot on. The disposal is on it's last leg, has been for years, but that is because the kids put forks in it.

If you are considering rural, you need to know about wells/rural water, and septic systems. Let me know if you are, and I will give you more info.

Pay attention to the area around your potential home. trailer parks, highways, industrial areas, etc can really hamper you enjoyment of the home. Talk to neighbors if you can, garage sales are a great way to meet neighbors.

Lastly- be realistic with what you can afford and know what you want. You always have to make sacrifices, but don't give up on something that is really important to you. The rule of thumb is this- If you do not plan on staying at least 5 years, don't buy. The exception would be if you are going to keep it as a rental. The reason you don't want to buy a home and sell before 5 years is because all mortgages are front loaded, your first few years pays very little on the principle, and only really pays for interest, but the end the loan is paying mostly principle and very little interest. After 5 years, you should have some equity built in, and you can sell and possibly break even all things staying the same (market). You can make money in 5 years, but most people don't. If there is something you just have to have and will be bummed out about it, don't buy, wait for the one that is right for you. If you get into a house that has something you really don't like about it, you will feel stuck, and that is the worst.