(Closed) Advice needed! Please? First time homebuyers!

posted 6 years ago in Home
Post # 3
Member
4371 posts
Honey bee

Have you looked into FHA loans? Those have lower down payment requirements.

Post # 5
Member
4371 posts
Honey bee

Yeah, it’s all very nerve wrecking. Just don’t make any big purchases for now.

Post # 6
Member
6124 posts
Bee Keeper
  • Wedding: August 2012

I bought my house with a total of $2500 out of pocket.  I rolled in lots of the closing costs into the total of the loan.  They used to have 100% financing, but that would require excellent credit if they do offer them.

Start by going to a mortgage lender at your local bank.  I shopped around for deals.  Wells Fargo had an in house offer that couldn’t be matched by other lenders.  It was my state’s version of a FHA.

Post # 7
Member
13099 posts
Honey Beekeeper
  • Wedding: July 2010

If you have little to no downpayment at this point, I agree with a PP that you will likely want to look into FHA loans which require only 3.5% down.

When we got pre-qualified for our loans, our lender needed our salaries and an authorization to pull our credit scores/history.  That was it.

Once you go to get approval for an actual loan, then you need all of the bank statements, W-2s, paystubs, proof of employment, etc.

Post # 8
Member
817 posts
Busy bee
  • Wedding: February 2013 - Mansion House at the MD Zoo

We just bought a house and it was easier than I thought. Talk to a real estate agent first. We found one who “specializes” in first-time buyers (I’m sure he’d be willing to work with people who have more money, too, but he does a lot of FHA, etc contracts). Anyway, he pretty much walked us through the process, where to start, etc. Ask around to friends and people around your age who probably don’t have tons of money so you won’t get laughed off the phone. FHA loans only require 3.5% down, as opposed to 20%, so that’s probably where you want to be. Only when they say 3.5% that doesn’t include closing costs, so it’s really more like double that you’ll need to have in the bank.

What we did is knew how much we could pay per month, so worked backwards to what a mortgage payment that size would translate to in purchase price. We didn’t look at anything over that amount, because we didn’t want to fall in love with something we weren’t comfortable buying. Also we were able to offer the full asking price, but negotiate for the sellers to cover the closing costs. That meant our mortgage payment was slightly higher, but still affordable, but we had to come up with less money up front. We knew we could pay the mortgage, it was the cash in the bank part that was hard.

Feel free to PM me if you have any questions, but seriously, the getting sellers to cover closing costs trick is gold. (also not really a trick, but we were excited)

Post # 9
Member
772 posts
Busy bee
  • Wedding: September 2012

@StefLovesJamie:  You bascically have to save up before making the purchase.  FHA requires 3% down (if I remember correctly).  What are homes going for in your area? 

Also, have realistic expectations with your first house.  Don’t require 5 bedroom and 3.5 baths, granite counters, stainless appliances, the whole 9 yards.  (Can you tell that is a pet peeve of mine??  First time buyers wanting a big luxurious house – ICK!).

I would just start doing the research NOW, look at what your must haves are, what you can afford monthly, and how much that house is going to cost.  Then save your 3%, then buy said house. 

Bottom line – Don’t jump into this, you will be disappointed.

Post # 11
Member
2815 posts
Sugar bee
  • Wedding: March 2012

You should definitely check to see if the area you are looking in qualifies for a USDA Rural Development loan.  They don’t require a down payment.  You have to make under a certain amount though.  We ended up paying less than $200 to buy our house with the USDA loan.  

Post # 12
Member
772 posts
Busy bee
  • Wedding: September 2012

@StefLovesJamie:  I wish I lived where you live – I have a 2 bed 1 bath that cost $205,000 (Great house, wouldn’t trade it but SHIT, this area is expensive!  Also, look at the real estate taxes – A lot of places around me, taxes are $5K-$6K/year – divide that over 12 months, you’re tacking an extra $500 onto your mortgage payment.

Anyway –   Good thing, doing your homework now!  Good luck.

Post # 15
Member
10367 posts
Sugar Beekeeper
  • Wedding: September 2010

@StefLovesJamie:  Have you looked into what the resale market for a mobile home is like? I would imagine it is a much smaller buyer pool and would not hold its value as well. Beyond looking at what you can afford, you should look at what is a smart buy. If you can’t afford something that will hold its value or escalate in value, you should keep saving money and buy later.

The topic ‘Advice needed! Please? First time homebuyers!’ is closed to new replies.

Find Amazing Vendors