Advice to first time homebuyers/owners

amother

Wed, Jan 19 2011, 11:12 pm

I looked at a house that I am extremely interested in. I still have to wait a bit to see if a few things work out before it's even a possibility but....

Any advice on what to look for when buying a house? What helped you? what to be on the lookout for? Any and all advice appreciated.

btw, this is in Brooklyn.

onelove26

Thu, Jan 20 2011, 2:18 am

If possible, go look at the house on a rainy day. We did this by "accident" with a house that we were very interested in and it saved us big headaches. We discovered a lot of leaks in places we would not have thought to check and potential mold issues because of it.

I don't know about bklyn, but here, houses have foundation cracks quite often, so look into that as well.

bdot

Thu, Jan 20 2011, 7:21 am

Make sure you can afford it-- figure out what the top you can afford per month mortgagewise, and speak to a mortgage broker to see what price this translates into-- we did it and it helped us narrow down our search.

Best advice people gave me-- if you buy the house, make sure to keep an emergency fund for repairs-- they're inevitable!

Also, when inspecting a house, realize that no house is perfect-- just make sure you want the flaws that come with the one you buy.

Good luck!

amother

Thu, Jan 20 2011, 9:12 pm

OP here:

Thanks everyone!

I was speaking to my cousin about what to do before buying a house and she mentioned the need for an appraiser. She was telling me that she had two different ones come down and check out the "structure" of the house from two different banks. I said ok but didn't you say that you had some major problems with the roof and leaking and stuff? Ummm, yes, she replied. So, I want to know what exactly those two appraisers did for her? Anyone know any good appraiser or should I use a contractor to check things like roof, insulation, foundation and things like that?

Barbara

Thu, Jan 20 2011, 9:56 pm

amother wrote:

An appraiser ensures that the property is worth approximately the price that you are paying for it, so that the bank is protected in case of default (that is, that the bank will be able to sell it to cover the loan). The bank really doesn't care if your roof leaks or if locusts descend upon you, so long as they get paid.

An inspector inspects the house.

Houses don't come with guarantees. A storm can damage that roof that looked great a year ago. Your sewer pipe can leak, requiring you to dig up the sidewalk. The HVAC can go. All the inspector can do is give you a snapshot, today.

Mkay

Thu, Jan 20 2011, 10:30 pm

I had my house looked over by an engineer before I signed contract. He did a thorough check, and then came down and let us take notes of what he was saying. In addition, he recorded what he was saying for us, and we were able to refer back to it later on.
Just to give you an idea of what thorough means: foundation, heating system, water system, if enough electric coming to house, if signs of leakage anywhere, roof, windows and the metal above windows if it needs replacement, if enough outlets in each room(!), if porch is rusting, if trees are too close to water mains, if needs pointing, if notices asbestos, termites... (This is just a small part of it). He was amazing.
Name is Israel Stern (I think). I can check his info if you'd like.

oodlesofnoodles

Tue, Jan 17 2012, 10:11 am

Make sure you are prequalified for a mortgage-most sellers won't accept an offer if you don't have it. Also, know how much you can afford-mortgage, taxes, extra utilities,mortgage insurance if you're not putting down 20%, and extra for maintenance and emergencies. Also, go on websites like Trulia and Zillow to look for houses.
Most important: make sure you have a really good lawyer!

Mrs Bissli

Tue, Jan 17 2012, 11:01 am

On mortgage side, right now the interest rates are as low as it gets (well, nearly). Give a thought and make sure you and your DH can really afford to make payments even if the interest rate goes up 1-2%.

Make sure that the house is large enough or have potential for extension. You may live there for a long time with expanding family. It would be a shame if you become a "forced seller" or a landlord simply because the house is too small when you have a baby/child(ren).

As for the house itself, check plumbing, noise levels/traffic at night, see if you can meet neighbours.

Good luck!

Hodu Lashem

Tue, Jan 17 2012, 11:22 am

In addition to all said above, I would advise re: mortgage - don't go for an ARM (adjustable rate mortgage), which could seem really attractive now because rates start significantly lower than a fixed rate mortgage. BUT then rates then go UP! With a fixed mortgage you know what to expect and what you are paying and will be paying next month and next year so you can budget. If rates go down even further in a year, you can always refinance if its financially sound to do so. Some banks will allow a refinance w/o paying closing costs. (Closing costs can be really high in NY - talking thousands of dollars.)

Also during the course of the years, if you have extra money that you don't need to use, you should consider making extra payments to pay down the principle on the loan. (If you do this, you must SPECIFY that the additional $ is to go towards paying down the principle!) The advantage to this is that you will be lowering the amount of the total to pay interest on.

Also, to repeat what someone else said: definitely get a good lawyer! They can include benefits to you in the contract which you would never be aware of. Our lawyer took the report by the engineer and made the seller take responsibility for flaws in the house - to either have them fix it or to put $ into an escrow account so we could fix the problem ourselves at their expense.

Hope that helps!

MrsDash

Tue, Jan 17 2012, 11:22 am

We are also in the process of buying a house. Do as much research as possible. Check out your credit score, and credit report on all 3 major credit agencies. Look for a home within your means *now* not for what the future may hold. Make sure the community suits you, and your needs. The neighborhood is also very important. You may want to be within walking distance to the shul, and have friends for you, and your children nearby. When you get closer to the buying process, have a professional inspect the home. The last thing you want to worry about when moving into a home is having to repair the septic tank or termite damage. Also, write a list of what everything the house you are looking to buy must have. Write another list of things you are definitely not considering in a home. This is a huge decision that will be a combination of stressful, and exciting. Much luck to you, and your family!

STMommy

Tue, Jan 17 2012, 12:21 pm

1. even a really good inspector will miss something. the advice you got about extra money for repairs is crucial.
2. as you look at the house it is crucial to think beyond the furniture/staging of the house and look at things like heating/cooling (are there ACs or central? is it steam heat? etc.), look at the paint and carpet (do you need a lot of extra money to re-paint and re-carper the entire house?), things that have nothing to do with problems in an inspection but things you notice and might need to spend more money on.
3. oh, did I mention have a lot of extra money left over? Smile