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Best way to find/buy a house and cost cutting tips

 
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amother






Post  Wed, Jul 22 2009, 12:37 pm
Finding a house:
1- Check Newspapers
2- Word of Mouth
3- Driving in desired neighborhood, looking for For Sale signs

Cost Cutting Tips:
1-Compare mortgage rates

What else have I not thought of?

Also, what are the biggest mistakes that home buyers make?
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sky




 
 
 


Post  Wed, Jul 22 2009, 12:52 pm
Talk to people and find a good realtor - someone who is honest and listens and is easy to talk to. Sit down with him and describe exactly what you are looking for. Your exact price range, condition, location. What you are willing to give up on. Most times a realtor on your side (if he is honest) can be your best representitive. Unless a realtor has an exclusive on a property I've found it is better to go in with your own realtor rather then to use the one selling the house.
And don't feel bad bothering the realtor (I hope no realtors wives are going to be upset at me over this). They want to make a sale, they get good commissions, and letting them know what you are interested in helps them do that for you.
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SomebodyElse




 
 
 


Post  Wed, Jul 22 2009, 12:55 pm
amother wrote:

Also, what are the biggest mistakes that home buyers make?


Using an inspector recommended by the realtor.
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nicole81




 
 
 


Post  Wed, Jul 22 2009, 1:41 pm
look online as well... craigslist, zillow, trulia, propertyshark, etc.

cost cutting: put down higher DP to avoid PMI, avoid a jumbo loan, shop insurance rates, move yourself rather than hiring a moving company

biggest mistake: to add to the comment above, also using the mortgage broker or lawyer recommended by the RE broker. I had a big mess from this last year which almost ended up costing me $20,000.

also, don't take out any new credit or make big ticket purchases until after you close. I have heard of loan commitments being canceled last minute due to high credit card utilization.
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Rubber Ducky




 
 
 


Post  Wed, Jul 22 2009, 1:57 pm
Another internet site to check is ebayis.com. All its listings are in frum neighborhoods.
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acccdac




 
 
 


Post  Wed, Jul 22 2009, 2:14 pm
my father always said we should never take a mortage with points, that there is no need, maybe becasue we have good credit.

the one thing my agent did for us which ended up being the best thing ever was we put together a file/offer without having a house. Meaning, we wrote a letter saying why we wanted/deserved the house "nice family, growing in size, good money choices, bla bla bla". We also put together all of our financials to prove we could afford the house, we had a credit report (we had one done before working with this agent becuase we made an offer on a different house). We also explained our credit report "macy's card was opened and closed for the 15% off, I have a card on my grandfather's account but not financially responsible for it at all, have school loans but its only $80 a year".

My agent called us to see our house at 5pm in the day and at 8pm we went to his office and put an offer on the other guys desk (was in the same office as our agent) by 10pm that night. By 12pm the next day our offer was accepted. Any questions the seller had on us, and our ablities and being serious, were in the file.

also you dont want to buy a house that needs ANY structure fixing needed. Also look at potential. Sometimes people look at the decor and say no to a house. Realize that anything cosmetic can be changed.

Decide what is really important. I wanted a formal diningroom. My house didnt have one but everything else is great so I didnt let that stop me from buying.

also.....decide what type of house you are looking for. We were looking for a 3-5 year house, but ended up buying a 5-8 year house, and we are on year 5. Truth is I can see myself living here forever. But be realistic, understand what you are buying the house for, if you are trying to buy a house to live in forever, know what you want in the long run or see the potential that the house has. The only reason why I wouldnt live in this house forever is that I cant put up a second floor and it is a dream for me, but I'm totally okay if that dream doesnt come true.

oh and dont buy a house you cant afford and become a slave to it.

also if you work with a frum agent, ask them straight out if they have a policy about working with other agents. My agent had a sign a contract saying that I wont work with anyone else, and if I want to I need to give him 24 hours notice. He did this on suggestion from his Rav. the real estate world can be very cut throat and you dont want to get yourself stuck in the middle of something. Make sure you agent is showing you all listings and not just their listings (they make more money that way)
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sky




 
 
 


Post  Wed, Jul 22 2009, 2:37 pm
acccdac wrote:
my father always said we should never take a mortage with points, that there is no need, maybe becasue we have good credit.


It depends. We have great credit. We did take points. And in terms of what we would have paid in interest with a higher morgage the points have already been paid off in the 4 years we have owed our house. So in our case it was very worth it to pay the points.
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acccdac




 
 
 


Post  Wed, Jul 22 2009, 2:44 pm
I'm sure, just dont take points just cause the mortage person tells you too, try shopping around, you may be able to get the same thing without points.

we just refinance and our new mortage is with a point, so every situation is different but dont just accept points becuase the guy tells you to.

also one more thing....decide how much of a risk taker you are. We could have gone with a 5 yr intrest only loan and paid $900 a month for our mortage for the first 5 years. and then it would have gone up to probably $2200-2500 or refinance, but instead we took a 30 year fixed and paid $1900 a month. It was worth the security for us, we are not risk takers in terms of money.

oh and when you sit down with your mortage broker, do not be afraid to sound like an idiot ASK QUESTIONS, make sure you understand it, dont rely on your husband or father or father in law to understand it for you, you'll feel much better. Oh and ask for advise from your father and father in law, you may hate to but ask, you dont have to listen to it in the end but ask.
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Tova




 
 
 


Post  Wed, Jul 22 2009, 7:29 pm
We rent out a portion of our house and the rental income covers 1/3 of our total mortgage payment ($1,200 mortgage including principal, interest, insurance, and taxes and $400 rental income a month). Previous owners built an addition to the house and made the extra space in the basement into a self-sufficient suite - all except laundry for which I give the tenant one day a week to use. It's a trade-off, but financially puts us way ahead.

[Note - we do live out of town so housing costs less than NY and we put down over 20% of the purchase price as a down payment which lowers the mortgage payment.]
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Twizzlers




 
 
 


Post  Wed, Jul 22 2009, 7:47 pm
acccdac wrote:
my father always said we should never take a mortage with points, that there is no need, maybe becasue we have good credit.


sorry, but having good credit has nothing to do with points. points just means that you pay extra money into the downpayment and get a lower interest rate in exchange. if you have the money, it is 100% worth it. plug in all the numbers, and you'll see.
of course you should call many different mortgage companies and do all the research on the rates.
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amother






Post  Sun, Jul 26 2009, 2:09 pm
Thanks a million. Please keep the advice coming.........
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MiamiMommy




 
 
 


Post  Sun, Jul 26 2009, 3:43 pm
Make sure you look into the state and federal loan programs for first time home buyers- there's some good stuff out there.
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