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at least you won't need a big one and there're many small houses available in the market sold at reasonable prices. you can even buy a one-story house and build a 2nd floor inside it yourself imho
I am doing my own research and speaking with realtors/lenders and other people I know, but any advice for a first time potential home buyer?
Should DPG buy a home?
at least you won't need a big one and there're many small houses available in the market sold at reasonable prices. you can even buy a one-story house and build a 2nd floor inside it yourself imho
Trust me on this one.....location/neighbors mean everything. DO NOT BUY around/among rentals. You want to be as far away from rentals as possible. You also want nothing to do with a home with a septic tank. Space in the kitchen is huge also. Must have a garage!!!!!!!!! Ceiling fans and the swamp cooler option a biggie.
Leaving out in the country is really the way to go. Just be sure ya have/want a couple big dogs. If ya plan on living in a neighborhood do you really want traffic? Living in a cul de sac surrounded by "young" homeowners with nice lawns is the way to go.
If you're not into yard work...................
Last edited by Avante; 03-14-2013 at 06:08 AM.
If you are concerned about resale location is everything. As a general rule you want to be in an area with good schools even if you don't have kids. Ideally you want to live in the cheapest house on the block. Certainly not the most expensive. Make the seller buy a one year home warranty as a condition of the sale, that way if they covered something up for the sale and it shows up later you aren't hung with it. We already got a new water heater and a new garbage disposal on the house I just got for my daughter. If you are handy with your hands there is money to be made with a "fixer upper" if it's in the right area of town. Southtown is hot, the Monticello area is hot, as are a few other near downtown pockets but you don't want to be the pioneer in an area...you don't want to jump in until at least half of the homes have already been renovated. Interest rates are at an all time low. If you are going to do it, do it now. If you are a first time buyer with at least a 700 credit rating you can do an FHA loan for 3% down at 3.25%. IMHO real estate in SA long term will appreciate faster than 3.25% so you will be building some real equity while living in "your" house. IMHO it's a no brainer. BUY.
I believe he is in the Austin area.
Lot of unforeseen costs with being a home owner, but if you have the cash, you may as well do it now with rates being so low.
one thing I've never seen anyone talk about online but is something you need to be aware of is that if your property value goes up, your monthly payment will also go up. So if you plan to stay in the house for a long time, you'd need to go to the county appraisal office and fight it if they raise the value substantially.
Also find out HOA dues. If your house is 15 years old or younger in city limits, chances are extremely high you will be forced to pay those dues. Me personally, i hate forced HOAs with extreme prejudice, but again, that's just me.
I'd also recommend hiring a home inspector ($300) before signing........even if the house is brand new.
#1) Location
#2) Look into foreclosures and gov't auctions in decent areas. If it is a "hot" area - these auctions will have stiff compe ion - but if you score one - you can move in already having equity - as opposed to buying a new fancy 3,000 square ft and burying yourself with debt and never using 1500 of those square feet.
#3) Leave a good 5-10,000 bux aside - to handle any unexpected repairs/expenses. (I mean after move- in--you will still want to inspect everything beforehand and stay away from money pits)
#4) Ask your realtor about any programs involving tax credits and any other programs which will help now and in the future.
#5) I know this is common sense but I studied the neighborhood - and if the area isn't a new development - if it has been around and the houses are 10-15-20 years old...look at how it has been kept up - or if the owners are keeping up with their property. Graffiti, streetlights, trash, broken gates, etc.... 10-20 years is a good test to see if people got lazy and it looks like - or if original owners moved away and hood rats took over.
ymmv
That's a good point. I'd add:
-check the neighborhood out at night time.
-take a look at cracks in the sidewalks and driveways around the neighborhood. It's sometimes an indicator of foundation problems.
Yup.
In addition - this might not apply to all - but;
#1) I also scoped the neighborhood at different times - I really like the fact that kids were out and about and riding bicycles, socializing, etc...
(however - a couple working odd hours with no children in the nest yet - might disagree here.) I love to hear the kids out there playing - but - not rowdy bored looking for trouble kids - I am referring to children with educated and attentive parents playing along with their kids - or dads tossing the ball with their kids.
#2) Not really what most people would be on the lookout for...but...the county and their stance on crime --or their laxness on crime --played a big part for me. If burglars know they will get a slap on the wrist and be released immediately - they are far more prone to target your neighborhood - than the county where Judges take no and give tough/long sentences.
fwiw
Your first step is to get Pre-Approved for a mortgage. Once you find out what you can get approved for then start your search. Texas has a few 1st home buyer programs that can help with downpayments if you need it.
Save yourself a bunch of time and visit with a loan officer.
I'm not familiar with the Austin area but look into the older neighborhoods in the decent side of town. The reasoning here is they are less likely to part of the SCAM that is a home owner's association. Which leads to my next advise, stay the away from a home with an HOA
You have earthquakes & expansive soil in Texas?
We have some areas with expansive clay. Earthquakes aren't a big issue.
That's if you don't get a realtor. A realtor worth his salt will set all that up for you.
+1k
Unless you really want a newer home. Then you have no choice but to bend over and take it.....
Not to mention that well maintained older homes often have less problems than new homes, which are typically hobbled together out of particle board, sheetrock, and scotch tape.
Any Realtor worth his salt will tell you that's your first step. Now a Realtor can guide you where to go, but a Pre-Approval is where to begin.
I'm speaking anecdotally here from friends/acquaintances in that field.
If you start out at a bank and they don't approve you for the amount you want, you'll most likely get discouraged and give up.
A realtor will send you to multiple places that they may have connections with until you get approved for the loan you want.
again, anecdote, just my opinion, etc.
Last edited by Blake; 03-14-2013 at 01:18 PM.
No comment.
You can either cry about it or enjoy it, but either way it will be shoved up in you if you buy a recently built house in a recently built neighborhood.
Make sure you get a home that is certified that it doesn't use Chinese sheetrock...
Oh, that's what you were referring to. ok.
What you're saying is hire a Realtor first. I'm good with that too as long as the Realtor focuses first on getting the buyer approved. Nothing more disappointing, and no bigger waste of time, than finding the home of your dreams and then finding out you can't get qualified.
Yeah, if you're going to use a realtor, go there first, imo. If you are going to go it alone, then yeah, go to the lender first.
Honestly, after further review, I'm probably splitting hairs.
Thanks all. I'm defintely looking at new construction. Location is key for me (for future sale/rentability, then the home then other things (yard, amenities...).
There is an HOA but to me it's nominal ($50-90 a month) & the higher one includes front/backyard landscaping (so you know your neighbors yard won't look like garbage).
Spoken w a loan officer & have a realtor.
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