School me up on buying a house
- Thread starter Wolfman
- Start date
Thanks. Being a Drill Sergeant might be fun. Just have to stop myself from putting my penis in those 18 year old female trainees lol
Thats a hell of a house for 199K. I'd say look at the neighborhood and see what houses have been selling for or if others are in pre foreclosure. Those houses will drive down the value of your house.
EDIT: the house has been for sale since March so you can probably offer a lower price on it. The zestimate shows it's valued around the 180 mark. Don't take that for the true value of the house. It could vary widely but it's a good indicator along with how long it's been on the mark to gauge value to determine what sort of offer you'd put on it.
EDIT: the house has been for sale since March so you can probably offer a lower price on it. The zestimate shows it's valued around the 180 mark. Don't take that for the true value of the house. It could vary widely but it's a good indicator along with how long it's been on the mark to gauge value to determine what sort of offer you'd put on it.
fucking jealous. your going to be a stones throw away from some of the BEST river water in the world! We Were just down there by Piedmont 2 weeks ago and floated a couple days!
not really much up to speed on home buying since i made my huge mistake over 2 years ago... but i guess nowadays you're ok to just stop paying and walk away from your signed agreement
not really much up to speed on home buying since i made my huge mistake over 2 years ago... but i guess nowadays you're ok to just stop paying and walk away from your signed agreement
My tip as well is to be there for the home inspection. Walk through the home with them. You can learn what is a major repair and what is just little. Our inspector tested everything heat, AC, water in every sink, water from the fridge, all outlets, on and on and on. It took almost 3 full hours
I'll give you guys a quick recap (whoops, I tried to make it quick) on the process.
1. Pre-approval/Proof of funds.
If you are getting a mortgage, find a good mortgage broker/lender and get pre-approved. This way, you are ready to write an offer when you find a home you like. Plus you get information on how much you have to put up front (deposit and closing costs) and what your monthly payments will be.
If you are paying cash, you need Proof of Funds. You can go to your bank and ask for proof of funds or provide a statement with your name, the financial institution name/logo and the balance. If your money is in stocks or other financial items, a recent statement will work.
2. Get a Realtor... a good Realtor. Realtors come in all shapes and sizes. Some are newbies who have no idea what they are doing. Others are so well established and have been in business for so long that they may not have much time to devote to you. Ideally, find a Realtor who has experience in the type of purchase you want (cash, conventional, VA, FHA, USDA, etc.) because they will know the best ways to make your purchase work smoothly and will protect your ass during the transaction.
NOTE: If anyone wants me to look up a good Realtor in the national Realtor database, let me know. I'll be happy to find you someone who has the credentials and experience to do the job. You want someone who has taken continuing, advanced education classes. I will call them to make sure they know what they are doing. I'll ask them for a referral fee but you won't pay me and you won't pay them anything for their help in finding you a home. Almost 100% of the time, the seller pays the Realtors.
Give the Realtor your Pre-approval/Proof of Funds and tell them, in detail, what you are looking for. The more information you give them, the better they can make their MLS search. Most good Realtors will sit down with you and search together so they can see first hand what you like and don't like. That's how I do it.
Stay calm during the search. Try to keep emotion out of it (can be hard). Don't obsess and overpay on one particular home unless you really, really like it. Another home will come along if the first one doesn't work.
3. Have your Realtor write an offer. Take time to go over the contract with him/her and read the parts that are written in carefully. If you aren't sure about something, hire an attorney to review and explain. As Realtors, we can read you the contract as much as you want but we aren't allowed to explain what a clause means (I'm a Florida Realtor. Your State may have similar or different laws). You need an attorney to explain clauses to you. Pay attention to things like purchase price, deposit, closing date (and all dates including when you have to apply for a mortgage, how long your inspection period is and when it ends, etc.). Take the time to read and understand the contract. It's only an hour or two out of your life and can make a difference.
If you are financing with an FHA, VA, USDA, short sale, REO (bank or government owned) or other special financing/sale method, make sure the Realtor you hire understands these finance methods. They differ from regular mortgages/sales and your Realtor needs to understand the differences. Ask the Realtor about their experience with the type of financing you want to use.
4. You sign the contract offer and it goes to the Realtor to give to the listing Realtor who presents it to the seller (make sure to ask for a copy of the documents). If the seller agrees, he will sign it as well. He may also counter offer which means he changes some terms like purchase price or other terms. If he does this, your Realtor will then present the counter offer to you. The counter offer negates the original offer. The original is off the table and the counter is the new offer. You can accept, reject or counter again.
5. After acceptance, you will begin your inspection period and apply for your mortgage if necessary. In Florida, a buyer may walk away at any time in the inspection period for any reason at his sole discretion. He can also negotiate repairs, price drops, etc. based on what the inspection shows.
Many people think they can inspect themselves or skip the inspection. Don't! I suggest hiring a professional inspector because he will give you a thorough report on the condition of the home. Most Realtors have a list of inspectors they have found do a good job. Ask your Realtor for suggestions if you don't have an inspector yourself.
At the same time, you will apply for a mortgage unless you are paying cash. You need to do this within a certain time period (in the contract) Do it ASAP to make sure you comply with the contract and get the mortgage ball rolling. Most mortgages will require their own inspections or they may accept your professional inspection. Check with your mortgage broker/lender to see what they allow.
6. Depending on what type of contract you signed, you may be able to negotiate with the seller based on any deficiencies in the home. With government backed mortgages, certain criteria need to be met. Stay in touch with your Realtor and mortgage broker/lender during this period and pay attention to what is happening. If the inspection period lapses and you haven't provided written requests (in Florida), you will be assumed to have accepted the terms of the contract and your inspection contingency will elapse.
7. After the inspection period, the lender will be working on getting you the mortgage. A title company or attorney will also be researching the title to provide you clear title to the home. Who pays for the title company? Down here, it can be either party. Sometimes there are customs in areas for seller or buyer to pay. It's negotiable either way. Usually, whoever pays for the title company gets to pick the title company. Your Realtor should know several good ones who get the job done on time and smoothly.
8. The lender may require their own inspection(s). If so, the home needs to pass these to get the mortgage or to get insurance on the home. Your Realtor should be able to help educate you on requirements or you can find a lot of information on the web.
9. The home will also be appraised during this time. It needs to value high enough to make the mortgage work. If it doesn't, it's another negotiation period where the seller can drop the price or you can contribute money towards the purchase to make the mortgage percentages work. Note - for cash deals you don't usually have to do some of this. Check with your Realtor for details.
10. You get to closing. In Florida, you can close in person or by mail. Tell the title company which way you want to close. In person, they will go through the documents with you. By mail, you can call them if you have questions. again, use an attorney if you don't understand something. The title company will provide you in advance with a Closing Document (financed) or a HUD-1 (cash).
After you sign and the seller signs, the loan will be funded which usually requires a few minutes to a few hours. Once that happens you can get the keys and head out to your new home. The title company will give you copies of the paperwork and send you official copies. DON'T LOSE THESE!
11. Enjoy your new home.
Personal commercial: If you want to buy on Florida's Gulf Coast, contact me and I will help you find the right home and negotiate all of this. If you have questions on any of this, ask and I will answer or direct you to the proper expert. Again, I am a Florida Realtor and your State's laws may differ. I do work with some good Chicago Realtors if you want me to help you find someone up there.
1. Pre-approval/Proof of funds.
If you are getting a mortgage, find a good mortgage broker/lender and get pre-approved. This way, you are ready to write an offer when you find a home you like. Plus you get information on how much you have to put up front (deposit and closing costs) and what your monthly payments will be.
If you are paying cash, you need Proof of Funds. You can go to your bank and ask for proof of funds or provide a statement with your name, the financial institution name/logo and the balance. If your money is in stocks or other financial items, a recent statement will work.
2. Get a Realtor... a good Realtor. Realtors come in all shapes and sizes. Some are newbies who have no idea what they are doing. Others are so well established and have been in business for so long that they may not have much time to devote to you. Ideally, find a Realtor who has experience in the type of purchase you want (cash, conventional, VA, FHA, USDA, etc.) because they will know the best ways to make your purchase work smoothly and will protect your ass during the transaction.
NOTE: If anyone wants me to look up a good Realtor in the national Realtor database, let me know. I'll be happy to find you someone who has the credentials and experience to do the job. You want someone who has taken continuing, advanced education classes. I will call them to make sure they know what they are doing. I'll ask them for a referral fee but you won't pay me and you won't pay them anything for their help in finding you a home. Almost 100% of the time, the seller pays the Realtors.
Give the Realtor your Pre-approval/Proof of Funds and tell them, in detail, what you are looking for. The more information you give them, the better they can make their MLS search. Most good Realtors will sit down with you and search together so they can see first hand what you like and don't like. That's how I do it.
Stay calm during the search. Try to keep emotion out of it (can be hard). Don't obsess and overpay on one particular home unless you really, really like it. Another home will come along if the first one doesn't work.
3. Have your Realtor write an offer. Take time to go over the contract with him/her and read the parts that are written in carefully. If you aren't sure about something, hire an attorney to review and explain. As Realtors, we can read you the contract as much as you want but we aren't allowed to explain what a clause means (I'm a Florida Realtor. Your State may have similar or different laws). You need an attorney to explain clauses to you. Pay attention to things like purchase price, deposit, closing date (and all dates including when you have to apply for a mortgage, how long your inspection period is and when it ends, etc.). Take the time to read and understand the contract. It's only an hour or two out of your life and can make a difference.
If you are financing with an FHA, VA, USDA, short sale, REO (bank or government owned) or other special financing/sale method, make sure the Realtor you hire understands these finance methods. They differ from regular mortgages/sales and your Realtor needs to understand the differences. Ask the Realtor about their experience with the type of financing you want to use.
4. You sign the contract offer and it goes to the Realtor to give to the listing Realtor who presents it to the seller (make sure to ask for a copy of the documents). If the seller agrees, he will sign it as well. He may also counter offer which means he changes some terms like purchase price or other terms. If he does this, your Realtor will then present the counter offer to you. The counter offer negates the original offer. The original is off the table and the counter is the new offer. You can accept, reject or counter again.
5. After acceptance, you will begin your inspection period and apply for your mortgage if necessary. In Florida, a buyer may walk away at any time in the inspection period for any reason at his sole discretion. He can also negotiate repairs, price drops, etc. based on what the inspection shows.
Many people think they can inspect themselves or skip the inspection. Don't! I suggest hiring a professional inspector because he will give you a thorough report on the condition of the home. Most Realtors have a list of inspectors they have found do a good job. Ask your Realtor for suggestions if you don't have an inspector yourself.
At the same time, you will apply for a mortgage unless you are paying cash. You need to do this within a certain time period (in the contract) Do it ASAP to make sure you comply with the contract and get the mortgage ball rolling. Most mortgages will require their own inspections or they may accept your professional inspection. Check with your mortgage broker/lender to see what they allow.
6. Depending on what type of contract you signed, you may be able to negotiate with the seller based on any deficiencies in the home. With government backed mortgages, certain criteria need to be met. Stay in touch with your Realtor and mortgage broker/lender during this period and pay attention to what is happening. If the inspection period lapses and you haven't provided written requests (in Florida), you will be assumed to have accepted the terms of the contract and your inspection contingency will elapse.
7. After the inspection period, the lender will be working on getting you the mortgage. A title company or attorney will also be researching the title to provide you clear title to the home. Who pays for the title company? Down here, it can be either party. Sometimes there are customs in areas for seller or buyer to pay. It's negotiable either way. Usually, whoever pays for the title company gets to pick the title company. Your Realtor should know several good ones who get the job done on time and smoothly.
8. The lender may require their own inspection(s). If so, the home needs to pass these to get the mortgage or to get insurance on the home. Your Realtor should be able to help educate you on requirements or you can find a lot of information on the web.
9. The home will also be appraised during this time. It needs to value high enough to make the mortgage work. If it doesn't, it's another negotiation period where the seller can drop the price or you can contribute money towards the purchase to make the mortgage percentages work. Note - for cash deals you don't usually have to do some of this. Check with your Realtor for details.
10. You get to closing. In Florida, you can close in person or by mail. Tell the title company which way you want to close. In person, they will go through the documents with you. By mail, you can call them if you have questions. again, use an attorney if you don't understand something. The title company will provide you in advance with a Closing Document (financed) or a HUD-1 (cash).
After you sign and the seller signs, the loan will be funded which usually requires a few minutes to a few hours. Once that happens you can get the keys and head out to your new home. The title company will give you copies of the paperwork and send you official copies. DON'T LOSE THESE!
11. Enjoy your new home.
Personal commercial: If you want to buy on Florida's Gulf Coast, contact me and I will help you find the right home and negotiate all of this. If you have questions on any of this, ask and I will answer or direct you to the proper expert. Again, I am a Florida Realtor and your State's laws may differ. I do work with some good Chicago Realtors if you want me to help you find someone up there.
It's a beautiful home makes me hate crook county more and more. One thing to check on is utilities. For 4k+ mo gets some brutal summers and some nasty winters have family down on lake of the Ozarks bought their houses used but less than 15 years old and the contractors skimped on the insulation and utilities are weren't cheap.
Fucking awesome post.
I just went through the majority of these steps in selling my house and buying another one. We should be closing on both at the beginning of Sept.
Nope. I'm an infantry guy that just didn't pull the straw for Fort Benning. I'll only be instructing the 9-10 week basic training courses, no actual job specific training.
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