Need some good thoughts sent my way!

[raechiemay]

I feel terrible even asking for this but I received some really good news yesterday. Some may know I have been trying really hard to buy a house. I started really trying in June of last year & was actually denied for pre-qual so I basically had to stop there & work on my credit. I've been a complete stress-wreck ever since trying to pay down balances & pay off cc debt. I can finally say I'm 2 payments away from paying off my cc debt & I was informed yesterday that I am now pre-qualified to buy a house!! I have 3 months to find something & unfortunately my pre-qual is contingent upon the seller paying my closing costs which I think might present a little bit of a challenge. I am leaning more towards new construction because of the warranty that the house will have for at least the first 12 months. Can y'all pass along some good thoughts for me that this process goes smoothly? For any of my FB friends I have not made any announcements there yet as there are certain people I don't want knowing until I sign a contract.

Also, any tips or suggestions on what I can & cannot negotiate would be extremely helpful as this will be my 1st home purchase. I'm starting my search this weekend.

 

[voidecho]

I think you can get a warranty relatively cheaply on any house, so no need to limit your search to completely new. Also, having the seller pay the closing costs isn't that unusual. The only issue I know of is that obviously you'll pay a bit more for the house then, and you just have to make sure it appraises for enough to cover the offer.

 

[voidecho]

Also, Congrats and Good Luck!!

 

[raechiemay]

Thanks! I was just concerned about the potential of a huge expensive repair immediately getting into something, wasn't sure if you could get warranty on pre-existing. Thankfully with my family & my job, I've got pretty much any aspect of repair or renovation covered & at reasonable prices.

 

[voidecho]

You'd hope a thorough home inspection would find anything major that could fail in the first year. We've never had anything major fial on any of our homes.

 

[Hector]

I bought a foreclosed home and it came with 1 yr warranty. The home warranty was completely useless on what improvements I needed done on my house. For example, the dishwasher didn't work, but in the warranty booklet it says I had to get someone to come in and take a look at the dishwasher. If the person determines it can be fixed, then it will be fixed. I cannot get a new one until the person determines that I can get a new one. I would have to pay $100 deductible to start the process. Another small item were light switches. I called and asked I had some switches that doesn't work, do they cover that in warranty. I can't remember exactly what they said, but I think they said no that's not covered. New house warranty maybe different from the warranty I had and I really don't have a clue on how new construction warranties work.

Also on the closing cost part, my agent told me it was normal to ask for 3%. I told her I didn't want to miss out on the deal and just offered full with no closing, but she said no it is normal to ask 3%. We decided to go ahead with the contract asking for 3% from the bank and the transaction went through fine. There was no fuss over the 3%.

Good luck and it is going to be very nice to have your own place finally! My only advice is that be prepared to be poor and that a house is a money pit, even if it is new. There's always something to buy or fix! Make sure you have some rainy day fund for emergency fixes.

 

[Hector]

You'd hope a thorough home inspection would find anything major that could fail in the first year. We've never had anything major fial on any of our homes.

My inspector was kind of a fail really.

 

[musicdeb]

Positive thoughts coming your way, Raechiemay! Congrats on buying your first home!

 

[powergc]

I have no advice... but congrats and good luck!! Hope everything works out smoothly for you!

 

[Sadies Mom]

You have the buying power since it is a buyers market. Get an Independent Inspector for the home inspection (usually between $300-$500). Some Realtors and Mortgage companies will recommend someone, and that is fine, but some times, the inspector works with these people and will "overlook" a few things to close the sale. Usually Seller pays at least half of the closing costs, but if you want to negotiate for the seller to pay all, then keep in mind that you would almost have to make a Asking Price offer. On a new construction, the builder will most likely pay all closing costs (because you usually pay full price). If anything comes up on the inspection report, like the roof has a leak, the foundation is cracked, you can ask the seller to fix that before closing or deduct it from the sales price and you will fix it your self, however, if you are going with an FHA mortgage, a cracked foundation is not something you can even buy under the mortgage terms, it has to be fixed before closing. It is very exiting to buy a home, but it can be stressful as well. Use you head and not just your heart. Also keep in mind the location. What will happen around the neighborhood in a few years? Will you be able to sell it in a few years, are they putting in a freeway close by? Do your research and have fun shopping!!!!!

 

[ruthcatrin]

Title insurance. Unless its a new home (and likely even then) you want title insurance. Its actually required by law up here in NY state, but I don't know if it is there.

 

[raechiemay]

Thanks all!! you guys are extremely helpful.

Hector - I've actually been stock piling money for the past couple months & my parents are gifting me most of my down payment. I only require 3.5% with the FHA loan I'm qualified for. So that will save me some money to either sit on or use for furniture. I'll only have to put forth $500-1000 to cover the rest of my DP.

I'm not sure how every builders new home warranty works, but I know with the builder I work for that first 12 months, we cover pretty much everything. And even if something happens in the 13th month, most times we will cover depending on the situation. Our houses are very nice, but even if I just paid construction cost on one of ours, I still couldn't afford it!! Lol. I'm definitely looking at the neighborhood as a whole, especially if it's a pre-existing home. I had intended on possibly using down payment assistance, but in most instances I'd be tied to the house for 5-10 years otherwise I would have to pay that assistance back.

There's a builder I'm going to look at tomorrow that has their homes 3rd party energy star certified. So they have the low e (I think that's what they're called) windows, radiant barrier & the 15 SEER hvac system. My work does this also & it will be nice having an energy efficient home with low electric bills. I also have a meeting with a realtor on Sunday. I'm not entirely sure I want to use him yet so I don't plan on signing a contract saying that I will. He's super nice & helpful, but he seems like he's pushing me towards super old houses that have had minor repairs & they're in areas I don't really care for. The main thing I want is a little more quiet. Living next to a busy road & train tracks for the past 3 years has worn my nerves a little thin. Especially when the idiots on crotch rockets fly down the road at 2-3 am. I'm not going any bigger than a 3-2-2, maybe 1400-1600 sq ft give or take. I don't want to put myself back in the position I'm currently in with the no space. It will be extremely useful having 2 extra rooms, I'll finally be able to have my office/dog room. So I have my wish list ready & have items marked that I would like but don't necessarily have to have.

Usually I loathe moving but this is so much more exciting! I can't wait to find something.

 

[cinnamon roll]

Be sure to have a good inspector!! Mine was HORRIBLE!!!

Don't ever be afraid to have your realtor ask the owner anything the worse they can say is no!!!! Most buyers ask for the sellers to pay closing. I did.

My cousin is a realtor and that was the best advice she gave me.

 

[jersey girl]

Get an inspector that isn't recommended by your realtor....so many realtors have specific home inspectors they work with. You want someone who will put your best interest over all others. Be sure to be there during the inspection as well. I think the Home Warranty is a waste. We had one on the house we bought and we still had to pay to have things fixed...the warranty covers very little and is used more to give the perception that you will be protected. You also have to use who they tell you to use...not always the most qualified to do the job. But shop around, I'm sure there are better ones out there. Good luck....searching is fun! The actual moving....not so much lol

 

[Hector]

I'd say don't use a realtor who is pushy. We had one like that and I met with him once and never went back. I then found a lady on the internet, she wasn't very "out there" like some of the local realtors were. She turned out to be a very good to work with. She was honest, wasn't pushy, fast to respond, was thorough and quick to get everything done, easy to talk to, and really catered to my schedule. Anyway good luck again!

 

[DennasMom]

If you work for a builder - get YOUR home inspector from someone you trust!! That would be a HUGE benefit!

In my experience (very limited... ) new homes have more issues than older ones. New ones have settling issues, plumbing and electric that have never been tested with "real" use, etc. Older homes have already been put through the test, so you know where the weak spots are - and a good inspector will find them.

If you want some good pointers - start watching "Holmes Inspections" on HGTV. Some of the stories are pretty extreme (and NOT common, so don't let it scare you off), but it will give you some idea on different things to look out for (i.e. proper site drainage). Mike Holmes is really good at explaining home inspections and what can go wrong or be overlooked.

Sending good thoughts your way for finding the right house for you!!

For me... I always seemed to know when I walked in the door if it was "my" house or not... and we've always gone with older ones. You can always change the carpets or paint colors - lots of stuff you can do yourself for low cost to make a house YOUR home. We always look at the bones and the floor plan when we choose a house, and go from there. Or course, my DH does all our handywork... which is nice... but, we've been in our house for 14 years... and are STILL working on upgrades that we started 10 years ago. By the time the kitchen is done, it will be time to start remodeling it all over again... Ah, yes, the joys of home ownership!!

 

[DDSK]

Most Inspectors that I have seen are a complete waste of time, in fact the last one who inspected my MIL's House actually knocked a circuit breaker off the Buss bar while putting on the cover to the breaker panel.
And then he missed the fact that the heat exchanger was cracked which was a major miss in my opinion, he even wrote up a wall in the garage needed to be replaced due to cracks in the plaster, which was only dirty and needed to be washed.

 

[NYDDB]

Ok, not a home-owner here, but I am sending positive thoughts your way.

And congratulations on working hard towards such a milestone...

 

[angelbears]

So happy for you. Keeping our fingers crossed! Pics!!!

A Realtor will tell you that they work for you, that is bullshit. They work for themselves. They only make money if they sell you a house and they make more money the more they can get you to pay for a house. It is just as bad as buying a car. When I'm in the market to buy a house I do all the leg work first. Learn to use the MLS listing site for your area. Invaluable for research.

Not all Realtor's are bad but I have yet to work with a good one, including family. I don't bring in a Realtor until I'm ready to make an offer. I will usually go for the listing agent. They will usually bend over backwards to get the deal done in your favor. It means double commission for them listing and selling side. 6% instead of 3%, selling price can be less and they will still make more.

 

[Bailey's Mom]

Yes, I agree with learning to use your MLS service, it will save time and empower you. Don't believe that bullshit that agents spin about hidden listing's that only agents know about, most people have their houses on MLS and those special listing's tend to be high end, pre-screened purchaser numbers.

I've got a friend who has been looking for a house, her lawyer arranged a real estate agent (snicker) who apparently knew way to much about her $ situation and kept dragging her out of her chosen neighbourhood and showing her houses way outside her stated $ range. It really depressed her.

I gave her the MLS link and it was very liberating. She still hasn't purchased, but at least she's in the driver's seat and she's ditched the head games.

I definitely am sending you good house hunting vibes. Best of luck!