Tips for a first time property buyer?
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@Nic said:
@Minion-Queen said:
Always ask tons of questions about heating costs. They will give you this random number that seems decent. But then you find out that is with keeping the house at 50 and having space heaters everywhere.
Agreed - get them to show you actual bills.
Our power company allows you to call them and ask the cost of the electric bill for previous tenants at that address. This will give you a real idea of power consumption. In Florida, summertime electric bills are more than winter time. Obviously its reverse in NY and Canada. Get an idea of what the power bill is in January, April, June, and October. That should give you a clear picture.
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Oh, I forgot the most important one - FIND OUT WHAT KIND OF INTERNET SPEEDS YOU GET BEFORE YOU BUY!!!!
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@Nic said:
Oh, I forgot the most important one - FIND OUT WHAT KIND OF INTERNET SPEEDS YOU GET BEFORE YOU BUY!!!!
Yeah, don't want to find out your options are satellite, dial-up or DSL...
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@Nic said:
Oh, I forgot the most important one - FIND OUT WHAT KIND OF INTERNET SPEEDS YOU GET BEFORE YOU BUY!!!!
And don't trust the sales person on the other end of the phone... ask to speak to their manager or go down to the regional offices.
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we bought our first house just over 2 years ago here how it went:
both had jobs
got pre-approved (but just because we got pre approved for a certain amount didn't mean we wanted that large of a payment)
looked at 30 houses over 2 month
went under contract
paid for several inspections
walked away after said inspections found foundation damage (lost cost of inspections)
looked at 6 more houses
under contract and we moved in
wife lost job the day our first mortgage payment was due
wife got very sick (massive debt from medical bills)
stayed in house and doing awesome now.always have a contingency fund (that allowed us to stay in the house for a year before she got a job and was feeling better). Factor into your monthly payment property taxes, pmi (if you don't have 20% down), homeowners insurance (you can call your agent and ask what the typical rate is for a house that you are looking at). Remember to include in the cost of purchasing your house, the tools to maintain it such as a lawn mower, trimmer, hedge clippers (if you have them), in my case I also needed a snow blower and shovels.
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@Nic said:
Another one I remembered. To get a good feel for the neighborhood, go walk around and knock on doors on the weekend and chat with your prospective neighbors. They'll give you a good sense of what the place is like.
We had people do this to us in Texas and we were able to tell them that the house had been on and off the market, who else was looking at it and that the foundation had failed!
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@Nic said:
Another one I remembered. To get a good feel for the neighborhood, go walk around and knock on doors on the weekend and chat with your prospective neighbors. They'll give you a good sense of what the place is like.
This is a good tip... I will have to remember that for the future.
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Good grief, thank you all! I'm slightly more worried than I was previously. Lots of excellent advice and some stuff to ponder for sure.
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Around here houses for a single guy low on the ladder in IT are just way way out of the budget ( they start around 400/450 for a fixer upper). I'm looking for a less expensive condo, but keeping in mind the strata fees. Example: 200k mortgage, but 500mth in strata is roughly the same monthly payment as a 350k mortgage.
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I think the rule of thumb is 4 times your household salary is the upper limit for a house you can afford.
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@Nic I want to keep it under that if at all possible. Agreed it's a good rule.
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Also compare rents to mortgages for an equivalent property. If the mortgages are way more than rentals, then you know your area is in a housing bubble and it's probably best to rent and save the difference between the two until house prices come back in line with reality. Don't make the mistake we did of buying at the height of the bubble in 2008 and then having to shortsell our house for half of what our mortgage was for.
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@Nic ouch that had to hurt....
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Yeah for sure. Probably hurt the Bank of America more than it did us, since they had to absorb the loss. Still, ended up with a black mark on our credit record that meant we couldn't buy a house again for three years. Not as bad as a foreclosure or bankruptcy, but still a hard lesson learned.
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Here's it's way cheaper to buy than rent. You can't rent for under $1,100/month without utilities. Also if you are willing to wait a while and pay for a lawyer and an inspection foreclosed houses can be a good option.
You always want to pay a lawyer to to background on a home, don't forget that. At least in the US if the previous owner had any liens/debt against the home, you have to take over paying it no matter what is is as the new owner of the home.
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@thecreativeone91 Does the title company do that, and the title insurance cover you in case of an undiscovered lien?
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@Nic said:
@thecreativeone91 Does the title company do that, and the title insurance cover you in case of an undiscovered lien?
My understanding was that, that is the point of that, yes.
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@Nic said:
@thecreativeone91 Does the title company do that, and the title insurance cover you in case of an undiscovered lien?
Yeah. I wouldn't buy a house without title insurance because a lawyer could miss something. But most title insurance has limitations so I'd still have a lawyer do a deed search. I would think if you take a mortgage out they'd make you get one anyway.
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Just found this in my Twitter feed: http://twocents.lifehacker.com/should-i-buy-a-home-or-just-keep-renting-1699277766
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@nadnerB That lead me to this calculator. Very interesting to play with the sliders a little bit.
http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?abt=0002&abg=1
