Buying a home 101

[Anonymous]

I'm just starting to consider buying a home. I don't even know where to start. Is there a website or something for newbs?

[Steve]

Check out this non-profit that educates homebuyers: http://www.aa-hc.org/

[Anonymous]

Honestly, I would find a realtor to talk with. If you see a lot of signs for one in your neighborhood- even if you're not looking there- give them a call. Many will talk with you because they want to get your business, but they'll walk you through all sorts of steps and processes. Then after you gain an understanding, you can use one of the ones you talked to, or not use one. They'll push a little, really encourage you to use them, but don't feel like you need to use them, or even buy if you learn it's not what you want.

[Anonymous]

Start browsing heavily on Redfin so you can get a sense of how much house you get for your budget. Go to open houses for the same reason. Think through what characteristics are your priority, which are nice but not necessary, and which you don't care about. Ex. Do you need a big yard but don't need lots of bathrooms, are you ok with a meh kitchen as long as there's a finished basement, and so on. Pay attention to how the schools are, if not for your own kids then for resale down the road. Are you handy and willing to take on projects, or do you need something mostly turnkey-ready?

Me here are you thinking of buying?

[Anonymous]

My friends bought a home a few months after returning back to the U.S. after living in Europe for a decade. They were pretty clueless but found the book "Homebuying for Dummies" very helpful.

[Anonymous]

*Where, not "me here"!

[Montana6]

I would look at websites first. Get a general idea where you want to live, and, roughly, how much it may cost you.
A few basics: 1) do you have all cash for a purchase?
2) If not(the likely answer), you will need financing, ie, a mortgage. Hopefully you have at least 10%, ideally more, of the purchase price. Financing will make up the difference.
3) Expect to spend anywhere from $5,000 to as high as maybe $12,000 in fees. What? Yup, buying and moving costs money: moving expenses, a lawyer to help you, and, closing costs, application fees, etc etc etc.
4) Hopefully you have a ballpark of what you can afford, and, are willing to pay. Get familiar w a mortgage calculator. You will need to pay for the principal, the interest, plus maybe PMI, plus escrow. That is your monthly amount you will need to write a check for.
Hope that helped.

[Anonymous]

Anonymous wrote:Start browsing heavily on Redfin so you can get a sense of how much house you get for your budget. Go to open houses for the same reason. Think through what characteristics are your priority, which are nice but not necessary, and which you don't care about. Ex. Do you need a big yard but don't need lots of bathrooms, are you ok with a meh kitchen as long as there's a finished basement, and so on. Pay attention to how the schools are, if not for your own kids then for resale down the road. Are you handy and willing to take on projects, or do you need something mostly turnkey-ready?

Me here are you thinking of buying?

There are lots of sites you can use -- doesn't have to be Redfin, which really isn't a very good company to work with as a new buyer. Also, no Realtor can tell you anything about quality of schools -- for that you need word of mouth, tours, etc. (i.e., don't bother with school ranking sites like greatschools.org).

The most important thing you need is to get your finances ready. Check your credit, get liquid for deposit, etc.

[Anonymous]

I think the first thing you need to do is get a credit report and make sure you have everything in order.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Start browsing heavily on Redfin so you can get a sense of how much house you get for your budget. Go to open houses for the same reason. Think through what characteristics are your priority, which are nice but not necessary, and which you don't care about. Ex. Do you need a big yard but don't need lots of bathrooms, are you ok with a meh kitchen as long as there's a finished basement, and so on. Pay attention to how the schools are, if not for your own kids then for resale down the road. Are you handy and willing to take on projects, or do you need something mostly turnkey-ready?

Me here are you thinking of buying?

There are lots of sites you can use -- doesn't have to be Redfin, which really isn't a very good company to work with as a new buyer. Also, no Realtor can tell you anything about quality of schools -- for that you need word of mouth, tours, etc. (i.e., don't bother with school ranking sites like greatschools.org).

The most important thing you need is to get your finances ready. Check your credit, get liquid for deposit, etc.

Agree that Redgin may not be the right agent. But I said to browse there because I like their layout, photos, maps, etc.

[Anonymous]

Remember that 'mortgage calculators' are only calculating your PI (Principle and Interest). But you also have to pay TI (Taxes and Insurance). To find out how much in taxes you'll pay, go to the county/city website. It will be set as, for example $1.07/$100 of assessed value (which is usually slightly less than what you pay for it). Insurance is harder to calculate. Talk to people you know that live in places similar to what you want to find out an estimate.

You also have to add PMI to your PITI monthly payments if you put less than 20% down. That can add $200-$300 per month.

Also, you'll need about 3% for closing costs.

Also look into using a Credit Union. They often have better programs than Banks. But you usually have to be a member. Check out Navy Federal Credit Union (have to be a memeber) or NASA Federal Credit Union (don't have to be a member). They have a 0% down, no PMI loan program.

[Anonymous]

I would recommend that you talk to an agent and ask them to give you some general background info on the process and the area. You aren't under any obligation to pay them anything unless you actually buy a house and, based on their ethical obligations, they should give you advice that is beneficial to your interests.

[Anonymous]

Redfin runs a GREAT home buying 101 class.