[ARCHIVED THREAD] - House buying tips - share them (Page 1 of 2)
Posted: 3/19/2015 11:20:25 AM EDT
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So I've submitted my mortgage application and I'm browsing for houses. I'm 'pre-approved' but they still have to get the VA to certify I'm eligible for the VA loan. That's just a formality as I have been vetted in the past when I tried to buy a house before and the deal fell through. This will be my first purchase, as I will find another if this deal doesn't go through.
I've gotten advice from friends and family, but I'm just looking for anything useful you might share or experiences you've had I could possibly learn from. 
Added: I can shop online, so should I use an agent? Is there any advantage over just calling the listing agent once I find a place I'm interested in? |
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Use your imagination. Look at fixer uppers. Don't look at colors, floor coverings and cosmetic stuff that you can easily change. You will pay top dollar for a perfect house in perfect condition but you can save a bundle if you are more imaginative than other buyers.
Good luck! |
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Use your imagination. Look at fixer uppers. Don't look at colors, floor coverings and cosmetic stuff that you can easily change. You will pay top dollar for a perfect house in perfect condition but you can save a bundle if you are more imaginative than other buyers. Good luck! This, paint and putty is your buddy 
Closing on my new house April 3rd. |
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I would have all of the items below checked out by a professional if you do not have the knowledge or feel comfortable doing so. You did not state where or what type of house you are looking to buy, so some of these may not be applicable.
Termites Age and function of HVAC Septic system is applicable Age of roof HOA and copy of bylaws if applicable. Keep in mind things like building a shop, garage, pools, ect Mineral rights if land and applicable VA and FHA are very nit picky on things like rotted/soft wood (windows, eaves, fascia, ect). VA will send an inspector to check out those. A reputable home inspection company will also check out most of the above items with a cost of $200-$300 in my area. |
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If the area you are looking at is new to you, do a search on the sex offender registry and see how many pop up.
Also, drive the areas you are looking at night and see what the locals are up to, street lighting, etc. There can be a whole different world after the sun goes down. |
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Location, location, location.
You can fix a shitty house, but not the lot on which it sits. Take as much time looking all around and over the property line as you do examining the house itself. Figure-out who you will be living next to, and if there will be problems (barking dogs, loud parties, etc.) |
| Consider forclosures. We bought at the low point of the market in 2009, and we bought a HUD home. We ended up selling for a nice profit when we moved out of state last year. While you should never buy a house as an "investment" (expecting to make money on it - that's what has gotten a lot of people upside down on thier mortgage), buying low will reduce your exposure to losing money, and can create some free equity if the values do go up. |
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So I've submitted my mortgage application and I'm browsing for houses. I'm 'pre-approved' but they still have to get the VA to certify I'm eligible for the VA loan. That's just a formality as I have been vetted in the past when I tried to buy a house before and the deal fell through. This will be my first purchase, as I will find another if this deal doesn't go through. I've gotten advice from friends and family, but I'm just looking for anything useful you might share or experiences you've had I could possibly learn from. Buying a house should be treated like buying a boat: don't buy the biggest thing you can afford, buy the smallest thing you can get by with. At first anyway. |
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I would have all of the items below checked out by a professional if you do not have the knowledge or feel comfortable doing so. You did not state where or what type of house you are looking to buy, so some of these may not be applicable. Termites Age and function of HVAC Septic system is applicable Age of roof HOA and copy of bylaws if applicable. Keep in mind things like building a shop, garage, pools, ect Mineral rights if land and applicable VA and FHA are very nit picky on things like rotted/soft wood (windows, eaves, fascia, ect). VA will send an inspector to check out those. A reputable home inspection company will also check out most of the above items with a cost of $200-$300 in my area. This, my brother inlaw does home inspections. The stories he would tell... |
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When you pick an area, look at the comps youself and see what houses have been selling for, per square foot, and the condition they are in.
There are several overpriced houses in my neighborhood when most are going for right around $80 per sq ft. Even fresh remodels are under $100/sq. ft. Realtors are usually out of touch. They want a paycheck, but won't do the work. Go looking on your own. Talk to neighbors. |
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Spend the $100 to $200 to have a home inspector crawl through the home prior to signing.
He'll produce a list of defects that you can use to negotiate the price down or have repaired as a condition of purchase. I split the list picking dead-nutz-simple things for the outgoing owner to fix - like a broken window and other things were discounted so that I could have them fixed with quality materials rather than the cheapest thing. |
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Set a budget that works for you, not necessarily what you 'qualify' for.
Preferably, that budget will be on a 15 year loan with at least 20% down. Check for flood plain, etc. Know what additional insurance expenses, etc you might be walking into. If you know what you're looking for, crawl under the house and look for evidence of termite damage or evidence of repairs. Wiring, plumbing, etc all fairly modern? HVAC, etc too? What school district, if kids are a factor? |
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CA is a mandatory disclosure state - read the damn things.
I looked for earthquake faults, aircraft fly-over zones, near-by railroads/factories/chemical warehouses, prisons/jails, and 100-year flood zones. I pulled a Megan's law database and looked for perverts in the neighborhood. I pulled the police logs for the last month and looked for criminal issues on the street. I sat in my SUV for hours in the evening on Friday and Saturday to see what the place was like on a weekend. |
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Without reading too much of the replies already posted
My recommendation hvac plumbing roof a lot of houses will have or have had termites. See what damage has been done window condition water heater age if it has a pool see the last time it had major repairs/maintenence done or when something may be due Neighbors and neighborhood in general taxes school district if you have kids Buy bigger than you think you need as long as it's affordable Eta: insurance costs and possible flood zones |
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So I've submitted my mortgage application and I'm browsing for houses. I'm 'pre-approved' but they still have to get the VA to certify I'm eligible for the VA loan. That's just a formality as I have been vetted in the past when I tried to buy a house before and the deal fell through. This will be my first purchase, as I will find another if this deal doesn't go through. I've gotten advice from friends and family, but I'm just looking for anything useful you might share or experiences you've had I could possibly learn from. did you use CarsandGuns for your loan? He is good guy and has helped many of arfcommer in the DFW metroplex. |
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What ever amount you are pre-approved for cut it in half, i.e., if you are approved for $300 look in the $150 range. make sure you hire a competent home inspector, I have hear of alot of horror stories. Quoted:
What ever amount you are pre-approved for cut it in half, i.e., if you are approved for $300 look in the $150 range. make sure you hire a competent home inspector, I have hear of alot of horror stories. I'm buying the cheapest thing that will suit my needs. The mortgage guy was a little surprised that I was not trying to get as much as I could borrow. Apparently, that's typical. I'd rather have more money left at the end of the month for ammo or Mustang parts. Quoted:
Buy something you can afford and have enough equity into it that you do not have to pay private mortgage insurance. Mortgage guy I talked to told me VA loans don't require PMI now. |
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My father always did well in real estate. He said find the worst house in the best neighborhood.
You can buy it cheap and have it looking as good as the rest in no time. Of course nowadays its called flipping if you turn it for a fast buck but he lived in them for years. |
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You can fix a shitty house, but not the lot on which it sits. Quoted:
You can fix a shitty house, but not the lot on which it sits. My ex FIL said the same thing, and he's made a killing on houses. He made money on every house. He even sold one for $400k more than he paid for it just a decade later. Quoted:
not sure where this fits into house buying tips. take pictures of house as you walk around them. amazing the things you will notice. when you are looking at them later. That's the kind of out-of-the box thinking we need around here! Seriously, that's something that never occurred to me, but sounds like a really good idea. 
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did you use CarsandGuns for your loan? He is good guy and has helped many of arfcommer in the DFW metroplex. Quoted:
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So I've submitted my mortgage application and I'm browsing for houses. I'm 'pre-approved' but they still have to get the VA to certify I'm eligible for the VA loan. That's just a formality as I have been vetted in the past when I tried to buy a house before and the deal fell through. This will be my first purchase, as I will find another if this deal doesn't go through. I've gotten advice from friends and family, but I'm just looking for anything useful you might share or experiences you've had I could possibly learn from. did you use CarsandGuns for your loan? He is good guy and has helped many of arfcommer in the DFW metroplex. No- I didn't know about him. 
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Consider forclosures. We bought at the low point of the market in 2009, and we bought a HUD home. We ended up selling for a nice profit when we moved out of state last year. While you should never buy a house as an "investment" (expecting to make money on it - that's what has gotten a lot of people upside down on thier mortgage), buying low will reduce your exposure to losing money, and can create some free equity if the values do go up. Low point was 2012. Posted Via AR15.Com Mobile |
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As a first-time home buyer, you need three good people on your side: 1) agent, 2) finance person, and 3) home inspector. Ask for recommendations from friends and family and coworkers on all three of these. Do not necessarily settle for one recommended by your real-estate agent. The home inspector is the only one of the three that gets paid whether you buy the house or not, so there is no built-in conflict of interest. You need to make sure that the RE agent hasn't corrupted the inspector, though, bringing back in a conflict of interest. What do I mean by that? This: Inspectors know which side their bread is buttered on and often to succumb to pressure from the RE agents. I am a home inspector and have been told by agents that if I ever spend more than 2.5 hours on an inspection that the agent would make sure none of his clients in the future would ever hire me. I chose not to work for those agents. Find an inspector who will spend whatever time it takes to find the faults in the house and explain them to you clearly. Talk to at least three, and go with your gut instinct. |
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Low point was 2012. Posted Via AR15.Com Mobile Quoted:
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Consider forclosures. We bought at the low point of the market in 2009, and we bought a HUD home. We ended up selling for a nice profit when we moved out of state last year. While you should never buy a house as an "investment" (expecting to make money on it - that's what has gotten a lot of people upside down on thier mortgage), buying low will reduce your exposure to losing money, and can create some free equity if the values do go up. Low point was 2012. Posted Via AR15.Com Mobile Also "buy low". lol. Posted Via AR15.Com Mobile |
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I bought a foreclosure using a VA loan.
The VA appraiser's only problems were chipping paint on a dilapidated shed, and the house being in a floodplain because it is near a stream. After some going back and forth they dropped the floodplain concerns. We had a huge record setting flood 2 years ago that caused a lot of damage throughout the city and region as a whole. That stream got mighty high, but no where near enough to affect me. I had some pooling due to ground saturation from the hill on the other side of my property from the road the city put in 8 years ago, causing a puddle about 4" wide by a wall. Both the VA appraiser and the home inspector my ex-wife hired missed the roof leak in the master bedroom, severe water damage and rotting of the floor, sill, and exterior wall from the shower tiles having leaked, poor insulation that causes ice dams letting water flow into the kitchen through the walls/sliding... and a whole slew of other problems. Bring a good flashlight, good camera, and look at everything closely. Then look at the pictures even closer, zoom in and look for imperfections. Pay attention to the heating and cooling system. Is it well maintained? Is it properly sized? How much will it cost to operate? Same for appliances such as water heater and stove. Look at the cost of operation (gas verses electric). |
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Spend time parked and watching the neighborhood. Do this at different times of the day and night. Nothing is as big a bummer as finding a great house only to find out the neighbors party all night, the house 3 doors down is a drug dealer, the traffic makes it impossible to get out of your driveway, or the guy across the street has a sportbike and likes to rev it up over and over....all day on the weekends. Vet the neighborhood. Run the title back, especially looking for deed restrictions, right-of-ways, and homeowner association criteria. Lots of subdivisions had crazy restrictions implemented when the land was originally subdivided. When the prior deed reads 'subject to all prior...', find out what that entails. Check the planning and zoning board to see if any highways or municipal projects are planned for your area. Do they have plans to widen the streets and take half your yard to do it? Do the minerals accompany the property or have they been previously severed, partially or wholly? If the minerals are severed, you may not have any say as to their being developed. If you are buying enough acreage and have no mineral rights...you may not have any say as to whether your land gets a drilling rig moved onto it and a well or wells drilled. You'd only see payment for surface damages. I could go on. Suffice to say....do your due diligence. |
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Where in Tejas? Dallas. Looking in the north/northeast side of Dallas or one of the 'burbs on that side: Richardson, Plano, etc. - Garland... if I must. 
I'd be willing to expand the area a little, but me and the woman both work in North Dallas and don't want to have a crappy commute. |
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Buy the neighbourhood. I spoke to a gentleman who who lived in a nice neighbourhood in Gilbert AZ. When he bought his new house about 15 years ago
he had the option to purchase the same house for 10K less in the west valley(shity neighbourhood). His home is probably worth 100K more because of the neighbourhood. Let me tell you that 100k more is money well spent for so many reasons |
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Get an inspection, hell get two from different companies.
Don't set your heart on a property. Treat it like a business deal and be ready to walk away, up to and including closing day if something is out of line. Visit the property as many times as you can at different hours. Pictures of the place at various angles help for review later. If you see neighbors are out go talk to them. They will tell you more than any real estate agent ever will/could tell you about the area. Remember you may end up living next to these folks so keep that in mind. Roof, HVAC, Plumbing and electrical are your big ticket items. If anything is wrong with them make sure the price is adjusted accordingly. NEVER have the seller replace. They will buy the cheapest piece of garbage they can in order to off load the place. Discount the price fairly and have the work done when you own it. Plan to repaint, redo carpet/floors prior to moving in. If you don't do it while the place is empty it may be years before you get to it. Research is your friend. Look at google maps, national flood maps, mass transit line (buses, airlines, trains), look at crime statistics. You should get the idea here that there is no such thing as too much research. Use your imagination when looking at the place. Ignore colors and decorations. Paint is cheap and they are taking all of their crap when they sell it to you. don't forget to factor your own cost of moving, painting and other minor cosmetic fixes. If you have the skills look at fix it up potentials. I would caution that a lot of guys think they can do anything and fall into trouble here. Make sure to take an honest friend/family member/wife/ girl friend that will tell you something is beyond your skill. I would also caution buying something you can't live in while fixing, unless you can live rent free/cheap while doing the repairs. Foreclosures are a great way to save some money. However they have their own set of problems. Be prepared to wait on banks to take their sweet time in responding. Last but not least. READ EVERYTHING BEFORE YOU SIGN! I don't care if it takes five hours to do closing. |
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I avoided bank owned and short-sale properties. Bank owned typically did not come with a warranty deed as they were foreclosures and the banks are really picky about federal loans on them. The short-sale properties all had potential to take a LONG time for the bank to approve the sale and in the meantime we risked a lot of nice houses that could go off the market while we were waiting.
Check the area out, make sure you're not in a flood zone. Have some "must haves" on your list and stick to them, but be realistic as well regarding what you can afford. For us the must haves were a two car attached garage or bigger and at least two full baths and a basement. We got a nice fireplace on the main level and in the basement, which was something that was cool and yet we could have lived without it. Remember property taxes factor huge into your monthly payments. |
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Go by the house at different times during the day to get a feel for traffic and the neighborhood.
I bailed on a house when the dickhead that shared the lane peeled out of the lane and onto the road while I was there for the home inspection. There were other problems with the place too, but that was a HUGE red flag. Bad neighbors can ruin the nicest places. |
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Also "buy low". lol. Posted Via AR15.Com Mobile Quoted:
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Consider forclosures. We bought at the low point of the market in 2009, and we bought a HUD home. We ended up selling for a nice profit when we moved out of state last year. While you should never buy a house as an "investment" (expecting to make money on it - that's what has gotten a lot of people upside down on thier mortgage), buying low will reduce your exposure to losing money, and can create some free equity if the values do go up. Low point was 2012. Posted Via AR15.Com Mobile Also "buy low". lol. Posted Via AR15.Com Mobile Not sure why that is laugh worthy. The historical value of the house we bought was $30k above what we paid, and when we sold it was even higher than that value. And perhaps the low point in your market was 2012, but it wasn't where we were. The houses around us weren't selling for any lower than what we paid for between 2009 and 2012 regardless of what the national market was. |
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I cant emphasize enough to get your own inspector. He will find shit you wouldn't even dream of.
be willing to walk away from any deal if it doesn't feel right. look at proximity to possibly bad neighborhoods. ignore cosmetics that can be changed easily, is there a good flow to the home, can you defend it or escape during a fire? will it be a PITA to go up and down stairs? Are the room layouts awkward? How old is the HVAC? Is the wiring up to code or does the breaker box look like it was done by a 12 year old? How is the insulation? Does it feel too warm or cold? |
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Timing is everything if a home is in high demand area but if time allows I would highly suggest that you spend some time on the actual block before buying.
I highly suggest that you "stalk" your future neighborhood and neighbors to find out as much as you can about them. One friend was so hot to trot on one house that he failed to see that an airport runway approach was just two blocks over. Now he is the proud owner of a home with jet noise every twenty minutes seven days a week. Another friend bought only to discover that the neighbor behind him has a dog that barks at all hours. Remember a little stalking before you sign your life away can pay off big time.
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Spend time parked and watching the neighborhood. Do this at different times of the day and night. Nothing is as big a bummer as finding a great house only to find out the neighbors party all night, the house 3 doors down is a drug dealer, the traffic makes it impossible to get out of your driveway, or the guy across the street has a sportbike and likes to rev it up over and over....all day on the weekends. Vet the neighborhood. Quoted:
Spend time parked and watching the neighborhood. Do this at different times of the day and night. Nothing is as big a bummer as finding a great house only to find out the neighbors party all night, the house 3 doors down is a drug dealer, the traffic makes it impossible to get out of your driveway, or the guy across the street has a sportbike and likes to rev it up over and over....all day on the weekends. Vet the neighborhood. Quoted:
Go by the house at different times during the day to get a feel for traffic and the neighborhood. I bailed on a house when the dickhead that shared the lane peeled out of the lane and onto the road while I was there for the home inspection. There were other problems with the place too, but that was a HUGE red flag. Bad neighbors can ruin the nicest places. Good points. The rental I'm in now is in a neighborhood that looks nice enough if you just drive around it, but there are some real shitbirds just across the street who come and go at all hours (with stereos up and windows down, of course) and throw trash in our yard all the time. |
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So I've submitted my mortgage application and I'm browsing for houses. I'm 'pre-approved' but they still have to get the VA to certify I'm eligible for the VA loan. That's just a formality as I have been vetted in the past when I tried to buy a house before and the deal fell through. This will be my first purchase, as I will find another if this deal doesn't go through. I've gotten advice from friends and family, but I'm just looking for anything useful you might share or experiences you've had I could possibly learn from. First thing I'd do, is say fuck the VA loan, and get yourself approved for a conventional mortgage. A VA loan will fuck up your sale. |
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Consider forclosures. We bought at the low point of the market in 2009, and we bought a HUD home. We ended up selling for a nice profit when we moved out of state last year. While you should never buy a house as an "investment" (expecting to make money on it - that's what has gotten a lot of people upside down on thier mortgage), buying low will reduce your exposure to losing money, and can create some free equity if the values do go up. How do you locate foreclosures? |
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First thing I'd do, is say fuck the VA loan, and get yourself approved for a conventional mortgage. A VA loan will fuck up your sale. Quoted:
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So I've submitted my mortgage application and I'm browsing for houses. I'm 'pre-approved' but they still have to get the VA to certify I'm eligible for the VA loan. That's just a formality as I have been vetted in the past when I tried to buy a house before and the deal fell through. This will be my first purchase, as I will find another if this deal doesn't go through. I've gotten advice from friends and family, but I'm just looking for anything useful you might share or experiences you've had I could possibly learn from. First thing I'd do, is say fuck the VA loan, and get yourself approved for a conventional mortgage. A VA loan will fuck up your sale. How so? The appeal to me is the no $ down. I haven't got much in savings and I'd prefer to leave it there. |