Need help buying home!!!

We went the foreclosure route and got a nice place. Try several mortgage companies and do some research. Foreclosure properties may take more time to acquire but if you can handle the wait, you can get a good deal.

property

another avenue to try is the hud/fha foreclosures. they are often very good deals and you can inspect the property before bidding. they often make an "allowance" for any needed repairs. usually there is only one realtor in town that handles these type sales. find the realtor in your town and ask for a list of properties.

Tips and tricks

2 B - You should have mentioned something last spring when my house in Bourbonnais was for sale. ;) If I remember right, the market there was saturated with homes for sale back in May. Steer clear of forclosure homes and those where a couple is going through a nasty divorce. Your best bet is to find something five to ten years old. The older they are, the bigger the money pit. Find something that is already vacant or where one spouse has been transferred and the other is just waiting for the house to sell before moving. These people are more willing to deal with a perspective buyer. Make sure your credit rating is excellent. Since you buying a home is not contingent on anything, you've got the upper hand. Don't go down the new construction route. I just finished going through that mess.

HUD and VA houses are good starters. They are sometimes in bad shape but you can get a good deal if you are willing to do some fixing up yourself. This is how I bought my first house. I think I got into it for $800 and they gave me $5500 to do repairs (carpet, paint, etc). I second not building. I am going through that now and its killing me. Talk to friends, parents, anyone that has been there and get advice. You can't be too carefull.

2B,
I am in the mortgage industry and I have noticed lately that foreclosed homes seem to be selling closer to market value, at least in the kc market. One thing to keep in mind when buying a trashed out foreclosure is that it still has to be in "average shape"noted by the appraisor before you can get a conventional/conforming loan on it. If going fha, the requirements can be more strict. Keep this in mind during your negotiations for allowances.

If you have multiple trade lines currently open and good credit, the oyster is yours. There are first time programs out there but it may not be your best route. You will have many, many options to choose from.

If you wish, PM me and I will give you my phone number to answer your questions in more detail.

cute, ADS:mad:

2 B- I'd strongly recommend using a broker that can represent many different lenders. We got screwed a year ago when we went direct to a lender to refinance. They're putting their best interest first, whereas a broker will put your interest first, as well as explaint he many different programs out there. Spend a little in fees to gain a lot over the long haul.

Talk/listen to everybody around but keep your eyes open and your brain in gear. Sort of like which oil to use...lots of strong opinions. A deal too good to be true, probably isn't true. Don't assume everyone is out to scr** you, but remember everyone else has different priorities. Don't buy for resale, if you end up with something really far out it might be tough to sell, but in general if you like it lots of other people will too.

My opinion is to spend more time/effort in picking the right house and neighborhood. Remember, location, location, location. Your perfect location might not be the same as anyone elses, but I think it's the most important issue. My wife and I just bought a tiny older house that is nothing special but the neighborhood is wonderful for us. You can improve your house over the years, but you'll have no control over the area around you.

When it comes time for the house inspection, go along with the inspector, follow him into the attic, etc. Make sure he is working for you, and ask questions. When you get the final closing estimate (24 hours before the closing around here), go over it carefully, make sure you understand every entry, and check the math. In three closings I've been involved with there were math errors in all three - one was several thousand dollars.

Around here there are several companies that are in the business of buying foreclosures, etc. so I am now convinced that if one hangs around for more than a few days there's a problem with it.

If you go away from here with nothing else remember to talk to many, many, many different lenders... You can play them against one another telling the other what deal you can get with the first - I did this and saved myself a chunk of change - Just make sure when your comparing loans it's apples to apples - some of the lenders try to get tricky and use apples to oranges to make their loans appear better... Know the lingo - spend alot of time learning the terms and knowing what they are for - I think money.com has some good tips on finding the right loan for you...

As for the house - before you make a final decision check the area out.. Stop by and talk with some of the neighbors standing around in their yards - they can give you a good idea of what the neighborhood plusses and minuses are... ask if there are any RR tracks or airports nearby, these things if overlooked will drive you nuts later... if you have kids check out the schools!!!

JeffK

Re: ADS

My post or any of the previous ones were not ADS, but an offer to help a DRN member. There is a high statisical probability that I am not licensed in 2B's state anyway.

Just because someone is a broker versus a lender does not guarantee you will get a good deal and one has your interests in mind over the other. You would have fallen for a sales pitch. Conventional/conforming (FannieMae/ FreddieMac) as well as FHA/VA underwriting guidlelines are set by those agencies and are uniform within the industry. If you have a questionable credit history, then a broker may have more options in placing your loan in what they call niche or sub-prime markets. Other than that, it is sevice and rates that are the difference.

A reference from friends and family should weigh heavy in you decision in picking a lender.

Again, if anyone has other questions about financing, I would be happy to answer them for DRN members.

What about putting up new?

I did one of them, I come in two peices house. not a trailer house! no steel frame. built to boca standers, not hud. 1200sf. really nice little house. 2x6 outer walls 1/2 dry wall. but back to the storie. I picked up three acres at a good price. put the house on it. new drain feild, well ectr. for less than $80.000 ! and did it in less than 1 month from when they broke ground. the place I bought it from. had a sweet bank that offered a 2% down first time home buyers program. I had less than $3000 out of my pocket expensives! they did make me have PMI insurance, for the first year. but they sold the mortage and the new bank said I had over 10% equity so they waived it!!!! new with payment less than $650 including tax's on three acres ;) but when looking for a building site rememeber location, location, location! it is a investment.

Lots of land so neighbors arent looking in your windows. out in the country so you can have a track:) Talk to several banks and or brokers, ask lots of questions, they will talk to you cause they want customers. Dont let a realitor tell you what you want, they might just want a sale. shop around till you are sure what you want, then get serious.
Good luck, Walt

Somebody said check the schools if you have kids. Well my $0.02 is check them out even if you don't! It WILL have a significant impact on your resale value. Other than that, get a realestate agent you get along with to help you sort through the houses and the paper work. Take your time finding what you want and sleep on it before making an offer in writing. We sold our place last year and built a new place on some acerage we've had for several years. Our agent was an older gent and his wife and mine were very good friends. He told us "She's like a daughter to us, so I will do everything I can." and boy did he. Our place was on the market 48 hours and we got a full price offer by a guy that was under pressure to get a place quick. The kicker was our house was price $10/sf higher than anything in the area :) . A lot of realestate is being in the right place at the right time and being pre-qualified. Good luck, it's the most frustrating time you'll have until your moved in.:debil:

Get a new banker !

mine came through the house agent. I just keep looking for a building site that met my needs at the time. "wish I had bought more land!" land was cheap! but what they say about checking out the schols is really importan! not just the building's either. If your a sports fan go to the high school and see what type of program's there offering. see if they have a bunch of losing season's or the sports complex looks right out of the 40's. also I looked to see if the town that I was building in was really a town, not just part of the subrurbs! has a down town and every thing!
but being a single guy your option might be limited? the 2% thing mostly was for young families that needed a little help. but with the way the intrest rate is now, i'd beg, borrow, stealing my way into a nice house!