|
|
Post by irish on Nov 13, 2012 10:31:22 GMT -6
So DH and I have decided that we would like to finally make the jump and buy our first home next year. We're currently in an apartment lease which ends next June. We'd like to have purchased a home by then instead of doing an apartment for another year. While this is very exciting, it's very daunting at the same time!!! I am just overwhelmed at the amount of info out there, and I'm terrified of making this step too. We know not to get in over our heads and live beyond our means, but the comfort of apartment living is knowing that when something breaks down...someone else fixes it for free!!
Anywho, I'm just looking for any advice or words of wisdom that you may have for us. My BIL mentioned the Minnesota Mortgage Program, and it looks like we qualify under their guidelines. Does anyone have any experience with them? We're still in the very early stages, we haven't spoken with any banks about loans yet, as there is one bill we need to pay off before applying for a loan.
TIA!
|
|
|
|
Post by doeeyedgirl on Nov 13, 2012 10:43:36 GMT -6
How exciting!!! Buying a house is an exciting time, but also scary. I have owned two homes and it was well worth it in the end. I can tell you, that I work for a small community bank (as some of the gals already know). We aren't a large bank and definitely don't sell or push products. If you are just starting out and are looking for some information to get you started, I can honestly tell you that our mortgage lender is the best. He is patient and kind and full of information for people who are just starting out and looking to be pointed in the right direction. He won't call you or harass you unless you ask.  If you are interested in just using him for information or even to ask what he can do for you, call Brian Gill at 763-494-9800. We are at: www.eaglecommunitybank.com if you want to find information. We have a bunch of mortgage calculators out there that can help put your numbers into perspective, too. Good luck! And just rememeber to have fun with the looking! It can get quite interesting. |
|
|
|
Post by merrr on Nov 13, 2012 10:50:21 GMT -6
ESCROW!!! Roll your property taxes and house insurance payments into your mortgage. It is SO worth it!
CONGRATULATIONS!!!
Oh - and stay away from Wells Fargo.
|
|
|
|
Post by angel22 on Nov 13, 2012 11:46:08 GMT -6
Come buy my house! LOL! Just kidding, I know that you don't want to live way up here!
I have no major advice, DH deals with the bank for this stuff (he's the numbers guy so he totally gets it, where as I don't as easily.)
DH fixes everything that goes wrong at our house. The washer, dryer, and oven have been fixed by him sometime in the last 8 years. When we move and rent our house out we will require Home Service Plus on all of the appliances since he won't be near by to fix anything.
We went through Wells Fargo for our first home as well as for the second one we're trying to buy (in Duluth) and we have never had any issues with them.
Stay far, far, far away from anything GMAC Mortgage, though!
Otherwise, as most importantly, congratulations, good luck and try to enjoy the process! =D
|
|
|
|
Post by sarahisis on Nov 13, 2012 11:47:04 GMT -6
If you get into a townhome, you'd have HOA, but you'd be covered for landscaping, snow removal and any damage done to the outside of the house.. even the roof... and if you can get into a fairly newer development, there won't be much to worry about on the inside either.
|
|
|
|
Post by mickeymk on Nov 13, 2012 11:47:42 GMT -6
That's awesome Irish! There is so much information out there and that makes it so daunting!
For the repairs, I have found peace of mind getting the service protection on our appliances. It will depend where you live but, with Center Point Energy we pay $23 a month and that covers repairs for our stove, furnace, washer and dryer. I know it doesn't cover everything but it does help.
Good luck and have fun house hunting!
|
|
|
|
Post by cakemakermom on Nov 13, 2012 11:50:46 GMT -6
Look at what the difference will be in bills that you will be paying also. I know I only pay for electricity and phone at my apartment. A house you get all those fun bills that go with home ownership, in addition you get water, garbage, fuel oil, bigger insurance (renting vs owning is a big difference), upkeep, and I'm sure there's more.
Just one more thing to think of for finances when deciding to go to ownership.
|
|
|
|
Post by cakemakermom on Nov 13, 2012 11:52:54 GMT -6
|
|
|
|
Post by sarahisis on Nov 13, 2012 11:55:22 GMT -6
were paying roughly the same for a 3 bed 3 bath home as we were for our 1 bedroom apt near como... it's crazy, but cake is right... internet, cable, gas, water, garbage, electricity.. craziness! but if you can find a place that already has energy efficient appliances and new windows, that would help !
|
|
|
|
Post by lilmermaid on Nov 13, 2012 12:05:59 GMT -6
Exciting!!!!!
I second the escrow!
|
|
|
|
Post by bumblebee23 on Nov 13, 2012 12:23:54 GMT -6
I suggest getting set up with a realtor. They can run your credit score and tell you what you are approved for or what should be cleaned up first. They are also a super big help when looking for houses.
I didn't know this when we first started but we had to put up $500 of good faith money...basically saying we were serious about buying a house and we got that back after we closed. You also have to pay a years worth of your homeowners insurrance before you can close on a house. The cheapest I found was State Farm and they where just under $1000 for our payment.
I do suggest having an inspection done. We didn't do this but had a friend that knows alot about things walk through the house....now I am always wondering if they would have found something that I don't notice.
Oh and they will give you an amount of what you are approved for but they should also ask you what you would like your payments to be at and then they should give you amount that will keep you close to that. It is just an estimate as your homeowners insurrance and interest (depending on what rate you lock in at) will change it a bit.
|
|
|
|
Post by bumblebee23 on Nov 13, 2012 12:28:29 GMT -6
Cake makes a good point. We were already used to paying all those extra bills because we were renting a hosue for several years before we bought. I was glad we did it that way because we knew what we were getting into so definately keep those in mind!
|
|
|
|
Post by doeeyedgirl on Nov 13, 2012 13:00:30 GMT -6
If you are looking at a First Time Homebuyers loan, your taxes and insurance will need to be escrowed. If the mortgage itself is 80% or more of the value of the home, you will be required to pay PMI (private mortgage insurance) also. These will increase the payment of the home. So to give you a solid number that will help make sense to you, if you purchase a home for $102,000, you will have a mortgage payment of around $518. Once you add the interest rate (for this purpose, 4.5%; however, they are much lower now), taxes, insurance, and PMI the monthly payment will then be approx. $887 a month. It makes a difference. I didn't do a First Time Homebuyers because I had already owned a home, so it may differ for you if they allow you to roll your closing costs into your loan or not, but I had to bring about $3000 to closing. This covered the escrow funding (insurance/taxes for the first year) and other random fees that are charged (like appraisal, closing, title, mortgage filing, etc.)
Cake is right about the additional bills. Don't forget about those.
As far as the structure being sound, etc...the appraiser will be sure to check all that, as the bank wants to be sure that its collateral is safe and sound. FHA loans are very picky, so they may sometimes require certain things to be fixed before the loan is approved. My BIL had to do this out of his own pocket, in some circumstances, the seller will be responsible.
Also, once you find a realtor, the should be in the loop about the homes they are showing and he/she should be knowledgeable about the history of the home.
|
|
|
|
Post by ReneeW on Nov 13, 2012 13:31:32 GMT -6
I would second the "get an inspection" advice and find out how old major "house issues" are like the furnace, roof, windows, etc. -- things that cost a lot to replace. Maybe the appliances too, just so you're prepared. One thing I wish I'd had the guts to do was knock on the neighbor's doors prior to buying to see what those people were like and also find out if there are any neighborhood issues I should know about.
|
|
|
|
Post by apryllraye87 on Nov 13, 2012 13:50:10 GMT -6
Congratulations on this exciting step! No advice from me as I haven't purchased a home yet but just wanted to say good luck |
|
Back to the Top
