Starting the process of buying my first home...

[hornbanger]

I am going be moving back to Houston in a month or so and have decided that I am through renting and that I am going to purchase a townhome/condo to live in.

However, since I am a first time purchaser, I don't really know what to do first. Find a couple places I like, see what kind of mortgage I can afford, etc.

I am looking for some help here on what I need to do to make the process as painless as possible.

My thought was that I need to find lenders and see how much I can afford, then find a RE agent to help me locate properties.

Thanx in advance.

 

[EJC]

#1) Go to a bank (or online) and get Pre-Approved for a loan so you know what kind of interest rate you can qualify for dependant upon how much $$$ you're gonna borrow. Of course, a mortgage broker might be able to do better depending upon your credit rating. Just get pre-approved to know a close ballpark figure.

#2) Get a good real-estate agent.

#3) Enjoy.

 

[TexasEd]

Research the areas you are interested in - don't let the agents steer you towards their favorite stomping grounds.

Check the traffic patters between the house and work at various times during the day, not just weekends.

Look into zoning of adjacent undeveloped property.

Research the tax rates for different jurisdictions. They can vary over 1% by just crossing the street.

 

[UTinBigD]

i would find an area you like, then find a realtor who specializes in that area.

Talk to people who just bought a house and find out what they missed or forgot to look at when they bought their house.

For me, we forgot to measure the space from the counter tops to the bottom of the cabinets. The couple that lived their before were pygmies and there is not enough space for some everyday items like a bottle of wine or some cooking utensils.

 

[slevhtown]

Defintely get pre-apporved by a mortgage broker (I'm not just saying that because I am one). When you put an offer on a house you want to be able to tell them the only thing that will kill this deal is the house, not my credit or financial situation. This will also let you know what you are qualified to buy. I would never suggest buying to the limit of your quilifications, this is usually a bad idea because the bank will usually allow you to afford more than you should be spending, and taxes are going to go up so your payments are going to go up.

I would also not escrow, I've never heard anyone say that they were glad they did it. Only the other way around. In my opinion if you are responsible enough to own a house, you are responsible enough to pay your own taxes and insurance.

Discuss with your broker, or financial advisor (if you have one), what the best loan option for you is. For example if you are only planning in staying in the house for a short period of time than there is no reason to get into a fixed rate loan, because you would pay the loan off before the Adjustable rate changes anyway. On that note you want to pay attention to what if any pre-payment penalties there are on the loan.

Finally get a good faith estimate and ask what all the charges are, and if they are high or low end estimiates. Most people won't try to screw you but some may. Since you are a first time homebuyer I would ask your real estate agent, friends and family what they paid in closing costs, and if you are getting screwed or not.

Like everyone else said, get a good agent. Your home is probably the biggest investment you make, you want to be sure about it both on the financial end, and comfort end. You are going to be spending a lot of time there and going to and from there so make sure it is the right place in the right area.

Hope this helps, it can be a stressfull experience, but if you surround yourself with competent people it should go well.

 

[wolfman]

Getting pre-apprived on a loan is the first logical step. You need to be able to buy when you find what you want.

Also be ware of agents who do what is called "the black box" trick. They know what you are looksing for x bedrooms, xcar garage in neighborhoodx. They will show you a lot of homes below your standards and then show you one that is close to your standards last so that it looks more appealing. Kind of like giving a starving man a cracker.

 

[JohnnyM]

or the opposite...they show you a house that is at or a little above your limit first, you fall in love with it, and then everything else is/looks like trash in comparison.

simply put, don't fall in love with a house. you lose all power when you aren't ACTUALLY willing to walk away without getting what you want.

 

[zzzz]

You're lucky in that Houston has a great site for seeing what's out there: www.har.com

You can also find good information about neighborhoods or parts of town in the forums at www.houstonarchitecture.info