Monday, June 22, 2009

Lessons learned on Buying a house

These are the lessons, We learned while buying our first house:

1. You don't need to have a real estate agent when buying a brand new house. The process is very straight forward.

2. You do need a real estate agent, when buying a old house, for him/her to show the houses and tell a little bit on them.

3. Do your personal research on -- mortgages, house buying -- basically, A to Z on house buying.

4. You can still be pre approved even if you don't have 20% down, if your credit score is excellent.

5. If it is your first home, stay away from foreclosed homes.

6. All you need is 3.5% down payment and excellent credit score, to get FHA loan.

7. When deciding on mortgage rate, understand points and rates. If you pay for additional points, you may lower your interest. Decide on that depending on how long you are planning to stay in the house.

8. You will normally get qualified for much more than, what you can afford. Decide the price of your house on affordability and not on how much you are qualified for.

9. Have some money aside for closing costs. It normally includes -- application fee, title, insurance, escrow fees, credit report fee, attorney fees, appraisal fees, document preparation fees and notary fees

10. You shouldnot hurry, have patience and take your time.

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7 comments:

  1. congratulations!
    -sk subramanian

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  2. this is helpful. specially #5. very true.

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  3. Hi! Can you please tell me why should first time home buyers stay away from foreclosures?

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    Replies
    1. Foreclosures can demand that you are handy person and can fix things on your own. Thats what I learnt :) if you are up for challenge .... do it.

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  4. To answer Bhaskar, foreclosed home has more legal hoops to go through and you buy the house as is. So if any problem comes with the house you will not have a chance to talk to previous owner to fix it. However if you are DIY person like me and like to fix thing then buying a foreclosed house gives you a lot of savings. More importantly the legal problems are too much of a headache especially if it is your first time. Two years running owning the first house.

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  5. Pretty Cool Blog..Interesting facts..

    ReplyDelete