Advice for a first-time homebuyer

Topics in this category pertain to planning. Discussions include how to prepare yourself, your family and your community for catastrophes and what you plan to do when they hit you.

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Gainward
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Posts: 55
Joined: Sat Sep 08, 2007 3:06 pm
Location: Oklahoma

Re: Advice for a first-time homebuyer

Post by Gainward » Thu Jan 27, 2011 7:01 am

This may have been covered, but hey. I recently bought my first home and I can not stress the need to get your own home inspector. Watch them when they do the inspection if they don't crawl under the house and go in the attic fire them and higher a real inspector.

The previous owners of our house had the termite guys come out and paid to have approx 5k in repairs and updates done. 3 months later during remodel my contractor mentions that he can't believe anyone would write a termite policy on the house because it is not up to code. Come to find out the guy who wrote the policy is a friend of the real estate agent and only did about a 1/3 of the needed repairs and in a year he will just chose not to renew the policy.

Gainward
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Posts: 55
Joined: Sat Sep 08, 2007 3:06 pm
Location: Oklahoma

Re: Advice for a first-time homebuyer

Post by Gainward » Thu Jan 27, 2011 7:10 am

Also be sure and check all your options when it comes to your mortgage. There is no need at all for a 20% downpayment in a lot of areas. A rural development loan with qualifying income requires no downpayment and requires no mortgage insurance. FHA can be a great option if your area does not qualify for rural development. I paid no money down invested my downpayment in improvements to the home and still came out with a mortgage that is about 2/3 what I was paying in rent.

Resolute
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Re: Advice for a first-time homebuyer

Post by Resolute » Thu Jan 27, 2011 8:15 am

About the biweekly payments... They can make life easier for people who don't want to do the monthly thing and just want the same amount taken out of their paycheck for each paycheck. If you want to save a bit more money, make your monthly payments on a monthly schedule, then make an extra payment each year, all to principal, in the amount of your monthly payment. That'll accomplish the same thing as biweekly payments, but will save you more in the long run because all that money goes straight toward the debt and not interest.

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