buying a house

[gallandof]

Me and the GF are looking to purchase a house in the next year and had some quick questions for current home owners.

I was wondering what is a decent % to save for a down payment on a house. also are there any good apps/websites to calculate monthly costs for bills and stuff, so we can try our best to plan ahead.

 

[pool_shark]

Since the housing boom lots of lenders are back to requiring a 20% down payment.

I don't know of any calculators to help with estimating your monthly bills. That is all up to how warm you want the house to be, how insulated it is, the age and efficiency of the furnace, how much electricity you're going to use, etc.

 

[lunatic59]

It also has a lot to do with your existing credit status. Most of the real estate sites have mortgage calculators that can include local taxes, which vary widely based on municipality.

 

[gallandof]

any good sites to check credit, ive never run a credit check before. I have had a few loans that I payed off within a year, no credit card. debit card but never overdrawn.

 

[lunatic59]

Actually, little or no credit history can work against you. If you have a lending institution in mind, I'd go and have a talk with them rather than trying to understand the voodoo of credit ratings. You may be able to prequalify for a mortgage amount based on your income and credit history, which the bank will get for you. Personally I'd prefer to go through a bank because if you are going to be buying a house your credit will be checked frequently during the process any interdependent checks on your credit show up on your credit history and could also work against you.

Another good part about being prequalified is that you will know your price limits so you don't waste your time with houses beyond your means.

 

[NYCHitman1]

Credit Report and Credit History | Free Credit Report ?

 

[shawn1224]

Credit Report and Credit History | Free Credit Report ?

Just a heads up, that link has a WOT Warning

 

[Pioneer74]

Put at least 20% down so you don't have to pay mortgage insurance.

 

[pool_shark]

Find a first time home buyers seminar or class. Lots of good info.

 

[UBRocked]

My advice...find a reputable person in the business to work with you. My uncle writes mortgage loans for home buyers and WILL NOT put someone in a bad situation even if it costs him the business opportunity. His business is based largely on referrals and word of mouth.

You don't necessarily want to find the "top selling" real estate agent in town as they are focused on making money by getting you to buy a house...any house.

I'm not saying all agents are crooked, just saying that you should seek out someone that has a good reputation for helping. Sometimes the best people are those that tell you can't afford the house you fall in love with or better yet...won't let you even see such a house.

 

[Vihzel]

From what I understand, unless you pay completely in cash, you really do need a credit score. I always tell people to work on your credit when you have the option of owning a credit card. So basically once you enter college, try to get a credit card and actually use it (and always pay off everything at the end of the month). You'll need the credit score for your big purchases, like homes and cars.

Higher the credit score, better the rate.

 

[ScorpDX]

https://www.annualcreditreport.com/cra/index.jsp That's the site the US Government made all the credit bureaus give you one free report per year.

Free Credit Score & Credit Report Card. No Credit Card Needed Another good free one to get your score. I found it on CBS morning news one day. You have to register but no c/c info or any scam crap!

As for down payment, 20% is the standard unless you have a credit score in the high 700's and stable employment with a large income!

As for the bills. You can figure most of them already with the exception of electricity. Most power companies will give you a 12 month average bill if you call them with the address of the place you're looking at. It will be the exact bill from that house so you'll get an idea!

Get a real estate professional to help you! A seasoned home owner can maybe get away with do it yourself type buying but a first time buyer will most definitely get screwed one way or another!

 

[Pioneer74]

Free Credit Score & Credit Report Card. No Credit Card Needed Another good free one to get your score. I found it on CBS morning news one day. You have to register but no c/c info or any scam crap!

I knew you could get your reports for free, but never knew about a site that was free for your score. I just used it. Thanks.

 

[BigCiX]

Check out Homes for Sale, MLS Listings Search, Real Estate Agents -- Zip Realty. Just create an account and u can see the pictures of the house. It's free. U can search by zip code, square ft, how many bedrooms & bathrooms. Hopefully both u and your gf have good credit. I live in california and I got my house for $215k. 2 story on a cul-da-sac, 3 bedroom, 2 1/2 bathrooms, living room, formal living room, loft, 2100 sq ft, inground pool/spa. Previous owners paid $415 when the market boomed. Now is a great time to buy a house. Just make sure u get the one u like!

 

[Eugene]

Don't use the freecreditreport.com, its the scam site that makes you sign up for a trial of their services then you have to fight to cancel it. As another person posted annualcreditreport is the correct one, you get one free per year from each of the 4 main reporting agencies.
20% is the standard figure, you can qualify for lessor down payments through use of PMI and/or first time homebuyer programs. Plan for ~5k for all the other different things you need up front, paying for inspections, and such.
Having a credit card can improve your credit, get one with whatever bank you are currently with rather than getting whatever random offer you get in the mail. Buy one item for a a $200-$500 and pay somehting like $50 each month, yes you will pay some in interest but your credit score will go up.
Buy for the neighbrhood not the house. I bought a nice house in an older neighbrhood then when the neighborhood kept going down we were forced to move. Location is the most important thing.

 

[lunatic59]

Location is the most important thing.

+1

 

[NYCHitman1]

Just a heads up, that link has a WOT Warning

I didn't go to the site. I just linked it. I always see it on TV so I figured it might be legit.

 

[OMJ]

My advice...find a reputable person in the business to work with you. My uncle writes mortgage loans for home buyers and WILL NOT put someone in a bad situation even if it costs him the business opportunity. His business is based largely on referrals and word of mouth.

You don't necessarily want to find the "top selling" real estate agent in town as they are focused on making money by getting you to buy a house...any house.

I'm not saying all agents are crooked, just saying that you should seek out someone that has a good reputation for helping. Sometimes the best people are those that tell you can't afford the house you fall in love with or better yet...won't let you even see such a house.

I completely agree. My mortgage broker has been in business for 15 years and none of his loans have ever been foreclosed on. He turned a friend of mine away cause he was looking to get preapproved for much more than he could afford. Finding someone like this to look at your financial situation and give you advice would be the best way to go.

 

[jamor]

You want to buy a house but you don't even know how to check your credit let alone what your credit is? An overdrawn debit card for a couple days doesn't impact your credit score lol..

I would hold off on buying a house for a while you need a lot of education before you start shopping for a house.

 

[lordofthereef]

You want to buy a house but you don't even know how to check your credit let alone what your credit is? An overdrawn debit card for a couple days doesn't impact your credit score lol..

I would hold off on buying a house for a while you need a lot of education before you start shopping for a house.

So he doesn't know much about credit. How does that make him not ready to learn how to look for houses? One does not need to know everything there is to know about credit to own a house. At what point, in your opinion, would he be ready and knowledgeable enough to buy a house?

 

[A.Nonymous]

From what I understand, unless you pay completely in cash, you really do need a credit score. I always tell people to work on your credit when you have the option of owning a credit card. So basically once you enter college, try to get a credit card and actually use it (and always pay off everything at the end of the month). You'll need the credit score for your big purchases, like homes and cars.

Higher the credit score, better the rate.

I could not disagree with this advice more or more vehemently. You could not pay me enough to have a credit card. I cut all mine up about 3-4 years ago now and wouldn't go back. It's a myth that you need a credit score to get a home loan. Just pay cash for your car and you don't need credit for it either. You don't need credit. It's not worth making payments to someone for the rest of your freaking life instead of saving up money for yourself.

 

[jamor]

So he doesn't know much about credit. How does that make him not ready to learn how to look for houses? One does not need to know everything there is to know about credit to own a house. At what point, in your opinion, would he be ready and knowledgeable enough to buy a house?

The most basic knowledge in house buying is what kind of down payment you can put down.. if you don't know the very basics let alone how credit scores work or what your credit it is.. he noted he's never had a credit card - that's actually a bad thing. I'd say you have a long way to go.

 

[gallandof]

some quick background info, while I dont have a credit card, I have had a few loans that I paid off relatively quickly. (student loans close to 40k paid off in <1yr, new car at 8k paid off withing 6 months) average income between the two of us is about 120k average. we are 21 so i dont know if that hurts us or not.

 

[NYCHitman1]

some quick background info, while I dont have a credit card, I have had a few loans that I paid off relatively quickly. (student loans close to 40k paid off in <1yr, new car at 8k paid off withing 6 months) average income between the two of us is about 120k average. we are 21 so i dont know if that hurts us or not.

21 and looking to buy a house together? I feel like I want to say you should wait a while but to each his own.

 

[A.Nonymous]

21 and looking to buy a house together? I feel like I want to say you should wait a while but to each his own.

I have no problems with buying a home at 21, but you shouldn't buy a home with someone you're not married to ever. Also, you shouldn't buy a home if you have any debt.