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That question sounds idiotic, but I mean what is the procedure for purchasing a house?<br><br><br><br>
I know the outline.. go to a bank and get pre-approved for a mortgage... look for a house within your price range.. make an offer... live happily ever after..<br><br><br><br>
But that is too easy <img alt="" class="inlineimg" src="/images/smilies/deal2.gif" style="border:0px solid;" title=":deal:"><br><br><br><br>
Can someone give me a walk through? Do you have to have a real estate agent? How long does this whole procedure take?<br><br><br><br>
My bf and I likely have to move this summer because our landlords are being jerks which may result in a very large rent hike. With the money we have saved, we could put a down payment on a house and the monthly mortgage payments would be less than our current rent by a few hundred dollars. It seems to make more sense to try and buy a house rather than keep pouring money into rentals. The market is slow as heck around here now so it's a good time to buy. Of course this raises a million other questions like what added complexities are involved in buying a house with someone you're not legally related to? (Not relationship wise... we get the complexities there.. I meant more technically in co-owning something so big when you're not legally bound to each other) We both have good credit, and aren't in any serious debt (I have student loans but they're going to be deferred a few more years since I'm still in school, but I won't be taking any more student loans. I also have a car loan for one more year, and the money for that I already have and is set aside in a seperate account. All of my bf's debts are to his parents, thus are interest free with no time limit.). My father is willing to co-sign on a mortgage, if necessary.<br><br><br><br>
I may think of more questions later... But thats a start.
 

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No, you don't have to have a real estate agent. But you should. The seller pays the commission, so it realistically won't cost you anymore than if you don't.<br><br><br><br>
Ask friends if they can recommend an agent they have used. Sit down with the agent and discuss what you are looking for, and ask if they can recommend any mortgage brokers they frequently work with.<br><br>
Call the broker and get a pre-approval, and then call your agent with the amount you qualify for. He/she can then start looking for listings in your price range.<br><br><br><br>
If a mortgage is a few hundred less than you pay in rent, you should be good to go. You will also receive some tax bennies which will help as well. Upkeep and insurance will run you more with a home (along with other miscellaneous costs) but based on what you have said, you are in a great position to buy and be better off.<br><br><br><br>
As you move through your buying process, a good agent will walk you along with how to make an offer, home inspections, and so forth.<br><br><br><br>
A good rule of thumb - if the agent won't sit down and answer your questions early in the process, find another quickly.
 

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Having a real estate agent is in your best interest. There is tons of paperwork and things that need to be done. It's easy to miss something important if you don't have one.<br><br><br><br>
It's a good idea to get prequalified before you look at houses so you know ahead of time what your price range will be. What you think you can afford and what the bank giving out the loan thinks you can afford could be very different.<br><br><br><br>
Once you find a house you like and have an offer excepted make sure to get an inspection done. This is pretty important as I found out first hand.<br><br><br><br>
As for the different types of ownership (co-owner, etc) the agent can tell you what they are but can't advise you which one to go with. They will probably suggest you see a RE Lawyer for legal advice.
 

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I slightly disagree with Tame. From what little I've seen of real estate agents, they don't do a heck of a lot for you except try to tie you in to a long term contract to get their commission. I think the notion that because the seller pays the commission it costs you nothing is naive. If there is a 6 percent commission involved, it's likely that the sales price is 6 percent higher than it would be without the broker. So you end up paying for the commission in terms of the purchase price of the house.<br><br><br><br>
There will be homes "for sale by owner" advertized in your area. You should at least look into buying one of these and saving the realtor's fee.<br><br><br><br>
I would say that far more important than finding a realtor would be finding a good lawyer, one who has substantial experience in real estate transactions. He or she should look over any contract with a realtor before you sign it.<br><br>
I would try to keep the term of those contracts as short as possible, say, 6 months. If the realtor is doing a good job, you can always extend the term. But if not, you are well rid of them.<br><br><br><br>
A lawyer could also help you with setting up some structure to deal with the fact that you are not married. What legal alternatives are available depends heavily on state law.<br><br><br><br>
I think a visit to the public library to get books and articles on how to buy a house is in order. These will give you information you need at a cost far less than 6 percent of the purchase price of your home.
 

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Categorically, what Tame said. Working without an agent might help a seller with connections, but never a buyer who isn't an agent.<br><br><br><br>
Your bank can tell you, pretty much up front, what you'll qualify for in terms of sales price and qualification.<br><br><br><br>
Wait, did I just see Tame?
 

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<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>Joe</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
I slightly disagree with Tame. From what little I've seen of real estate agents, they don't do a heck of a lot for you except try to tie you in to a long term contract to get their commission. I think the notion that because the seller pays the commission it costs you nothing is naive. If there is a 6 percent commission involved, it's likely that the sales price is 6 percent higher than it would be without the broker. So you end up paying for the commission in terms of the purchase price of the house.<br><br><br><br>
There will be homes "for sale by owner" advertized in your area. You should at least look into buying one of these and saving the realtor's fee.<br><br><br><br>
I would say that far more important than finding a realtor would be finding a good lawyer, one who has substantial experience in real estate transactions. He or she should look over any contract with a realtor before you sign it.<br><br>
I would try to keep the term of those contracts as short as possible, say, 6 months. If the realtor is doing a good job, you can always extend the term. But if not, you are well rid of them.<br><br><br><br>
A lawyer could also help you with setting up some structure to deal with the fact that you are not married. What legal alternatives are available depends heavily on state law.<br><br><br><br>
I think a visit to the public library to get books and articles on how to buy a house is in order. These will give you information you need at a cost far less than 6 percent of the purchase price of your home.</div>
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Yeah, why spend an extra 3% when you can spend hundreds of hours and pay $300 an hour to a lawyer the entire time.
 

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I think now is a great time to buy, it is definitely a buyers market.<br><br>
I would get connected with an agent to help you find a home........if you check <a href="http://www.realtor.com" target="_blank">www.realtor.com</a> you will find most listings for whatever area you are looking in. also keep an eye in your sunday paper for what homes are actually SELLING for.......you will probably end up paying less than what a buyer is asking right now.<br><br>
also a real estate lawyer is important, ours came with us to closing, he had looked over all papers prior but also came to closing.<br><br>
hire a reputable inspector to do a home inspection.<br><br>
expenses over and above the mortgage payment itself are home insurance and taxes in my area the home insurance and taxes add about $250 a month over and above the payment,<br><br>
also keep in mind when things break or wear out....now you need to have an emergency fund to pay yourself.<br><br>
the tax benefit is great though, all the real estate taxes, mortgage interest is deductable.
 

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<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>Bonoluvr</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
our real estate lawyer charged a flat fee for the transaction. he didnt charge by the hour.</div>
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Did that include the ad-hoc fabrication of a legal structure as Joe is suggesting?
 

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I don't know about what Joe is suggesting.<br><br>
But we had our house built, we used a Veterans Loan ( courtesy of my hubby)......it was all very cut and dry, ........rules to follow for the VA......the agent who was selling the homes for the builder was the agent who sold it to us..........we agreed on everything, we had papers drawn up, we contacted a re lawyer who looked at everything, made suggestions, then when it was time for the closing he was there also. but like i said things had to be in order for the VA it was a bit different.
 

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Seriously - the stress of buying and establishing is plenty enough to deal with. Don't fick with your sanity and security for the sake of a few thousand dollars. Also, don't underestimate an agent's access to incredible resources when you're buying.
 

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I am thinking what joe is talking about is how to have the deed worded. there are various ways to hold title to the home, even when you are married and each has different implications
 

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<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>nigel</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
Seriously - the stress of buying and establishing is plenty enough to deal with. Don't fick with your sanity and security for the sake of a few thousand dollars. Also, don't underestimate an agent's access to incredible resources when you're buying.</div>
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Also don't underestimate how much negotiating sucks and how much better real estate agents are at it than you are.
 

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<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>Bonoluvr</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
I don't know about what Joe is suggesting.<br><br>
But we had our house built, we used a Veterans Loan ( courtesy of my hubby)......it was all very cut and dry, ........rules to follow for the VA......the agent who was selling the homes for the builder was the agent who sold it to us..........we agreed on everything, we had papers drawn up, we contacted a re lawyer who looked at everything, made suggestions, then when it was time for the closing he was there also. but like i said things had to be in order for the VA it was a bit different.</div>
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Having a house built on a schedule within a VA program and buying a house on the market are two entirely separate things. The OP was asking for advice, not abnormal anecdotes within a well-structured sub-system.<br><br><br><br>
not meant as an attack - but I think you know your comments aren't really applicable.
 

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Oh yeah, advice.<br><br><br><br>
I would advise against using any loan other than a n-year fixed interest loan unless you have an excellent reason for doing so and are extremely confident that you understand how the loan works.<br><br><br><br>
Also, you'll be itemizing income tax deductions after you buy a house. Be aware of that and start saving receipts. The tax benefit will be better if you can make up some of the standard deduction that you will be giving up.
 

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Sabrina and Dave just put a bid in on their very first house. They started out by going to a mortgage broker to see exactly what they could afford. Then they went to every open house on the weekends. After that they signed with a realtor who was able to show them more houses. It's working out for them. I actually don't remember if they have a lawyer yet...but I agree a good one is important. The one I had when I moved was not so much.
 

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I like using the seller's agent because you can get more info on the seller's interests that way. If you get your own he or she is still trying to make a sale and is paid by the seller anyways, might as well use the one who stands to double their commission. Get your own lawyer though.<br><br><br><br>
Qwerks' step-by-step guide to buying a house:<br><br><br><br>
1. Get your pre-approval from the lender and work out a realistic budget with taxes, insurance, utilities, and maintenance figured in.<br><br>
2. Decide what kind of home you want and where, find one in a decent area close to but not on a major street.<br><br>
3. Contact the listing agent to arrange a viewing. Keep doing this until you're in love with something.<br><br>
4. Get the agent to draw up an offer. Include everything you want that s/he thinks you might get from the seller like appliances, window coverings, a neat bench in the yard, whatever, at the lowest price the agent thinks the vendor will accept. Contingencies need to include satisfactory inspection results, no leans on the property, no outstanding work orders at the time of acceptance of the offer, maybe no UFFI and something about financing if you aren't sure. You should be sure though.<br><br>
5. Get thee to the lender and sign all their crap, ask for the name of a good real estate lawyer if you don't have one in mind.<br><br>
6. Get the inspection done and tell the agent it's a go if the results are okay. Abort and start over if the foundation looks iffy.<br><br>
7. Go to the lawyer and hand over a wad of cash and whatever else they want.<br><br>
8. Set up the insurance and forward that info to the lender.<br><br>
9. Book a mover and give notice to your landlord. If you do the latter in person you can smirk a little.<br><br>
10. Pack<br><br>
11. Go to the book shop and get some good books on plumbing, wiring, carpentry, doors and windows, siding, masonry, roofing, flooring, tile, and landscaping.<br><br>
12. Buy more cleaning supplies than any human being should ever need. Don't pack them just put them in the car.<br><br>
13. Get the keys from whoever has them. Enjoy!<br><br><br><br>
P.S. The lender will tack a bunch of fees onto the mortgage, so it'll be the sale price minus your downpayment plus an assload of miscellaneous fees.
 

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My husband and I are in the process of buying a house. I'm VERY glad that we got a real estate agent to work on our behalf. She did a TON of annoying legwork stuff for us, and even better, since she knows the market, she convinced us to put in an offer 15K lower than we would have otherwise - saving us 10K in the longrun there alone....<br><br><br><br>
THEN she also had some contacts in the mortgage world, and even though I had a very good offer for a rate of 6.128%, she knew someone who discounted rates for first time homebuyers which brought us down to 5.875% for a 30 year fixed. No points, very inexpensive closing costs. So that saved us another 16K longterm.<br><br><br><br>
Last week she got the ball rolling on the bank assessment of the property, we didn't have to do boo about it. She's very friendly and she made us feel very comforted during the process. :)
 

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<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>remilard</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
Oh yeah, advice.<br><br><br><br>
I would advise against using any loan other than a n-year fixed interest loan unless you have an excellent reason for doing so and are extremely confident that you understand how the loan works.</div>
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<br><br><br><img alt="" class="inlineimg" src="/images/smilies/yes.gif" style="border:0px solid;" title=":yes:"><br><br><br><br><br><br><div class="quote-container"><span>Quote:</span>
<div class="quote-block"><br>
Also, you'll be itemizing income tax deductions after you buy a house. Be aware of that and start saving receipts. The tax benefit will be better if you can make up some of the standard deduction that you will be giving up.</div>
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Fortunately for most people, the interest rate deduction, property taxes, and state/local income taxes paid are typically enough to overset the standard deuction and then some.
 
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