Home Buying: What would you have done differently?

[MikeOH58]

Closing on my first house on Wednesday! Yahoo! Figured it might be useful, specifically for first time home buyers to start a thread and discuss the things you wish you would have done differently.

1- Request seller provide property survey if property lines are not precisely known. *I have an approximate idea of my line, but the 1-2 feet in question have a line of small pines. I'd like to know who these trees belong to, and not i'm going to have to end up paying for a survey in the neighbor objects to me taking the trees down.

2- Request seller remove kitchen cabinets. They removed appliances. I am putting in new cabinets. Not sure if this ever happens in RE, but would have saved me a days work removing the old.

What say you?

 

[Itchy]

Bought a bigger house. We went on the low end of what the financials said we could afford.
You should need an accurate survey to close the deal.
Cabinets I have found come out QUICK. You can gut QUICK. It's putting everything back that is disturbingly long.

 

[tiredcfi]

On the next one, I will make sure the contract includes provisions for the seller to remove all of their belongings!

 

[Houston]

If you're closing on Wednesday, it's a little late to give any meaningful advice.

If you haven't had the house inspected by an engineer, stop now and get that done even if it changes the closing. That includes an inspection for termites.

If you are not putting down 20% on the house,then you will be paying Private Mortgage Insurance (PMI). Later, when you reach the point where you have 20% equity in the house, you can drop the PMI and stop paying for it. However, YOU have to ask for that. The mortgage company isn't going to mention it to you. So keep an eye on that.

 

[rjmore]

If you have a mortgage they will want a survey in just about all cases so that should be a given.

You can ask for just about anything but I wouldn't expect a seller to do your demo. What if your loan falls through? Are you going to cut them a check to put cabinets back in their house? I've had closings bust out on the closing date because the buyer did something stupid with their credit. Many lenders will run your credit the day before or the morning of closing. Do not pay anything late or buy ANYTHING on credit while you are waiting to close.

I imagine you had an inspection so that goes without saying. If you haven't then it isn't too late but it will be too late to back out without losing your earnest money.

People need to understand that they are signing a contract that they are legally bound to. Go through it with your Realtor and make sure you understand it. Know the rules for your option period or inspection period and stick to them. Buyers can and have been sued for thinking they can just walk away without any care in the world. There is recourse called specific performance and the seller has the right to be made whole for the time the property was off the market. If you need to back out be sure to do it within the rules of your contract.

As a guy who buys houses routinely, I have one big piece of advice. Be prepared for home ownership financially. Put away money for the day that the AC goes out or the water heater or a myriad of other items. Homes take work and money to keep in good condition. There is no landlord to call and complain to anymore, you're it. I buy houses from people that didn't seem to know this. The next thing they know they are calling me to look at that house they can't sell because it is a wreck.

 

[Cessnaflyer]

Pretty late to do anything now especially if the contract is in mutual acceptance. Sellers don't like last minute addenda added.

The cabinets are easy to demo. Unscrew them and done plus you can sell them on craigslist to get a few bucks.

For the property line what did you get from the exhibit A? Are there any survey pins placed?

 

[MikeOH58]

I wouldn't dare ask to make any changes with closing on Wednesday. I created this thread as I thought it could be useful to fellow JCers getting into the home buying process.

 

[pnwchief22]

Most counties here in Washington have an Assessor's Office website that allows you to see past transactions, survey(s) of the property or subdivision, taxes owed and paid, past ownership, even the recorded deed(s) from past mortgages are in the open now to view on the web. I look at this stuff every week for compliant (code) research and would definitely suggest a potential buyer get on the web and look up the parcel number and address of the home. Zillow has some good details, as well. Find out if the home received a final inspection and certificate of occupancy from the City or County (where applicable). Choose a home inspection company that employs only certified inspectors, here the State issues certifications after documented experience and exam.

 

[SFLAX]

I would do a home inspection, for FHA they are required. But I paid for my Plummer, electrician, HVAC and roofing guys to take a look. Best money I ever spent buying a home.

 

[skypilot6]

If you are not putting down 20% on the house,then you will be paying Private Mortgage Insurance (PMI). Later, when you reach the point where you have 20% equity in the house, you can drop the PMI and stop paying for it. However, YOU have to ask for that. The mortgage company isn't going to mention it to you. So keep an eye on that.

Thats not true anymore if its an FHA loan, On April 1st 2013 the rules changed and now if you get an FHA loan you have to pay PMI for THE LIFE OF THE LOAN. The only way to get rid of it would be to refinance. Also I bought my home this year (Applied for the loan before the April 1st rule change) with an FHA loan and pay PMI, once I reach 22% AND the loan has to be 5 year mature before I can drop PMI. If I reach 22% before 5 years I'll still be paying PMI till the 5 year mark.

Just some food for thought for someone looking to buy a house and using an FHA loan to do so.

 

[Seggy]

Thats not true anymore if its an FHA loan, On April 1st 2013 the rules changed and now if you get an FHA loan you have to pay PMI for THE LIFE OF THE LOAN. The only way to get rid of it would be to refinance. Also I bought my home this year (Applied for the loan before the April 1st rule change) with an FHA loan and pay PMI, once I reach 22% AND the loan has to be 5 year mature before I can drop PMI. If I reach 22% before 5 years I'll still be paying PMI till the 5 year mark.

Just some food for thought for someone looking to buy a house and using an FHA loan to do so.

However, with the interest rates so low (thanks Obama!), paying the PMI Insurance for the life of the loan is still cheaper than saving up, putting 20% down and risk getting a higher interest rate. This is especially true if you plan on paying off the note early.

 

[skypilot6]

However, with the interest rates so low (thanks Obama!), paying the PMI Insurance for the life of the loan is still cheaper than saving up, putting 20% down and risk getting a higher interest rate. This is especially true if you plan on paying off the note early.

Also true, I got a nice rock bottom rate of 3.675% but PMI for 5 years or 22% Im fine with that as PMI is tax deductible (for this year at least) and I have a house! Which without the FHA loan I wouldnt right now.

 

[pnwchief22]

Closing on my first house on Wednesday! Yahoo! Figured it might be useful, specifically for first time home buyers to start a thread and discuss the things you wish you would have done differently.

1- Request seller provide property survey if property lines are not precisely known. *I have an approximate idea of my line, but the 1-2 feet in question have a line of small pines. I'd like to know who these trees belong to, and not i'm going to have to end up paying for a survey in the neighbor objects to me taking the trees down.

2- Request seller remove kitchen cabinets. They removed appliances. I am putting in new cabinets. Not sure if this ever happens in RE, but would have saved me a days work removing the old.

What say you?

How was the closing??

 

[Houston]

thanks Obama!

thanks Obama!

thanks Obama!

thanks Obama!

thanks Obama!

 

[Seggy]

@Houston, how much was the national debt increased with Bush in office thanks to two wars he put on a credit card?


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[MikeOH58]

Closing was cake! Hand hurts a little from initials/signatures, but no surprises. Now the work begins.

 

[skypilot6]

Closing was cake! Hand hurts a little from initials/signatures, but no surprises. Now the work begins.

Congrats!!!!

 

[Houston]

@Houston, how much was the national debt increased with Bush in office thanks to two wars he put on a credit card?

During Bush's eight years in office the total national debt went up the same amount as in Obama's first three years and two month. That was an amount that Obama said was "unpatriotic", but which he has since gone on to dwarf.

 

[Eric Bohn]

At least in Minnesota you can get an aerial view of the property including an estimated position of the properly lines for free online. I used that and rented a metal detector to find the stakes that mark the edges of my property. $20 metal detector rental and a few hours of work (I had about 6-8 stakes to find due to multiple adjacent properties on the south edge).

 

[jynxyjoe]

Trolling trollberts troll.