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gigglezk
01-16-2005, 04:10 AM
dh and i are currently working towards purchasing our first home. we hope to have a new home built by next year. however i don't know anything about getting a home. i plan on talking with some mortagage companies and would like to know what kind of questions i should ask. i was talking with seek_first and she was telling me about myfirsttexashome.com which is a state program that assists first time buyers in getting a new home. i was wondering if anyone has done anything like this in their state.

also i wanted to know if anyone has gotten a home using their SO's credit line. dh and i want to get a home but the problem is he has the job but so-so credit. and i have the great credit but no job. and since i would be the co-signer on the mortgage. do i need to have a job as well or is my credit good enough? we just purchased a car and i co-signed and my credit was good so my employment status wasn't an issue. but would it be the same with buying a home?

also we don't mind waiting to get a home built because the duplex we live in now is great. so should we wait until dh's credit gets better and i have a job? or just go for it. his credit is in the mid to high 500s and mine is in the mid 700s. also he's been employed by the same company for 6 and 1/2 years. so would my credit balance out his credit?

any input is greatly appreciated.

seek_first
01-16-2005, 12:01 PM
I went to a morgage seminar and that same question was asked. The mortgage broker said that using the employed spouse's good credit rating and using the employed spouse's income was fine and actually quite common. A seminar put on by a credit union or a real estate company is really good because they touch on the common problems. I'll let you know when I hear of another one being offered.

babynichole
01-16-2005, 05:53 PM
"however i don't know anything about getting a home. i plan on talking with some mortagage companies and would like to know what kind of questions i should ask. "
************************

Sorry I don't know how the quote feature works.

I've signed up with the NACA program www.naca.com. They walk you through the entire process, and are advocates for homebuyers.

gigglezk
01-16-2005, 06:02 PM
:) thanks seek, i'll be looking out for seminars as well.

babynicole, i'm going to look into that site. thanks...btw, just click the green reply button under my post and it'll take you to the add reply section with my post already quoted. hth. :)

EarthyDiva
01-16-2005, 09:58 PM
I would definitely go to the mortage seminars or participate in the state sponsored program. That usually means extra $ somewhere which is always great. You can also put feelers out with LendingTree.com. Put in your info and lots of lenders will call you with their rates. That will give you a sesne of the market.

I would say get in the home as soon as you can afford to. You can always refinance later for a better rate when you build up your credit ratings. B/c no matterhow good your rent is, you're still paying someone else's mortgage. If you buy something even with a slightly elevated interest rate you are investing in your family and getting a pretty nice tax return. Just make sure it will still be affordable as your family continues to change.

Warning: I am not a financial advisor by trade so take this advice with a grain of salt.

Good luck,
ED

babynichole
01-17-2005, 12:34 AM
@ gigglezk

Thanks! You know for the first time I can see the little green buttons and some smilies. I guess Dee and her team are working hard to correct the errors on the site. :D

tdhayes
01-17-2005, 03:53 PM
NACA is a TERRIFIC company if you are interested in buying a home. However, you MUST have your finances in order. You go through a workshop AND they make sure that you KNOW what you are getting into BEFORE you procede. Be sure to have at LEAST $3000 saved up regardless of who you go through. You WILL have to pay for certain things such as: earnest money, termite letter, home inspection, home appraisal, closing costs, credit reports, etc. This stuff DOES cost money and you pay it BEFORE you get the home. Also be advised that some things may need to be fixed before you get into a home.

If you are having a home built, you may have additional fees, etc. ALWAYS visit the site DAILY when they are building your home to be sure that they are building it to your specifications. I know folks who did not do this and regretted it later. KNOW what you are getting into with having a home built. ASK QUESTIONSS!!! Make sure that you know about the builder and the construction process so that they will NOT run game on you...they are good for this because MOST FOLKS DON'T KNOW!!!! Don't be a fool in your home buying process. Find out if your builder/contractor actually LIVES in one of the subdivisions that he/she has constructed. If they do, GO LOOK AT IT...talk to some of the folks over there and see if they are satisfied. If they do not, RUN!!!!

If you are considering ANY home, make sure that the foundation and soil around it are SOUND!!! Take your climate into consideration. Don't let the builder convince you that you need a basement when you really don't...unless you just want one.

Be sure that your mortgage broker/real estate broker is NOT connected with the folks building the subdivision. They may not be completely honest with you if they are. Be sure that you go to theHousing and Urban Development- HUD (http://www.hud.gov) to find more information on home buying and the process including 100 FAQs and possibly things that YOU should ask. Go to Fool.com (http://www.fool.com) and get some information on the home buying/mortgage process. ALWAYS BE INFORMED about what is going on. If you don't understand, ASK QUESTIONS UNTIL YOU DO UNDERSTAND! If they don't "have enough time" to explain things to you, GET A NEW REPRESENTATIVE or company to represent you. Have your own lawyers to go over everything for you.

BEFORE you close, get your closing papers at LEAST 48 hours IN ADVANCE so that you can review them and be sure that everything in those papers are yours! Be sure that ALL costs are on there so that there will be NO surprises. I didn't do this and it cost me. Make that be a part of the process. If they can't do that...you may need to let things walk.

NEVER do anything or sign anything if you are not completely comfortable.

Try to have at least $2000 saved up for after you get the house. Try to put at least $50-$100 away each month for house expenses. If you are having a home built, prepare for settling in which, cement floors tend to crack, windows may crack, etc. These are things that you need to be prepared for. If you are getting a pre-existing home, you may have some of the same issues, in addition to pipes, appliances, etc.

Lastly, GET A JOB if you are able to work. I say this because if something happens to your hubby and he can't make the payments, they are coming after you for the money. THIS IS FOR ANYTHING THAT YOU CO-SIGN ON. Have BOTH of your names on the mortgage because if you don't and you divorce, he could put you out without a thought because technically, it's HIS house...that may have changed, but last I recall, they could.

This is all that I can think of at the moment...my brain is shutting down..need to eat...If I think of anything else, I'll post again.

Just so you know...I purchased my home in 2003. I don't want ANYONE to go through what I went through at my closing. BTW, I SHOULD have gone through NACA for my house. I may use them for my second home. Last I remember, the interest rates on their loans are 1% lower than the standard which could save as much at $1000.

intelsis
02-01-2005, 10:44 PM
i actually ordered the fannie mae information (its free). they have like 3-4 books that have alot of information

i also paid for suze orman's financial advice books. i bought a set from QVC. about the only time i ever got something from them

with those 2 resources i followed step by step. using suze's advice i raised my credit score 100 points in under a year (from low 600s to mid 700s), and was able to get a home by myself w/ no money down (80/20 mortgage)

theres TONS of free advice, but id say fannie mae is pretty reliable since its government sponsered. clark howard also has some good information. one thing i DO recommend is utilizing your local library. thats what you pay taxes for!

liberationtheory
02-02-2005, 12:15 AM
Originally posted by intelsis@Feb 1 2005, 06:44 PM


with those 2 resources i followed step by step. using suze's advice i raised my credit score 100 points in under a year (from low 600s to mid 700s), and was able to get a home by myself w/ no money down (80/20 mortgage)


698884


i didn tknow it was possible to improve a score so much so soon. that's very reasurring to know.

mind sharing any tips you've learned?

intelsis
02-02-2005, 03:57 AM
Originally posted by libertyacc@Feb 1 2005, 08:15 PM
i didn tknow it was possible to improve a score so much so soon. that's very reasurring to know.

mind sharing any tips you've learned?

698923


the main thing is i SACRIFICED. i was determine to do so. for one year, i paid off 2 credit cards and paid down everything else

and it was a sacrifice! i didnt go on trips, buy hardly any extras (that includes clothes,shoes--and i LOVEEEEE shoes!), splurge, use the credit for NOTHING that wasnt an emergency,eat out...i mean it was bare bones living. i told everyone around me not to expect me to want to go "shopping", or do expensive outings.temptation was too much. i mean i lived like i was broke for that year,LOL. but it paid off.

it was at this time that i discovered you can check out current CDs and DVDs from the library. LOL, i was getting all the hot stuff and folks were like, where you get that from--with your cheap self. i also didnt buy books, and i LOVE reading. i checked them suckers out from the local

i was able to save up about $6000--which ironically, i didnt have to pay for closing costs--the seller did that--i ended up spending about $4000 getting my car fixed over the course of the year, then spending the rest on "things" to move into the house:

u-haul
carpet clean/hardward floor polish---
not to be funny, but the previous owner was white, and had inside dogs, i damn near had to fumigate out the smell (BTW, i recommend NOT buying from folks who have inside pets-that was one lesson learned for me)
food for the people who helped me move
getting services turned on, blah blah blah

i also didnt "loan" money to friends/fam. everyone knew i was saving for a house and knew better than to come ask me for dough unless it was DIRE!

i pulled my credit report at the beginning of the "poor" year==score was 605. there were 3 discrepencies that i had to straighten out--somethings was there that shouldnt have been. so i had to write letters, make phone calls. i also made sure everything else was right. at the end of that year i pulled it again, and the score had gone up to 730. now i make it a habit to pull my report at least once a year to check for accuracy, because if i had just started applying for mortgages w/o knowing what was on my report, i would have been hosed!

i plan on refinancing each year. i know folks who do this, and the lady who was my mortgage person recommended it. it makes your payment lower.there are so many companies vying for your business its crazy not too!

brnize4u
02-02-2005, 07:57 AM
WOW, that was a ton of information, thank you so much. I need to get on the bandwagon and pull up my credit report.


brnize4u

footsiee
02-02-2005, 08:32 PM
Awesome info TD!!! Where you were when I bought my house. With real estate, unless it's in an area that is not be revitalized or property value is not increasing, is always a good investment. I purchase my townhouse in 2003 for $124K and it's value tops out right now at $170. My advice to you gigglezk, is go for home ownership because its a worthy investment. By the way, your credit is GREAT!!!!

tdhayes
02-03-2005, 06:25 PM
Came back to add a little bit more...

Some lenders will suggest that you get a 1st and 2nd mortgage to get around paying private mortgage insurance (this protects the lender and NOT you by the way.) The ISSUE with this (at least for me) is that you essentially have 2 mortgage payments for one home...yes, you write 2 checks for the same home. THAT is aggravating to say the least!

Know that you MUST have homeowner's insurance before you can move into a home. PLEASE compare rates of several companies. Start with the company that insures your car. I have GEICO for my home and car and I love them. Also, PLEASE do NOT file a claim for your home unless it's absolutely necessary (read BIG things). Also check into getting umbrella insurance in addition to your regular home/dwelling insurance. This is backup money for stuff that your home owner's insurance may not cover. DO NOT file claims for small things. If an estimate that you receive for a repair is something like $100 more than your deductible, TRY hard to get that extra $100 bucks and pay for the repair out of pocket. I say this because a coworker filed a claim on her home for repair. The estimate was $550. Her deductible was $500. She filed a claim. They paid for the repair and then DROPPED HER for insurance. Once you are dropped from homeowner's insurance, it is VERY difficult to find another carrier and if you do (and you will), be prepared to pay MUCH MORE!!

If you don't mind doing some work, look at purchasing a foreclosure. You save some money this way and you usually go in with equity. My home was a foreclosure. Granted the rapscallions snatched out 95% of the light fixtures, took the range hood, shower heads, outlets and the stripped the garage door opener BUT I got the home for $102k in Sept. 2003. It was appraised at $121k. When I refinanced in Jan. 2004, it was appraised at 123k. I went into my home with more than $15k in equity. If I NEED to borrow money against my home for a major repair, I could do so...I just pray that I NEVER need to do this. BTW, HomeDepot was and still is my best friend when it comes to things for my home AND learning things about my home. I recommend that EVERY homeowner have the BIG ORANGE HOME DEPOT BOOK! It's the home repair bible complete with photographs, time estimates and skillsets for common things that you can do yourself around your home.

ASK if your home will have a septic tank or be on the sewer system. If you are getting a home with a septic tank, check with the County Enviromental Health dept. to find out information on that tank. They should have this information. There is a fee for it (~$15) but it tells you where your tank is, when it was put in, the company that installed it and the size. If the company who installed is still in business and is reputable (I found this out from the Env. Heal. office), then you're in pretty good shape. Find out from the sellers when the tank was last pumped. They should be pumped roughly every 3-5 years depending on the size of your household. If it has not been pumped, PLEASE have it pumped and save yourself some money. The cost is around $300.

Okay, I think that's it. If I think of anything else, I'll be back.

lotsacoils
02-11-2005, 08:00 PM
If anyone has anymore questions about mortgages/first time homebuying, please send me a pm or an email. I am a mortgage loan officer by trade and I can definitely help.

BlackOrchid
02-14-2005, 08:19 PM
Wow, this topic is right on time for me! I have an appointment with a local CDC (Community Development Center) here in Toledo to talk about their housing program. They rehab older homes (new furnances, roofs, electrical, plumbing, etc.) then turn around and sell them. I never even thought to think about septic tanks but I will definitly ask about it.

Also what do you ladies think about going through a real estate agent? I've heard good and bad things about them.

tdhayes
02-15-2005, 07:37 PM
Originally posted by BlackOrchid@Feb 14 2005, 04:19 PM
Wow, this topic is right on time for me! I have an appointment with a local CDC (Community Development Center) here in Toledo to talk about their housing program. They rehab older homes (new furnances, roofs, electrical, plumbing, etc.) then turn around and sell them. I never even thought to think about septic tanks but I will definitly ask about it.

Also what do you ladies think about going through a real estate agent? I've heard good and bad things about them.

717705

Do your research!! Ask questions and GET REFERENCES from others who have purchased homes. Talk with them about their experience. If you know the market/field of real estate, then you don't have to have one. They are NOT a necessity.

Also, MOST real estate agents work for the SELLER, NOT the buyer. If you are the buyer, check into getting a BUYER'S agent. This person works for YOU and will/should have your best interest as top priority. Like I stated, real estate agents are NOT a necessity. Also, if you are selling your property, check into www.buyowner.com.

chuchu
03-02-2005, 11:32 PM
I don't know much about home ownership but I do know this. Make sure before your closing you have all of your paper-work together. I used to do customer service for a major financial institution and people would call up the day before their closing requesting bank statements. Well guess what, it takes about 2weeks in most cases for us to get bank statements. And you will also have to pay per month. So make sure all of your paperwork is in order wayyy before you close.

senoj
03-16-2005, 03:46 PM
DH and I just closed on a home on Feb 28th. We went thorugh the NACA program to purchase it.

We started the program in November 2003. It took awhile to get teh credit history straightened out, b/c we had to go through the Attorney General's office to get one creditor to work with us on closing out an account. But once we got the AG involved, the creditor was bending over backwards to help us.

And we took 2 months to find a home (during which time we switched buying agents). Then we had the nerve to build a new home.

But I wouldn't trade a minute of what we did, b/c I love my new home.

I agree with TDHayes. NACA walked us through a lot of stuff. From credit repair to purchasing contracts, to closing. A lot of creditors thought we were working with a credit repair company at first because we were so correct with our letters and demands. We were quoting chapter and verse from the Fair Credit reporting Act in our contact letters.

We were prequalified (if you can, get prequalified before yougo looking for a house. It cuts out a lot of anxiety, and lets sellers take you seriously, 'cause they know that you can buy) and assigned a buying agent. We soon got rid of her (she tried to get us to decide on a house the first afternoon that she met with us. SHe never even asked us what we wanted/needed/nothing). Our second BA was great. He took his time and went with us everywhere. He even checked out some stuff on his own to see if I would like it before he told us about the house. The hosue we chose was nothing like what I thought I wanted, but I fell in love with the model as soon as I saw it. The BA called and me to make sure it was what I really wanted before he allowed us to put a lot deposit on it. He did care. And is now a family friend - we do dinner and our kids have playtime together.

THe BA was there to hold our hands throughout the whole contract/building phase and visited the homesite at least 3 times a week. He would call me if he thought something was wrong. (I think he left more notes for the builder than I did).

Closing was great. The only fly in the ointment was the loan processor at the bank, she was slow.

But the lawyers, builders, BA, and NACA were at the closing, so I felt that my interests were being protected. (It didn't hurt that the office admin for NACA is now a good friend of ours. She reviews everything and I knew that she wouldn't let anything come back to hurt me.

We closed without having to pay any money, in fact we got back $500 that was applied with the builders money and our earnest money toward the principle of the loan.

We got a 4.75% interest rate without having to buy a single point. HTe going rate was right around 6% at the time.

There is some advocacy involved and we gladly do it. We will attend about 2-3 seminars this year telling people about our NACA experience. I also, as a favor to my friend in the NACA office, help her on some weekends to do mass mailings and fliers. I also help her get the bank apps ready to overnight to the bank.

We are happy with our home. And yes, NACA forces you to have a savings account balance proportional to your house value before you can be prequalified or closed. But that is to help you with moving costs, and to help you have a month or so worht of bill money just in case.

We had to get Home Owner's insurance, we went with USAA, but we didn't have to get PMI private mortgage insurance - more money for savings.

We also didn't have to pay for lawyer's fees, origination fees, document prep fees.

We did have to pay for inspection fees.

Our insurance and taxes are escrowed into our monthly loan payment.


Okay, I have rambled on long enough.
I hope this helps someone. I do recommend NACA. There is a lot of work you have to do, but in the end, you get your house. When I first began the program, I met a woman who was in the program for 4 years. It took her that long to get her credit straightened out (divorced from dead beat hubby who left her in debt abd bankruptcy) and get here savings account together. I thought wow, that's a lot of time to go through all of this. And she said that had she tried to do it on her own, she could have never done it. Plus, 4 years would pass one way or another. At then end of that time, she could either have a house to show for the years or nothing. This made sense to me.

Educate yourself. There was a lot of info given on this thread. Don't go into it thinking that someone is on your side, 'cause eveyone is out to get paid.

Sacral
03-17-2005, 03:45 AM
Yes, NACA is great for first-time home buyers of any income. I initially was going to go through this program when i was going to get married, but never made it to the altar :dunno: , and ended up buying a home on my own with almost 100% financing (not through NACA, though). I put down less than 3% for the down payment.

Definitely go through the NACA process. Homes in designated NACA areas are being taken over by gentrifiers (gentrification), especially in urban areas so you may want to renovate a home rather than build from the ground. If you buy a home in an area like that for say, 150K, it might be worth close to 300k after 12 months.

- Sacral

charli
03-17-2005, 03:53 AM
e hope to have a new home built by next year

If you mean a home from a builder in a new home community, research first. From seeing others go through similar expenses builders charge about double the market price for certain upgrades in the home (like the base price is just a base price, you gotta pay for everything including carpet and paint and countertops) and people do it because it's rolled into the mortgage and they want the joy of something new.

senoj
03-17-2005, 03:55 PM
Yes, we built a house fromthe gournd up. Chose the lot, and watched it grow from a pile of dirt to the house we are livingi n.

Yes, options are crazy high in price. Wxtra windows were 275 each, counter top upgrades, crown molding.

Lucklily, we researched and found a builder who includes a lot of options as standards in thier homes.

Then our Buying Agent stepped in and negotiated a lot of options into the buying price. WHich alos included the $5k lot premium (for a private wooded larger than most lot - the day after we put our deposit down, it went up to $7500)

We ended up paying about $3000 dollars out of pocket for some extras that we didn't want on the mortgage contract, extras (bigger patio, hardwoords in dining room and sunroom added to the back of the house).

But you should definitely research, a lot of builders charge you an arm and a leg for options that you think are included in a home, like extra outlets in the wall, trim around the windows simple stuff.

naturalmama
03-18-2005, 04:18 AM
This is a real interesting there. Let me ask you guys. How do self employed get morgtages. My husband and I run a business and are planning to buy a house in about two years, God willing. So I'm wondering what I need to have in place to be prepared.

Sacral
03-18-2005, 05:30 AM
Originally posted by naturalmama@Mar 18 2005, 01:18 AM
This is a real interesting there. Let me ask you guys. How do self employed get morgtages. My husband and I run a business and are planning to buy a house in about two years, God willing. So I'm wondering what I need to have in place to be prepared.

763598



PM me.

- Sacral

REDeemed
03-18-2005, 01:57 PM
I would also like to add a couple other options.

First, if you know that your new home will not be your last home, you may want to go the interest only route. All you HAVE to pay every month is the interest, but you CAN pay on the principal if you want. Your payment will be a lot cheaper.

Also, with regard to closing costs, which can be as high as 3%, I would suggest, if you have been pre-approved for enough, offer that much more than what the asking price is. For example, if the asking price is $100k, if you have been approved for enough, you can offer $103k, and ask for the $3k back as a closing cost credit. This is a great option for situations when you just don't have the money saved or if the seller is not offering to help with closing costs. Also, at least in Cali, you have to put down a Good Faith Deposit, which is usually $1000. That also counts toward your closing costs, so you could even end up pocketing $1000 to start off a savings acct. :D

LifeGiver
03-18-2005, 09:24 PM
Originally posted by charli@Mar 17 2005, 04:53 AM
If you mean a home from a builder in a new home community, research first. From seeing others go through similar expenses builders charge about double the market price for certain upgrades in the home (like the base price is just a base price, you gotta pay for everything including carpet and paint and countertops) and people do it because it's rolled into the mortgage and they want the joy of something new.

761800


I agree.

If you are caught up in the "must be new" mindset car/ house etc... You can make out with a well maintained newer resale. The upgrades are already there.

Our house was 3 years old and barely lived in (they worked day and night to afford it) with ALL of the upgrades. They wanted a "newer" home (I still don't understand this except for the fact that our home is a town home and they wanted a single family home - but it is larger than many single family homes)

Prime example - crown and chair moulding This is an expensive upgrade in a new house - especially if it's throughout the home!! So unless you are dead set on a particular community, continue to look around.

jorjeni
03-21-2005, 04:01 AM
I was wondering if anyone can answer this question for me. My mother was about to lose her home and I had just gotten divorce to I moved in with her and we refinanced with me as co-signer anyway I now have my own place and my question is if I decided to buy a home would I still be considered a first time home buyer????

tdhayes
03-21-2005, 11:33 AM
Originally posted by jorjeni@Mar 21 2005, 12:01 AM
I was wondering if anyone can answer this question for me. My mother was about to lose her home and I had just gotten divorce to I moved in with her and we refinanced with me as co-signer anyway I now have my own place and my question is if I decided to buy a home would I still be considered a first time home buyer????

767015

No. Because you co-signed on her mortgage, you are now seen as a home owner. It doesn't matter who pays the bill because it will show up (the mortgage) on both of your credit reports. Sorry...

BioChic
03-21-2005, 06:40 PM
" Homes in designated NACA areas are being taken over by gentrifiers (gentrification), especially in urban areas so you may want to renovate a home rather than build from the ground."


Can you tell me what gentrication is? I have an idea but want to be clear. :(