Homebuying tips?

[maroonandwhite]

My wife and I have been living in a mobile home for two years since we got married so technically this won't be our first home but it is definitely a bigger purchase. Does anyone have any general advice on what to look out for structurally or cosmetically on the home? I know the inspector will check the foundation and all the big things but I want to be sure I don't miss anything and wish I didn't. General tips for the whole home buying process and/or stories are also welcome. Thanks!

[Garufa]

Don't jump at the first house you find.

Talk to a bank or mortage company before even starting the process to be sure you can get a loan.

The more downpayment you have the better off you are. If you have enough avoid rolling interest points and closing costs into the mortage.

Be there when the inspector is going over the house. You personally must pay an inspector for any home you make an offer on. Follow him around, ask questions and pay attention to everything. You should learn alot.

Drive by any place several times at different times of the day to get a sense of the area.

That's just a few things to consider.

Edited June 23, 2011 by Garufa

[Gun Smith]

If you can, speak with the neighbors about the house. There's horror stories out there about snakes, crack, murder, you name it. Most of the time the neighbors will be more than happy to share info. Most home inspectors have a multitude of disclaimers to protect them from anything they miss. They usually won't "find" anything that is a deal breaker as they depend on realtors for referrals, like snakes, former crack house toxins, etc.

[Sandman]

Go to the house when it is raining. We were on our way to put an offer on a home that we had been too several times before. It happened to be raining that day. We got there and the whole front entrance was flooded and impossible to get through without getting soaked. We left.

[Raoul]

If you can, speak with the neighbors about the house. There's horror stories out there about snakes, crack, murder, you name it. Most of the time the neighbors will be more than happy to share info. Most home inspectors have a multitude of disclaimers to protect them from anything they miss. They usually won't "find" anything that is a deal breaker as they depend on realtors for referrals, like snakes, former crack house toxins, etc.

Not all. I suggest you hire the home inspector yourself. Make sure the inspector understands who he is working for.

[Gun Smith]

Not all. I suggest you hire the home inspector yourself. Make sure the inspector understands who he is working for.

Maybe not all, but just read his disclaimers and see what all he's not responsible for.

[AMSting]

Check the traffic flow at the times you would normally be leaving or coming home. Leave your current location early enough to go by the prospective house, then drive to work from there. Also, find stores, gas, banks, and whatever else you will normally be doing, and drive around.

As for the inspection, the inspector works for you, so ask questions and listen as they go through the house. Don't worry about paint color or wallpaper. That is easily changed. Pay attention to smells, especially if it is perfumey. Cat urine is tough to get rid of, and the perfume could be trying to hide something.

Get preapproved for a loan. It gives you a budget, as well as leverage when you are looking as you pretty much already have the loan. I would also suggest you not max out based on what the bank will loan you. I was approved for more than I felt comfortable spending, so set my personal budget lower. We were able to get the house at a good deal lower than the asking price because I was preapproved.

[alwaysoutdoors]

I am actually under contract now to purchase a home. This will be third home purchase. I did not hire an inspector for the first two homes. If you a family member or good friend who knows houses , you may be better off than hiring an inspector. Like it has been stated previously in this thread, the disclaimers on the inspector contracts are lengthy and pretty much relieve them of any real liability. I hired my first inspector on this third purchase (under contract and not closed yet) and was surprised how many things he found I would consider cosmetic, but he did find things "wrong" that I'm positive the current homeowner didn't even know about like loose fasteners on the metal roof, ants in the crawl space, rotten brick moulding on balcony door, etc....You know stuff that you just may not know about unless by chance...... Good luck and remember it is a "buyers market"

[gregintenn]

Go to the house when it is raining. We were on our way to put an offer on a home that we had been too several times before. It happened to be raining that day. We got there and the whole front entrance was flooded and impossible to get through without getting soaked. We left.

Very good advice. There are a lot of attractive homes out there that are flooded regularly.

[bubbadavis]

Don't put all your available cash into the house - you will need some once you move in. Mr. Murphy has a history of showing up at the worst times (like when you're broke). You don't want to become "house poor".

[Links2k]

It has been a while since I purchased my home, but if I recall correctly I paid county code enforcement to do my inspection. If a house (especially wiring) passes their inspection you are good to go.

[analog_kidd]

Buy a fixer-upper and save some money. If you can look past the ugly shag carpet and save $10k. you can afford brand new carpet for the whole house. That ugly wallpaper comes off in an afternoon of work, and the new paint looks great. Try to look past the cosmetic stuff. Some things are surprisingly easy to fix or replace yourself. Don't buy the best house on the block, you'll never get your money back. Buy the cheapest house on the block and fix it up, you'll get a bunch of equity right away.

Go after a good hard rain and look for water in the basement. Loof for water spots on the ceiling, an indication of a roof leak.

Look at the labels on the HVAC. Usually the serial number starts with the year it was made. If it's 10 years old, it may need replacing soon.

Pay attention to the windows. If they are old they may need to be replaced. At the very least your energy costs may go up.

Look at the appliances too. Make sure they are up to date. These are easy to replace, so use them as a bargaining tool to get a better price.

Don't forget to consider insurance and taxes when calculating your monthly payment. Prepare to choke on all the fees you'll get charged at closing. Try really hard to get a 15 year mortgage. If you absolutely cant afford that ask about a 20 year. You'll save thousands in intrest, and get a better rate.

Also TAKE THE TITLE INSURANCE. It's cheap and if you have a problem it's covered. I bought a forclosure and the title insurance was a few hundred bucks. I got a letter from the previous owners bank saying the owner had not paid on a home equity loan that the house was collateral on, and they were putting a lien on the house. I called the title company and they took care of everything.

If the house is in a cookie cutter subdivision with a rectangular lot, a survey is not really needed, unless you just have to know who's side of the property line the fence is on. If you buy one in the country with a big odd shaped, get the survey.

Good luck

[FUJIMO]

Buy a fixer-upper and save some money. If you can look past the ugly shag carpet and save $10k. you can afford brand new carpet for the whole house. That ugly wallpaper comes off in an afternoon of work, and the new paint looks great. Try to look past the cosmetic stuff. Some things are surprisingly easy to fix or replace yourself. Don't buy the best house on the block, you'll never get your money back. Buy the cheapest house on the block and fix it up, you'll get a bunch of equity right away.

Go after a good hard rain and look for water in the basement. Loof for water spots on the ceiling, an indication of a roof leak.

Look at the labels on the HVAC. Usually the serial number starts with the year it was made. If it's 10 years old, it may need replacing soon.

Pay attention to the windows. If they are old they may need to be replaced. At the very least your energy costs may go up.

Look at the appliances too. Make sure they are up to date. These are easy to replace, so use them as a bargaining tool to get a better price.

Don't forget to consider insurance and taxes when calculating your monthly payment. Prepare to choke on all the fees you'll get charged at closing. Try really hard to get a 15 year mortgage. If you absolutely cant afford that ask about a 20 year. You'll save thousands in intrest, and get a better rate.

Also TAKE THE TITLE INSURANCE. It's cheap and if you have a problem it's covered. I bought a forclosure and the title insurance was a few hundred bucks. I got a letter from the previous owners bank saying the owner had not paid on a home equity loan that the house was collateral on, and they were putting a lien on the house. I called the title company and they took care of everything.

If the house is in a cookie cutter subdivision with a rectangular lot, a survey is not really needed, unless you just have to know who's side of the property line the fence is on. If you buy one in the country with a big odd shaped, get the survey.

Good luck

The above saved me a lot of typing, lol. Spot on !

Personally I focused more on land. They're not making more of it, in MOST cases it will always be worth what you paid and appreciate in value over the long haul, and depending on the criteria you might be able to swing a farm loan which in some cases has a better interest rate and lower down payment % than a bank. I say SOME cases because a year ago my bank was lower on interest rate, closing cost, and length of loan as compared to FCS (Farm Credit Services) but that was due in part to the house and land being looked at.

We waited years for the right deal to come along and just socked away $$$ best we could. With the economy the way it is we scanned every foreclosure site we could looking for the best deal. So the best advice is to be patient.

GOOD LUCK !

[peejman]

I'll echo lots of stuff....

Get pre-approved for a loan. Do the math yourself and determine what you can afford. Pay no mind to what the bankers say in that regard. If you've got good credit, play the mortgage companies off one another. Negotiate hard for the lowest rate. A few tenth's of a percent mean thousands down the road.

Bring 20% down to the table. It makes everything easier. If you don't have that much, keep saving.

Make a checklist of things you want in a house. Take it with you for every showing and fill it out along the way. Make notes. Take pictures (ask permission first). Don't trust that you'll remember little details.... after seeing 20+ houses, you won't.

edit... I've found the checklist I created when we were looking. If you're interested, I'll email it to you.

Hire a reputable realtor. A good one will know the local builders and steer you toward (or away from) houses as appropriate. Sign a contract for no more than 60 days. If you're not happy, don't be afraid to find someone else. There's plenty to choose from.

If you're not a home construction expert, hire a reputable home inspector. Be there when they inspect the house, go through the whole inspection with them, ask lots of questions. Make notes. Take pictures. Watch HGTV and DIY network... watch Holmes Inspection, you'll learn a lot.

Plan for several thousand dollars in unexpected expenses in your first 2 years. Stuff happens.

Edited June 24, 2011 by peejman

[maroonandwhite]

All great advice guys! I do have a step dad that is a contractor so he could look it over. I didn't realize that about an inspector and it kind of worries me that he may not be liable for anything he misses. I guess anything can be put in a contingency (spelling?) agreement though so as long as somebody catches a potential problem I guess that's okay.

[Guest nicemac]

Bring 20% down to the table. It makes everything easier. If you don't have that much, keep saving.

Plan for several thousand dollars in unexpected expenses in your first 2 years. Stuff happens.

This ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^!

[1gewehr]

A lot of really good advice here. I'll just emphasize the most important.

1) If you don't have 20% down, keep saving.

2) Get the toughest inspector you can find. Go with him. Nobody's perfect, and if you ask questions, you might find something he could have overlooked. Once you've bought the house, any problems he didn't find are YOURS!

3) There WILL be unexpected expenses. New house, old house, doesn't matter. It's going to happen, so have extra money.

4) Get a home warranty for at least the first couple of years. After that you will have a handle on how to plan for problems.

5) Shop for the best mortgage you can get. The big lenders aren't always the best. What matters are the interest rate and closing costs (points, etc). Get an up-front estimate of total closing costs. It will be more than that. Be prepared.

6) Bargain hard for the house you want. The market is WAY down. As a buyer with real money, you are in charge. If you want the riding mower, include it. If you want a problem fixed before closing, include that as well. Having the first year or two of a home warranty included in the sale is pretty common. Get it.

7) Lastly, set a limit. Set an absolute limit on what you will pay for a house. Do not be afraid to walk away if the seller won't meet your limit. Nobody ever got in trouble because they went under budget on a house.

[Guest Drewsett]

My wife and I have been living in a mobile home for two years since we got married so technically this won't be our first home but it is definitely a bigger purchase. Does anyone have any general advice on what to look out for structurally or cosmetically on the home? I know the inspector will check the foundation and all the big things but I want to be sure I don't miss anything and wish I didn't. General tips for the whole home buying process and/or stories are also welcome. Thanks!

You think the home inspector will inspect the foundation...you better be right on him to make sure he does, because I KNEW he would inspect my foundation too...

I found out there's a huge crack and our whole house is settling...just one month after the statute of limitations expired. If he inspects, have him point out to you what he's looking for. Learn as much as you can, and since you'll be right there with him, hopefully you can keep him honest.

[Guest shortfri]

All good advice. But know this about inspectors. While you pay them, they work for the bank/mortgage company on a loan. They are now assigned and not requested. Bank/ mortgage companies no longer have a say in who inspects the home. You can hire your own, but their report will not be used in a loan. With that being said. Most inspectors are good at their jobs. But like any job, you have people that don't need to be doing it. TITLE insurance is a must. Use a good Realtor. Using a Realtor over doing it yourself will save you from 2 to 5 percent on the purchase in most cases. Look into foreclosures if you have the time. There are great deals out there. But when dealing with foreclosures count on looking at 20 homes, just to find one you might consider. And this is a must. Go ahead and get pre-approved for a loan. It will speed the buying process up by two to four weeks. Good luck with our hunt.

[Randy W]

I am a Home Inspector here in the middle tn area.

1. The home inspector works for you.!!! Not a realtor or lender. Most realtors dislike us because we are considered the deal killer.

2.We are required by the state to be licensed and insured. I have 1,00,00.00 policy to cover general liabilty and Errors and Ommisions (required by the state)

3. We have to renew our license every 2 years and during that 2 year period we are required to do continnuing education.

4.The state regulates us so there are minimum standards.

A: Not required to get on a roof. ( A good inspector will put a ladder to the roof and IF IT IS SAFE TO WALK ON I will walk on the roof. If i dont touch a shingle i cant tell you the condition of the roof.

B: We are not suppose to move furniture if someone is living there.( we break it we have to buy it and the insurance company then drops us and then we can not be licensed.

5. Average price on a 1200 to 2500 square foot home is between 250 and 350.

6. Average time for an inspection is 3 to 4 hours.

7. Please make sure Water and Power are on before scheduling an inspection........

8. A good inspector will try to work around your schedual for the inspection so that you can be there.

There is a lot more info than here but this is a start.

On your part If you are using THDA loans get to the Home Buyer Education Course as soon as possible before you get to far along in the procees. You will learn a lot there.

Go the the home at about 10 or 11 at night on a friday or sat nite Neighborhoods change after dark.

Go on line to the TN sex offender website.

Flood Smart . Gov for flood info.

Justice . Gov for drug seizure info

A good home inspector does more than just a home inspection. They will do a property inspection. They will show you things for when Murphy calls at 3 am.

I have lots more info if you want to contact me.

Randy White

Eagle's Nest Home Inspections LLC

615-351-6980

and yes when i do an inspection i am carrying concealed.

[Randy W]

Shortfir,

You are thinking about the appraiser not the home inspector.

[Randy W]

Oh. 1 more thing.

For 1 in every 6 homes i am inspecting now I have to ask if they are ready to buy a MONEY PIT. There are a lot of rough homes out there on the market now.

[peejman]

4) Get a home warranty for at least the first couple of years. After that you will have a handle on how to plan for problems.

If you get said warranty, read the fine print in excruciating detail. Make certain you fully understand exactly what is, and more importantly what is not covered. Ask me how I know...

[Guest db99wj]

A lot of good advice, a little misinformation. Appraiser is hired by the bank/lender; Home Inspector is hired by YOU.

As I said, the Appraiser is hired by the bank/lender to do an appraisal, which requires an inspection. They will inspect the property and look for obvious signs of damage, or issues and will require certain measures to be taken, like fixing this or that, or whatever, especially if the loan is through Fannie Mae, VA, or other loan of that type. Appraisers are also licensed, insured and have extensive education and are unbiased when it comes to putting a value on a home. As in all industries, there are some bad ones out there, but the amount of scrutiny that appraisers are under, many of those bad ones are gone doing something else. The liability is way too high for them and for the bank/lender when it comes to regulators. Are there some that look at the contract price and try to hit it, sure, but the rampant abuse of that is hopefully in the past.

The Home Inspector is hired by YOU, and they are your advocate and will typically find much much more. They are there several hours doing the inspection, follow them around, learn, ask questions. Yes, they have limited liability and it is for a reason. At the time of inspection, which is key for both an appraisal and the home inspection, is what the value of the house and the inspection condition is. The water heater might have been working perfectly the day of the inspection, but unbeknown to the inspector, the interior was rusted out, you close, the next day after you, your wife, a kid if you have them take showers, you run the dishwasher, and do laundry, the bottom comes out of the water heater. With out those exclusions, the inspector would be on the hook, you can't/shouldn't expect them to be liable for it due to it being in an area, or inside of an item that is impossible to inspect without taking things apart. But people will try to go back on them and get them a new water heater.

Check the window's and see if there is any evidence of water on the seals on the inside, windows do leak.

Also, if it is a treed lot, you might want to get someone to check out the trees and look for damaged limbs. Have seen that where someone buys the house, and find out that there are some bad trees that need to come down and that is quite expensive.

[Guest nicemac]

Three days after I moved in, it was discovered that I needed $5,600 of foundation repair. They guy who fixed it said it had been that way for years and should have been caught by any inspector worth his salt. The inspector said it looked fine when he inspected it (two weeks before). After only couple of calls, he stopped answering. I should have sued him.