We are in a contract to buy our first home. The process seems very overwhelming, and it's probably because we've never done it before. Does anyone have any advice to pass along regarding inspections, the loan process, etc? For some reason, I'm having trouble just wrapping my head around all of the stuff we have to do! Thanks all!

E

Inspections: make sure you get a licensed inspector. We got some folks to inspect our house, but they weren't licensed, so we had to have it inspected again.

I was just thinking that I need to write a blog post about this subject.

Buying a house for the first time can be overwhelming, but be comforted by the fact that millions of people do it every year. My biggest advice: ask questions. I was an unholy pest the first time we bought a house (and the second, actually), but I don't care. I wanted to be sure I understood things. Don't be afraid to call and ask questions or call to ask for updates on the schedule.

From my experience, everyone will drag their feet and then everything will come together in a flurry at the last minute. Then they'll expect you to rush. Don't let yourself be rushed. When your signing the contract, look it over carefully. This is a Big Deal and you don't want any surprises. If you see anything strange, ask questions!

Good luck!

(Actually, I just remembered that I once shared the ongoing story of a reader who bought a house. You can read about her experiences starting here.)

Exactly ... take your time. Really take your time. Make sure you read all of the fine print, because that's where things like "Prepayment Penalty" pop up.

Do you have a solid realtor and loan officer? They should be able to walk you through it. Our loan guy closed loans on two of the people in my office and did most of the loans for our entire neighborhood. Absolutely fantastic and answered every question. Do your research online too, a simple Google search for "questions to ask when buying a house" will get you started.

Go line by line through your mortgage application. If you don't understand something, ask your question. If they aren't accomdating of all your questions, don't sign. Bring a cynical friend for a second opinion.

The home should be inspected. Look up local inspectors, call a few, and ask for references in your area of folks they have worked with. If they want your business theyll give you references which you can talk to. A good building inspector can save you thousands.

Oh, and dont forget to breathe and relax, and invite your friends for a moving party...they move you in, you provide pizza and beer...after hte move is done.

I very recently went through getting a home equity loan for an addition to my home, and my article on it is here. I went very carefully with my loan paperwork and that was a good thing, because the bank I was using actually messed up the paperwork and I caught it before I signed. It was a completely honest mistake on their part (small bank) but even having a great relationship with them, it pays to triple check

http://www.getrichslowly.org/blog/2007/07/28/blow-by-blow-account-of-a-housing-addition-part-two-capitalization/

That was exactly how mine went, for months I had to call and push everyone and then the last day or two it was rush rush rush.

Here are some links that helped my daughter when searching for her first place:

http://www.nachi.org/forum/
an inspectors forum that gives GREAT info

http://www.zillow.com/
will give you a general feel of prices in the neighborhood. We also used this to look on line and find out when was the last time the property sold, how much, what were taxes.

http://www.forsalebyowner.com/home-buying.html
"For Sale By Owner" home buying guide

http://www.healthgrades.com/
Health grades. Give data on local health services and what is available. (fee based site)

http://www.agentsonline.net/
a realtor forum where you can get good info. Understand how your realtor is supposed to work for you!

Read all you can. Be VERY specific in what your housing needs are with the realtor. DD wanted a 2 bedroom, 2 bath, garage, top floor condo on the east side of the building. She went to 60+ home showings before finding exactly what she wanted. (And yes, it was on the east side of the building.)

Thank you to everyone for their feedback!!! I figured the inspection would be a BIG deal, so we aren't skimping on it. Our mortgage broker is my brother in law, and he has been very helpful in answering all of our questions. I found some little tidbits here and there and he changed them right away, and has been incredibly informative. I think I am just amazed at how complicated it is to get this all done - but I'm also seeing why with the mortgage crisis that is upon us.

Again, thanks to you all for your help, my wife is reading over my shoulder saying the same thing!

Wish us luck!

E

I generally recommend that you find out if there is a HUD-certified housing counseling agency near you. You can find out by looking at http://www.hud.gov and clicking on the link for Housing Counselors. It doesn't guarantee that you'll get a high quality counselor, but it's really the only game in town. If you find one, call to ask if they do homebuyer education classes. NeighborWorks' Realizing the American Dream is an outstanding curriculum approved by Freddie Mac, National Assoc. of Realtors, and American Bankers Assoc. among others.

If that isn't an option, MGIC, a mortgage insurance company, offers an online curriculum. It may be too late in your case, but if you take that early enough, you can get a reduction in your mortgage insurance premiums. That reduction is also offered through MGIC approved housing counselors who have homebuyer education. The classroom setting is better due to the live interaction, but MGIC is there for those who don't have access to a live class.

Hi
This is davidbrain
Now the First Time Home Buyer- OVER WHELMED!!!. we can buy any thing at the home with the help of the required net and it is easy to required for people who are not having time for with their work.
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davidbrain
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Double-check the interest rate on the papers on signing day.

Some shadier banks will agree to one rate while you're shopping for a mortgage, but then when the papers are drawn up, they've quietly changed it to something higher, figuring by that point, if you even notice, you'll have already given notice at your apartment, you'll have all your furniture on the truck and will just suck it up and sign anyway rather than scuttle closing day and risk all the penalties. Don't let them get away with it.

It's very overwhelming at first. Don't forget to tell yourself that the feeling of being overwhelmed is temporary. A few months after you get in the house, it all seems very routine. There is relief in your future!

When we closed on our house in May of 08 we had put 5% down. If the loan to value (LTV) is greater than 80% you will need private mortgage insurance (PMI). We started finishing the basement this winter and project to have it finished by June. With a very conservative estimate we should have a 78% LTV upon reappraisal; however, we didn't notice that we have to be in our PMI for a minimum of 24 months. So we will be paying PMI for a full year after we broke the 80% LTV threshold. That's 1000 bucks we could have put toward the principal.

My suggestions to check (in addition to others);
1. prepayment penalty; in my opinion, if you can't prepay on the loan it's definately not for me
2. PMI minimum term; Depending on your plans this may not be a big deal, we have a cheap enough house that by increasing the value ~20,000 by finishing the basement we broke that 80% LTV