Joseph asks…

Leaving near parents? Importance of location? Other home-buying tips?

So my boyfriend and I are planning to get married next year and are looking at houses to buy. We found one that’s a really great value for the size and quality of the home… the downside is that it’s in a very small town (we were hoping to live in a slightly larger town in the same area) AND it is about 5 minutes from his parents. My bf is very close to his mom and sister, but I’m afraid he’ll rely on his mom too much… and his dad has alcohol problems, not something I’d want my future kids to be around a lot.

The house is also 2 hours from my family, but we have to move there because of my boyfriend’s job.
As of right now the home would take about half of my boyfriend’s income (utilities, insurance, etc included) but less when I finish college and get a job.

So, to people who have been through this, what is your advice on living near your parents? How imporant is the town itself? (The neighborhood is safe, just boring.) And what financial issues should we be aware of? Thanks!

admin answers:

Everyone’s situation is different. It may sound a little old fashioned, but perhaps you might think further about making a 30 year commitment with someone you haven’t yet decided to make a lifetime commitment with. That said, I’m all for having family around. You probably won’t see them as much as you think. Life is busy and you have to plan time to see your loved ones, even if they’re nearby.

Financially I recommend being prepared for those once a year and once a quarter bills. I highly recommend getting an Esgrow account and having your mortgage cover your property taxes and homeowners insurance if possible. Once a year we also get a trash bill, car insurance, water, and sanitation are all once a quarter for us. Also have a back-up credit card (or even better yet a savings account) in case a window gets broke or you need to replace the hot water heater or furnace.

Thomas asks…

home buying tips in colorado?

i am planning to buy a single house in colorado, but dont know the location yet. What are some things to keep in mind when looking for a house for first time buyers? Is it a good choice to buy house which are pretty old like build in 60s?
i am looking for a house somewhere around $300,000. 4 bed room, 3 or 3+ bath

admin answers:

Well really depends on where you live in Colorado and how much your looking to spend. I would stay away from older homes unless you can get a good inspection or a GREAT deal (which are easy to come by). I find it hard to want to buy an older home when you have such newer development all around Colorado. Not necessarily new homes, but homes built 2000 and newer. If you have a more specific price range or area then it’s easier to determine if a 60’s house is a good idea or not…

CHEERS

Robert asks…

Any home buying tips?

I have never bought a home before and was wondering if anyone had any thing they could tell me about the process. Any tips or things they wish some one had told them before they bought their home. My husband is deployed, so I’m doing this alone and feel so lost! Thank you!

admin answers:

Oh goodie, a buyer! Lol Well your first step is to go over  loan programs with a loan officer. We can recommend one who is licensed in your state. Just fill out the form over that the side and don’t forget to ask about closing cost grants. Select the loan program that you feel has the best program based on your finanical situation. Go ahead and have them start the loan application process and get a qualifying letter. You’ll need this when you make an offer.

2nd make a list of what you “have to have” in your home and what you would “like to have”.

3rd If you don’t already have a realtor, I suggest you visit open houses in the area you want to live and talk with each agent. When you are ready, EveryDay Hero housing Assistance Fund can connect you with a professional Realtor in your local market.

4th Give them your list!

Now what happens from here is you will look at homes and when you find the one you like, you and your agent will sit down and write an offer. Make sure you have the agent pull all the solds in that area for the past 6 months, so you know you are making a good offer. Let’s not play games here, if the list price is a good price based on the solds, then offer them list price. Make sure to write in the offer that you want answer within 24 hours. Once the offer is written, depending on where you are, your agent may make a presentation to the seller, or it may be faxed over to the listing agent to present to seller. The seller has 3 options: #1 to accept, #2 to counteroffer, #3 to reject.

Once accepted, the paperwork is then sent to the closing company to prepare all the documents for closing. This can take anywhere from 30-60 days. The actually closing date is negotiable at time off offer and could be quicker.

Your loan company will complete your loan application and all the necessary credit checks etc. And send the mortgage package to the closing company either the day before closing or the morning of. At the closing you the buyer has the most paperwork to sign. It generally takes about an hour. Sometimes the seller will attend, sometimes not. Again each state handles this process differently.

Caution: Don’t go out an buy a bunch of new stuff until after you close!

I hope you enjoy the process and find that dream home! In fact don’t open any new credit until your loan is closed. None.

Ruth asks…

Tips on buying your 1st home?

I am going to start the process of buying a home. I am a first time home buyer. I hear that I should take the classes on home buying.

What are some tips on purchasing your 1st home?
Grants out there (and websites if available) for 1st home buyers? Things to look out for?
just about any information would greatly be appreciated.

admin answers:

Yes! Take those classes first. You will learn so much. I took 3 different home buying classes(even though I thought I knew alot about home buying) and I learned so much! Take lasses at Home Depot on how to fix things. You’ll need to know that soon enough. Don’t take on any major new debts. Get your total monthly debt service- all the monthly credit cards, and installment loans (including what you think is a comfortable mortgage payment) under 50% of your gross income. Lower is better.

Further,

1. Research: Make sure you work with a highly recommended lender to find the right rates and program for you.

2. Pre-approval: Get pre-approval for the amount of money you would like to borrow – this generally lasts for three months. Having your loan pre-approved means that if you find a property you like you can move quickly.

3. Documentation:

* Pay slips
* Group certificates
* ID
* Tax returns and financials for the past two years if you’re self-employed
* Enough savings to cover the deposit and other fees (where applicable)

4. Find your property:

* Find the right property. Location is important. Do you want to be near the beach, city, shops, medical centres, schools. Is this a property you wish to live in for a few years or will you move on quickly? What’s important to you, ie. Garage, view, number of bedrooms, room to expand, backyard, etc? Make a list and be prepared to compromise on a few things.

5. Always keep your lender informed:

* Let your lender know what’s happening at all stages – the more information and documentation you can provide them with, the faster they will be able to process your loan.
* If more than 30 days has passed since your pre-approval, you will need to supply your lender with:
o Up-to-date pay slips.
O Up-to-date savings/credit card/loan statements.
O Your updated assets/liabilities to confirm nothing has changed since pre-approval.
* Provide your lender with a copy of the Contract of Sale.

6. Appraisal: Your lender will order this once you have provided them with a copy of the contract of sale. If the property is currently tenanted it may be difficult to get access to perform the valuation which may take a little longer

7. Formal approval: If all your documents have been received and processed and the valuation comes back positive, formal approval on your loan will be granted

8. Loan documents Signing. Be prepared for hand cramps.

9. Settlement.

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