Advice for first-time home buyers?

[Anythinghunter8]

not sure if it just me but do not buy a DIY house when expecting and have little kids all your off time will be spent on house and the baby grow up to quick to waste that time on a house

[Black Ice]

Advice for first-time home buyers?

Don’t compound the stress of a child w/ the stress of overcommitting on a home. Look for something that is comfortable but not to the point that it becomes a financial burden.

A 30% mortgage/income ratio is the recommended ceiling.

I would say 15% would be comfortable and 20% would be the ceiling.

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[mikeyb_23]

Don't overspend, your mortgage can fluctuate from year to year. Make sure you check surrounding neighborhoods for run down areas. Try to get a home warranty in your negotiations, unless it's a new house.

[flywise]

Do not get and ARM
1 story
Less than you can afford
Avoid HOA unless your very certain you don't mind some little Nazi sending you letters and threats about your place
Fixer uppers are nice if your handy but probably not with a new born in the house

[Buckley99]

I would say 15% would be comfortable and 20% would be the ceiling.

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No doubt lower is better but 15-20% can be unrealistic with first time home buyers.

[IowaHunter]

Back yard facing east. That way you can entertain late afternoon without being beat to death by the setting sun.

[Austin]

As has been said research neighborhoods and school districts to narrow down where you want to be. I always tell people I can qualify you for more house than you want to buy.

I am going to go against the grain though on the 15 year. I would plan to pay off in 15 and buy a house that would allow me to do so but I would take out a 30 hr mortgage. Right now rate spreads between 15 and 30 year mortgages is not what it historically has been. You are starting a family and there will be many I expected expenses to come. Give yourself some freedom to make lower payments if you must.

Especially if you are buying a starter home that you will be in for 5-7 years

[HoustonHunter]

I see a few folks mentioning not to get a two story. We have one and love it. Master down, 3 up. We don’t have to hear them and vice versa.

Don’t forget to budget in the taxes and insurance.

[StrayDog]

Make sure your payment is way below what you can afford. Make extra payments so you are paid 6 months - 1 year ahead. Sure takes some stress off a guy knowing he’s ahead on his biggest bill.

Buy something that needs a little work and use that as a negotiation point.

[fbchunter]

I think there is lots of great advice here. Make sure you are happy with your school zoning/district. I am 32 and have built two homes on small acreage. The most recent on 11 acres that I love, but I should have thought things through for my kids instead of my wants. I have great deer hunting and love the house and land. Problem is I thought I would be okay with the schools. Now we are hauling him 20 minutes twice a day and more for ball games. I will hate to do it but I would imagine we will be moving in the next few years.

[RiverRat1]

Lots of good advice.

Take your time. Lots of time. Make a list of all the advice you deem worthy.

Taxes is a biggie to watch out for. Even if they appear low you need pay attention. Look for a home in a very young school district (or super old).

Remember to try to get this right your first time. Selling a home and then buying another one cost a lot more money than most realize.

[Austin]

You also really need to consider the "add on" costs. Taxes, insurance etc be mindful of if the home is in a flood zone this will significantly increase the cost of insurance.

As was said plan on 10% +/- of the sales price to sell a home. Closing costs on purchase should add on 5-6K out of pocket over down payment. Also research the good and bad of different loan products and choose the best for you and your family.

[warrington]

Taxes

If it's brand new then the taxes this year will be just for the land and next year thE taxes will jump up to normal

Surprised us on on our first house. Went from $1000 our first year to $3200 the next year. Didn't plan on that

[warrington]

Schools is number two

You can be one street over from the school that you want your kids to go to. It's worth an extra 10k to be in the school you want them to go to. It's also best for resale

[stickman]

I'm with Austin on this one. Never,never,never go with an ARM. Don't stress yourself on getting into a 15 year note. Go 30, pay on it for 5-7 years the re-fi for 15 years once you have the young one out of the very expensive "FDC"...formula,diapers,child care. Yes, you might be taking a little gamble that interest rates stay the same but with good payment history and great credit you don't need to worry much about that. There will be some that scoff at the idea of re-fi because of paying closing costs again but they won't be coming out of pocket if rolled back into your note. And over the term really become a very nominal amount if you start to pay a little extra when you can. The wife and I did just that, we have 10 years left on the re-fi and are now able to double pay about every 2 months. We are also in a very good position on the house when we choose to sell/upgrade without ever having to stress about bills. I know it's a longer term than most would want for a starter home but it has allowed my wife to obtain her masters degree, my capt/guide license, a very nice boat, and the freedom to do almost anything we want(granted we save extra for it). Now that the financial stuff is out of the way, I prefer the sun setting on the front of the house with a prevalent wind hitting the backyard. If you are buying in an established neighborhood look for big mature oaks that give the property curb appeal and value. Repairs are costly so if you are not the greatest handy man buy accordingly. Many older neighborhoods have larger lots so don't get sucked into a "subdivision" because the houses are newer. Look at the city you will live in and how things are going for them. In my city there is only one way for it to grow and that land has become terribly expensive, so my quiet little centrally located house is now in a very desirable locale and the comps in my neighborhood show I can sell and make very good money. Consider schools, hospitals, work distances and so on. There are so many things to look at but don't let one keep you from buying. I doubt there is a perfect house in every way for the first time buyer. One more thing, no pools or hot tubs. They are just an extra expense nobody needs right off the bat.