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First home buyer assistance

Discussion in 'BBS Hangout' started by Sooty, Dec 13, 2017.

  1. Sooty

    Sooty Contributing Member

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    Hey all.

    Planning to purchase a first home soon. Deposit ready.

    I've been doing some research but looking for some answers still -

    • Do you guys recommend going with a mortgage broker or a big bank? Noting there is foreign income involved.
    • Is there a rule of thumb for home owners insurance being a certain % of the property value? As a rough calc (same for flood insurance).
    • What else is included with closing costs? Title policy, survey, inspection.


    Any information would be greatly appreciated!
     
  2. jo mama

    jo mama Contributing Member

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    a realtor friend put this together a few years ago. i think its a pretty good step-by-step explanation of the process.
    [​IMG] [​IMG] [​IMG]
     
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  3. DonkeyMagic

    DonkeyMagic Contributing Member
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    I can't necessarily recommend broker/bank, it depends on your situation. I stuck with a bank.

    For homeowners, and this is something i need to update as well, I believe our insurance was 100% of the appraised value.

    For closing costs related to the inspection, I would be sure to have the foundation and plumbing tested (hydrostatic test), especially if it's an older home. If it has cast iron plumbing under the house, that is just a big expense waiting to be had so it would be good to know for negotiation purposes.
     
  4. Sooty

    Sooty Contributing Member

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    Th
    Thanks Donkey. Much appreciated.

    In terms of the homeowners insurance, it would be insured to the full value. But typically would the annual cost be approximately 1% of the property value or less? Just as a super general idea.
     
  5. JayZ750

    JayZ750 Contributing Member

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    I refinanced 24 months back via a broker. The all-in closing costs weren't any higher - they weren't high at all since everyone was scrambling to get business - and the rate was great at that time. 3.75%

    It was a "bit" of a hassle as they screwed up the paperwork and closing got pushed back like a week. And since the loan has been sold twice already... not that big banks can't sell your loan, but probably less likely? That's just an administrative slight hassle really though, no big deal. Ultimately I was/am happy to put up with all that for a rate that was better than I was being quoted elsewhere, including big banks.

    It just came down to math for me.

    This isn't a closing comment, but general comment. I have owned various real estate. Be prepared for more costs than you anticipate. On a continuous basis. :)
     
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  6. DieHard Rocket

    DieHard Rocket Contributing Member

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    First and foremost find a good realtor. One that does high volume in the area that you are searching. Don't pick your friends sister or aunt or uncle just because you know them, especially if they normally work 30 miles away.

    We just bought our first home about 1.5 years ago. I credit her for us getting a home in a competitive market (Pearland) at a reasonable price -- we were 1 of 10 bids and weren't the highest. We found her using the Dave Ramsey ELP (endorsed local provider) search.
    • Do you guys recommend going with a mortgage broker or a big bank? Noting there is foreign income involved.
    Our realtor had a few preferred mortgage lenders she recommended. She said as a seller she rarely accepts offers that are financing through big banks because they tend to be very slow to respond. Not sure how it would work with the foreign income but may involve some manual underwriting.
    • Is there a rule of thumb for home owners insurance being a certain % of the property value? As a rough calc (same for flood insurance)
    I think this will depend on area but ours is about .8% of the value of the home per year. Flood is federally regulated at around $450 per year.
    • What else is included with closing costs? Title policy, survey, inspection.
    I believe seller usually pays title policy, though we offered to pay as buyer as an incentive. Survey, underwriting, legal fees are some of the bigger ones. Appraisal and inspection also too but we paid those before actual closing. Also don't forget you'll pay some of the property tax and insurance into escrow at closing.
     
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  7. Haymitch

    Haymitch Contributing Member

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    I would recommend getting in touch with a realtor first to have them explain all this. If they don't or can't or seem annoyed by your questions, get a different realtor. There are tons of them so no need to waste your time on one that doesn't really value working with you. They will (/should) have a better grip on these questions than any of us - although after selling my first house recently I am closing on my 2nd house in a couple months so I am fairly familiar with current #s.

    If you want a recommendation let me know. I found our realtor on here. Or contact @Rockets Red Glare
     
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  8. Sooty

    Sooty Contributing Member

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    Awesome! Thank Clutchfans for pulling through here.
     
  9. Sooty

    Sooty Contributing Member

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    It just got real, they accepted on the offer we made with the pre approval pending inspection.

    Next steps between here and closing? I have my checklist but making sure we don’t miss anything!
     
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  10. superfob

    superfob Mommy WOW! I'm a Big Kid now.

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    Have them supply you with a copy of HOA agreement, assuming your house is in one.
     
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  11. cebu

    cebu Member

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    I recommend financing with TDECU.com

    I would not recommend paying deposit if it's not required. invest your money somewhere else.
     
  12. DieHard Rocket

    DieHard Rocket Contributing Member

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    Congrats!

    I don't recall there being too much to do once the offer was accepted. I'd be present for the inspection and walk around with the inspector. Ask plenty of questions and take notes, but note that they will point out every tiny thing and not all are big issues.

    If there are any big issues, I think you have 14 days to back out. If they aren't deal breakers you can negotiate on price based on what the inspection finds.

    And your realtor has probably told you not to make any big purchases. The financers don't want to see any big dips in your bank account.

    If you mean down payment, I disagree. If you can put at least 5% down your loan is conventional rather than FHA which is advantageous and increases the odds of an offer getting accepted based on pre approval. And once you hit 20%, you can get rid of PMI. It's kind of like spitting into the wind to not put a good down payment on a house because you think you'll make more investing it.
     
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  13. cebu

    cebu Member

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    PMI is a robbery. Try TDECU.
     
  14. Deckard

    Deckard Blade Runner
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    Good advice. You don't want to be blindsided by HOA rules that could impact plans you might have in the future.
     
  15. donkeypunch

    donkeypunch Contributing Member

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    I would also add that you, yourself choose the inspection agent as well as walking around with them during inspection. I wouldnt just trust the inspector that your realtor has available.
     
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  16. CCity Zero

    CCity Zero Member

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    Yes, this x 1000.

    Lastly before you sign at closing make sure the terms of the loan are correct. I've heard horror stories of people being told one thing, then paper says something else... But being told it can be fixed later (ie rate is 5 instead of 4, or wrong altogether).

    And make sure (probably too late), that you write down what conveys in the terms. Like if you like a light fixture or curtains etc etc. You'd be surprised what happens if you aren't specific sometimes.
     
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