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Share your experiences and tips on buying a house

usernamusernam

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I couldn't find a thread on this.

I'm saving up to buy a house. Planned on saving 20% but I really want to be in a house by summer time so I'm saving 10% plus closing costs.

My credit score is 725 right now. Price range I'm looking at is between 250k and 300k. My debt to income ratio is good. I'm looking to buy a model home. I know the neighborhood I'm interested in. Just hoping there's something still available when I'm ready to buy.

My question is about closing costs. How much should I save for that?

Also is there some professional I should talk to for advice even though I won't be ready to buy for another 6 or 7 months?

Any other tips or advice would be greatly appreciated.

@The Admin Can you sticky this thread as a general home buying thread?
 
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sonoko

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I will be sitting for this thread. We are looking in the same time frame as you for a house but have not decided on a neighborhood yet so just wanted to see what others say.

May I asked how you picked the neighborhood. I am just going through HAR but nothing is really popping out to me just searching general big areas.
 

Charlotta

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I bought a new build recently. I don't remember what closing costs were, but I want to say about $5-6k iirc.
Edit - our closing costs were supposedly lower bc we went with the builder's preferred lender. Builder, lender, title company, home insurer were all sister companies.

I would consider getting your own agent. I don't know if you need it if you're not negotiating anything, but it's nice to have someone in your corner. Other fonts may have more insight.

A couple of other things I wish I'd known...

Backyard landscaping: you might not have to landscape a model, but I had no idea how expensive it is. We spent another $10k on concrete and patio cover. Still need to finish designing, install drip system, plants, ground cover, etc. I'd rather put that $10k+ into the down payment or purchase budget.


Taxes: (not sure how it is in your state) in California, you get a property tax bill on the previous value, i.e. just the land before the build. Then you get a supplemental bill for the purchase price. Something like that. Long story short, I got a massive unexpected supplemental tax bill.
 
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FauxWoke

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Your closing costs will be between $6k-$15k for a $300k house. The exact percentage will be in your loan estimate provided by your lender. It's all based on points and origination fees.
 

MelodyHolt

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Still save for it, but get the seller to pay the closing costs (my husband and I had ours paid and walked away with a check from the overages)
 

FauxWoke

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Still save for it, but get the seller to pay the closing costs (my husband and I had ours paid and walked away with a check from the overages)
It's a model home love, I don't know if it works like that in this case... My seller paid the closing costs and the agent commission fee in my first buy too.
 

MelodyHolt

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It's a model home love, I don't know if it works like that in this case... My seller paid the closing costs and the agent commission fee in my first buy too.


What do you mean? The builder of a model home can pay closing costs as well, I have several friends who have done it. We tried but the builder said they would only do it if we agreed to forfeit the incentives they were offering. (In regards to overages, based on what you put down and whatever else you paid up front you can keep what is left over from what the seller has paid).
 

FauxWoke

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What do you mean? The builder of a model home can pay closing costs as well, I have several friends who have done it. We tried but the builder said they would only do it if we agreed to forfeit the incentives they were offering. (In regards to overages, based on what you put down and whatever else you paid up front you can keep what is left over from what the seller has paid).
Okay. Damn. It's not a war of who knows the most... As I originally said "I don't know if it works like that in this case". You don't have to come at me with so much passive aggressive energy (ie: "What do you mean?") as if I stated something crazy.
 

MelodyHolt

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Okay. Damn. It's not a war of who knows the most... As I originally said "I don't know if it works like that in this case". You don't have to come at me with so much passive aggressive energy (ie: "What do you mean?") as if I stated something crazy.

I was being sincere when I said “what do you mean?”. You didn’t state anything crazy...I was thinking maybe a builder told you something different. Experienced that where I was told one thing and a friend was told a different thing for the same development we were both looking at. There are sharks out there when it comes to the home buying process. That is all.
 

FauxWoke

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I was being sincere when I said “what do you mean?”. You didn’t state anything crazy...I was thinking maybe a builder told you something different. Experienced that where I was told one thing and a friend was told a different thing for the same development we were both looking at. There are sharks out there when it comes to the home buying process. That is all.
My bad girl. Let me check my sensitivity level and go do some craft projects, LSA will have you reading too deep into font communication. Sincere apologies for judging your comment incorrectly.
 

usernamusernam

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I picked the area by doing a map search on Zillow. I found a new subdivision with houses being built within my price range. It's gated and will have a community center with a pool and gym. It basically has everything in want since I don't personally want a pool but would like a safe place for my future child to play.
I will be sitting for this thread. We are looking in the same time frame as you for a house but have not decided on a neighborhood yet so just wanted to see what others say.

May I asked how you picked the neighborhood. I am just going through HAR but nothing is really popping out to me just searching general big areas.
 

usernamusernam

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I hope more people come in and share their home buying experience. I think this thread can be really beneficial for fonts to reference when they are ready to buy.
 

Charlotta

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If applicable, check your state and local property tax laws for breaks. For example, CA gives a $7000 homeowner exemption for homeowner occupied homes.

Tell your empty-nester older relatives to check if they get an exemption for school taxes. Disabled vets get $100k property tax exemption.
 

sonoko

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I picked the area by doing a map search on Zillow. I found a new subdivision with houses being built within my price range. It's gated and will have a community center with a pool and gym. It basically has everything in want since I don't personally want a pool but would like a safe place for my future child to play.
Thanks I'll try Zillow then. That sounds really nice!I have three big areas in mind outside the city just didn't know how to find good neighborhoods within them.

This is a good thread to have :)
 

krikzil

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Closing costs will depend on points and lender fees. I’ve purchased 2 new builds and neither of the preferred lenders paid closing. They did however have an vested interest in making the appraisal and I got a lot of incentives that made it very worthwhile. Be sure to figure in property taxes because you’ll have to fund your escrow account (or have ready funds if you’re paying them separately yourself).
 

MorenaP

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First of all congrats on your new home, such a huge accomplishment and you are building generational wealth!

2. Where do you live that you pay 300k for a house? I’m doing pre construction and my condo townhouse was 600k.

3. Based on the state you are looking at 6-10k I would look into different programs in your state for first time home buyers. In Canada they credit some costs when you buy your first home.


We really need to make a thread about home ownership and sticky it!
 

ASYMMETRICAL BOB

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Avoid PMI if you can as it will be worth it long term.

check out the 1st time home buyer programs in your state, take one of the local 1st time homebuying classes, and get you a qualified, experienced, realtor, a lender, and broker. Have a lawyer to review all paperwork before signing. If it seems too good to be true, it probably is. Make sure you have at least two inspectors before signing that dotted line, even with new constructions as some builders are cheap and rush to meet deadlines. They may use cheap chinese drywall, something could be wrong with the plumbing system, the roof could be faulty, etc. Talk to people who already live in the neighborhood if you can. Look for things like how many times have houses sold on your block in the past 10 years or so. Research school districts. Even if you don't plan on having kids, having a home in an ideal school district makes it more easier to sell. Join/view those sub reddits on home buying, especially 1st time homebuying. Besides down payment and closing costs, make sure you have a fund aside to pay 6 months to a year of mortgage and bills if you can in case you aren't able to work, basically have a back up plan besides your primary form of income in case you are unable to work for an extended period of time.

PLEASE make sure you are aware of the full terms of your mortgage. If there's anything you don't understand in the contract, speak to a professional who can help explain everything. Some people get caught up by not realizing that they don't have a fixed rate mortgage and can't afford the higher payments. Read the fine print.

Taxes are an added expense, so make sure you know what to expect for taxes annually. Have good insurance. Check for things like flood zones.

Consider things like zoning, noise ordinances, parking laws, etc....things that may not be so obvious.

Also, decide if you want to deal with an HOA or not.

Follow your gut and do as much research as you can. Congrats on your purchase!
 

Gull

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a lot depends on your local state, area..etc..
have you contacted a qualified realtor/agent in your area?
you may also want to try and secure a lender.
the agent may be able to suggest one but I am the skeptical type and prefer independence.
they will walk you through certain aspects of the deal and how much you would be expected to pay and how much you can afford based on your finances..

about the only other thing I would recommend you doing on your own is to get an independent home inspector.
sometimes realtors are in bed with inspectors who will let things go in order to close the deal.
 

Bangitybang

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Glad to see this thread. I’m in the process of buying a new build and it’s been an eye opening experience, but I’m hoping it’s a smart investment even with a looming recession.
 

kissamonk

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My fiance and i just closed on a new construction this summer. Closing costs depend on your area. Im in SC and ours were about 13,000. Research different grants and programs and the qualifications. Unfortunately, we didnt qualify for too many due to our income so we decided to go with NACA, which paid our closing costs, avoided us having pmi which saves us about $350/month, and we were able to buy down our interest rate quite a bit.

Also like someone said, make sure to get an inspection whether it's an existing home or new build. If you go new build, dont be shy about visiting your lot. We did at least once a week and were able to correct mistakes before it got too far along.
 

vandiola

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I'm in the UK, I'm hoping to buy within the next year but I want to put down a 50% deposit or thereabouts.

I was looking at buying 8 months ago but was struggling to find decent houses in the area I want. If you want to get a new build in the UK, you can use 'Help to Buy' which only requires you put down a 5% deposit but be ready to pay a huge mortgage. My mates mum had been paying £900+ a month for her new build for more than 10 years and only recently got it lowered.

I'm not a fan of new builds and prefer Victorian, Edwardian era houses but obviously these are more expensive and come on the market less frequently.
 

Booq

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I’m currently in the process now and it’s so stressful. We’ve looked at two houses and the first one we got the house under appraised and the seller wasn’t willing to lower the price. The second one, there was another offer at the same price but the other people had a 20% down payment so they got that house.

This has been the most stressful time because it’s like I love the houses but it seems like there’s nothing panning out.
 

Charlotta

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Another tip...talk to the mailman about the neighborhood. She walks and drives through the area everyday and can usually give insight you can't get from zillow.

Go to the neighborhood park and people watch. Is there a park nearby?

Check out school data...% on reduced or free lunch, % English learners, standardized test scores, parent education levels. Census data has good info to like % of renters vs owner occupied, % of households with kids, median household income, etc.

Also check the local planning commission to see what the plan is for your area 10 years out and what is it zoned for, e.g., manufacturing, high density housing, open space, etc.

I'll dig up data sources and post later.
 

usernamusernam

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I decided to wait a little longer to save to 20% plus closing costs and increase my price range by 50k. I was being modest with the price range because I wanted something that both me and my fiance could afford separately comfortably if anything happened with one person's job or health. Increasing it by 50k will still allow us to be able to afford the monthly payment separately but it would be a little tight.

Reasoning behind waiting:

Originally I was going to get a model home built in a new Subdivision. The subdivision is going to have a resort style pool and waterslides, a water park and playground for kids. I thought it would be the perfect place to start a family. I also fell in love with one of the model homes. Very spacious and it looks a lot better than the non new construction homes I had been seeing.

Me and my fiance decided to wait a while before making a decision so that we could do our research and not end up in a bad situation since this will be our first home.

So I started obsessively looking at reviews for the builders and they were mixed but they had a whole lot of bad reviews. It seems that they use cheap materials and the craftsmanship varies widely based on who the superintendent for your construction is. Since neither of us know what the hell to look for on site visits during construction this scared the hell out of me.

So then I found someone on Instagram that tagged the subdivision in their location. I messaged her and asked if she had any issue with the house. She had a whole list of issues that happened after closing. Although she had a 1 year warranty having so many issues on a new construction home is alarming.

Apparently they are building out this subdivision fast and cheaply while sacrificing quality.

It's disappointing but eye opening. I've got a long road ahead of me.
 

YANAS

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I just moved into my brand new build almost two weeks ago!

1. I got prequalified before going out to look
2. The house was $241K but we got it knocked down to $230k.
3. No down payment, I paid almost 9k in closing costs. For some reason, they were stating it’d be almost 14k but I ended up paying less and getting a $84 refund, lol. I’d save about 10k-15k just in case.
4. My credit score was in the 740’s.
 
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KardiKi

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Make a list of what you need in a home vs what you are willing to compromise on.

If you have a realtor they will charge you for viewing the listings they send you so use it to the max to find open houses so you can determine your style.

If you are in a competitive area your first offer(s) may not be accepted. Don't get too attached to a property until the offer is accepted.

Don't be afraid to up your limit (as long as you can afford it) if a property has the upgrades you were willing to make.

I was ready to find something about 40% of what I was preapproved for, but that was gonna be a thug lifee2
Instead I found a home for about 50% of the preapproval and it's way nicer and inviting.

Make sure you have checks with a valid address for when you have to produce the earnest money.
 

HipsDontLie

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Check the water for lead. Seriously...have the water quality tested. If the house has a sump pump then that's a sign of water issues...two sump pumps is double the issues. Have a plumber check pipes. Have an electrician check electrical circuits. Don't rely on a home inspector to catch everything. You need specialists for the big stuff. Make sure roof is new.
 

NinaStarks

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I bought a new build recently. I don't remember what closing costs were, but I want to say about $5-6k iirc.
Edit - our closing costs were supposedly lower bc we went with the builder's preferred lender. Builder, lender, title company, home insurer were all sister companies.

I would consider getting your own agent. I don't know if you need it if you're not negotiating anything, but it's nice to have someone in your corner. Other fonts may have more insight.

A couple of other things I wish I'd known...

Backyard landscaping: you might not have to landscape a model, but I had no idea how expensive it is. We spent another $10k on concrete and patio cover. Still need to finish designing, install drip system, plants, ground cover, etc. I'd rather put that $10k+ into the down payment or purchase budget.


Taxes: (not sure how it is in your state) in California, you get a property tax bill on the previous value, i.e. just the land before the build. Then you get a supplemental bill for the purchase price. Something like that. Long story short, I got a massive unexpected supplemental tax bill.

My brother just found a team of Mexicans to install a patio for 2k! He had to buy the wood and nails etc but it was still cheap! He found them working on site building for a developer.

he also speaks Spanish fluently so have your language app ready. My point (not to derail) is to find a good person to do the work for the low. You get quality work from the actual people that build the house for a fraction of the cost.
 

Evee

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I have been told by construction folks to be extra wary of slab foundation houses. If there are ever plumbing issues the steps to get to your pipes are a considerable effort.
 

Charlotta

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My brother just found a team of Mexicans to install a patio for 2k! He had to buy the wood and nails etc but it was still cheap! He found them working on site building for a developer.

he also speaks Spanish fluently so have your language app ready. My point (not to derail) is to find a good person to do the work for the low. You get quality work from the actual people that build the house for a fraction of the cost.

Great advice on networking with the construction crew! Landscaping, paint, flooring, all that. They know what they're doing.

My SO handles all the backyard stuff. Fortunately he's pretty handy so he can do alot of it. We got stained and stamped concrete for about 4k and the duraluminum (whatever it's called) wood look patio cover was about 6k I think. It's pretty big, about 15×40ish feet across the back of the house. I have no idea if that's a good price, but people say we got a deal.

I'm glad people are sharing here. I wish I'd known half this stuff.
 

NinaStarks

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Great advice on networking with the construction crew! Landscaping, paint, flooring, all that. They know what they're doing.

My SO handles all the backyard stuff. Fortunately he's pretty handy so he can do alot of it. We got stained and stamped concrete for about 4k and the duraluminum (whatever it's called) wood look patio cover was about 6k I think. It's pretty big, about 15×40ish feet across the back of the house. I have no idea if that's a good price, but people say we got a deal.

I'm glad people are sharing here. I wish I'd known half this stuff.
Yes! I enjoy reading the positive informative posts!

They removed my bothers concrete and did a new foundation for the 1500! If this board didn’t have the “expose her fonts “ it would be easier for all of us to share our plugs in our areas!
 

Sharkbait

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20% is only the beginning.

Have another couple thousand set aside for inspection, boundary survey, and appraisal. Any reno work you think will need to be done, add 30% to estimated cost and time frame.

Unless buying new, have money set aside for emergency repairs (which seem to happen shortly after closing), small things (new doorknobs, interior paint alone was 1k), and new furniture/appliances if applicable.

Make sure you get an AC tune up/maintenance contract, pest control, and new air filters.

Also, I found buyers agents in our area to be useless. Found our house on zillow and contacted the listing agent directly. This works in your favor as a buyer because the listing agent now gets the full 6% commission instead of splitting it with another agent. We offered 30k less than listing and got it. He was also a broker.

Goodluck to you!
 

incogneato

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Another tip...talk to the mailman about the neighborhood. She walks and drives through the area everyday and can usually give insight you can't get from zillow.

Go to the neighborhood park and people watch. Is there a park nearby?

Check out school data...% on reduced or free lunch, % English learners, standardized test scores, parent education levels. Census data has good info to like % of renters vs owner occupied, % of households with kids, median household income, etc.

Also check the local planning commission to see what the plan is for your area 10 years out and what is it zoned for, e.g., manufacturing, high density housing, open space, etc.

I'll dig up data sources and post later.

That info about asking the mail person is a great idea. I delivered mail in the past and 9/10 i can tell you everything about that house/ neighborhood!
 

msgoldiex

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I decided to wait a little longer to save to 20% plus closing costs and increase my price range by 50k. I was being modest with the price range because I wanted something that both me and my fiance could afford separately comfortably if anything happened with one person's job or health. Increasing it by 50k will still allow us to be able to afford the monthly payment separately but it would be a little tight.

Reasoning behind waiting:

Originally I was going to get a model home built in a new Subdivision. The subdivision is going to have a resort style pool and waterslides, a water park and playground for kids. I thought it would be the perfect place to start a family. I also fell in love with one of the model homes. Very spacious and it looks a lot better than the non new construction homes I had been seeing.

Me and my fiance decided to wait a while before making a decision so that we could do our research and not end up in a bad situation since this will be our first home.

So I started obsessively looking at reviews for the builders and they were mixed but they had a whole lot of bad reviews. It seems that they use cheap materials and the craftsmanship varies widely based on who the superintendent for your construction is. Since neither of us know what the hell to look for on site visits during construction this scared the hell out of me.

So then I found someone on Instagram that tagged the subdivision in their location. I messaged her and asked if she had any issue with the house. She had a whole list of issues that happened after closing. Although she had a 1 year warranty having so many issues on a new construction home is alarming.

Apparently they are building out this subdivision fast and cheaply while sacrificing quality.

It's disappointing but eye opening. I've got a long road ahead of me.


A good idea as well could be to go with a smaller construction company opposed to the bigger companies who just build homes everyday lol
 

usernamusernam

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That's what I plan on doing. I found 2 local builders with great reviews and both build homes within my price range. I'm traveling for work right now but when I get back I'm going to set up a meeting with both to get more information. If all goes well I'll be looking for land soon. :blush: I got excited about the process again after finding these builders and looking at their floor plans.
A good idea as well could be to go with a smaller construction company opposed to the bigger companies who just build homes everyday lol
 

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