Purchasing a house

[LA_MERC_LaTech]

Hey everyone,

Mrs. BoLT and I are now in the process of beginning to look for a house. ANY help would be GREATLY appreciated. Thigns we should ask. Things we should look for...etc etc etc.

Thanks!

LaTech

[K-BOMB]

Congrats...now is definitely the time to buy as interest rates are near all time lows.

I've only purchased one home and it was brand new. Not sure if there are many planned communities in Ruston (hadn't been back since 1997). If there are and you're buying a brand new house, I would look into the builder's stock of inventory homes. You probably won't get to pick every feature, but you can save some serious $$$ (we saved $20K). If you pick your lot and floorplan and build from the ground up, you will get to choose everything (countertops, flooring, cabinets, etc) - but you will likely have very limited flexibility on price - similar to buying a car for sticker value.

If you buy pre-owned, definitely get a third party inspection (actually, get one for a new house too - $300 is a small price for long term peace of mind). Fixer uppers can save you $$$ on the front-end if you have the time and desire to tackle some improvement projects.

Thinking longer-term, if there are features (or lack thereof) that annoy you about the house, they will likely annoy future buyers - this can hurt you when it comes time to re-sale. Most prominent one is probably too few bathrooms. Location (i.e. good schools, distance from shopping, etc) is another important factor.

Lastly, concerning the mortgage itself, I have two words: PMI SUCKS!!! For most loans, if you don't have the 20% down payment, you have to pay PMI (Private Mortgage Insurance). This basically protects the lender in case you default and the house has actually depreciated in value. Therefore, I pay about $80/month for something that has essentially no personal benefit :( I have heard of 80/15 loans where you pony up a 5% down payment, get a separate loan for the remaining 15%, then use this money for the total 20% down payment - thereby avoiding PMI.

Good luck!

[SnAkEbItE]

If it's a older house let me share some words of wisdome, check out the plumbing very very closely.

[LA_MERC_Sabre]

i agree about the plumbing, the house i'm in now has some bad pipes that will cost mucho $$$$ to fix. I'm glad i'm selling it!!!!. It's not really that bad of a problem but it is an annoying one like k-bomb was mentioning.

I'm moving to Houston in March and just realized i too will be paying about 80 a month in PMI, what a rip off!!

You would be much safer to buy a home 0-10 yrs old, just because there will likely be less problems with it. Make sure the A/C and Heater work, look for stains in the ceiling (roof leaks) or cracks in the walls (foundation problems). Look for paint cans and brushes or recently fixed things (they could be covering something up!!). but the best way to give yourself peace of mind is to get the inspection done by a professional and ask the seller to buy a 1-year warranty on the house. The warranty will cover just about everything.

[-=C.O.P.S=-KOrruptED]

Yeah if it's an older home be careful of the wiring, make sure you don't have knob & tube wiring. Get the home inspection it should cover all your bases. If you can afford it go for a 15 yr mortgage. Good luck.

[Rooster]

Definitly get the property inspected. They will be able to tell you the ins and outs objectively b/c they are getting paid no matter what. Try to see if there is a first time homeowners loan out there, like with cars.
For me, I check the structure of the house. Does roof have 3/4 ply or is it particle board? Gas vs Electric? Elevated vs Foundation? How old is it vs any renovations? These are all questions you will have to ask and answer for yourself. Everyone has their own limits.

[Rooster]

One more thing....Korrupted is right, if you can, try to get the 15 year loan vs the 30...work the numbers and you will see how much money you are spending for both.

[LA_MERC_LaTech]

Well, thanks for the help thus-far...

The type of house that we are looking for is a 3 BR, 2 BA in a good neighborhood. I happen to be good friends with a local realtor and he has been a GREAT help as far as letting me know where to look for houses that will have a good re-sale value. The house that we are going to look at today is roughly a block and a half away from one of the better Elementary schools in Ruston. As far as planned neighborhoods, I really don't know. We are looking for a house that is within the 5-15 year old group (all the major problems have been fixed...we hope!). Will let you know how it goes.

Thanks again for all the suggestions!

LaTech

[-=C.O.P.S=-KOrruptED]

I noticed in the newer construction they use very cheap materials, especially in the tract houses. Make sure you also don't get flooding in the basement or leaks in the roof, that can be a nightmare. :(

[LA_MERC_LaTech]

Louisiana = no basements ;)
Will ask about the roof though!

[-=C.O.P.S=-KOrruptED]

LOL forgot u guyz were under water table.
The home inspector should check the whole house and give you a detailed report with any problems.