Thinking of purchasing a house.Need an idea of what I'm getting into.I'm open to any advise and comments.?

Question

Thinking of purchasing a house ,its a big step to take,the down payment for bank owned homes sound too good to be true. Is there a catch to it?My two broes and i work.I have a 735 credit score.What requirements does one need to qualify to own a home? What kind of payments does one make when paying off a house? Can anyone give me an idea of what to watch out for. What is property tax? Do you pay that off yearly?Is there any other fees one needs to pay besides the rent,electrical bills,and the mortgage? These types of questions I need answers to. It would be nice if someone who already ownes a home to give me a heads up,share your knowledge with me. I'm seeking what ever advise I can get my hands on.Its a big issue to cover,just need to know what I would be getting myself into>Thank You.

Answer 1

First you probably want to go to a bank and get prequalified (with your brothers if you are planning to buy it with them).  THe bank will look at your income and credit and debts and tell you how much they are willing to lend you ie how much they think you can afford to buy (but if they prequalify you for 200K you can still just buy a 100K home, you just can't buy one for more).  The bank should also give you an idea of how much money you will need to cover closing costs and a downpayment.

If you are ok with what the bank tells you then you go find a good realtor and tell them what you are looking for and they start showing you homes they think you would like.  You put in an offer on one of these, negotiate back and forth, and hopefully buy this home (or some other if the negotiations fail).  Once your offer is accepted the bank starts doing its thing to get you the loan, and the closing agent starts doing some more stuff and hopefully you go to closing and buy the place in 30-45 days, or so.

Once you are in there you pay all utilities (no rent - you own the place), real estate taxes (essentially just a tax on real estate, paid yearly to the local gov't - paid every year but it can be deducted on your income taxes), insurance, plus the mortgage payment.  You may also have a home owners association fee, or maybe not.  Of course there will also be costs for the upkeep of the property as well, but thats about it on costs.  I can't easily estimate the above costs as they vary alot depending on what you get and where it is, but a good realtor can help you with these (and the bank can help you with some of them also).

Best luck.

Answer 2

Contact a Realtor and let him or her write up a purchase contract for you on the house you want.

Answer 3

I suggest some reading before you start working with a real estate broker. The brokers are all in a big hurry to make a sale, because that is the only way they get paid.

Try

"Home Buying for Dummies"

and/or

10 Steps to Home Ownership: A Workbook for First-Time Buyers