I'm putting Minna's name on this, but she may desire edits. Right now, we're in the process of buying our first home, and we've taken our time doing it. The main reason for taking our time: avoiding the mistakes so endemic to buying a home, and learning about the process. We initially started the homebuying process before leaving Albany, over two years ago. We've been engaged in homebuying ever since.
Each of these steps is surprisingly complicated. At every step, someone is out to rip you off. At least one someone, probably a bunch. The entire industry of real estate is built around ripping people off. So this homebuying guide is going to focus on avoiding getting ripped off, and avoiding the many pitfalls that most first-time homebuyers fall into. It's only through some good fortune that we've avoided some of them, and some education has helped us avoid the rest.
One note: this assumes that we're talking about conventional, fixed rate mortgages. For some people, an adjustable rate mortgage may make sense, but in most cases, it's a risky gamble. ARMs played a big role in the economic problems we're seeing today, so let's just avoid them and let people who have some experience buying and selling property worry about them. A first time homebuyer should never consider an ARM.
( Read more... )
The remaining steps, getting an inspection, getting a mortgage, and closing, are ones I haven't done yet. But, once your offer has been accepted, you have a clock ticking to accomplish two major tasks: get an inspection and apply for a mortgage.
Depending on your local rules, and the stuff you put in your offer, you're going to have about 10-15 days to get these tasks done, so it is important to jump on them quickly. I applied for a mortgage today, but it takes days or weeks to get an approval back (depends on the bank, your credit rating, and how their underwriting process works). But when you apply, you do lock in your interest rate, usually for 60 days. This means, when we're approved, we're locked in for a 4.375% interest rate which is suhweet.
As for the inspection, you do want to find an American Society of Home Inspectors (ASHI) certified inspector, and there's a lot of things to consider in that step.
Everything I've covered so far in this post has been stuff I've actually done. Since I haven't actually gotten approved for a mortgage or had a home inspected, I will refrain from commenting further on them, for now. Expect a part two next week, discussing the inspection, and future installments as I cover the remaining steps.
Homebuying
The Process
Before you can buy a home, you need to understand what you're in for. This is a high-level view of the steps:- Save
- Find a place
- Put in an offer
- Get it inspected
- Get a mortgage
- Close
Each of these steps is surprisingly complicated. At every step, someone is out to rip you off. At least one someone, probably a bunch. The entire industry of real estate is built around ripping people off. So this homebuying guide is going to focus on avoiding getting ripped off, and avoiding the many pitfalls that most first-time homebuyers fall into. It's only through some good fortune that we've avoided some of them, and some education has helped us avoid the rest.
One note: this assumes that we're talking about conventional, fixed rate mortgages. For some people, an adjustable rate mortgage may make sense, but in most cases, it's a risky gamble. ARMs played a big role in the economic problems we're seeing today, so let's just avoid them and let people who have some experience buying and selling property worry about them. A first time homebuyer should never consider an ARM.
( Read more... )
The remaining steps, getting an inspection, getting a mortgage, and closing, are ones I haven't done yet. But, once your offer has been accepted, you have a clock ticking to accomplish two major tasks: get an inspection and apply for a mortgage.
Depending on your local rules, and the stuff you put in your offer, you're going to have about 10-15 days to get these tasks done, so it is important to jump on them quickly. I applied for a mortgage today, but it takes days or weeks to get an approval back (depends on the bank, your credit rating, and how their underwriting process works). But when you apply, you do lock in your interest rate, usually for 60 days. This means, when we're approved, we're locked in for a 4.375% interest rate which is suhweet.
As for the inspection, you do want to find an American Society of Home Inspectors (ASHI) certified inspector, and there's a lot of things to consider in that step.
Everything I've covered so far in this post has been stuff I've actually done. Since I haven't actually gotten approved for a mortgage or had a home inspected, I will refrain from commenting further on them, for now. Expect a part two next week, discussing the inspection, and future installments as I cover the remaining steps.



