Home Owners - Any Advice?

[drunk_medic]

I got out of the military and am very close to securing a good paying job. It's time for me and my wife to buy a place to live. We are really looking to get a 2-3 bedroom condo. We each have our wants for features we need in a place to live, and I think we may have found a place for major consideration. Two-story 3 bedroom, 2 bath, 2 car garage + 2 carport, small balcony and patio, and they are brand new [in fact, it looks like only 20 or so of the planned 120 are fully built]. The condos are set up so 4 condos make up 1 building. Interior condos are $206k and corners are $210k. This seems about perfect for us - a couple with no intent of ever having children. Of course we will shop around, but these seem like an excellent deal for brand new in this area. Regardless of where we DO move, I really want to move in within 2-3 months.

What I want to know is, what are certain things I need to look our for when I buy? I need advice BADLY - this is a very important decision in our lives and I'd like a few angles. I will be getting a VA loan. Your input is GREATLY appreciated.
-DM

 

[HIDPLANET]

Well since you are using the VA loam, you dont have to put any money down and you set yourself up with a fairly low interest rate. I think right now for a 30 year fixed, youre at around 6%. This gives you a great opportunity to purchase without having to save for the down payment.

For for instance, on a $200k loan, you will pay approx $1300/month not including association dues. That is another thing you have to look into when getting a condo or townhouse. Dues can be as high as $500/month so really do shop around when looking into this. In the end, you can end up paying the same amount for a house compared to a condo with dues.

Choose a good mortgage mortgage company. See if being in the military gets you any breaks on points and make sure you dont have to pay PMI. I dont know anything about VA so I dont know if PMI applies.

Just shop around, put on paper your budget and include insurance, and other items that you will need when owning your own place to be sure you can truely afford it.

 

[kwnate]

Good advice ^^

Another important thing is location. Look at the crime rate in the area, make sure that there aren't low income housing near or lots of apartments. That is where most crime happens (at least around me). In my area 90% of the crime is about a 1/2 mile away in all the apartments, its as if the criminals don't venture out of the complexes. I've seen crime maps of my area and its amazing... If you need to spend a little more for a better area do it.

 

[da89soup]

All great advice guys!!!

Taxes and special assessments can also bite you in the ass on your payment. So just make sure you get all the numbers ect before you decide. Good luck!!!

 

[HIDPLANET]

I know some ppl in AZ and I think property tax there is good and low.
You should be good as long as its in a good area. Even though you may not be buying for investment, its a good think to think of it as one because of how much you will be putting into it. If the area market falls, then youre paying for a home that is worth less than what youre paying making it not worth your time and money to continue paying.

 

[GrimJack]

Home insurance companies often have access to crime rates. Convincing them to part with it might be tough, but it can't hurt to try, especially if you're going to be shopping for insurance as well - which you should. Many mortgage places require it.

Get the place inspected, even if it's new - it's not that expensive, and it makes for excellent insurance.

Don't hesitate to complain about deficiencies to the builder. Here, they are obligated to fix them, I'm sure it's similar there.

See if you can tap a local real estate agent for more advice - without agreeing to use them as your agent, of course, although that's not a bad idea either, agents do this for a living for a reason, they know all the ins and outs that might trip up an independent buyer.

 

[bigaaron]

I wish condos were in the 200k range here! It's more like $300K+

One thing to remember about condos though, is that you only own the space inside the walls, not the condo itself. You will build equity faster with a home and you will take less of a hit if the market goes bad. If I want to play a movie at 2am I can blast it and no one is banging on the ceiling like my old apartment. I can work in my garage when I want, and I can paint my house any color I want. If I want to mow my own lawn I don't have to pay a gardener, and if I don't want mow it I can get someone to do it for $50 a month, not $500.

 

[CTsupra]

are you just getting approved for the va loan, or have you seen this site - www.vamortgage.com

if your just getting approved and not actually receiving any money take a look at this site. they get you approved AND loan you the money.

 

[buckshotglass]

I personally look for the worst house on the best street. That is the one that could possibly go up in value the most down the road. The need for carpet, paint etc. can scare away a lot of potential buyers, so a slightly run down house may be a great way to save a lot of money, if you don't mind a little sweat equity.
my .2

 

[drunk_medic]

So far you guys have given me some great advice. I appreciate it all!
It's going to be hard to find all of the things we want for the right price. Of course we want to live in a good part of town, but it absolutely must be affordable as well. I want a 2-car garage, not a carport, and it must be 2-3 bedroom. Wife wants 2-story, but I really don't think that's as important as the other features listed.
House, apartment, condo, townhouse - whatever. House is desireable of course. It's just definitely time to think about getting a place to live.

 

[foreverpsycotic]

get something that you can work on. find a house that needs a few things like siding, paint and minor stuff that you can do yourself. this way, you have something to do in your off time that can keep you buzy while increasing the value of your home. and if you end up buying a house that has a large yard invest in a riding mower, you will enjoy it.

dont be afraid to get your hands dirty and pour blood sweat and tears into your home. make it how you want it.

 

[drunk_medic]

get something that you can work on. find a house that needs a few things like siding, paint and minor stuff that you can do yourself. this way, you have something to do in your off time that can keep you buzy while increasing the value of your home. and if you end up buying a house that has a large yard invest in a riding mower, you will enjoy it.

dont be afraid to get your hands dirty and pour blood sweat and tears into your home. make it how you want it.

I would love that - the only problem is, most homes here have a thick stucco exterior, and the ones that ARE the type with siding, wood, etc [we'll say the type that laymen can work on easily] that need work are NOT in good neighborhoods, or are close enough to be undesireable. Safety of family and property are more important to me than getting a fixer-upper at a super low price.

The place we looked at today has an association fee of $125 per month - not terrible in my opinion. They are also lived in by owner - people and companies cannot come in and buy 10 to rent out as they see fit. People have to own and live in them for at least 2 years before they can rent them out, too. I told the realtor that we would love the place, but we have to look into all of our bills, the fees including utilities, insurance, etc before we think about it more. We also have A LOT of shopping around to do.

 

[SupraDerk]

Good advice ^^

Another important thing is location. Look at the crime rate in the area, make sure that there aren't low income housing near or lots of apartments. That is where most crime happens (at least around me). In my area 90% of the crime is about a 1/2 mile away in all the apartments, its as if the criminals don't venture out of the complexes. I've seen crime maps of my area and its amazing... If you need to spend a little more for a better area do it.

Dear lord, that's the truth! I posted about this when it happened, but last year I lived in a townhouse with some of my friends... it wasn't in the best part of town...but the rent and utilities were SO LOW! Anywho... my neighbors (that's the other half of the "house") robbed us

Location is now the #1 thing I look for in a place to stay

 

[Shytheed Dumas]

Learn from one of my mistakes and GET EVERYTHING IN WRITING!!!!!

Whether you are buying new or used, do NOT be afraid to assert yourself and make any sales reps, sellers, or real estate agents put any "promises" in writing. If they tell you there is no HOA, get it in writing. If the seller agrees to pay your closing, get it in writing. If they make any statements on easements or the developability of adjacent properties, get it in writing. A series of simple paper notes with a date and a signature for every thing they promise that is not already part of the contract is fine.

You never know when somebody is either mistaken, doesn't care to find out, or is lying to secure a sale and believe me if it's important enough to be talked about, it's important enough to handwrite and sign off on notebook paper for. Believe me - I just finished off a 5 year battle against DR Horton who does 50,000+ homes per year in the US over just such an issue. And think of it this way: If you are going to have to spend the next 15 to 30 years paying for something, then there is no shame in making damn sure every single promise is delivered on.

 

[HIDPLANET]

Oh and make sure Joe (OneJoeZee) doesnt move into your neighborhood cuz he'll drive the values down