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How exactly do you go about buying a house? I know how stupid that sounds lol

Ok, my husband and I are really young (I'm 19 and he'll be 21 next week) and we've been renting since we got married. Now that we have a little money (not much lol, but about 1/3 of our tax refund) and know where we want to live, we are trying to find out exactly what the house buying process is like. I know nothing about that sort of thing, and he doesn't know much more than I do. What do you need to get a loan for a home? As far as we know, his credit is pretty good. I doubt it's absolutely perfect, but it's pretty good, I guess. I know that sounds kind of stupid, but we are just starting out so this is all new to us. Thanks so much for any info you can give us!

 
Mrs.BAT

Asked by Mrs.BAT at 2:52 AM on Feb. 28, 2009 in Money & Work

Level 38 (105,028 Credits)
This question is closed.
Answers (8)
  • Go to your bank and see what you qualify for. I would make sure your payment is less than 25 percent of your take home. So make sure you check that some banks will try and lend you more than you really can afford. Once you have the amount you can afford make sure you start saving so you have 10-20 percent to put down don't forget closing costs, appliances, and the fact you will want to paint and decorate. So save like crazy right now. Pay off all your debts too.

    Once you have the funds and your debt paid off then contact a realtor have you pre approval handy. Check the realtors out before settling with one. You want somebody who is showing you homes you actually want they will try to get you to go up in price stay firm with what your top range is and refuse to look at homes out of that range.

    After you find a home use your instincts and if it is too good to be true it proably is not a good thing.
    Anonymous

    Answer by Anonymous at 2:18 PM on Feb. 28, 2009

  • It's not a stupid question there are couples in their 30's who have no idea how to go about it. What i did was go to a home loan firm in our town, you can also go to your bank or other bank that you prefer to apply for your loan, it is best to make sure you can get the loan before contacting a real estate agent and getting your hopes up, what you think you can afford and what the bank will give you can be two different things.

    we didnt need much to apply and the loan company pulls your info for you, they will need to see paystubs, driver license and bank statements. typically they want you to keep a certain amount of money in your account to cover inspections and your good faith money.

    depending where you live and who you work with on the loan you have many options, first time home buyers, VA, FHA loans. I live in a rural area so we were able to not use our VA loan and go with a rural housing loan that had better terms.
    3_ring_circus_

    Answer by 3_ring_circus_ at 2:59 AM on Feb. 28, 2009

  • this guy sums it up nicely!

    http://michaelbluejay.com/house/

    sunmoonstars

    Answer by sunmoonstars at 5:54 AM on Feb. 28, 2009

  • You should try going to NACA (the Neighborhood Assistance Corporation of America) They have been helping people for about 20 years get homes they can afford. They put you through a 6 month course and once you have completed it, they guarantee a Fixed market rate (or lower) loan. I've used them :) PLEASE look into them and PLEASE feel free to ask me any questions you want. It's a free program that uses volunteers (like myself) to operate. www.NACA.com

    tandknix

    Answer by tandknix at 10:43 AM on Feb. 28, 2009

  • It's not stupid at all. There are HUNDREDS of books and workshops out there for people just like you (and me once upon a time).
    I'd suggest looking at the sites the PP have mentioned and going to the bookstore or library and checking out a book on the topic. I really like the "dummies" and "complete idiot's guide" books.
    kaycee14

    Answer by kaycee14 at 1:58 PM on Feb. 28, 2009

  • We had no clue what to do beyond going to a realtor. We lucked out and got a really good realtor and she stuck with us for 10 months while we found the perfect house and then helped up throught the actual sale, told us we needed a lawyer, advised us to get an inspection, etc., etc. There are books out there and you can google "how to buy a house" or something like that.

    Good luck! They say it's a good time to buy because the market is dropping everywhere.
    Madge1428

    Answer by Madge1428 at 3:20 PM on Feb. 28, 2009

  • Actually, buying now is a good idea. Because the house prices are at their lowest in years.
    iloveRiver

    Answer by iloveRiver at 4:16 PM on Feb. 28, 2009

  • Well, what I love about NACA is that they base what you can afford on your income. None of it is based on your credit. They put you on a 6 month budget and if you stick to it while you are going through the classes you are approved. For example: If you pay $500 a month rent right now and would like to own a house that will cost you $800 a month (they figure all this for you) then you have to save the extra $300 per month so show them you can afford it. You THEN put that money down towards your home loan. Every $1,000 or so you put down drops your interest rate 1% point. I have seen people get their interest rates down to 0% before. This program is definitely worth looking into doing. A lot of people (like us in the beginning) thought it was a scam, but it's not :) They are doing home buying and loans the way it SHOULD be done!
    tandknix

    Answer by tandknix at 5:08 PM on Feb. 28, 2009