mingster

Finally took the time to fill out the small mountain of paperwork and got the feedback. The loan amount can probably get my wife and I a small 2bd condo in our current area, so I plan on looking at that. Any tips for house hunting?

bboersma

yeah I can give you plenty of tips I just went under contract today on a 2-bedroom triplex...

I got a 30yr. fixed for 5.0%, gotta love the free money the banks are giving out...oh and I can make it a 10 yr., interest only for an additional 125 basis points, which I may do and just amortize it myself.

rule 1: don't let emotions get in the way...remember the seller needs to sell...you don't have to buy...my seller came down over $50k from their original ask or roughly 10% of the total price...

rule 2: if the owner has a wife make sure you give him enough time to have his wife pressure him to get the deal done....worth at least 10k

not so sure about the CA market but I looked 1.5 years before pulling the trigger...I would first set a geographic area that you want to be in or a certain develpment and then wait for exactly what you want to come out...no reasons to settle...

another idea...I am a licensed broker but don't practice in residential markets...but I wouldn't hire a buyers agent they just cost you 2.5% of the purchase price and my seller was happy that he didn't have to deal with the BS and that we wanted to close quickly...we just had a conference call and came to an agreement...your lawyer can handle the rest of the process for you and a good home inspection can save you from any long term hazards...just make sure you have a few decent "out" clauses in your contract...and try to minimize the amount of earnest money you have to put up...some people ask for 5-10% in earnest but in my instance I got them to settle for 1%...send me a PM if you have any questions and I will give you my best advice...

RedondoS2K

Location, Location, Location! As the saying goes, buy the worst house in the best neighborhood, rather than best house in the not so good neighborhood. Once you find a house you like, walk around the neighborhood to get a sense of what the community is like. Small things like, the type cars parked and where they are parked(street, garage, driveway,etc.), how well the front yards are kept, number of kids playing outside, etc. should give you a good idea if the neighborhood will fit your life style.

If you are looking at a condo, you will need to worry about shared walls and/or floors. If there is a choice, shared walls are better than shared floors/ceilings. Also, end-unit condos are more desirable. Amount/Type of sound proofing used in the shared walls are also important. Try making loud noise on the other side of shared wall while your spouse listen from opposite side. Also, "Condo Association bylaws" should be obtained and read carefully. Association fee is another consideration. Not just how much, but how much service do you get in return should be a big consideration.

There is so much more, but it will do for now.

The Gasman

What they said. The Condo Association bylaws is key. There's so many things they don't allow. Its good in one way because it helps keep property values up, but it can be restricting. My friend lives in a condo where Motorcycles are not allowed.

Location...location...location...

Don't buy by a busy street for sure. Resale is so hard!

Junk_Turbo420A

Wow! Since you guys might be able to help I have a few questions. The wife and I saw a beautiful home we have always driven by and have said, " When we can, that should be the one." But this would be our first home. We both have good credit and make good amount of money a year. The house is right off a pretty busy road, close to a school and considered a lake front property (The lake is only a few hundred feet away). The price is alittle more than we are willing to pay to start off. Atleast by $35k. What should I do? The house has all we'd like. Should we talk to an agent? The location we are looking for doesn't have many homes fore sale usually. Also many of the home styles of the West coast differ from the East. It would also be a home we'd stay at for a lot of years. TIA.

thunderchicken

I just moved into a new house a few weeks ago. I was locked into a FHA 30 year at 6%.

Some of my regrets:

Make sure its what you want

Don't expect everything to go smoothly

If you buy from a builder, they are assholes

Travel the route from your home to work when you'll be going to see how long of a commute it is.

PeaceLove&S2K

Holy shit! Was this with points? I have a high credit score and all i managed was 5.875% about a month or two ago.

Luder94

Rich,

For the price of a condo in Laguna Niguel, my advice would be to move out to Chicago area and buy yourself a mini-mansion. IN the area I live, $320,000 gets you a 3200 sq ft home, at leat 1/2 acre of land, full basement, 3 car garage, excellent school system....now 15 minutes closer to Chicago would get you a 2500-3000 sq ft. luxury townhome.

Move out of the dirty air of CA and come to the crisp clean midwest, where the people are nicer, the women aren't as nice looking (but that's ok, you're married)...traffic is certainly better than the 5 and 405 out there...I'll even help you look.

Morris

Rich,
Condos are ok, but a house is better and will increase in value faster. Plus you can expand and improve which you can't or is limited in a condo. My third house was only 900 sq ft when I bought it for under 100K, but was in a great neighborhood. When I sold it many years later, it was 1,500 sq ft, and went for half a mil. (silicon valley)
Find a dump in a great "location" and buy it.

mingster

Thanks guys! unfortunately my choices are pretty limited because I don't want to live too far away from work, and looking through the ads and contacting real estate agents all I'm finding are at best townhomes, which is what I'm aiming for. It's gotta have an attached garage so I can work on my car