Comments on: First time home buyer in Katy Texas needs help understanding real estate?

By: Ron Berue

Ron Berue — Tue, 06 Oct 2009 20:05:36 +0000

Step #1: Look into First Time Buyer programs.

Step#2: Read ALL the literature you get AND follow the directions - step-by-step.

If there isn’[t any First Time Buyer program:

Your first step should be to get pre-approved for the mortgage.

Arrange for an appointment with a loan officer at a savings & loan or a federal credit union. These lenders tend to have lower fees and rates than mortgage companies or full service banks.

Bring all the applicable informnation about any open and closed loans.

You should be as honest as possible.

After getting pre-approved, take a ride through those areas where you can comfortably afford to make those mortgage payments.

Make notes of the “For Sale”, “Sale” and “For Sale by Owner” signs in those areas. Ca;; those people to make appointments to see those properties.

IF you meet an agent you feel comfortable working with, continue working with that agent. He/She should be able to get you through the great majority of those properties you’re interested in seeing.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name! Ron Berue

By: Rick S

Rick S — Sat, 03 Oct 2009 19:24:58 +0000

I would suggest you find a realtor. They can guide you through this process, and since you’re going to pay one anyway in the total purchase price of the home, get your money’s worth. I would advise that you NOT use the Seller’s realtor, as they will pump you for the most commision (the more they sell for, the more they get pa$d) If you have your own realtor, of course they’ll get a commission from the sale also, but they will be more interested in the sale happening. No sale, no commission for them. At least, if you don’t end up buying anything your realtor shows you, you won’t have to pay anyone. Make sure you get what you want, you may never decide to sell it. Rick S

By: Christopher B

Christopher B — Thu, 01 Oct 2009 13:48:52 +0000

It will probably be easier to base your purchase on location first. Try to narrow your choices down by neighborhood, or zip code. Find an area that fits you needs, and then start looking for houses within your financial parameters.

Once you have a list of about 10-20 houses that could potentially serve as home, then I would start making low ball offers on each. Just as you say, there are so many properties out there. This is a buyers market, and a declining market - so you absolutely should be buying at a discount. As long as you keep a detached, business perspective on your purchase, you stand to walk away with a great deal. And if not, then move on to the next offer.

As a first time homebuyer, you should be looking for a property that is no more than 3X your annual income, and the monthly payments should be no more than 35% of your income. It is recommended you have a 20% down payment, and AT LEAST 6 months of living expenses saved on top of that. We all should be living at no more than 65% of our incomes and putting the rest towards savings and investments. Christopher B