Housing101 - need advice
Planning to buy my first home in the near future so I have several stupid questions - If I find a place that I like on Zillow, do I just contact agent listed there or should I get my own agent? - is the listed price accurate or I’ll have to put a higher offer to compete with others? I heard a couple of my colleagues did that but some homes have been listed for like a year so I would hope they want to go fast (more like a buy it now button on eBay?) - I’ll probably have some more questions regarding the mortgage but I honestly don’t know where to start lol say if I have a 20% down, which bank should I go? lol sorry if my questions are too stupid but we all start somewhere right? Thanks
Suggest a couple of things. Redfin is a great option if you want to select the houses you want to see yourself. You need only set appointments and someone will be there to show you the house. They can assign you a buyer's agent as well to walk you through the offer process. From a mortgage standpoint I had a really good experience with rocket mortgage from Quicken Loans. They keep you in the loop as your loan progresses and are super fast. Only other suggestion I would make based on my own experience is to bite the bullet and go with a 15-year mortgage if you can. To understand why just compare the amortization of a 15 year mortgage versus a 30 and how much more quickly you will build equity.
Even with 10:1 arm i plan to pay in 10 years, why should i go for higher rate with a 15 year?
Location?
Make no large purchases outside of your normal living expenses for 45 days up to your closing date. Give/Take no money you can’t explain/document. New builds can offer attractive incentives, also if you use a realtor with a new build, ask if they will set you up with a BAC to allow for a nice kick back. Everything is negotiable and if the house is used, the seller should cover closing costs unless there are multiple offers on the property.
Thank you! What is BAC?
A Buyers Agent Credit. Typically this should be about 2% of the purchase price. When a realtor represents you at a new build, they are entitled to 3%. Since they literally have to do nothing to help you with finding/showing the house, most are more than ok hooking you up with this 100% legal practice. Depending on house prices, it’s a nice windfall. Just bought a house in the Dallas area for $450k. Got a kick back of about 13k
Check out openlistings if you’re comfortable with a slightly more independent approach with large refund. Otherwise, you’d want a buyer agent representing you. Maybe Redfin could work, I haven’t personally tried. On Zillow, you can filter for properties sold in the past few months/weeks. These closing prices can help frame your offer. Keep in mind these listings don’t have the complete picture- some are private sales (you can tell if the history doesn’t show “listed” “pending” and “sold”) and you don’t see the disclosures or inspection reports. Two identical looking properties on Zillow can have massively different, unobvious costs Shop around for a mortgage. First republic and Wells Fargo are two major lenders in the Bay Area, I also got good rates from union bank. You need to figure out your finances and how much you can truly afford and what type of mortgage you want. Google is your friend here. In hindsight, the process was pretty cookie cutter But the whole buying process felt scummy. Everyone is out to get a referral bonus or make a quick buck. Stay strong, don’t be pressured by someone’s sales tactics. I’ve avoided a ton of pitfalls by getting second opinions and just shopping around. Good luck!
Thanks!
Get a good agent by referral. They will walk you through and make rest of the process easy.
1. Depending on your location, not getting a realtor may not have any value to you. 2. Listed price is never accurate. Offer what you think the house is worth. 3. Look at a credit union before going to a bank Don’t rush it. You’re not in a race.
Get an experienced broker. They’ll help you avoid costly mistakes and earn their commission which comes out of the sellers profits. (ur essentially financing their commission and folding in to cost of loan vs paying outright.) Agent will help you determine fair price and demand for the homes you want. Very market dependent. Agent should guide you into a home that will hold resale value, avoid costly repairs, etc. I don’t suggest Redfin. They are horrible at negotiating and agents have little experience. You’ll be sent down a chain of ‘specialists.’ Find an agent with good community standing.
And visa?