I lived in Los Angeles for 12 years and paid over $150,000 in rent. That was money he was never going to get back. If you had owned a home, you would have been able to invest that $150,000 of equity in a new purchase. My fiancée finally realized that renting was the worst thing we could do financially, so we committed to buying a new house. To determine how much we could spend, where we could spend it, and how much we would need as a down payment, we had to scour the web to educate ourselves on the entire home buying process, from mortgage basics to appraisal. Dear All. Below are the top 10 links we think are most important to first-time homebuyers looking for a first home.
Mortgage Basics
If you’ve never bought a home before, you really should start here. There are many documents that you will need to compile during the closing process. Also, there are many questions to ask potential lenders and brokers throughout the process. For example, if you’re self-employed and your gross income is much less than your adjusted gross on your taxes, by half a point to a point higher on your interest rate, you can get a loan set up with little or no documentation. If you don’t ask a lender for this first, they won’t be allowed to offer you an established loan once they’ve seen your financial information (ie taxes, bank statements, etc.). Also, unless you’re already an expert in home buying, I 100% recommend using a real estate buying agent, even if it’s just for negotiating. It cost you nothing. The commission for the sale will be split between the buyer’s agent and the seller’s agent.
bankrate.com/brm/green/mtg/basics-toc.asp
Shop your credit score
You are completely in the dark if you don’t know all 3 Fico scores. There are other credit scoring systems, but Fico is the most popular. This is obligatory.
myfico.com
free credit report
You can get your free credit report once a year from all three credit reporting agencies. There are many websites that will make it look like you can get your report for free, but will force you to sign up for a trial service. This site is the only truly free site. If you purchased your 3 Fico Scores, you will not need to visit this site.
annualcreditreport.com
online brokers
You can search online for a loan from an online discount mortgage broker. If you make all your mortgage purchases in 2 weeks, it will have the least impact on your credit score, but in general, if a bank checks your credit score for a mortgage, it’s not supposed to affect your credit score. To get the best rate and sometimes even close on the loan, you’ll need all the help you can get. Working with one broker, even several, will create the best chance of getting the right rate, down payment, or a loan to close.
eloan.com
lenders.com
Raw statistics on most cities
“Where should you live?” is probably the most important question you could ask yourself. The cost of housing, culture and traffic are things that could affect your decisions. These links provide raw statistics on many of the factors that could influence your decision.
bestplaces.net/Default.aspx
money.cnn.com/magazines/moneymag/bplive/2007/index.html
Search for Houses, Condos, Real Estate
These websites are extremely helpful in identifying potential homes. The first two have a customizable search engine, allowing you to add anything from hardwood floors to a sprawling tub to your search.
ziprealty.com
realtor.com
newhomeguide.com
appraisal estimates
Last but not least, once you’ve identified a list of potential homes to buy, you can get an unofficial appraisal, as well as the previous year’s tax appraisal, to help you determine a bargain price.
zillow.com
Good hunting.
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