Looking For Our First House

sunshineboots

My BF and I are currently looking for our first home! We picked out houses together online and I have set up appointments throughout the week. Since my BF works a set schedule every day, I told him I would take videos of the houses on my iPhone, then show them to him later. If he liked a house/video in particular we are planning to see it together on Saturday.

I need advice on picking a home! What are red flags to watch our for? Any specifics to ask the current home owners? Money savers or money managing tips? How do I know when the house is our home? Moving advice?

Also need relationship advice! Is there anything different we need to be doing once we live together? Any tips on keeping a healthy relationship once we move in? I have more stuff than him, so how do I make this home an equal environment? 

We have had extensive conversations about this (we have a very honest and open relationship) and so how the bills will be paid, our budget, time line of the moving date and what we both want in a home has been decided. Is there anything else we need to discuss? Touch base on? 

Any advice is welcome, so if you know of something I didn't mention above, please let me know!

Thank you!

purplepeopleeater11

I would say, if you're going to finance a home get preapproved first.  You would hate to fall in love with a house that was $180,000 when you can only get approved for $100,000. 

Also, look into different programs.  There's FHA, conventional, rural development...all those things could impact this huge decision as each determines the down payment.

I used to work in the mortgage industry and too often there would be a couple who fell in love with a house and there was no way to get them in to it.  Regulations are pretty strict so it might not be a smooth process. 

Good luck!

sunshineboots

Thank you for the payment advice but we were really hopeful for this Rent-To-Own that I am seeing today.
Any advice on a Rent-To-Own? Here are the details: 
"Rent To Own is also available. Instead of doing a security deposit, all money put down upfront gets applied towards your purchase of the house. Then you would rent the house until you can get financed to purchase. Rent would be $845, and of that, $100 would be applied towards the purchase! Once you have 5% of the purchase price applied, you get approved for our down payment assistance program! 
Down Payment Assistance Program: If you put an additional $150 towards the purchase of the house in addition to the monthly rent, we will match that $150. So, $300/mo, plus the $100 from the rent would be applied towards the purchase! "
Does that seem fair?

Penny66

If you have anyone in your family who is handy I recommend taking them. They know what to look for and they can point out potential problems for the future. My father went with my Aunt when she wanted to buy a new house and he told her not to purchase a house that she really liked because there is water damage in the basement that could cause the foundation to fall. She did not purchase the house but her friend did, now 2 years later the foundation to her friend's house has fallen, and she now has to tear up her entire front yard to fix it, this will cost well over $10,000. Congratulations on starting to look for a house and best of luck!

heyimbren

I'm no where near ready to buy a home, but my family's always told me that they recommend a downpayment of 25% of the total cost should be put down.

Also, if you're buying a house with your BF make sure you put some legal paperwork in place as well in case anything happens.

AudgiePodge

Definitely 100% get pre-approved for a loan before you go. Don't even look at houses until you do. It's almost a waste of time.  Like mentioned above, what if you fall in love with a house $50,000 more than what you're approved for.

AudgiePodge

I would not rent to own. If you don't have enough money to put a down payment on a home, it's not time to buy a house.

sunshineboots

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_not-engaged-yet_looking-first-house?plckFindPostKey=Cat:Special%20Topic%20Wedding%20BoardsForum:136Discussion:d0080e8f-048b-4b3f-a2e2-f176368ac719Post:677b3d33-48ac-44d2-a84a-5e2561ecae93">Re: Looking For Our First House</a>:
[QUOTE]Thank you for the payment advice but we were really hopeful for this Rent-To-Own that I am seeing today. Any advice on a Rent-To-Own? Here are the details:  "Rent To Own is also available. Instead of doing a security deposit, all money put down upfront gets applied towards your purchase of the house. Then you would rent the house until you can get financed to purchase. Rent would be $845, and of that, $100 would be applied towards the purchase! Once you have 5% of the purchase price applied, you get approved for our down payment assistance program!  Down Payment Assistance Program: If you put an additional $150 towards the purchase of the house in addition to the monthly rent, we will match that $150. So, $300/mo, plus the $100 from the rent would be applied towards the purchase! " Does that seem fair?
Posted by sunshineboots[/QUOTE]<div>
 Like I said in the above post, we are renting/ doing a Rent To Own first. We will make it permanent once we are married but a Knottie on here gave me very good advice that it is better to rent with someone rather than buy a house in case something goes wrong.</div>

MLekathLEEN

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_not-engaged-yet_looking-first-house?plckFindPostKey=Cat:Special Topic Wedding BoardsForum:136Discussion:d0080e8f-048b-4b3f-a2e2-f176368ac719Post:25719199-e15c-400f-82f0-614c05d1806e">Re: Looking For Our First House</a>:
[QUOTE]In Response to Re: Looking For Our First House :  Like I said in the above post, we are renting/ doing a Rent To Own first. We will make it permanent once we are married but a Knottie on here gave me very good advice that it is better to rent with someone rather than buy a house in case something goes wrong.
Posted by sunshineboots[/QUOTE]

I'd try posting on The Nest, they may be better suited for your question.

purplepeopleeater11

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_not-engaged-yet_looking-first-house?plckFindPostKey=Cat:Special Topic Wedding BoardsForum:136Discussion:d0080e8f-048b-4b3f-a2e2-f176368ac719Post:677b3d33-48ac-44d2-a84a-5e2561ecae93">Re: Looking For Our First House</a>:
[QUOTE]Thank you for the payment advice but we were really hopeful for this Rent-To-Own that I am seeing today. Any advice on a Rent-To-Own? Here are the details:  "Rent To Own is also available. Instead of doing a security deposit, all money put down upfront gets applied towards your purchase of the house. Then you would rent the house until you can get financed to purchase. Rent would be $845, and of that, $100 would be applied towards the purchase! Once you have 5% of the purchase price applied, you get approved for our down payment assistance program!  Down Payment Assistance Program: If you put an additional $150 towards the purchase of the house in addition to the monthly rent, we will match that $150. So, $300/mo, plus the $100 from the rent would be applied towards the purchase! " Does that seem fair?
Posted by sunshineboots[/QUOTE]

Rent to own is a little trickier.  You'd need to get some lawyers to look over whatever you're signing to ensure that your payments actually go towards the house.  I personally haven't heard of anything like that.  BF's sister is doing this with her old home in a rent-to-own program and it's always a hassle.  Plus, there's still NO guarantee that after you're married and ready to purchase the house you'll be approved.  Who is offering the rent-to-own?  It almost sounds like it's a bank?  Which could mean the home was foreclosed on or is a short sale.

Land contracts are a little different.  Essentially the owner would sign over their mortgage to you, you pay on the mortgage until you can get financed.  It's a good way of building credit but it is a legally binding agreement.  Usually the rent-to-own is as well. 

I would tell you that you should wait.  Keep saving for a down payment and go in when you're actually ready to buy.  The market is inundated right now so you can probably get a pretty decent price.  If you go FHA you need 3.5% down payment.  However, there is an extra monthly payment tacked on to your mortgage called a mortgage insurance premium.  Essentially it's protection if you default.

Here's what I would tell you to do:
A. contact your bank, a mortgage broker etc.  See where your credits are at.  If you don't have high enough credit you won't qualify for anything.  Some places are as high as 640. 

B. Start looking when you're ready to buy.  I believe in a later post you said you currently rent.  If however you're dead set on the rent to own make sure you have someone with legal expertise go over the documents.  Like I said, I don't have much experience in that.

CASK85

Personally I'd just rent first. If you get a place that is cheap enough you should be able to save some money each month for a down payment on a house in a few years (3-5 years, for example). 

Renting a house or apartment together is a big step, but it can really bring you closer together. It is important not to let the romance go our of your relationship -- when you are seeing each other's dirty undies on the floor or wandering around with morning goo in your eyes, things can get a little too comfortable and less romantic.  Don't get me wrong, I am 100% comfortable with BF, but sometimes I realize that perhaps we've forgotten to be romantic for awhile, and it takes some thought to make it right again. Also, having some time for yourself (hobbies or hanging out with your own set of friends from time to time) will make so that you have something interesting to talk about and feel like you have your own life. 

As for actual tips for choosing a place, I'd recommend asking as many questions as you can about the things that are included with the rent (heat, gas, water, trash, electric, cable, internet) and which things you will have to pay for on top of your rent. Ask who is responsible/available for maintenance, snow shoveling, mowing any lawn you might have etc. Do they have a pet policy (some landlords will charge a pet fee monthly or a one time fee)? I always check water pressure because that is a pet peeve of mine.  

Also check out who your neighbors are -- are they loud college kids, families with children, or young professionals -- and which type of neighbors do you prefer? Are you close to grocery stores? Parking? 

HTH and good luck!

Beads921

Here are my thoughts from what you've posted so far:

1. You really need to go get pre-approved before you do anything else.
2. If you have nothing saved for a down payment, it's probably not the time to buy for you.
3. You will want a legal document drawn up in regards to what happens to your house/assets should your relationship fall apart. I know you don't forsee that happening, but it's best to cover your bases. I can guarantee that when BF and I go to buy a house in a couple of years, we will have one of these agreements. I wouldn't buy a house with him without one.
4. I know nothing about rent-to-own, but it sounds like it could be a hassle (and not something I would do). I really think renting somewhere small (ie an apartment) until you can afford to put a down payment on a home and buy it makes more sense.
5. If you really are in the position to buy, you might want to get a buyers agent instead of just doing internet research. A buyers agent can help you through the process, and knows the ins and outs of the market.

jemmini6

All of the PP's advise is good, you should really consider all of it.  I would also not do a rent-to-own program because it just seems easier to rent, save up for a downpayment then buy.  If you are really dead set on it, have a lawyer go through all of it with you and make sure you completely understand every aspect of it.  A lot of people that are getting forclosed on right now are in that position because they didn't understand the terms of their loans.

Also, get pre-approved and don't spend the full amount you were approved for, they usually extend you farther than you may be comfortable with.  I would sit down and figure out your monthly budget including everything (mortgage, utilities, HOA's, insurance, maintenence, plus all your other non-house related bills and money to put in savings every month), then figure out what you are truly comfortable spending each month and don't go above it for any reason.

Also, always always always get a home inspection.  They can run anywhere from about $300-$500 depending, but they are definitely worth it.  Don't count on a family member or friend who is sort of handy to point out possible flaws.  You need a professional that can locate major structural issues.

Lastly, there are tons of costs associated with purchasing and owning a home, which again is why I don't think a rent-to-own is nearly the best idea, you really should have some type of savings.  Who is going to pay for the appraisal (I don't know of a single mortgage company that will approve a mortgage if they don't know what the house is appraised for)?  Who is going to pay closing costs? Etc, etc etc.

Buying a home is probably the biggest finanical commitment you will make and you really need to educate yourself on the process and find the right professionals who will help you.  Don't be afraid to ask someone to explain something to you, there are no stupid questions when you are spending that much money on something.

Hazel_B

I would agree with the preapproval.

Also, definitely look at the property tax. They can make you reconsider a house.

When looking at a house, since you are in Omaha and I'm guessing things freeze just as much as they do here in Canada, check out the basement. Fully finished basements can cover a multitude of problems. So, be careful there.

sunshineboots

Thank you all soo much for the advice! It's certainly a lot to think about

laurenann82

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_not-engaged-yet_looking-first-house?plckFindPostKey=Cat:Special Topic Wedding BoardsForum:136Discussion:d0080e8f-048b-4b3f-a2e2-f176368ac719Post:db1d8d67-56ac-4c12-b121-249633bae662">Looking For Our First House</a>:
[QUOTE]Also need relationship advice! Is there anything different we need to be doing once we live together? Any tips on keeping a healthy relationship once we move in? I have more stuff than him, so how do I make this home an equal environment?[/QUOTE]

My boyfriend and I have rented together for a couple years now, and I lived with another boyfriend in college (though that was in a gross apartment with a ton of other roomates, so a much different situation). I love living with my boyfriend because even just staying home and watching TV or cooking dinner feels like you're doing something fun just because you're doing it together (aww). We also like to talk more with our friends when we go out because we see each other at home all the time.

As for making it an equal home environment, I tried to pick out new decorations that are gender neutralish. Our living room is kind of an urban cowboy theme, the dining room is all sage green and mustard yellow stripes, and our bedroom is navy blue and brown but with a flower print and bird pillows. Our friends have commented on how it looks like OUR apartment, which is a nice compliment!

MLekathLEEN

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_not-engaged-yet_looking-first-house?plckFindPostKey=Cat:Special Topic Wedding BoardsForum:136Discussion:d0080e8f-048b-4b3f-a2e2-f176368ac719Post:81c09afa-9c18-4431-8672-956d8a1328a5">Re: Looking For Our First House</a>:
[QUOTE]I would agree with the preapproval. <strong>Also, definitely look at the property tax. They can make you reconsider a house</strong>. When looking at a house, since you are in Omaha and I'm guessing things freeze just as much as they do here in Canada, check out the basement. Fully finished basements can cover a multitude of problems. So, be careful there.
Posted by Hazel_B[/QUOTE]

THIS!! FI and I found this awesome house with 6 car garage, 4bedrooms and an indoor pool for $48,000. Taxes on the house were $13,000 PER YEAR. Yea, we didn't look into it further.

meamolly

My advice is to live in south O west O is overrated, mid town is ok and i myself do not want to live in north o due to so many of the homes there being run down and the high crime(lol crime is growing everywhere in the big o). Both my sisters have found great places to live (one is right by burgan the other is right by the stock yards) both got Incredible houses for very little money. I recommend the holy cross and st stans neighbor hoods.

deburnin

PPs gave you really good advice already.

Getting pre-approved should definitely be the number one step. Look at as many houses as possible. If you aren't able to put down at least 20%, then it's probably not the time to be seriously looking at houses.

Also, if you do end up moving in together, make sure you still go on dates. It's really easy to just sit around doing separate things instead of doing them together. Also make sure that you know who's responsible for what chores. No one person should have to do them all.