Just agreed to purchase my first house. What do I do next?
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Just agreed to purchase my first house. What do I do next?
Posted by Tigerstudent08 on 8/4 at 10:38 pm
I found a FSBO double in Lakeview last Wednesday and the seller and I agreed to a price. I plan on living on one side and renting out the other. I have been calling insurance agents and mortgage brokers for quotes. Tomorrow, I am going to work on getting an inspection lined up. Does anyone have any advice for a first time home buyer? Thanks


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Posted by dewster on 8/4 at 10:45 pm to Tigerstudent08
Congrats on your pending ownership by a house.

Get a termite inspection and ask for copies of the termite control contract.



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Posted by LSU1018 on 8/4 at 10:51 pm to dewster
Make sure and get good inspection and get the seller to fix some things based on inspection. Make sure and quote out lenders. Compare their rates along with their fees. A couple lenders that had lower fees when I was buying was Iberia bank and swbc mortgage. Then get a reputable title company, the two lower fees I had come across were Baton Rouge Title and another title company on sherwood, I forget the name. Hope this helps, congrats!


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Posted by novabill on 8/4 at 11:14 pm to Tigerstudent08
Get a lender that has worked with FSBOs before. They can help you with the contract and guide you through the process.

Also, get an inspection. Crazy to spend the money on a house without having an inspection done.

Post any questions here, I will be happy to answer and help all I can.



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Posted by rintintin on 8/5 at 6:17 am to Tigerstudent08
Currently in the market myself to do the same, looking around Nola. If you don't mind me asking, what price did y'all agree on?

Lakeview is out of my price range but still curious.



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Posted by BBJ on 8/5 at 8:19 am to rintintin
Get a Inspection and make seller repair any necessary repairs needed. That is necessary repairs not nick nacks like a knob on a cabinet.

Don't be to in love with the place to not demand significant defects to be fixed



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Posted by Civildawg on 8/5 at 8:36 am to Tigerstudent08
The lender will be the hold up on closing, so make sure you get that process going first thing


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Posted by dewster on 8/5 at 8:44 am to Tigerstudent08
No idea if this is still the case, but last year in Memphis, IberiaBank beat out everyone spoke with on the loan rate, fees and points. Surprised me how aggressive and competitive they were here- but Tennessee is a growth market for them.

I'd give them serious consideration and put them up against competitive lenders....but don't take my word for it. Check the rates of all the players in your market.

Pay down all of your cards, etc to 0 before you have them all do their hard credit checks instead of at the end of the month.


This post was edited on 8/5 at 8:47 am

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Posted by Tigerstudent08 on 8/5 at 8:46 am to rintintin
We agreed on a price of $390,000. It has been very difficult to find one but I was finally able to get a little lucky.

Thanks to the person for the termite inspection tip, I will definitely do that.

The gutters and a couple pieces of the soffit need to be repaired. I was going to have him wait until after the inspection to fix those things. He offered me a $2,500 credit if I wanted to do it myself, not sure if I want to do that though. I want to do the inspection first and get a quote for the repairs.

The most difficult thing so far has been getting a decent price for Homeowners insurance. I think the lowest I've gotten so far was $3,500 annually. Others are as high as $8,500!

My loan will be for $310,000 after the 20% down. My estimated payments at a 5.25% rate are over $3,000/month which seems kinda high to me. I am waiting for NOLA lending to get me a quote.



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Posted by dewster on 8/5 at 8:49 am to Tigerstudent08
Get him to fix the soffit if there is rot. Have him make any fence repairs or any updates that involve cooperation with your new neighbors. Let him piss them off instead or you.

I'd also consider asking your inspector check the chimney for creosote buildup if you've got one. It's more of an issue up here than in NOLA though. Wood burning fire places accumulate a build up in them that can be flammable.

A double n Lakeview should bring in some nice rent. Congrats on your purchase. Was this unit flooded in Katrina?

Homeowners insurance is going to be based on the costs of rebuilding....not market value. Do you need flood insurance? I imagine you do in that area.

I wasn't kidding when I said the house owns you. You'll understand what I mean soon.


This post was edited on 8/5 at 8:57 am

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Posted by Tigerstudent08 on 8/5 at 9:02 am to dewster
Yes every house in Lakeview was flooded during Katrina, unless it was raised about 10 feet. Right now he gets $2,550 /month. One side is a 3 bed 2.5 bath and the other is 2 bed 1.5 bath. I know that if I put a little bit into the inside of each house I will be able to get $1,600 for the 3 bedroom and $1,400 for the 2 bedroom.


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Posted by Oenophile Brah on 8/5 at 9:35 am to Tigerstudent08
Good luck with HO Insurance. I just finished fighting with 5 insurance companies in regard to premiums.

I'm about 2 weeks away from closing on my first double in the Uptown area. I must say $3500/year doesn't sounds bad at all for a house that size.

As stated, you definitely need inspections, I had a general inspector, video plumbing, and termite.

I requested all major repairs be completed by the seller(they agreed). Small repairs I negotiated off the price.

Prepare yourself for the inspections to produce findings. This is to your benefit and protection.

Congrats!



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Posted by Ric Flair on 8/5 at 9:59 am to Tigerstudent08
Is that quote for homeowners and flood insurance combined, or just homeowners?


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Posted by Tigerstudent08 on 8/5 at 10:19 am to Ric Flair
$3,500 / year for Homeowners and right around $1,000 / year for Flood


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Posted by rintintin on 8/5 at 11:29 am to Tigerstudent08
quote:

My loan will be for $310,000 after the 20% down. My estimated payments at a 5.25% rate are over $3,000/month which seems kinda high to me. I am waiting for NOLA lending to get me a quote.


Yeah you're more than double what I'm looking for .

That seems like a pretty high rate though, what lender are you using?

Are you buying this mainly as an investment property?



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Posted by hawkeye007 on 8/5 at 11:44 am to Tigerstudent08
you need to call a whitney bank our rate this morning on 2 unit prop. with credit scores above 680 is 4.5% and our lender cost are $500. i doubt anyone can beat that.


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Posted by Civildawg on 8/5 at 12:43 pm to Tigerstudent08
That rate is high go to another lender


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Posted by Tigerstudent08 on 8/5 at 1:20 pm to hawkeye007
quote:

hawkeye007
Thanks I will give them a call.

Update- I just found out that my doofus Mortgage Broker was running everything on a 15 year loan. The 30 year loan, just principle & interest, is $1,723 which makes A LOT more sense. This makes my roughly payments at $2,611 / month with insurance and taxes. I am still going to call other lenders for quotes.



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Posted by dewster on 8/5 at 1:30 pm to Tigerstudent08
Your rate seems high. You need to shop around.


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Posted by Oenophile Brah on 8/5 at 1:55 pm to Tigerstudent08
quote:

Update- I just found out that my doofus Mortgage Broker was running everything on a 15 year loan.

Whoa. First, that is crazy for him to first run rates at 15 years.

2nd, if that is the rate he's coming up with at 15 years, the rate at 30 years may be around 6%. I would be careful with this guy.



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