Just agreed to purchase my first house. What do I do next? | TigerDroppings.com
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Tigerstudent08
LSU Fan
Lakeview
Member since Apr 2007
5239 posts

Just agreed to purchase my first house. What do I do next?

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


dewster
Vanderbilt Fan
Member since Aug 2006
9785 posts

re: Just agreed to purchase my first house. What do I do next?
Congrats on your pending ownership by a house.

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


LSU1018
LSU Fan
Baton Rouge
Member since Feb 2007
5475 posts

re: Just agreed to purchase my first house. What do I do next?
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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novabill
LSU Fan
Crossville, TN
Member since Sep 2005
6438 posts

re: Just agreed to purchase my first house. What do I do next?
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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rintintin
New Orleans Saints Fan
Life is Life
Member since Nov 2008
8785 posts

re: Just agreed to purchase my first house. What do I do next?
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.


BBJ
LSU Fan
BR
Member since Apr 2012
295 posts

re: Just agreed to purchase my first house. What do I do next?
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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Civildawg
Mississippi St. Fan
Member since May 2012
922 posts

re: Just agreed to purchase my first house. What do I do next?
The lender will be the hold up on closing, so make sure you get that process going first thing


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dewster
Vanderbilt Fan
Member since Aug 2006
9785 posts

re: Just agreed to purchase my first house. What do I do next?
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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Tigerstudent08
LSU Fan
Lakeview
Member since Apr 2007
5239 posts

re: Just agreed to purchase my first house. What do I do next?
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.


dewster
Vanderbilt Fan
Member since Aug 2006
9785 posts

re: Just agreed to purchase my first house. What do I do next?
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


Tigerstudent08
LSU Fan
Lakeview
Member since Apr 2007
5239 posts

re: Just agreed to purchase my first house. What do I do next?
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.


Oenophile Brah
LSU Fan
The Edge of Sanity
Member since Jan 2013
6170 posts

re: Just agreed to purchase my first house. What do I do next?
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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Ric Flair
LSU Fan
Charlotte
Member since Oct 2005
7573 posts

re: Just agreed to purchase my first house. What do I do next?
Is that quote for homeowners and flood insurance combined, or just homeowners?


Tigerstudent08
LSU Fan
Lakeview
Member since Apr 2007
5239 posts

re: Just agreed to purchase my first house. What do I do next?
$3,500 / year for Homeowners and right around $1,000 / year for Flood


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rintintin
New Orleans Saints Fan
Life is Life
Member since Nov 2008
8785 posts

re: Just agreed to purchase my first house. What do I do next?
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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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
2006 posts

re: Just agreed to purchase my first house. What do I do next?
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.


Civildawg
Mississippi St. Fan
Member since May 2012
922 posts

re: Just agreed to purchase my first house. What do I do next?
That rate is high go to another lender


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Tigerstudent08
LSU Fan
Lakeview
Member since Apr 2007
5239 posts

re: Just agreed to purchase my first house. What do I do next?
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.


dewster
Vanderbilt Fan
Member since Aug 2006
9785 posts

re: Just agreed to purchase my first house. What do I do next?
Your rate seems high. You need to shop around.


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Oenophile Brah
LSU Fan
The Edge of Sanity
Member since Jan 2013
6170 posts

re: Just agreed to purchase my first house. What do I do next?
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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