First time home buying process

Are you using an agent?

They can typically steer you to better lenders.

Unfortunately I don’t have an agent or know one.

We did find a house we really like on Zillow around the corner from our rental.

Any good loan officer can walk you through the process. It's what my wife does for a living, whether it be with a bank or a mortgage company. Where are you located?

I don't have any guides, but if you're new to this, read up on PMI (a 3-5% down payment pretty much guarantees that you're gonna get it).

Get the ball rolling on any potential gifts toward the down payment now.

Research the market in your area and see where homes are selling relative to listing price. I know it's nice to want to make an offer at a set price point but you have to be willing to play ball a little bit. Ask how many offers are on the house and be willing to adjust. Stuff like cash offers are hard to beat without upping your offer.

See about a home inspection too so you know what work needs to be done from the get-go. Start thinking like a homeowner.

To paint a picture: we bought our house in a hot area in 2018. We offered 10K above listing but were initially turned down for a cash offer. When the cash offer fell through we got the call that the house was ours.

I don't remember the timing exactly but at some point we learned that we would need a new breaker box. We asked if the previous homeowners would roll that cost into closing but they balked. So we were on the hook for $2K to fix that right from the start. There are lots of innocuous things like that. They add up quickly when you own a home.

Lastly, keep an eye on interest rates. They have been high lately but in the last few weeks the average has dropped half a point IIRC. It's impossible to say where it might end up and I don't have any sage advice here, but just make sure you're comfortable with whatever number you sign for. Come back here in a year so you can either gloat or lament

Good luck.

If you’re interested in talking to a Louisiana lender you can email me at lsu817@gmail.com

Im going to say nobody will loan you money with just a 3-5% down payment. I know things have changed alot since 2006 but most are requiring at least a 10-20% down payment.

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Im going to say nobody will loan you money with just a 3-5% down payment. I know things have changed alot since 2006 but most are requiring at least a 10-20% down payment.

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This is absolutely inaccurate. Majority of loans for houses right now are less than 10%. 3-5% will work for sure.

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Im going to say nobody will loan you money with just a 3-5% down payment.

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most are requiring at least a 10-20% down payment.

Just blatant false information.. I admire the confidence in which you posted it though.

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Well i guess i was wrong. I thought after the crash it was at least 10%. I stand corrected.

We used Movement Mortgage for our loan, and had a great experience. We went the no agent route, but my wife's dad was an attorney that dabbled in real estate, so he was our guide.

First thing we did was built our budget based on take home pay, then looked at our actual expenses vs anticipated expenses based on a new house. Talked to a lot of family & friends and asked if they could give us an idea of what we should expect based on similarly sized houses. Then we meet with the broker to go over the figures to find out what we really can afford (a lot of agents will want to sell you the bigger house with the bigger price tag, but if you go in with how much you want your note to be you will get a more realistic idea of what you're comfortable with). From here, your broker can get you a cash offer approval on their letterhead that you can provide with your offer.

Since it appears you already have your site set on a property ask for an initial showing for you and anyone else that will live with you. See how you really feel about the house. If you still want it, schedule a 2nd showing with someone familiar with residential repairs/contracts. Doesn't have to be a contractor perse but can give you an idea of what stuff will cost. If you are still on board, make an offer pending an inspection, then go over the inspection results with someone familiar with residential repairs.

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Well i guess i was wrong. I thought after the crash it was at least 10%. I stand corrected

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Second homes / investment properties mortgages have gotten much stricter.

Primary residence (non-Jimbo) can still access agency $$$ that allows for lower down payments.