How to buy a house: Finale

At this point, you have a nice house, clean, ready to be lived in and enjoyed.

I'd like to make a few suggestions.

First off, furniture. Good, quality furniture can be passed down for generations, should you have the desire... At the very least, quality furniture can last a life time. My Mom and Dad bought one piece at a time, over a period of years, and by the time I was 3 they had all they needed... yeah, Ethan Allen furniture, made of solid hardwoods with interesting burl veneers. That stuff is still sound and good! I am 54. Classic designs are just that and stay in style due to their classic nature.

Of course it is up to you and some people like to change their style from time to time, but cheap stuff tends to be easily damaged and last not for very long while still not being all that cheap to buy... So, if you are in the mood for advice, mine is simply: Look for quality stuff, something that will last longer than the payments on your credit card to buy it will!

Next, home improvements.

This is a bone of contention I have... Conventional wisdom says that many will not net you back in sales price what you paid for them... Well, that may be true, BUT you will also get to enjoy them while you have them! That's gotta be worth something, right? SO My second piece of advice is simple: Add whatever turns you on to YOUR house! If you want that spa on your deck, go for it! Enjoy it!. If you want to redo the kitchen and get new appliances, then why not? Budget, plan, hire licensed professionals, ensure they understand what you want... Get 3 - 4 quotes. Then go for it!

Good Luck and may the force be with you!

How to buy a house: Step 4

You now have a house, it is past closing day and you've gotten utilities turned on!

Congratulations!

Shall you move in? No! Of course not! First it is a good idea to clean, repaint, do any repairs that you may find difficult to do once you are all moved in. Take a day or two to fix whatever is bothering you about your new home. That bilious yellow in the guest bedroom? Now is the time to repaint it a much nicer color. Remember, any work you need to do will be more difficult once you have moved in, so try to get as much done now as you can.

Clean

Paint

Repair.

If you bought a 'fixer upper' then good for you! If you are handy that is a great way to save money, and if you aren't handy, you will soon be! Simple repairs around the house are really not all that difficult, take your time, consult Google, and someone, somewhere will be showing you how via YouTube, Instructables, or some other medium!

So, let's roll up our sleeves and invest some 'sweat equity' in our new home!

How to buy a house: Step 3

So far we have discussed searching for a house, picking out a house and finances... Well, what next?

You are going to need utilities.

Internet

Electricity

Etc

So, start looking and getting these things lined up for your place. It is going to cost some money to get your utilities turned on, in some cases, you will have to be there at the same time, or maybe you'll need to sign for stuff... but in any case, you will need time during normal work days to get these things going. In my case, I scheduled the afternoon of my closing day to get my utilities turned on...

Maybe you will be so lucky as well.

Remember, if it is winter, you will not want pipes freezing, so be careful and make sure that your heat (be it oil, gas, electric, whatever) is scheduled to be up and running with no break in service between the previous owner and you taking ownership!

How to buy a house, Step 0

Okay, so... first question you will probably have is why did I put this step out of order?

Answer: Because it is in this order that I discovered this, and because I wanted you to be thinking about what you want and what you can afford.

This step is really the first step, once you decide you are going to want to buy, you need your bank accounts in order. What do I mean by this?

You will want no strange things going on, nothing looking unusual... No deposits and no withdrawals that do not make sense.

So, an example:

I have several accounts and have a habit of transferring money between my accounts. You would think that the bank would know this, but, apparently they didn't, so one day they saw a 'deposit' and thought that I was being given an undeclared gift of $17.42 to help me buy the house (No, I am not kidding!) angry, they called me up and demanded I explain this 'gift' to them.

Yes, they thought I had lied to them and was receiving a GIFT OF $17.42 to help me buy a house.

Sounds silly, yes? They were serious as a heart attack. (this was USAA Federal Savings Bank, they're the ones that asked and had no idea about PayPal or eBay, true story. It's like they live in 1845, electronic docs? Sure. Sign a PDF file electronically? Hell NO, what is that, witchcraft!)

So, I got all new bank statements and showed them how I had sold something via PayPal, and then transferred the money into my bank from PayPal.

Moral of the story: For the 3 - 6 months prior to your loan application being filed, don't do anything but deposit paychecks and pay bills. DO not transfer money around, sell anything on eBay, nothing. You want these idiots, er, uh, 'bankers' who apparently have no idea about eBay or PayPal to be looking at your accounts and see nothing but bills paid (on time of course) and paychecks deposited.

And of course, prior to applying for the loan, pay down credit cards and save up a few thousand dollars more than the down payment and closing costs. That $2000 or $3000 extra in your bank accounts will give them a 'warm fuzzy' feeling and help them to trust that you can pay back the mortgage!

How to buy a house, Step 2

Okay, so you have figured out how much your house has to cost in order for you to be able to afford the monthly payments.

Now you shop for a house.

Look in the area(s) you wish to live in for homes that meet your requirements and are within your price range. Sites like Zillow and Trulia can help there.

Keep in mind that anyone you hire to help you (realtors for example) are NOT there helping you alone! They are primarily there to get you to buy, so they get paid. That is ALWAYS their first priority. To get PAID .

Things to look for:

Neighborhoods: Is the place where you want to live in a neighborhood you like?

Size: Is it big enough for you? Not too big, and will it resell (Hint, 3 beds/2 baths is a minimum these days)

Single level? Multi-level? Basement? Attic? Lot size (Quarter acre? Half acre? Acre? Many acres?), what size do you wish?

What is available that suits your needs and is within your price range. Now is a good time to re-evaluate your price range and see if it is reasonable when you compare it to what you want.

How to buy a house. Step 1

Step 1: Get your finances in order!

You're going to need 20% to put as a down payment (unless you're doing an FHA or HUD purchase), so, figure out how much you think you can afford the house to cost. In my case, I wanted to spend about what I spend in rent right now. Using online mortgage calculators I figured that to be about $165,000.

So if I was not doing a VA loan, that would mean I'd need about $33,000 for a down payment. Then you'll need another $5,000 to $8000 for closing costs.

If you've got that money put away, GREAT!

If not, better start saving, or start thinking FHA.

Poor Britt's Almanac: how to buy a house

Poor Britt's Almanac: how to buy a house

how to buy a house

I am starting a mini series on how to buy a house. It will run through just a few installments giving advice based upon my recent home buying experience. Caveats: I'm a vet so I used the GI Bill, so some things were easier for me than they might be for you, but that said, I learned a few things about home buying that no one had ever told me, and I'm gonna pass them on in the following posts. Good Luck!