Home Buying - Saint Charles,IL

I've not bought a home yet, but I would think that this book would break it down for you into terms that you can understand!

http://www.amazon.com/Home-Buying-Dummies-Eric-Tyson/dp/0...

Write down what you want-don’t settle, enlist your own inspector, make sure there is cable/phone lines run and if you wanna get a good price be willing to look past the cosmetic. Good luck

We've bought 1 and built 2. Make sure you do a lot of research.

Remember, it takes money to run a home... upkeep, sudden repairs, utilities, etc.

Don't bite off more than you can handle. Have a good realtor who negotiates for YOU and watches out for you. Get a good loan officer who can help you and guide you through the process.

It is best to be debt free when you go into this but not everyone can. When you get the numbers from the mortgage company about what you can afford...... remember to live below your means. Just because they say you can get a mortgage for say $300,000 does not mean go do it.

Do a lot of research. I am not familiar with Dave Ramsey but I've heard he has a good program. At least look at what different advisors have to say.

Good luck

Look up Dave Ramsey's home buying tips. He will explain to you everything about saving for it, and all your homework before you start the process. You need to learn all you can before you start so everything goes smoothly, and so you don't regret any decisions.

All good advice so far. We just bought another home a month or so ago. One thing that stands out in my mind is, whatever the price of the home, have a good downpayment already on hand. We planned to sell some stock when we found the right house and then it took 2 months to actually get that money into our acct to make the downpayment. We had no idea it would take that long. It almost lost us this house by pushing the closing back a month longer.
In addition to the down payment have at least $15,000 available for all the little things that cost money along the way.
Ernest money the instant you make an offer ($2500 and then another $2500 when they found out we had to take a month longer than planned)

Inspections for home safety and pests ($300 and $175)
Repairs the sellers refuse to make ($200)
Closing costs ($6500)
Transfering utilities and deposits ($150)
Changing locks/doorknobs (havent done it yet, shhh dont tell the old owners)

little stuff that adds up:
transfering tv. cost us to get out of our 2 year contract
ordered new checks with our new address
new address lables
new keys
stocking the new kitchen with food if you dont/cant take along what you already have
fun stuff we just HAD to do:
new furniture because we hated what we had
new shelves in the garage to hold the junk I didnt part with yet.

We have bought and sold several. It is a great time to buy. Ask friends for a realtor they like (I recommend someone who is a career realtor, not a part-timer) and you will need a good mortgage broker. The first time we bought a house we gathered 3 names of realtors, had them each over to give us comps and presentation and then we chose our favorite. :-) A good realtor and a good mortgage broker will hand hold you through the whole process and keep you on a time table and tell you what to do when.

Do not 'fall in love at first sight' with any house you are looking at. Have a contractor or at least someone who knows home repairs do a walk through with you. When my mom and I were looking for a duplex to buy she loved a certain house and always bemoaned the fact that she didn't buy it. But the house she kept saying she wanted asking price $120,000 -- one we bought $80,000 --- first one needed all new furnance, plumbing, wiring and windows -- this one needed only windows and few plumbing repairs.

Buy less than what you think you can afford. You could take a real estate couse at the local community college. You could let sales people educate you in the process but remember their goal is to sell a house and make a profit. Make sure you hire an independent building inspector and listen closely to them, then bring in at least 2 other people who have no vested interest in the home and get their opinions and ideas. Sometimes we want something bad enough we ignore or don't see and the extra eyes and opinions help. Be honest about what you know how to do and the cost of hiring people to do things you don't know how to do. Make sure you consider things like your current debt situation, the quality of yor vehicle like if you bought the house would you be looking at replacing the car or having large repair bills? Is your job stable and do you have an emrgency fund over and above the down payment if you got laid off or a paycut or ill? It is easier to take a few months and get your plan in order, budget of not what you think you could afford but what you know you can afford. Learn your lessons on paper and with people not in tears once you have closed.

I agree to check out what Dave Ramsay has to say about buying a home.

IF you have other debt--clean it up FIRST.

See what a bank will approve. Cut THAT in half.
When I bought my first home (as a single woman) I borrowed HALF of what they "approved" me for--I would have been eating dogfood had I borrowed the full amount.

Don't forget to factor in taxes, more utilities and maintenance into how much $ you'll need per month.

You can get the utility records for any house for a year so you can see what to expect in that dept.

Get a home inspection done before buying. WELL worth the money.