We are First Time Home Buyers with more than 20% to put down. How do we begin?

mr mudd,

even tho i think u are just stirring the post.....i think u should wait unless you have other reasons for wanting to buy...lease is up...rent was jacked up ect.

then i would low ball away for the cheapest property in the nicest area..

As both a homeowner and a renter right now, if it were my money:

Place your 20% down in a 12 month CD for 3.5%.  Then wait a year as prices drop another 10% to 15%.  then you will have a greater down payment and a lower mortgage principal.

I would suggest renting a single family hopme for a year.  It's like owning except you do not pay for maintenance or repairs or, in this makret, lose principal.  When this current decline slows, you will be poised for a once in a generation low spot relative to real dollars for a long term home purchase.

Also, two suggestions for renting SFH (even if there is a property management company involved):

Run a credit check on the proprty owner(s) and check the county tax records for liens and foreclosure notices.

Negotiate the price.  What they list as rental price is not what the owner is necessarily willing to settle for on monthly rent.  Six months listing vacancy is more costly tha $100 or $200 per  month on the negotiated rent.

If you have not done so already, your first thing to do is to get "prequalifed" with a major lender, bank, credit union etc.

Once you do that, then you will have a solid foundation to know exactly how much home you can afford and what your approx payments will be and since the rates are so low right now you really should consider locking in an interest rate as well.

Glen&Tim listed some great advice on searching for the home & area you may want. 

Most buyers today do most of their research online with or without the assistance of a real estate agent, but at some point, if you are buying a home listed by an agent or a builders new home, I highly reccommend you sign up with a buyer's agent as they represent you, not the seller.  Most buyers agents offer their service as a free service to buyers.

As to timing, a lot of prices across the nation seem to be at or around 2002-2003 pricing, which is typically before the boom.  Prices may go lower in some areas, but if you really find that dream home you love and you can afford it, (with room to spare for repairs/savings) you may want to jump in.  Just keep in mind if you buy now, the home may still go down a bit in value over the next year---(just a guess/opinion) But if you can live with that and the idea that you are buying the house as a "home" it may be the right time.  "darn, wish my crystal ball was working".

I hope you find this bit of info helpful.  If you need lender references or agent references feel free to email me.

Happy Hunting & Good Luck!

Even if you don't buy now, its never to early to start a game plan.  If you spend some time online and going to open houses you can get a feel for whats available in your price range.  Speaking of which, its never too early to talk to a lender to and find out just what you can afford.  Many agents have free automatic email searches of homes that match your search criteria.  Those are a great way to get a feel for what homes are selling in your price range, how often they are available and alerting you to that special place.  I have people on my email searches that have been "looking" for years.  They seem to love it and every now and then send me an email asking for more info or change their parameters.  What area are you looking in?  If I have access you can try out my free emails or I can direct you to someone in your area that can.  I also recomend some of the Rich Dad Poor Dad books as a good simple education to how you can build wealth through home ownership.

Glen