Profile picture for jeff67619

we were approved for 159,300.00 usda loan, we are first time buyers, what should be our first move

not sure if we should find a home for the full amount minus fees or something lower in pprice, we are new to home buying and not sure what to do next
  • October 04 2010 - Lexington
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Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (8)

Profile picture for natewolf
Ask your lender to ensure they apply for your NCHFA Mortgage Credit Certificate. It is ONLY available to First Time Home Buyers. If you have questions about this, please let me know.
  • October 07 2010
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Congratulations!  You have completed the first step in a home search.  Now that you have been pre-qualified, sit down and develop a budget using the estimated mortgage payment on the $159,300.  Remember to include a category for home maintenance and repair, home owner's insurance and taxes.  Also, you may want to budget a little more for utilities, assuming your new home will be larger than your current living quarters.  

After completing the proposed budget you will know how much money you are comfortable spending each month on a mortgage.  Use the budget as a guide to determine how much of the $159,300 you want to borrow.  Also, leave a little room in your budget for decorating and furnishing your new home.  You want to enjoy home ownership, not feel stressed by the mortgage payments.

Good Luck!









  • October 07 2010
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I resepectfuly disagree with the last remark, I think you should find yourself a real estate professional that you are comfortable with and that is competent in the area that you want to look in order to give you the best research possible.  Don't limit yourself to a real esate agent that won't practice dual agency or else you limit yourself to any company that may have listings that you would be interested in!
  • October 07 2010
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Find yourself an experienced Buyer Broker who does not practice "Dual Agency" and begin your home search. Ask them to show you the difference in your area between asking price and selling price so that you have some idea of what you might expect as a discount off of asking price. Not all homes are the same but my guess is you will get between 5-10% off asking price and in some cases perhaps more.

Do yourself a favor and if at all possible do not spend the maximum you've been prequalified for. If I were working with you I'd sugges we star looking around $150,000 so that with some luck and tough negotiating by your buyer Broker you might end up spending around $135,000 - $140,000

Good Luck.

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  • October 06 2010
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Profile picture for wetdawgs
Considered the approved amount the absolute maximum you should spend, but ideally considerably less so you have more flexibility to survive the ups and downs of real financial life.    We've always purchased so that we can afford the house if one of us is totally unable to earn and the other has an income reduction.  (Therefore, less than 50% of the amount we've been approved for.)

So, if I were approved for $160k, I'd be looking at houses up to about $120k.

  • October 04 2010
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Find a good trustworthy agent and discuss what you want and what you need.  Make sure you keep your payments in your comfort range.

Take into consideration the tax advantages you will have.

Much Good Luck.

Kevin
  • October 04 2010
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You may be qualified for a million dollars. But the real question is what is your comfort level when it comes to making the monthly payments.

Sit down with a mortgage professional and have them spell out how much you will be spending every month (including taxes, insurance, utilities, typical and untypical repairs etc) and THEN decide  how how much you should spend on a home.

You might decide that despite being qualified for $159,000, you might want to purchase a more modest home and have a lower monthly payment (one that won't keep you awake at night).

Recently I had buyers that were qualified for upwards of $350,000. They wisely spent only abut $220,000 as that was their comfort level when it came to writing those monthly mortgage checks.
  • October 04 2010
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Jeff - Find a Realtor in your area that can help you with your search and the hundreds of questions you will have. Buying a home for the first time, or anytime for that matter, is a complicated process. A good Realtor can guide you through the process, find appropriate properties for you to look at, and explain the process.

I am in the San Francisco Bay Area but if you need a referral we have an excellent relocation department with Realtor connections all over the US.

BTW...there will be some closing costs but the seller typically pays the commission. You Realtor should be able to give you estimated closing costs pretty quickly so you will know how much house you can realistically purchase.

Best of luck to you! Even though it's a complicated process just think about how great it will be to own your very own home!

  • October 04 2010
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