First Time Home Buyer (Houston, Happy: sale, real estate, foreclosures)

[azamsharp]

Hi,

I am a first time home buyer in Houston, TX and want to ask few questions.

1) When buying the home for the first time how should I decide how much to spend on my first home?

2) Currently, I am looking for a home around 170-180 K. I checked out the SummerWood community but everything over there is beyond my price.

3) The house should be double story, at least 4 bedrooms with 2 bedrooms on the first floor.

4) Should be near downtown or have an easy access to Metro which goes downtown.

5) I like the master plan communities like SummerWood but are their any communities that falls into my price range?

6) Is there any way to get a list of all the foreclosure homes? All the websites that I visited demand a paid membership!

I guess these are my initial questions. I have a lot more questions to come!

Ohh yeah I am married. No kids yet but off course the school district should be very good.

[LostInHouston]

With regards to #6, are you using HAR.com? If not, you should be. It's completely free and there is an option for looking at just foreclosures.

[azamsharp]

Thanks! I did not know that

[Poltracker]

Originally Posted by azamsharp

Hi,

I am a first time home buyer in Houston, TX and want to ask few questions.

1) When buying the home for the first time how should I decide how much to spend on my first home?

A) You need to speak to a mortage professional and go through the pre-approval process to determine how much you can afford. Generally, your monthly payments (mortage, tax, insurance) should not exceed 1/3 of your monthly paycheck but this is dependant on what other debts you owe. It is always good to look at least 10% below what you are approved for to allow for maintenance costs and taxes/insurance to go up. Read the HUD website and sites like the real estate section on About.com to educate yourself about the home buying process in order to be more knowledgeable and protect yourself.

2) Currently, I am looking for a home around 170-180 K. I checked out the SummerWood community but everything over there is beyond my price.

3) The house should be double story, at least 4 bedrooms with 2 bedrooms on the first floor.

4) Should be near downtown or have an easy access to Metro which goes downtown.

5) I like the master plan communities like SummerWood but are their any communities that falls into my price range?

A) You need to make a list of your needs in house, then a list of your wants. It is great to shoot for the sky but you may need to be more reasonable in your expectations. For example, it is very unusual to find a house with 2 br on each floor. Usually all are on the 2nd floor, or there is a master suite on the 1st w/ the rest on the 2nd. There are also very nice communities that are not master planned that have most of the same ammenities.

6) Is there any way to get a list of all the foreclosure homes? All the websites that I visited demand a paid membership!

A) See Har.com

I guess these are my initial questions. I have a lot more questions to come!

Ohh yeah I am married. No kids yet but off course the school district should be very good.

Happy hunting!

[Supermac34]

Also remember just because its a foreclosure does NOT mean its a good deal. Many homes for a normal sale are just as good if not better deals (and are less likely to have been abused).

[azamsharp]

@Supermac34, thanks for the tip!

[tstone]

Watch out for those foreclosures. I saw that in many, the previous owner decided to stick it to "The Man" by tearing up (down) the tile, walls, ceilings, mirrors and fencing, then proceeded to rip out the fans, light fixtures, switches and backing plates. In houses that may remotely look like something similar to this happened, walk away!!!! There's no telling what was done structurally & electrically in places you can't see. Considering repair costs, generally low prices & low appreciation around the area, a vindictive ex-homeowner can very quickly turn a house into a heap of worthless junk. Though you may just get lucky and find that jewel in the rough.

BTW, on HAR.com those realtors can be ultra professionals at NOT taking pictures. In other words, if you don't get the full 360 on a house on the inside & the out, chances are there's something major being hidden such as a super-ugly inner quadrant, or a noisy freeway 200 feet behind your back yard. Beware of the lures.

[azamsharp]

@tstone,

Thanks! One thing I don't understand is that why people do these things. My friend bought a foreclosed home and the fans were ripped off and even the on-off switches were ripped off.

[chris_ut]

To find out how much home you can afford take your yearly salary and subtract your yearly debt payments (car note, CC balance, etc) then multiple by 2.5. That is a safe amount to spend on a house. Example: Your income is $80k/year you pay $500 month for car note. $80000 - $6000 = $74000 x 2.5 = $185,000 house. If you go higher than this ration then you may find yourself in over your head.

[azamsharp]

@chris_ut,

Thanks! What does 2.5 represents here?

Also, how can I find out about my monthly mortgage payments. I guess it depends on many factor and cannot be calculated easily. Down Payment, Credit history etc.