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I wanted to buy a house and I had a couple questions
1. where should I get preapproved for a mortgage?
2. If I don't own a house currently, do I need an agent to buy a home, does this make it more expensive?
3. Also I was interested in everyone's opinion at what price does the value of owning exceed the value of renting. I have heard that if the cost of renting annually is <15 the cost of the property then generally owning is more appropriate.
Talk to some realtors. Pick one you like. They can assist you in the purchase from beginning to end. If you don't know much about the process, there is no way you are going to get through it without one.
Start with YOUR own bank or credit union.
"There's always someone a nickle cheaper..." but not likely to be much more than that.
When you get closer to actually buying you can shop more aggressively.
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do I need an agent to buy a home
You need an agent because you're clueless.
That's OK... most 1st time buyers are.
Find a good RE attorney too though... maybe even first.
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..at what price does the value of owning exceed the value of renting.
Whatever the ratios may be the real issue is your job and life stability.
Will you be at your current job for no less than five years...
and in your town for no less than ten years?
If the answer to these aren't BOTH an affirmative, unqualified yes...
keep renting.
---
To recap:
Job? Yes + Town? Yes = find RE attorney and then visit your bank for prequal application.
THEN (not before!)... with the help of YOUR lawyer and YOUR banker find a good BUYERS agent to work with.
...Find a good RE attorney too though... maybe even first....
Generally good overall advice. However, depending on where the OP is located, getting an attorney may not be necessary (I know you disagree ). For example, it would be highly unusual for any buyer in AZ to get an attorney when working with a Realtor to purchase a home.
Edit: I just noticed that the OP may be in Connecticut. It seems that attorneys are used there for contracts, more common on the east coast.
I strongly DISAGREE that "your own bank" is a good lender. For the VAST majority of Americans the giant mega bank where they probably have a checking account, mostly for ease of access to ATMs, will be a TERRIBLE place for a first time buyer to get a mortgage. Even if you talk to a some human in your "local branch" the actual work of underwriter will likely happen in some faraway "teleservice center". The mega banks tend to have unattractive rates, high fees, slow service and a ridiculous adherence to the latest and most cumbersome rules that our beloved lawmakers can dream up even when that makes the process more confusing and expensive...
Get recommendations from a trusted friend who has recently worked with a qualified mortgage broker or moderate sized credit union and odds are much greater that you will get real human beings that actually understand how to properly prepare all needed documentation in a way that wil will result in the lowest cost and fastest service.
The rest of the advice is SOLID. Basically it goes along with the painful truth that too many people that "lost their homes" were under the mistaken assumptions that a) houses always are a "good investment" & b) because nutty lending practices made is easy to qualify to mortgages that meant that big mortages made it easy to afford more house than sane people ought to buy. Reality is that houses are like any other thing that people buy -- that can and do go up and down in price / value AND just because a lender will "qualify" some people for stupid expensive house does not mean it is smart to to sign up for a mortgage that you can only afford if everything "goes your way"...
I strongly DISAGREE that "your own bank" is a good lender.
Really? Setting that discussion aside...
had I made this point then your strong disagreement with it might have some bearing.
The question was about getting pre-approval for credit before shopping.
Paraphrased: "Am I in the $150K or the $230K mortgage market?"
Answer: Start with YOUR own bank or credit union.
When you get closer to actually buying you can shop more aggressively.
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The rest of the advice is SOLID.
Well, thanks for that.
Talk to some realtors. Pick one you like. They can assist you in the purchase from beginning to end. If you don't know much about the process, there is no way you are going to get through it without one.
Talk to some realtors. Pick one you like. They can assist you in the purchase from beginning to end. If you don't know much about the process, there is no way you are going to get through it without one.
Our realtor ended up becoming a good friend.
Agreed.
But there are two sides. Pick the one you think will work best.
But dont be afraid to change realtors if they arent doing the job you want.
A lot of the posts on here are about how the realtor isn't working out, or can a realtor do this, or why didnt he do that.
Never forget that the realtors job is to help You find the home You want.
If they are not cutting it, cut them out immediatly.
This is one of your biggest decisions and friendship should not be a factor.
It's a bonus. But it's not part of the job description
(ducking)
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). For example, it would be highly unusual for any buyer in AZ to get an attorney when working with a Realtor to purchase a home.
