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At least we are back to the original post topic. I'm glad to see thats all the proof you needed, thanks for the help. I'll go get a book. Wait....where do they sell those?
Sorry, Jacopo, if I hurt your feelings. Please believe me when I say that I was in similar shoes about 10 months ago. There's a LOT for you to learn, but give yourself a little time & you'll be a pro.
I found the house-buying books in the financial planning section of the bookstore, but that doesn't mean they'll be in the same place at every store. When in doubt, ask one of the employees. I have a couple of friends who bought one of the "Dummies" books ("Home Buying for Dummies" maybe?) and said that it was extremely helpful and very easy to understand.
I was merely commenting on the fact that I asked a question and 4 pages later receive the answer "get a book". I got that part covered. Its seems that threads have an habit of turning into a agent debates. I never asked, "Should I get an agent?" What I wanted was some Anecdotal data regarding the buying experience, not someone telling me I have a lot to learn or that I should get an agent.
I was merely commenting on the fact that I asked a question and 4 pages later receive the answer "get a book". I got that part covered. Its seems that threads have an habit of turning into a agent debates. I never asked, "Should I get an agent?" What I wanted was some Anecdotal data regarding the buying experience, not someone telling me I have a lot to learn or that I should get an agent.
Well, the answer you seek is not simple. That's why it takes a whole book to explain it. Buying a home can be extremely complicated and there can be unexpected forks in the road, depending upon the individual situation. I think that's why you got the kind of response you did. Buying a house is not as simple as buying a car ... especially when that house is still under construction.
A reminder of the OP's post is below for anyone that may be able to offer some insight into the house purchasing process without using a buyers agent here in NC.
Quote:
Originally Posted by Jacopo
I might forgo the buyer's agent in this process. Can someone give me the outline of the complete buying process. It doesn't have to be detailed, I can research parts I don't understand. Just a sketch... i.e. First you make an offer then you settle on a final price, then you put down ernest money, next you apply for loan with builder's finance..............then you close. I am obviously missing some steps and possibly have some in the wrong order. Just looking to get a big picture of the process.
To me, its all about how much work you do behind the scenes in what makes YOU the best deal. I just engaged in a transaction that required a contingency contract, and I did have my agent represent me in that transaction to make sure everything played out like it should.
This is my second home purchase and I learned a lot from the first transaction..both were new constructions. Here are the steps I followed:
1) Found neighborhood, floorplan, and builder we liked.
2) Started looking at loan options prior to making a bid to see what we could afford at various scenarios.
3) Builder had 4 lenders to choose (All National Banks/Mortgage Cos.) where they would offer $2K in closing costs...insured that I would not get hosed in the loan process. You know all those National builders that only give you things when you agree to use their "Mortgage Company"...then their mortgage company charges you points and ridiculous fees. I planned to negotiate my lender of choice anyway but that is HUGE!!!!!.
4) Came out with our offer via agent...settled on price (came in below Appraisal). Closing contingent on sale of current home. Home is halfway completed.
5) Sent 1 email to all 4 lenders letting them know they would be competing for my business and wanted to see multiple scenarios (PMI, LPMI, Single PMI, since I was only putting 10% down). I work for an MI so I know the deal anyway. If you have excellent credit and an LTV of around 90%, LPMI is the way to go as it is only going to cost you an extra 0.125% right now with some lenders (Wells Fargo is one in particular). That is unless you expect your home to appreciate by 6-8% a year, which I think is overly optimistic.
6) Quoted homeowner premium from current insurance company. Sent to mortgage company so they could build the escrow appropriately and get the GFE in line.
As you will learn, the homebuying process is a lot of fun but takes a lot of work too. I compare it to having a child...you really don't know what it takes until you experience it firsthand. With or without an agent, you will learn a lot that will help you in the future.
3) Builder had 4 lenders to choose (All National Banks/Mortgage Cos.) where they would offer $2K in closing costs...insured that I would not get hosed in the loan process. You know all those National builders that only give you things when you agree to use their "Mortgage Company"...then their mortgage company charges you points and ridiculous fees. I planned to negotiate my lender of choice anyway but that is HUGE!!!!!.
I also am looking at 4 different mortgage companies. One of which is the builders. The rate seems too great with only a thousand in closing costs. A key point, This is "not" a good faith estimate I was given. Did your builder's morgage company try to tack on fees later?
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