Ok guys, the time has come in my life to go forward and buy my first house. The market is begging me to do so and I'm a damn responsible person financially. So I'm starting down the road and coming to you guys for some help/advice. Here's what i know so far.

If need-be I could put 5-10k down for a down payment.
The only bills I currently have is my cell phone (aruond $40 a month)
- Insurance is paid out on the car for almost a year @ this point.
$150 a month goes into savings
Currently my "rent" is $300 a month in groceries
I bring home around $1700 a month (after taxes)
Been offered a $115,000 loan @ 5% comes out to around $800 a month he said after taxes and things like that.

Here's what I'm looking for in a house - Newport news/Hampton/Yorktown VA - Under 100k if possible. I'd like to be able to just move in and be home - not do 10,000 in repairs. Though chances are my dad will be renting a room and is a laborer/home builder by trade so we might be able to get some stuff like that done, could be some fun weekend projects with dad I never did. If you get bored and try to find something online I will NOT move into a house with a numbered street (37th st - 13th st - etc) that is a VERY VEEEERY rough part of newport news and oddly enough is dirt cheap thanks to that. I'd rather not get stabbed though.
Won't be moving until June 1st (or last week in May).

[side note on income - going to full time college this fall and the USMC will be giving me another $1300 a month for "rent" or whatever else I want to use it on and I scheduled my classes to still be able to work mostly full time!!!]

Just tossing all this out there as I think you guys can be incredibly smart when it comes to things like this as you have more experience than I do. Thanks in advance for any advice it is MUCH appreciated!

x-posted @ the web.com

I'm in the same boat as you except I already made the leap and just waiting for my place to be built.

You should budget.
Here are some of the things I considered when I made mine.
- mortgage, property tax, maintenance fees
-insurance (car and building contents)
- cable/internet/cell phone
-utilities/hydro/water/etc..
-fuel/public transit passes
-groceries
-entertainment
-RRSPs/Savings/Investments


Im sure you can forgoe the RRSP stuff since you're going to college and replace it with tuition intead.

Good Luck!

what's RRSP?

Fortunately for me I don't need to budget tuition because I get a free ride to any college in VA I decide to go to thanks to the new GI bill!

Thanks for the advice!

what's RRSP?

Fortunately for me I don't need to budget tuition because I get a free ride to any college in VA I decide to go to thanks to the new GI bill!

Thanks for the advice!

haha oops...I think that's the Canadian version of the 401K...
basically retirement stuff...

I dunno about VA but, some banks/companies in NYC are willing to do 4.5% here for 15 yrs. Some even offer no closing cost. (thats couple thousand bux already)

and you SHOULD expect that "10000 in repairs" at all times. Cuz seriously if you know you're going to sell your house, will you spend that money to fix that "oh the leak inside the wall but you cant tell unless you break it open" ?

Most mortgage REQUIRED that you get insurance for fire/flood. so yea you have to add that to the cost too.

Looking to buy my first house also. I bring more home but have more debt and could only get away with 5-6k for down payment so that puts me in the same boat. I dont know what kinda house you can get in the sub 100k range but up here apartment style condos and pretty old smaller homes in ok neighborhoods pretty much make up the majority in that range.

Don't let the lender throw numbers at you over the phone. They mean nothing unless in writing. $115,000, 5%: What is this 30 yr. fix? Are they asking you to pay points for this rate or a loan origination fee? Some thigns to ask.
Get your pre-approval letter, and consider locking your rate when you know your close to buying. There are probably going to be some local taxes due to transfer of property, and if the sales price is greater than the previous recorded sale price, you may have to pay additional one-time tax fee. Those will come in the mail several months after purchase.

The price range, judging by va mls listings, indicates older homes. However, with closing costs, down payment, you have nothing left for home improvement. If you are happy with what you see based on in-person viewings, and there is enough rooms to accomodate lifestyle changes (new hobbies or new family), then great. You have to plan room for these unexpected things, due to the illiquid nature of real estate. Will a buyer come along, at just the right point in your life when you're ready to move locations or buy more space, when the market has recovered enough that you'll actually break-even or make profit? That's too many factors to line up all at once, so don't count on it.

Do you like the floors? Do you like the counters? A dated kitchen and bathroom from 1950 is very expensive to replace. Tens upon tens of thousands.

Quality flooring, plus labor, maybe $15-25 per square foot. Sealants, treatments, underlayments, all expensive depending on the material and condition of subfloor.

Quality 2-step mud work, plan on $40 per square foot on natural stone tile walls.

I think you are in a good position because you don't have a "I must close by this date" situation. Since you have a place to live already and don't have a deadline to move out. Just go out and see as many showings as you can, develop your taste as much as possible, before making the purchase. Your home inspector will reveal the details for you, as far as structural integrity, piping, electrical, and usable years left on the current roof before it needs replacement. It's good to have extra money to pay off your mortgage early, but you still have to put aside money every month to perform those maintenance things at a future date.

Lastly you may be in your "first house" for far longer than expected. My "first home" is likely become my "last home" as I will likely never be able to sell it due to changing lending rules.

If after purchase, should rates keep dropping, you would not be able to refinance at the lower rate. It doesn't work like that, because your home would be worth less than you owe on the mortgage. And it will, since we're still in a declining market.

Just don't sell your rx-8 to get the house :)

a house is far more valuable, dollar to dollar, than an rx8.

Rx-8 is already paid for! I could never let it go now! It's my only form of transportation, and it's not like I need a smaller monthly payment!

a house is far more valuable, dollar to dollar, than an rx8.

Very true but it is also the reason why I don't have FI or why I'm not going to Australia this summer.

Things I have learned is buy the worst house in the best neighborhood, location is key, always give yourself a payment you can easily afford because upgrades and repairs cost money. That and the taxes and utilities are always going to go up.

Don't be afraid to fire your realtor if he or she isn't doing the job. I went through 3 realtors before I bought my current house. The previous 2 were completely useless. One made me follow her around in my car to look at houses.

Do your own research on areas, prices, and mortgage rates. Check around for first time home buyer packages or better rates due to your military service. Don't be afraid to negotiate the rate. I looked rates up the day I bought my house so when the broker threw a rate that was too high out , I told him I was going to call around. He then said"If I get you a rate under 6 will you sign?" This was back in 2006 when rates were a little over 6.

The older home seems like the market you are in and it can be tough. I just bought an older home and let me tell you, it seemed the minute we moved in things that worked suddenly broke. It's a great house but it beat me down for a few months. Now all is good. I did most of the work myself so you can save a lot of cash if you are willing to read and take your time.

I would say your monthy income is a bit shallow but that doesn't mean you can't do it. Be as informed as you can and get that house checked out throughly..roof, attic, light switches, garage doors, toilets. I say again toilets! Don't rely on a home inspector. Get in there and check it all out and get them to fix it.

Good luck.

man i wish i had 800 a month mortgage =\

Yeah, talked to a Realtor, and things might not be a possibility. I'm getting with my dad to see what's affordable for him as if we want something decent we will have to up our price. I got nervous as heck after talking to him, seemed MUCH more expensive than I'd expected.