Need house buying insight. Buying for dummies?

[GAP]

My goal is to buy a house in about two years. Unfortunately I know nothing when it comes to buying a house. My credit is very good and my ladies credit is probably good to fair. I dont know exactly where her credit report/score ranks. I estimate we'll have at least 5% to put down, but less then 10% for sure.

So fast forward two years, we find a house we like that we can afford. What is the process from here? Assume I know nothing. I dont even know what closing cost means, or how property taxes work.

This is not nearly as clear and easy as buying a car

[kenny c]

Get a realtor. The buyer pays realtor fees for both sides (buyer & seller). You would be best off to have 20% down (no PMI) + closing costs. If you don't think you will have 20% down, then look hard at your budget and reconfigure some things for the next 2 years. Ex: live in an apt? - downgrade and put extra $$ in savings.

here is a link with some info:

http://www.hud.gov/offices/hsg/sfh/buying/buyhm.cfm

[94form2000z]

Get a realtor. The buyer pays realtor fees for both sides (buyer & seller).

Did you mean the seller pays the average 6% realtor fees? Never heard of the buyer doing so.

[Roscoe]

Did you mean the seller pays the average 6% realtor fees? Never heard of the buyer doing so.

I'm sure he meant "seller pays"....

[kenny c]

Yes...sorry. Meant seller.

[HenryJ]

I don't think you'll be ready to buy a house if you can't save up more than 5% to put down in 2yrs. time.
You should save up for at least 20% down, and have an emergency fund built up to cover any expenses that arise from owning a home.

[Ted]

And never buy too much house. I know way too many people that are "house poor."

[GE]

There's actually a book called buying a house for dummies, or something along those lines. Not all of it I completely agreed with, but I thought it was worth a read.

[mikeb]

And never buy too much house. I know way too many people that are "house poor."

Yep, there is nothing like being forced to sit in your nice, big, empty house because your house payment absorbs all of your money, and you can't even afford to go out to eat.

A smaller house has cheaper property tax payments, cheaper insurance payments, cheaper utilities, etc.

[Chili]

Call Real Estate Nate.

[hunt4m3x]

Call Real Estate Nate.

2x. took me 9 months to find mine but it was smooth.

[SVT Lurch]

Yup, call Nate - and also get pre-approved with a lender (use referrals for that too).

[SSMAN]

Are you married? IF not, buy the house before you get married and put it in your name only.

Just set a budget and stick to it. Your house payment will be approx 1% of the cost of the house. Don't do what most people do and go big the first go around.

If you are married, make sure you can make your house payment and utilities with out the help of your wife. That leaves you spending money based on her checks. Plus if and when she leaves you can afford to live in the house on your own with no roommates, unless you choose to have them.

Now, you can look at my outlook as a negative if you would like. But I promise you shit happens more often you think and you might as well live in the real world. Never buy a house based on a two income budget.

This is good sound advice. If you are young, you can upgrade your house after you build equity. You then trade up and keep basically the same house payment or lower. (pending the cost vs your equity vs down payment)

Oh, FISBO's are your friend.

[Real Estate Nate]

Call me when you have a little free time. I'd be more then happpy to educate you on the home buying process.

[Vertnut]

2 years? That's a lifetime in the housing industry/market. Work on getting your credit score up and pay off as much debt (especially credit cards) as you can. If you do this now, everything will be SO much easier later on when you're actually ready.