# First time buyer



## FREEPOP (Apr 11, 2002)

Finally getting a new place. 
My friend is "blown away" and leaving Michigan 
We agreed on a price and I'm pre approved on a loan. I asked about closing costs so I don't get surprized with that.
We haven't signed a purchase agreement as of yet.
House is less thatn 10 years old.

Anything else I should be aware of, concerned with or watch out for??


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## srconnell22 (Aug 27, 2007)

do you have a signed Purchase Agreement? If you have, when is your closing date and have you locked in your rate yet? If you have locked in your rate do you have a locked Interest Rate Disclosure?

Are you fully approved? Meaning, has your lender looked at your paystubs, bank statements, credit report, etc... If not, your terms may change. 

Look on the Truth In Lending Statement which at the bottom will say "this loan MAY or WILL NOT have a pre-payment penalty." If it says "MAY" that means you have a PPP and you should not take that loan. 

Im a mortgage banker with Quicken Loans so if you need help with documents or clarification with anything feel free to shoot me a PM.


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## tmanmi (Sep 20, 2005)

Might want to take a look at his tax statement. Your going to be paying taxes on the higher value after it becomes yours. You will be paying taxes on the SEV not taxable value which can be significantly higher that the taxable value.


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## FREEPOP (Apr 11, 2002)

srconnell22 said:


> do you have a signed Purchase Agreement? If you have, when is your closing date and have you locked in your rate yet? If you have locked in your rate do you have a locked Interest Rate Disclosure?


No pruchase agreement sign yet. We plan on closing the 1st of May. Locked rate, not very good but there's more lenders out there. No Disclosure.



srconnell22 said:


> Are you fully approved? Meaning, has your lender looked at your paystubs, bank statements, credit report, etc... If not, your terms may change.


She looked at credit report, in the 800s and no outstanding debt. Hasn't seen the other stuff but I can't see any reason for it to change significantly.



srconnell22 said:


> Look on the Truth In Lending Statement which at the bottom will say "this loan MAY or WILL NOT have a pre-payment penalty." If it says "MAY" that means you have a PPP and you should not take that loan.
> 
> Im a mortgage banker with Quicken Loans so if you need help with documents or clarification with anything feel free to shoot me a PM.


Is PPP a penalty if I pay it off early? (I do plan on doing that as I have property to sell, that I own free and clear)

The hole for the basement was dug in 1999 and the occupancy permit was final in 2000 so it's not too old. It can't have appreciated too much. The taxes are okay now but I'll double check the SEV.


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## JasonCarp (May 9, 2005)

Get a signed purchase agreement contingent on the following:

1. an inspection- Hire an ASHI certified home inspector to thouroughly inspect the HVAC, plumbing, roof, basement, electrical, termites, and structural integrity

2. Survey- A sketch survey will cost $150 or so, small price to pay to know where easements are, lot lines, ets. Ask seller if he has one you can use.

3. Well and Septic- If city water and city sewer, no problem, but make sure the county or a licensed sanitarian confirms no coliform or nitrates in well water and septic system has been pumped and inspected. Usually a seller cost.

4. Title work- You will need to have title company do a title search and issue title insurance. Read the exceptions on policy to make sure there are no hiddend deed restrictions or recordings that would inhibit your free and clear ownership of the land. The title company will also handle the closing documents.

5. Final walkthrough- Make sure you get to walk through the property prior to the closing. This ensures you are buying what you intended to.

6. Identify personal property- Make sure you both are clear on appliances that are staying or going. spell it out in writing.

PM if you have any more questions. I have almost 10 years of Real Estate experience helping first time buyer purchase their first home.

Good luck and enjoy!

Jason


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## srconnell22 (Aug 27, 2007)

FREEPOP said:


> No pruchase agreement sign yet. We plan on closing the 1st of May. Locked rate, not very good but there's more lenders out there. No Disclosure.
> 
> 
> 
> ...


 
I havent learned how to do the cool multiple quote thing yet so forgive me. 

If you dont have a signed PA, you dont have a locked interest rate yet. No bank can lock your rate without an address and a signed PA. You'll be subject to market fluctuations until you get that. I'd recommend locking your rate within 45 days of closing date. 

Make 100% sure your income, assets, etc. are taken into account in the "pre-approval" too many times I have people call me and say that they were "pre-approved" by another lender at one thing and then once they provided paystubs, bank statements, etc. all their numbers changed. 

Do not accept a loan with a Pre-Payment Penalty. If you sell your property and want to pay this loan off you could be hit anywhere from 1-3% of outstanding loan balance. The highest I've ever personally seen was about $26,000 a client had to pay off in order to get out of their loan. 

Let me know if you have any other questions...


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## FREEPOP (Apr 11, 2002)

srconnell22 said:


> I havent learned how to do the cool multiple quote thing yet so forgive me.
> 
> If you dont have a signed PA, you dont have a locked interest rate yet. No bank can lock your rate without an address and a signed PA. You'll be subject to market fluctuations until you get that. I'd recommend locking your rate within 45 days of closing date.
> 
> ...




Thanks for the PPP term, that's something I wanted to watch out for but didn't know the term.

I've got 20% down, and my finances are pretty darn good, so I don't forsee any problems. Heck, I could cash some 401ks, pay the penalty and pay cash. Really, if it comes down to it, he'll sell it to me on land contract. We've been best friends forever and I helped design and build it.

It's funny she said I was locked without a PA and an address (didn't have the exact number).

If you can disclose, what are your rates for a 20 year?


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## srconnell22 (Aug 27, 2007)

what is the purchase price?


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## spice64 (Dec 1, 2004)

If You need a real good painter let Me know.


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