Comments on: A Basic Four-Step Financial Planning Guide to Buying Your First Home

By: real estate portal

real estate portal — Sat, 13 Dec 2008 04:28:36 +0000

My opinions on buying in CA.

I’ve just opened escrow on a condo here in San Diego. Lots of my co-workers are also buying right now because suddenly we can afford to. I’ve mentioned here before I’m in auto insurance claims, we don’t exactly make huge salaries. In the time period of about 2004-2006 the prices here in SD were rising over 30% per year and prices got completely out of control.

This mortgage crisis has resulted in a market correction here, bringing things down to where they’re affordable for regular people. I followed none of the advice here because I didn’t know it and because I made the decision to buy within about 2 weeks of first thinking about it. Crazy, I know, but it’s also not my first time buying a home.

Based on conversations I’ve had with other folks who are buying and my realtor, it takes diligence, patience and some luck to get a home, let alone a deal. Stick with it if you’re serious.

By: Viet

Viet — Tue, 10 Jul 2007 19:19:50 +0000

Hey Anton, good suggestions on Zillow and Trulia, as they’re both quite helpful in getting ballpark figure on prices in certain regions. The last time I used them, they were a bit inaccurate, and seemed no better than approaching a local realtor, but I’ll check them out again and add in additional links.

For comparing mortgage rates, Bankrate has a decent comparison page. There is also a good informative page from Federal Reserve Board on looking for the best rate.

It’s important to shop for the best rate, as even though multiple lenders will request your credit report, your FICO score will not be affected as it ignores all mortgage (and auto) inquiries made in the 30 days prior to scoring. So if you find a loan within 30 days, the inquiries won’t affect your credit score while you’re rate shopping.

By: Anton

Anton — Tue, 10 Jul 2007 18:29:01 +0000

Nice article. Haven’t bought my first home about 2 years ago there were some things in here I should have done as part of the process. Definitely check your credit score to avoid any nasty surprises! My question is: why no mention of the new real estate Web 2.0 companies Zillow and Trulia? There is a ton of information here for consumers, particularly if they’re looking to price the value of a property. The other thing I’m dying to know is how do I know I’ve got the best rate on my mortage?

By: Viet

Viet — Tue, 10 Jul 2007 16:14:49 +0000

Thanks for the suggestion MMND. I’ve looked at the other calculator and it is definitely much more detailed (factoring in home insurance and association fees along with maintenance is important). Will revise post and add it in along with the other calculator!

By: Millionaire Mommy Next Door

Millionaire Mommy Next Door — Tue, 10 Jul 2007 15:01:00 +0000

Good article. So many people are unprepared financially to buy a home, and they’re getting into trouble – especially with the risky loans of late.

I suggest this Rent vs Buy calculator. It’s more complete and detailed than the one provided at Ginnie Mae. I recommend putting 1% to 1.5% of the price of the home as an annual budget for maintenance, repairs and remodeling (divide annual amount by 12 months to put monthly figure into this calculator).

In today’s market, we personally can live in a nicer home by renting than buying, AND we net more money in the long run, too (keeping my money in mutual funds grows faster than if I invested in buying our home.)

I have lots more to say on this, actually, so I’ll need to write an article about this on my blog soon!
~Millionaire Mommy Next Door