Order of Business

Oh, I forgot the last part! I would do some math in my head and figure out what I could comfortably pay each month on a mortgage before making an offer. Even if a lender says you can afford, say $1,000.00 a month, if you'd be uncomfortable paying that each month, you should look at houses slightly below that price. I'd go looking at the higher-end of what the lender says I can afford, then make an offer of less than the asking price to make the payments lower. Since it IS a buyer's market, the chances are better these days that you'll be able to get the mortgage you want along with the house you want.

You can get different amounts pre-approved from different lenders too. They all have their own criteria. I'm hoping that I'll be able to find something livable a little above my budget and offer less and have it be accepted. The trick now is to find an agent worth a hoot. My budget is very small and there's not much available that isn't condemned.

Then you should start with telling the agent that you'd like to look at "handyman specials". You can get SOOOO much more for your money with them! There are some that aren't too bad; liveable but need work. When I bought my first house, that's what I was looking for. I love fixing up older houses. The way I see it, most people 'change' things once they buy a house anyway. They repaint walls with colors they like, or put up wallpaper, tear down a wall or two maybe and put in a counter, finish a basement, etc. Why buy something that looks nice for a higher price when you can buy something that doesn't look so nice right now but costs so much less? I found a great house once and almost bought it. I offered $90,000.00 for it when all of the newer (and smaller) houses in the area with MUCH smaller plots were selling for $150,000.00. It needed a lot of TLC, I never kidded myself about that. It WAS ugly! But the potential! Man! The seller accepted my offer! Well, she had it on the market for $105,000.00. I'd be in that house now, most likely, except for the lightning that hit it right before we had a settlement date set! Sigh! So, maybe that's a good place to start. You could end up with a really terrific house for very little money. You can always take your time making it look 'pretty'. Just let the agent know up front what you're looking for and how much work you're willing to put into a house.

Who did all the paperwork for you, made the offer, etc, if not a realtor?

We made the deal with the homeowner, each got an attorney to draw up the deal. Then applied for financing. Once approved we did closing with a title company. SO instead of a realtor fee we paid an attorney 750.00 to spell out who pays what and so on.... Title costs, points, insurance are all part of closing costs and you always will have those.

It definitely is. Buying a home is almost always a very stressful situation.

I agree. I think lenders usually tell you that you can afford more than you may be comfortable with. I've never gone the limit of what they've given me.

There's no way I'd buy the place I'm renting now. I don't want to live here one day longer than I have to!

Wow, you did great! I wish my luck ran more that way. I can't even find a realtor worth a crap.

When I bought the condo, I wasn't even thinking about buying a place, so yeah, I'd say I was lucky.

I'm afraid that's all I'll be able to afford. I have outstanding credit, but little income.

That's about what I can afford, or maybe just a bit more since I'm so frugal in other areas. Less than that and I'd never find a house.