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First time home buyer?

On October 12, 2009 / By Real Estate Law Help / In Utah-Real-Estate-Law

I live in Utah and I am planning on purchasing a home for the first time. I am a 22 year old single mother and i have been approved for a home loan and now i am looking for my house, I really need to keep out side costs to a minimum (if that’s possible). I really feel like i am out there all alone. What are the things i am supposed to ask when i am looking at the house? Should I bring someone with me or can I go alone? I hear about these horror stories about people purchasing a home and not finding out it has thousands of dollars worth of damage until after they have moved in, i would really like to avoid anything like that, how do i do that? Do I have to hire a Realtor or Broker? Is there a list of things somewhere on line that I can look at so I get an idea of what I am doing? Sorry i am just so confused all of my family lives out of state and everyone I know here is my age and knows about as much about buying a home as I do. Also I am not sure if this helps but i am a paralegal at a law firm that specialized in Developmental and Real Estate law, most of the Attorneys have said that they are more than happy to read over all the contracts and fine print (free of cost) but that doesn’t really help me with my other dilemma. Thank you for your help, I am going to need it

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5 Responses to “First time home buyer?”

  1. lawn8268 said:

    Oct 12, 09 at 6:42 am

    If you are interested in a home. ALWAYS hire an inspector before drawing up and documents to purchase. Make sure the inspector is independent of the home owners and the realty company, this way you get someone with no conflict of interests. You may have to cough up a few hundred bucks for it, but in the end its best. They will let you know the condition of the home from top to bottom. Also if you are working at a law firm, most definitely have them check any legal documents that are involved in the sale of the home.

  2. Rachel said:

    Oct 12, 09 at 7:02 am

    The best thing you can do is to get yourself a buyer’s agent. I am from NY and here the buyer’s agent is paid for by the seller - so it is free of charge to the buyer! I would assume it is the same in Utah, but maybe first you should ask one of the attorneys because they will be able to tell you. Also, ask for recommendations - they work with the real estate agents and will be able to give you the name of someone good. Then you can just call them and tell them that you are looking to buy a house, they will ask you your price range and what you are looking for, then they will show you properties. You can go alone with the agent or bring a friend with you. First you will just do a walkthrough to see if you like the house. If you do, you could go see it again with a friend. Then you would put in a purchase offer. It will cost a couple hundred dollars to hire a qualified home inspector - but that will prevent you from getting stuck with unknown major problems later; so it is definitely a good use of money!
    Keep in mind that in addition to the down payment, you will also need money at closing to cover your closing costs. These include bank fees and deposits to escrow. They will probably run a couple thousand dollars. Your agent will be able to answer any questions about estimates of closing costs for your price range and your state.
    There are a lot of steps in the process, and the agent is your best resource. Good luck!

  3. davidstaiti said:

    Oct 12, 09 at 9:39 am

    OK - great questions… without knowing the details of your financial situation, based on the fact that you are a 22 year old single mother, the first question should be: should I be buying a house?

    Due to the market right now, if you have a solid and stable income history, a down payment of 20%, and a pragmatic budget that factors in insurance, utilities, repair, furniture, and all the other costs that go along with a house, it is a good time to buy.

    At 22, even if you have a great job, you do not have a long stable work history. If you are a single mother and you work, what do you do for child care?

    Because a bank will pre-approve you DOES NOT mean that you should buy. Personally, if you don’t have a 20% down payment that you can plunk down in cash on the house you want, I don’t think you can afford it. Hypothetically, if the housing market stays weak for the next few years and you buy with less than 20% down, you could most definitely end up owing more money then your house is worth. If you lose your job, have to move, or any other number of unpredictable variables, you will WISH you never bought. This is the EXACT problem many people find themselves in now.

    If you do have at least 20% and a very stable source of income, you need to figure out your budget of monthly expenses (food, car, gas, grocery, etc.) that are relatively fixed and predictable. Then, you can figure out how much of a mortgage payment you can afford. My advice, leave another 10% margin of error to account for the fact that the price of things like gas and food are going up fast, that repairs will come up, that you will need to save money for a cushion, vacations, etc.

    Don’t feel like you HAVE to buy a house. At 22 and being single, you have a long way to go. Buying a house is typically the biggest financial decision most people every make… if you make the wrong one now, it could cost you big time for years to come!

  4. uclueletbc said:

    Oct 12, 09 at 12:52 pm

    hire a home inspector to look over the home before buying

  5. kinematic said:

    Oct 12, 09 at 10:06 pm

    The single most important thing is to get an independent home inspection. Make sure you pick a reputable firm.

    Secondly, don’t get pushed into something you don’t want. Don’t settle with just anything. Pick a home that suits your needs and maybe for the future, but don’t go for something that you my need to adjust to.

    You don’t need to hire a realtor for yourself but don’t deal with a private sale either. Most good homes will be done through a real estate agency. Make sure you do a little background on the agency. Hiring your own realtor means that you can be assured that this person is working for you, but they are making commissions, and if you can save a buck, your law firm will save you huge amounts of money over dealing with multiple realtors.

    Other than that, ask your associates for advices as well. They should have plenty of good things to tell you when looking for a new home. Happy house hunting.

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