I closed on my first house today!
- Thread starter Erik
- Start date
Rich Lucibella
Staff
Too cool.
Congrats from all of us.
Rich
Congrats from all of us.
Rich
Mike Irwin
Staff
There's nothing like closing on your first house. I remember vividly the signing, and setting foot in it for the first time (I had of course seen it prior to purchasing it).
I even managed to hang on to it through my divorce.
I'm getting ready to start a big painting project upstairs, and in the spring I need to have the back opened up and have some damage caused by a faulty sliding glass door repaired.
Ah, the joys of home ownership.
I even managed to hang on to it through my divorce.
I'm getting ready to start a big painting project upstairs, and in the spring I need to have the back opened up and have some damage caused by a faulty sliding glass door repaired.
Ah, the joys of home ownership.
Gopher .45
New member
Congrats! That is a very big deal. When I first finally got closed on our house, it wasn't very exciting. It felt more like I was the survivor of a bad accident or maybe that I had just outlasted the sellers in getting the house. Only 132 more payments left to go and I am in the clear!
Congrats. Now you have a great excuse to buy a massive amount of tools. I did!!! Here are some recommendations.
Air compressor - to drain the sprinkler and since you have it, might as well buy accessories for it like nailers, stapler, wrenches, sander, power washer, etc.
Table Saw, Radial arm saw, compound power miter saw, band saw, drills, skill saw, sawzall, lathe, power drivers, and an enormous amount of hand tools. - All to build an addition to the house to store this stuff.
hehehe
Air compressor - to drain the sprinkler and since you have it, might as well buy accessories for it like nailers, stapler, wrenches, sander, power washer, etc.
Table Saw, Radial arm saw, compound power miter saw, band saw, drills, skill saw, sawzall, lathe, power drivers, and an enormous amount of hand tools. - All to build an addition to the house to store this stuff.
hehehe
Jeff Thomas
New member
Congratulations! Great news.
Now, it's probably too late in the year to make any difference now, but don't forget to change your withholding for income taxes. Make an estimate of your taxes, considering the interest you'll be deducting, and reduce your withholding accordingly. That'll make those house payments a bit easier, and it is all quite legal and proper.
Then, you can scout around for where you're going to put that first gun safe.
Congrat's again, and take care. Regards from AZ
Now, it's probably too late in the year to make any difference now, but don't forget to change your withholding for income taxes. Make an estimate of your taxes, considering the interest you'll be deducting, and reduce your withholding accordingly. That'll make those house payments a bit easier, and it is all quite legal and proper.
Then, you can scout around for where you're going to put that first gun safe.
Congrat's again, and take care. Regards from AZ
Mike Irwin
Staff
Jeff,
You're right, it probably is too late in the year to have the interest make a difference on the taxes. That's what I faced the first year I was in the house.
In fact, this past weekend was the 7th anniversary of my moving in to my house.
IRS has a form that will allow you to calculate your withholding information based on your estimated deductions and what you're paying into the system.
I'll be darned if I can remember what it is called, and it's virtually impossible to find on the IRS website because there are so many documents there.
Your best bet is to call the IRS hotline number and describe the form (it allows mid-year withholding calculations to see if you're having too little or too much withheld).
Then you can go to the website and download it.
IIRC, it is form 970something.
I do it every year in June or so, and it allows me to adjust my withholding to the point where last year I owed about $7.
You're right, it probably is too late in the year to have the interest make a difference on the taxes. That's what I faced the first year I was in the house.
In fact, this past weekend was the 7th anniversary of my moving in to my house.
IRS has a form that will allow you to calculate your withholding information based on your estimated deductions and what you're paying into the system.
I'll be darned if I can remember what it is called, and it's virtually impossible to find on the IRS website because there are so many documents there.
Your best bet is to call the IRS hotline number and describe the form (it allows mid-year withholding calculations to see if you're having too little or too much withheld).
Then you can go to the website and download it.
IIRC, it is form 970something.
I do it every year in June or so, and it allows me to adjust my withholding to the point where last year I owed about $7.
Mike Irwin
Staff
BINGO! I found it!
Erik,
Next year, use form 919 to check your withholding about midway through the year.
Chances are, with your new house, you'll be having WAY too much withheld.
This is the link to the PDF version of the form for 2000. Use it now to project what you'll have to do for the next tax year, but BE SURE to do it again in April or May! That way you won't get any very unpleasant surprises.
http://ftp.fedworld.gov/pub/irs-pdf/p919.pdf
Erik,
Next year, use form 919 to check your withholding about midway through the year.
Chances are, with your new house, you'll be having WAY too much withheld.
This is the link to the PDF version of the form for 2000. Use it now to project what you'll have to do for the next tax year, but BE SURE to do it again in April or May! That way you won't get any very unpleasant surprises.
http://ftp.fedworld.gov/pub/irs-pdf/p919.pdf
Congratulations, Erik. It feels good to own your home; of course, you don't really own it until it's paid off, but that's a technicality.
Realize, though, that all the work you have to do around the house cuts into your range time. Or, you can do as I do and go to the range and let the house disintegrate. May not have the nicest house on the block, but I'm the best shot .
Dick
Want to send a message to Bush? Sign the petition at http://www.petitiononline.com/monk/petition.html and forward the link to every gun owner you know.
Realize, though, that all the work you have to do around the house cuts into your range time. Or, you can do as I do and go to the range and let the house disintegrate. May not have the nicest house on the block, but I'm the best shot
.Dick
Want to send a message to Bush? Sign the petition at http://www.petitiononline.com/monk/petition.html and forward the link to every gun owner you know.
gjwandkids
New member
Hey Erik-congratulations and welcome to home ownership.
The phrase "It's saturday and I have nothing to do" will never again cross your lips.
My beloved and I bought our first house three years ago. It was so cool, we could put as many nails in the walls as we wanted. We could paint. Wecould rip up the ugly carpet and enjoy the hardwood floors beneath. And we could set up an archery range in the basement. God is gracious.
The phrase "It's saturday and I have nothing to do" will never again cross your lips.
My beloved and I bought our first house three years ago. It was so cool, we could put as many nails in the walls as we wanted. We could paint. Wecould rip up the ugly carpet and enjoy the hardwood floors beneath. And we could set up an archery range in the basement.
God is gracious.Buying a house scares me. I'm familiar with all the advantages, it's just the buying process that concerns me. I just have these images of this person and that person wanting more cash for this and that thing that comes up during the buying process. What happens if I don't have the money? I mean, I can get the money, but how do I know how much cash outlay in total I'll actually need to close?
I hate uncertaintly like that, and it seems like buying a house is nothing but uncertainty until closing.
I hate uncertaintly like that, and it seems like buying a house is nothing but uncertainty until closing.
Mike Irwin
Staff
Dean,
You're right to be concerned.
That's why you need to work closely with both your realtor and your lending institution to make certain that all steps of the process are explained to you.
If possible, you also need to select a lender with whom your comfortable, and who has YOUR best interests in mind.
For that, I cannot recommend highly enough a Credit Union. Unlike banks, credit unions are not for profit, and thus are not out to screw you out of every last penny.
You also need to get, up front, a "Good Faith Estimate of Closing Costs."
This will lay out the expected costs for ALL services related to the home buying process, fees such as title search, copying, document processing, etc. Again, a credit union is your best bet.
Are you, by any chance, a member of Navy Federal or Pentagon Federal credit unions?
If you are, they have EXCELLENT materials to explain the home buying process to you, and they have excellent home loan programs.
You're right to be concerned.
That's why you need to work closely with both your realtor and your lending institution to make certain that all steps of the process are explained to you.
If possible, you also need to select a lender with whom your comfortable, and who has YOUR best interests in mind.
For that, I cannot recommend highly enough a Credit Union. Unlike banks, credit unions are not for profit, and thus are not out to screw you out of every last penny.
You also need to get, up front, a "Good Faith Estimate of Closing Costs."
This will lay out the expected costs for ALL services related to the home buying process, fees such as title search, copying, document processing, etc. Again, a credit union is your best bet.
Are you, by any chance, a member of Navy Federal or Pentagon Federal credit unions?
If you are, they have EXCELLENT materials to explain the home buying process to you, and they have excellent home loan programs.
Jeff Thomas
New member
deanf, I admire you
Takes guts to admit fear and lack of experience ... all of us who have owned homes had to go through our first purchase as well. I was ignorant as hell, and scared stiff. If you don't mind, let me offer a few tips.
If you've ever bought a car, or negotiated any significant purchase, buying a home is very similar. As the buyer, you are in the drivers seat. You may not feel like it, but you are ... they want your money.
For purposes of this discussion, let's confine this to a resale ('used car') home. There is probably a real estate agent involved for the seller. You would be wise to have your own agent to assist you, but remember - you're still in charge.
There will be an asking price, just like for a used car. Whether you pay that price depends upon the market. The best time to buy a home is when the market is depressed (buy low, sell high ...), and homes are taking a long time to sell. But, generally, buyers (like sellers) can't wait for the perfect market.
So, if the market is very, very strong, you will likely need to make an offer to buy at or nearly at the asking price. (In incredible markets, houses sometimes go for more than the asking price - unusual.) If the market is a bit weaker, you can 'low ball' the seller and see if they will bite on a lower price. Ask your agent to tell you what homes are going for in that area. Not the asking prices - you want to know the sales prices of recent transactions, per square foot, for comparable homes. A good agent will do this for you without being asked.
So, there it is. They ask $100K. You offer $90K. They say 'no, we'll take $97K'. You ponder, discuss with your agent, and make another offer for $93K, and maybe you finally settle on $95K. There can be 'contingencies', like you had a home to sell, or you want them to pay for a home inspection which you must approve. After the inspection, you may find some defects that you want the seller to repair, and some defects must be repaired by the seller, by law.
The bottom line on buying the home - it is a negotiating process like a car or a used gun.
You'll probably borrow money to assist in the purchase of the home. Shop around for the best deal on money ... it's all green, you know. You want a lender than can perform on time, with the rate and terms you believe are reasonable in the market. How do you know what's reasonable? You shop around and compare.
The mistakes you make in this first purchase process are 'tuition' in your own, personal real estate school. Try to pay as little 'tuition' as possible.
Probably the most important part of this, IMHO, is to find a good real estate agent for your first deal. In later transactions, you may be better informed than your agent ... but, it takes time to learn. And, a good agent is worth it. Technically, the seller pays your agent's fee anyway (although there are tricks there as well, in a down market). Don't just hire your brother's friend - find a good agent, that is known as someone who knows the market, is a perceptive deal maker, etc. Interview that person as though you are hiring them for a job ... because, you are.
Home ownership is, IMHO, one of the most fundamental moves you can make towards your own financial freedom. I've seen lots of rent versus buy arguments - in the long run, IMHO, owning / buying your own home wins hands-down.
deanf, I hope you take the plunge someday - owning your own home is great. It is your 'castle', and can become what you want it to be within your means. Best wishes for your future purchase.
Regards from AZ
ps - be careful with homeowners associations - they can be a real problem for people who treasure their individual freedoms.
Takes guts to admit fear and lack of experience ... all of us who have owned homes had to go through our first purchase as well. I was ignorant as hell, and scared stiff. If you don't mind, let me offer a few tips.
If you've ever bought a car, or negotiated any significant purchase, buying a home is very similar. As the buyer, you are in the drivers seat. You may not feel like it, but you are ... they want your money.
For purposes of this discussion, let's confine this to a resale ('used car') home. There is probably a real estate agent involved for the seller. You would be wise to have your own agent to assist you, but remember - you're still in charge.
There will be an asking price, just like for a used car. Whether you pay that price depends upon the market. The best time to buy a home is when the market is depressed (buy low, sell high ...), and homes are taking a long time to sell. But, generally, buyers (like sellers) can't wait for the perfect market.
So, if the market is very, very strong, you will likely need to make an offer to buy at or nearly at the asking price. (In incredible markets, houses sometimes go for more than the asking price - unusual.) If the market is a bit weaker, you can 'low ball' the seller and see if they will bite on a lower price. Ask your agent to tell you what homes are going for in that area. Not the asking prices - you want to know the sales prices of recent transactions, per square foot, for comparable homes. A good agent will do this for you without being asked.
So, there it is. They ask $100K. You offer $90K. They say 'no, we'll take $97K'. You ponder, discuss with your agent, and make another offer for $93K, and maybe you finally settle on $95K. There can be 'contingencies', like you had a home to sell, or you want them to pay for a home inspection which you must approve. After the inspection, you may find some defects that you want the seller to repair, and some defects must be repaired by the seller, by law.
The bottom line on buying the home - it is a negotiating process like a car or a used gun.
You'll probably borrow money to assist in the purchase of the home. Shop around for the best deal on money ... it's all green, you know. You want a lender than can perform on time, with the rate and terms you believe are reasonable in the market. How do you know what's reasonable? You shop around and compare.
The mistakes you make in this first purchase process are 'tuition' in your own, personal real estate school. Try to pay as little 'tuition' as possible.
Probably the most important part of this, IMHO, is to find a good real estate agent for your first deal. In later transactions, you may be better informed than your agent ... but, it takes time to learn. And, a good agent is worth it. Technically, the seller pays your agent's fee anyway (although there are tricks there as well, in a down market). Don't just hire your brother's friend - find a good agent, that is known as someone who knows the market, is a perceptive deal maker, etc. Interview that person as though you are hiring them for a job ... because, you are.
Home ownership is, IMHO, one of the most fundamental moves you can make towards your own financial freedom. I've seen lots of rent versus buy arguments - in the long run, IMHO, owning / buying your own home wins hands-down.
deanf, I hope you take the plunge someday - owning your own home is great. It is your 'castle', and can become what you want it to be within your means. Best wishes for your future purchase.
Regards from AZ
ps - be careful with homeowners associations - they can be a real problem for people who treasure their individual freedoms.
I didn't mean to steal the spotlight from Erik
He actually did it, I'm still contemplating. Thanks for all the advice.
Trouble with a homeowners association? Why, I never imagined . . . .
Believe me, one of my primary requirements for a home purchase it that there be no association. I also like un-incorporated areas - one less level of government to deal with.
He actually did it, I'm still contemplating. Thanks for all the advice.
Trouble with a homeowners association? Why, I never imagined . . . .
Believe me, one of my primary requirements for a home purchase it that there be no association. I also like un-incorporated areas - one less level of government to deal with.
Mike Irwin
Staff
Hey Dean,
I'm vice president of my HOA, and there's a house up for sale...
I guarantee you absolutely NO problems...
As long as you do EXACTLY what I say.
I'm vice president of my HOA, and there's a house up for sale...
I guarantee you absolutely NO problems...
As long as you do EXACTLY what I say.
Dean, another thing to consider carefully is location. I know it's said over and over, but I learned that lesson the hard way. Nine years in a beautiful home and sold it for less than I paid, while my friends in other neighborhoods made a hefty profit. Try to stay miles and miles from bad neighborhoods and keep an eye on the type of people passing through.
Dick
Want to send a message to Bush? Sign the petition at http://www.petitiononline.com/monk/petition.html and forward the link to every gun owner you know.
Dick
Want to send a message to Bush? Sign the petition at http://www.petitiononline.com/monk/petition.html and forward the link to every gun owner you know.
Congratulations, Erik!
I'm on home #6. My advice:
Buy a good "fix it" book. Learn to fix everything that breaks (hopefully, nothing for a while...) Then learn to ENJOY fixing things that break.
You will save yourself beucoup bucks by fixing a 10 cent washer yourself instead of spending $100 for the plumber. Or these days, installing a $30 fixture yourself instead of spending $150 on the plumber.
And you will be training yourself with valuable skills. And you will love the place even more.
I'm on home #6. My advice:
Buy a good "fix it" book. Learn to fix everything that breaks (hopefully, nothing for a while...) Then learn to ENJOY fixing things that break.
You will save yourself beucoup bucks by fixing a 10 cent washer yourself instead of spending $100 for the plumber. Or these days, installing a $30 fixture yourself instead of spending $150 on the plumber.
And you will be training yourself with valuable skills. And you will love the place even more.