Font ResizeTo successfully make the leap from renter to homeowner, professionals suggest taking time to learn the ins and outs of home ownership to avoid an impulse decision.
Some homeowners learn the hard way that buying a house is a lot of work and to reap the rewards, you have to stick it out.
You'll meet mortgage lenders, real estate agents, home inspectors and title insurance agents. There are piles of paperwork and decisions to make about closing costs, home warranties and policies.
It seems like a lot, but Steve Knaub, program director at the Housing Alliance of York, said with a little education, buying a home is a rewarding investment.
We asked a few homeowners and professionals to share their home-buying advice.
Homeowners say:
Tracy Myers, 32, Springettsbury Township
Myers wrote: "I did not realize the agony you have to go through to get a permit to make improvements or add ons to your home."
Myers was surprised that to improve her home, she had to get the township's approval and pay what she thought was an outrageous fee and meet strict guidelines. She was also surprised that her taxes increased shortly after making the improvements.
Terry Kemp, 67, Windsor Township
When Kemp decided to build a home in Winters Ridge, he went to three banks for quotes to find the best deal.
Kemp said: "I used the one that the builder recommended, I went through one in (Washington) D.C., and I looked at a nationwide one."
He went with a mortgage lender that offered the lowest interest rate and payments and the one that wouldn't sell his mortgage to another lender.
Kemp said a neighbor of his went to a mortgage broker and found an even better deal.
Jennifer Goodyear-Counts, York Township
Even though Jennifer and her husband, Jim, have only been homeowners for a little more than a year, Jennifer thinks they have had more challenges than most longtime homeowners.
After having their well tested on the house they bought at auction, they learned that there was E. coli in their water. It cost $1,000 to install a water system to correct the problem. A few months later, a car ran into their 3-year-old's room and the house was knocked off its foundation.
Her advice: If you buy at auction, be aware that you need 10 percent down in cash.
"It was a crazy process," Jennifer said.
She said she had no intention of being the highest bidder on the home, but once she started bidding, she felt like she was on a game show. Then she won.
"We had to run around and get loans and be out of our apartment in two weeks," she said.
Once they moved in, Jennifer felt like once they fixed one problem, another one popped up.
"It's a never-ending job, but it's worth it," Jennifer said.
Having been in an apartment before, she enjoys being able to decorate and landscape the way she wants. They added a butcher shop for Jim and a tiki bar for entertaining.
Experts say:
Steve Knaub, program director at Housing Alliance of York
Working with homeowners, Knaub has a laundry list of detailed tips. If he had to give just one, it would be to attend a workshop. The Housing Alliance of York offers a free workshop for first-time home-buyers.
"It covers the gauntlet of what you will go over in the in-depth experience," Knaub said.
The class introduces students to real estate agents, mortgage lenders and title insurance agents who have years of experience in their respective fields.
He also encourages potential buyers to explore assistance programs such as the 3-2 program to help with closing costs and down payments.
And if something doesn't seem right, Knaub said don't go through with it.
"Make sure your lender is reputable and you are comfortable with what you are being told," he said.
If you make $25,000 a year and you qualify for a $200,000 loan, it doesn't add up.
"Understand your credit and get pre-approved, that way you have an idea of what you can buy," he said. "Don't spend beyond your means."
Knaub's other tips include:
· Don't be afraid to negotiate.
· Get a home inspection; it's the best money you will spend.
· Set aside an emergency fund for unexpected home repairs.
· Maintain the home and stay on track with your budget.
Susan Shollenberger of Compare Mortgage Services in Springettsbury Township
Shollenberger said in today's market, buyers need to know that a fixed-rate mortgage is the way to go, especially for buyers who don't have the best credit.
For buyers who don't have good credit, she suggests seeking help from a financial professional.
"Life happens, but you really need to work with professionals to get your credit rating back up," Shollenberger said.
Shollenberger said if you work with a mortgage broker, versus a bank, you will have more products to choose from; a lot of buyers have found success in that approach.
Candy Haight, real estate agent with Morgan Collins
Haight said buying a house is an in-depth process, but that someone is always there to help. She gets phone calls from customers early in the morning and late at night.
"I warn people that this could happen or that could happen, but I am a professional and we will get through it and things will be smoother," she said.
Haight said the real estate agent shouldn't just show a house or two and show up to collect a paycheck at settlement. They should make recommendations and phone calls and arrange things for unsure home-buyers.
nlefever@ydr.com; 771-2101
ONLINE
--- http://www.hud.gov/buying/comq.cfm
--- --- http://www.homebuyinginstitute.com
ON THE SHELF
--- "Home Buying for Dummies" (Wiley, $21.99) by Eric Tyson and Ray Brown
--- "The First-Time Homeowner's Handbook" (Atlantic Publishing Company, $21.99) by Joe Adamaitis
--- "100 Questions Every First-Time Home Buyer Should Ask" (Three Rivers Press, $19.95) by Ilyce R. Glink
MORE HELP
For details on home-buyers' workshops, call 854-1541 or visit www.housingallianceofyork.com.
ABOUT THE SERIES
Numerous "How To" books, articles and TV specials have been made about important life events, such as marriage, college, retirement and childbirth. We think it would be more interesting to find out what people wish they had known before reaching these milestones. We're asking readers to think about what no one told them about 12 significant life events -- one for each month of 2008 -- to help others prepare for the future.
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