Mortgage planning

[maighdlin]

Hey all,

I've been thinking about buying a house in about two-three years. I figure in that time I should be able to save up nearly 20k as a down payment and am not looking to purchase anything I'd have to make over a $600/month payment on. I'm going to be doing this as a single person after all with no roommates.

I've been researching credit scores here recently so that I can prepare for the sit down with the bank in the future and learned some useful tips (as well as realized how I've been screwing myself over by closing down credit card accounts lol). My credit is good, but needs a little work to get up to the point where lenders will be offering me their best rates.

My question is more of a general one. I don't really know the questions to ask so I'm just looking for general advice, tales of experience and such. No one in my family is financially competent so I haven't really talked much to them about this. They know I've been looking at houses but that's the extent of it.

What sort of fees are involved? Any unexpected things I should look for at tax time? Is building worth the hassle? I'd appreciate anything anyone has to say on the subject. Meanwhile, I'll be poking around the forum and reading.

Thanks!

[bigbigfan]

Good move on not talking to family about your plans if they are indeed financially incompetent, hopefully they understand that it was important to you to save money even if they can't.

As for advice mine would be to buckle down and practice saving. Seriously, find any way you can so reduce what you spend every month. It will build your savings account but it will also train you to do without so that you can do it all faster.

Don't build if it's your first time. Look up last years property tax on any property you are considering, but smaller that your budget allows to give yourself some wiggle room.

[Arzosah]

Totally agree with not building if its your first time.

Think about what you want from the place you live in: do you want a garden? Do you like older properties? Whats the commute to work going to be like? Whats the maintenance on a place like that? Is the area safe to get home to, if you're out with friends? Whats the internet reception like? Whats the soundproofing like? Where does the sun come in, in the morning and the evening? Will you be doing some DIY, or getting builders in? You'll probably have to do a bit yourself in any case. Whats the wiring like, and the plumbing? Any problems in the area with pollution? Sinkholes? Railway noise? Is the contract free and clear (its called a "lien" in this country, not sure what it would be in the US). If its a lease how long does it have to run? That is, when you come to *sell* it yourself, how long would it have to run - in the UK, if its less than 50 years, that would be a problem. What would the resale value be in general? Is the area going up or down in value?

Take your time!

[mukifli]

Before you take this big plunge you should know all the facts. Wish I had read this before I got in, maybe it'll help you.

http://www.amazon.com/gp/aw/d/B00CM1...sr=8-2&pi=SL75