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Permalink Reply by Derek R. on November 15, 2011 at 4:39pm

Hey Ryan

Whatever you do, make sure you get a qualified home inspector to check the place over...no matter what the sales agent says. And do not sign anything until you have a lawyer look over the papers and explain to you what's going on. Make sure you know what you are buying.

Good luck and congrats on your 1st year in.

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Permalink Reply by Mike Schlags (Captain Busy) Retd on November 15, 2011 at 6:10pm

Ryan,

First off, congrats on getting the job and in advance, passing your one-year probationary status. It's a wise thing to put your money into your house, which is your number one savings account for retirement. The goal is to have the puppy paid off by the time your retire and get on a fixed income.

I respectfully disagree with my good friend Derek about the attorney. If you have access to one for free, then why not but my take on this is two fold.

1. You don't need a real estate agent because you can handle everything through your title and trust folks.

2. Keep in mind that you will grow into your payment. As time goes by, even though now is tough times, COLA and promotional raises will come. Plan on it.

The most important thing you can do is to follow Derek's advise on getting the home appraised by a certified home inspector. Protect yourself and your investment.

-Mike

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Permalink Reply by Jack/dt on November 15, 2011 at 6:57pm

Ryan,

As for using an attorney, I personally would not commit to a mortgage without benefit of qualified legal advice.  If you don't understand everything in the contract and are going to rely on the seller's attorney and real estate agent, you may be in for a surprise.

I bought my house many years ago, but recently sold my mother's, going through a couple of potential buyers and their Home Inspections:

Let me offer you a word of caution on Home Inspectors.  Here in Connecticut, although 'licensed'  there is no requirement that they be familiar, much less proficient, in any particular trade.  They take a course, find a licensed Inspector to 'observe' them for a period of time and then they are on their own. 

Their contract basically absolves them of ANY liabilty.  Many will NOT go onto the roof to thoroughly examine the roof.  If there is anything in the attic or basement that blocks a view, they will not move it to look further.  They may check to see if outlets work and are properly grounded, but do not remove wall plates.

Each Inspector varies.  Some are retired or worked in a trade so they tend to concentrate on what they know best.  Others may have NO experience in any trade.  They passed their course and follow a check list.  Most contracts are boilerplate paid for from a Home Inspector Association.  Their reports 'look' impressive with abundant photographs but most lack any substance.  They may note a mechanical is operating properly (it goes on, cycles, goes off) but may either dismiss the fact that it's 25 years old or, panic you by saying it could fail any day (as could any mechanical or appliance, regardless of age.)

If you know any roofers, carpenters, electricians or plumbers, ask them to inspect a prospective house.

If the house has a basement, look carefully for cracks.  Vertical cracks in a poured concrete foundation are not necessarily a concern but can be a source of water infiltration.  Horizontal cracks are BAD and indicate some serious structural issues with the foundation.  For a block foundation any cracks may be bad.

Financing is going to be based on your credit scores and credit record.  A fixed rate loan (30 year) may be a bit higher interest rate but locks you in, adjustable rates can bite you in the ass.

I've never heard of any grants or assistance for a firefighter to buy a house.  Unless you can pay cash, everyone must humble them self before the gods of finance.

In CT the usual real estate agent commission is 6%.  If you use your OWN agent (who acts as your broker and is working for you and giving you advice and is legally bound to work in YOUR interest) should you buy a house the commission is split between your agent and the sellers.  The seller pays the commission not you so your agent, who legally works for you, is paid by the seller.  It costs you nothing.  I would NOT rely on a realtor to give legal advice regarding the closing and all associated documents.

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Permalink Reply by Andy Turnham on November 15, 2011 at 7:42pm

1. When you find a home you like take someone along to a second viewing who is totally un-involved in the purchase and listen to what they have to say about the place.

2. Visit the neighbourhood at different times of the day to get a better picture of what it's like.  A peaceful sub-division at 10:00am might turn into a noisy nightmare at 5:00pm.

3. Doorstep a few potential neighbours and ask them what it's like living around there.

4. Look it over as a potential fire scene, water, access, construction.  Get some of your more experienced colleges to go along with you.

5. Get a full inspection before you commit.

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Permalink Reply by Ron Briggs on November 27, 2011 at 11:39pm

I agree with Andy.  My brother went through this when he was hired full time on a paid dept. 6 yrs ago next month.  He had a home inspection but some things weren't mentioned and have arisen.  So be careful to find a good home inspector.  He had family and co-workers help go through the location and look at his research before he purchased the home.  Good Luck and I hope this helped.

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Permalink Reply by Ryan James Johnsrud on November 30, 2011 at 7:07pm

Thanks for the great advice! When I finally decide on a place I will post a couple pics!

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