Do we need a realtor?

psheridan050 · Joined: 27 May 2008 Posts: 2 2.10 Dollars($)

Hi,

We are going to be buying a house in Colorado Springs sometime in August 2008. We are looking to buy a brand new house that’s already built or getting ready to be built by a new home builder. We haven’t decided on a particular community or even physically looked at any yet. In this situation, does it make sense to contact a realtor? Thanks for any advice!

adonis · Posted: Tue May 27, 2008 2:14 am Post subject:

Hi psheridan,

If you already planned to buy a brand new house by August, 2008, you can start contacting realtors.

But before contacting them, I personally suggest you to analyze your financial position first. Find out how much estate cost you can afford? If you need financing for that, calculate how much down payment you can make and how much loan you need? How much maximum loan you get? You can analyze yourself by using different financial calculators. Then, start contacting lender too and select a best lender who will agree to finance you.

psheridan050 · Joined: 27 May 2008 Posts: 2 2.10 Dollars($)

Here is a little more information about us in case it helps:

• We live in Hawaii and rent a small condo
• My wife is an immigrant and just opened up a secured credit card but otherwise has little credit history.
• I had a CH7 bankruptcy back in 2002. No missed payments within the last year or longer. Credit scores from the 3 bureaus: 632, 643, 677. I think I need to clean up my report a little as I believe the 677 is closer to the mark.
• We currently do not have any loans or other debt. Any credit card debt is paid off the same month it is incurred.
• My wife is a stay at home mom. I make approximately 96k pretax and have been with my current employer over a year and in the industry for 7.
• We have approximately 150k in liquid savings.
• We are looking to get a loan for approximately 400k
• We are willing to put down around 40k, more is doable but less is better
• I am former military and qualify for a VA loan but unsure what loan type is best
• We plan to stay in the home at least 5 years or longer

To further clarify, we are unsure how a realtor can help us when looking at new communities. I guess when I think of a realtor, I think of someone that helps others find houses that were once owned by someone else. In this situation, how would a realtor be of help to us?

0.10 Dollars($)

Many Realtors have lists of new home too. So you can get the list of new home from them too Smile

.

smckaybiz · Posted: Tue May 27, 2008 5:13 pm Post subject:

I personally feel a realtor can be a wise investment especially if you are unfamiliar with the whole home buying process. There are may legalities involved that a realtor can explain to you that can help you to back out of the deal if something were to go wrong.

This may be way out of my place for saying so but I think you are gettting in way over your head based on the numbers you listed above. It sounds like the same old scenario that is landing people in big trouble down the road. Let me give you my numbers to compare to yours and maybe this will help...

Between me and my wife we make close to $80K a year. I also had a bankruptcy over 4 years ago and haven't had a late payment since then. We are now currently looking to purchase a home for around $60K. Why, because if one of us were to loose our good paying jobs and had to settle for a lesser paying job I don't want to end up going bankrupt again.

If you are making 96K/yr than you are probably bringing home around 5-6K a month. If you plan on taking out a mortgage for over $350K you'll probable be looking at atleast half of what you make just to pay your mortgage payment. I'm not trying to bring you down I just want you to stop and think about what you're about to get yourself into before proceeding. I'd hate to see you ending up in the same situation you found yourself in back in 2002.

evolovik26 · Posted: Wed May 28, 2008 6:43 am Post subject:

First with all the things you have mentioned you want to find a knowlegeble lender/broker to see what you qualify for and what if any problems may come up.
If everything checks out you definately need a knowlegeble realtor for the area as he will likely be more aware what is a good value for you.
And you definately want to do some of your own research into the subject.
As far as VA loan you can check into it but it seems like you would qualify for FHA wich will likely get you the best rates and programs based on your current situation.
Good luck.

cliff · Posted: Wed May 28, 2008 9:19 am Post subject:

Sound advice! Very Happy

Always, good to do some solid financial planning before you start any financial decision. Next, would be to go with a seasoned mortgage professional and finally after you are approved find a seasoned realtor.

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