Realtors, brokers, VA loans - first time home buyer

[NorCalAthlete]

So...submitted my application today for a loan. Been casually shopping for a while now and am starting in earnest, looking to buy a place in the next 6 months or so depending on what pops up. I've got a realtor and broker I just started working with, but having never purchased a home before I'd appreciate BARF's wisdom in questions to ask, things to look out for, etc.

There are some caveats around VA loans that I'm learning - for example, there's an "approved" list for condos and if the complex isn't on that list, forget it. Which unfortunately rules out new condo constructions. Townhomes are essentially treated just like single family homes. I do have a disability rating so funding fees are waived and with the VA loan there's no PMI requirement, even with 0 down.

Aside from "section 1" items like wood rot or termites being addressed prior to the sale, what other kind of stuff should I look for / expect?

 

[mean dad]

Legal advice aside, look at your potential neighbors and their property. I know people who own multi-million dollar homes next door to absolute pieces of trash.

And I don't mean just the physical appearance of the property, either.

 

[mean dad]

oh and congratulations and good luck.

 

[auntiebling]

i've lived in ~4 places since moving out of my parents house.. 5 or 6 maybe 10. kinda depends how you count it. anyway, not the point.

i think it's the same thing mean dad was getting at, don't forget to evaluate the neighborhood. a nice house in a shit location isnt's something you'll want to stay in. condo/tounhouse is an appealing entry level purchase but it might take you 10 years to get to the next rung on the ladder. i hated every minute of the condo ownership experience. HOA and neighbors too close. my neighbors are still too close but at least there is a property line between us :laughing

clarifying: all my neighbors have been perfectly good nice people that i'd have a beer or a chat with.

 

[Ogg]

Make sure to visit anything you intend to buy several times (on weekdays and weekends) and at several times of day (morning, midday, night).
Is the home at a T-junction or across from the entrance to a parking lot? You'll have headlights in the window at all hours. Is there a streetlight that shines in the MBR? If at all possible, visit during inclement weather (is there a drip somewhere? does water pool in unfortunate places?). You're also more likely to see the neighbors, the true traffic patterns, etc.

Also, in my experience, home inspections are mostly worthless any more. There was a time when it was a side-gig for qualified contractors who knew how to evaluate a house and its systems, but these days it's an industry unto itself. I don't know the CA rules or if there's any sort of state-sanctioned certification, but still.. you need to go through the place with a fine-toothed comb and bonus if you can drag in qualified contractors to help you evaluate. If the place is furnished, look behind the furniture. All those pictures on the wall are going to be holes someone needs to fill when the current resident moves out. If the couch is up against the wall, there'll be a stripe in the paint when the couch is gone. None of these are deal-breakers necessarily - just info to accumulate as you consider how much to pay and how much work you'll need to do to get it in the condition that's right for you.

Another thing to consider is where you'll go for shopping and services. How far away is the grocery store?

The list gets really long. Happy to PM if you'd like to discuss more. I've bought 7 houses with the intent to actually live in 'em (as opposed to flippers).

 

[NorCalAthlete]

Good points -I try to tool around on google street view these days as I'm looking at a fairly wide swath on Zillow and Redfin. My boundary points are basically from Burlingame Ave south; 87 west/north. North of 280 / south of 101 for most of it, though I'm open to Campbell / Willow Glen / Foster City / East San Mateo. Doesn't really seem feasible to drive around and spend all that time scouting stuff at all hours vs street view, though if I find a spot I'm ready to put an offer on that will certainly be the last step before pulling the trigger.

Part of the problem too though is stuff is still going FAST. I had my eye on a few spots over the last few months that lasted less than 24 hours between popping up on Redfin or Zillow and going into contract, closing in < 1 week.

 

[UDRider]

Walk around neighborhood on Friday late evening.
Put a side $ for remodel and or able to pay rent for a month or two along with mortgage. It's much easier to remodel, or at least repaint, when you don't live there.

See how hard the water is. If it has bunch of minerals consider water softener. In Santa Clara water is quite hard, and it made a world of difference.

Unfortunately even if you have ok neighbors now doesn't mean it will last. A house couple houses down either has a new people living there, or adult children moved in. It's impossible to sleep now with windows open. There is random yelling and loud drunk yapping until 3 am.

 

[mean dad]

+1 on overlapping the rental with ownership by at least a month.

It was very nice being able to paint and replace carpet without worrying about moving during all of that.

 

[buellistic]

The VA makes the seller jump through alot of hoops that
Regular loans dont....and sometimes cost the seller more to sell..
And some sellers wont accept that and turn You down...

 

[NorCalAthlete]

The VA makes the seller jump through alot of hoops that
Regular loans dont....and sometimes cost the seller more to sell..
And some sellers wont accept that and turn You down...

Yeah...unfortunately I'm already bracing myself for the inevitability that that will happen at least once or twice before I'm able to actually get into a spot.

 

[scootergmc]

So I'll be the naysayer.

In addition to the drawback of being a seller and your prospective buyer being VA or FHA, I'm just not a fan of zero down. To me, that's the biggest thing. Walking in with no equity just isn't a good game plan, especially in today's crazy inflated market. If I were in your shoes I'd be setting aside cash to walk in with a fatty down payment when the market eventually rights itself. I know you've been in the investment thread so you probably know my thoughts on the market already.

As for the inspections, a buyer can go crazy with them. Get all the inspections you want, but the VA and FHA are specific in what repairs have to get done prior to funding, and they don't have to be repaired by the seller. A lot of these questions can be answered (hopefully) by your realtor.

 

[NorCalAthlete]

Sorry if I wasn't clear - I'm not actually doing 0 down, just saying in theory that's one benefit of a VA loan. I'm mainly aiming to use one for no PMI / funding fees waived + pretty nice low rates, plus at least a modicum of assurance that I have some semblance of recourse if it turns out to be a shitbox vs all the "as-is" cash offers most people are doing.

 

[Yakoo752]

Look at property value growth over the last 10 years.

If it's not inline with comps, find out why.

We looked at some condos down here last year and many of the older ones didn't even come close to keeping up with some of the newer comps.

Also, look at guest parking / street parking options. That's a deal breaker for us for a lot of places.

 

[FLH03RIDER]

Good info given by all.
Look at traffic patterns mornings / evenings. Is it the "short cut" through the neighborhood? Corner house will see more traffic.

Sidewalks and trees, who's responsible for repairs / maintenance?

Home Owners Association? Costs and what is and isn't allowed.

As for the GI loan, not meaning to cast some darkness, it may be difficult to find a seller to accept one, because of the additional conditions and possibly the extra time to process the loan. Check with your lender and RE agent.

Check to see if home resides within a flood zone as this may incur higher insurance rates. Age of home can also effect insurance rate.

Get a roof inspection and home inspection and do NOT rely on the seller's reports (if they even provide any). Issues can be things like: old black iron pipe plumbing versus copper lines. Aluminum wiring vs copper.
Plus, be there during the home inspections and don't be afraid to ask a lot of questions! Remember, you're paying for "it". Have them take pics, like in the "crawl space" under floor or other areas that you can't get to during these inspections. Simple questions like: Do all the electric outlets work, how old is the water heater, is there corrosion around any of the plumbing connections, HVAC age, etc., etc, etc...

Have the RE agent check for "permits" for remodels and/or additions.

Condo's / townhomes = thin walls. Does the master bedroom reside over your
neighbor's garage? You will hear it every time it opens and closes!!!

Best of luck on finding your new place.

 

[NorCalAthlete]

Good info given by all.
Look at traffic patterns mornings / evenings. Is it the "short cut" through the neighborhood? Corner house will see more traffic.

Sidewalks and trees, who's responsible for repairs / maintenance?

Home Owners Association? Costs and what is and isn't allowed.

As for the GI loan, not meaning to case some darkness, it may be difficult to find a seller to accept one, because of the additional conditions and possibly the extra time to process the loan. Check with your lender and RE agent.

Check to see if home resides within a flood zone as this may incur higher insurance rates. Age of home can also effect insurance rate.

Get a roof inspection and home inspection and do NOT rely on the seller's reports (if they even provide any). Issues can be things like: old black iron pipe plumbing versus copper lines. Aluminum wiring vs copper.
Plus, be there during the home inspections and don't be afraid to ask a lot of questions! Remember, you're paying for "it". Have them take pics, like in the "crawl space" under floor or other areas that you can't get to during these inspections. Simple questions like: Do all the electric outlets work, how old is the water heater, is there corrosion around any of the plumbing connections, HVAC age, etc., etc, etc...

Have the RE agent check for "permits" for remodels and/or additions.

Condo's / townhomes = thin walls. Does the master bedroom reside over your
neighbor's garage? You will hear it every time it opens and closes!!!

Best of luck on finding your new place.

Great points. Yeah I've spotted at least a couple places that I crossed off the list due to unpermitted extensive remodeling that looked kinda sketchy. Not that I was worried about safety, more about fines / having to tear it all out.

 

[berth]

+1 on overlapping the rental with ownership by at least a month.

It was very nice being able to paint and replace carpet without worrying about moving during all of that.

I've been on the opposite side of this, having to pack all my stuff in to storage and live in a hotel for a week between houses. When we got there, we were living on an air mattress for a couple days before the moving van showed up again.

Having overlap is a good thing, as other have said, to patch and clean things up.

Go inside, get the floors washed, get the carpets cleaned, sweep out the garage. Great time to put in an epoxy floor in the garage as well. Pull all the junk out of the attic they forgot to take with them.

Paint the walls. Nothing says new house than fresh paint and trim. Do the light switches too. It's a good time to make it a bit more your own and toss out the old owners.

We were touring a house for sale, recently went through by the owners. nice and all, but all of the electrical hardware and plates and such was original. Like a super model with yellow teeth. "So, you're going to put that $2 wall plate and $4 switch back in there on the fresh painted wall?"

When I moved in to my previous house it basically smelled like a wet dog. We tore the carpet out on day 2, and lived on concrete in half the house for 4 months trying to get a new floor in.

When the house is empty, it's a great time to put some attention to detail and shine it up.

 

[mean dad]

+1 on putting epoxy down in the garage.

 

[NorCalAthlete]

Yeah, I've got some plans for the future garage...

It's going to get the full treatment - storage shelves, foldaway gym equipment, probably epoxy for the floor but not 100% sure yet on which kind to go with, plus (depending on the size of the garage) maybe a workbench.

 

[951dude]

We're in the housing bubble of a lifetime. Id wait a few more months

 

[JesasaurusRex]

The VA makes the seller jump through alot of hoops that
Regular loans dont....and sometimes cost the seller more to sell..
And some sellers wont accept that and turn You down...

Sounds like you've got the jist of it OP
The above quote was my experience too the first time i used the VA loan.