Jim Johnson

Everett Mortgage: What To Look For In Your First Home



Posted: Tuesday, November 17, 2009

by Jim Johnson
Metropolitan Mortgage

The second part of an ongoing series on the new real estate market

Let's review: I know that the very first thing you did was to get qualified for an FHA mortgage and that you have the 3.5% down payment. Next I know you have engaged a qualified loan officer and real estate agent.

Next we will keep in mind the first 3 things about buying your first home.

1) You are going to look for a home that doesn't necessarily look that good from the street. Remember it has to qualify for a mortgage. The ideal home if I am buying to build sweat equity is close to the smallest in the neighborhood. It doesn't a brick exterior or something that I can't expand without great effort. The first home I bought (in 1975 for $11,500) had that fake brick exterior (asbestos) and was sloughing off so the house looked like it had cancer. There were junk cars and trash all over the place. The front porch was falling off. It had a huge yard with a tall pear tree and an over grown apple tree. It was the eyesore of the street. My wife looked at it and said you want to buy this piece of S---? I said Honey we could buy it, tear down the house and sell the ground for $25,000. She thought a moment and said, "Tell me more". Well we bought it and I spent an entire summer fixing it up. I put in a new foundation, a random lap cedar shingle siding, new windows, new baseboard heaters, new breaker panel, dropped the ceiling in the kitchen, patched and replaced the lath and plaster with drywall as needed in about 4 months of very hard work. 2 Years later I sold the home for $49.900. And I had never pounded a nail for money in my life. I barely knew which end of a hammer to use. Now I don't expect you to be as crazy as I was but there are many easy cosmetic fixers out there you just have to look a bit harder. PS I looked for over 6 months to find that home.

2) You are looking for a neighborhood in transition. There are lots of homes for sale in Everett. This is one that has a healthy mix of rentals turning into owner occupied homes. You find that out by knocking on a few doors and opening your eyes. Look at how the homes in the area are being taken care of. Look at the difference between the well cared for and the not so well cared for. If you see more of the former than the later than it might be a good idea to watch what goes on the market and be ready to buy when the right one comes along. PS Don't be afraid to make an offer on a home that isn't for sale. Research the title and see if the home is a rental. Find the owners and make a low ball offer.

3) Last the 3 "S's". You know the sit sip and poop ones. Does the house have a good foundation, does it sit well? Do you have good water, that's the sip. And are you on a septic or sewer? That's the poop one.

Now on to electrical, remodeling, and landscaping. Remember to KISS your project. Keep it simple stupid.

1) Electrical is not hard if you take a bit of time to learn the basics. Because you as a home owner can do anything (within reason) and you don't need to be licensed to do it. There nothing you can't do if you really want to. Does the home have a basement, crawl space or does it sit on a slab? Basements and crawl spaces are the easiest to work. Rewiring a home is not that big of a deal. You need to get permits and follow codes but that isn't hard. Some of the electricians I have met prove to me that even a monkey can rewire a home. While you are at it be sure to install cable and T-1 lines as that will add to the value of your new home.

2) Remodeling is where creativity is useful. But keep it simple. I am always looking to open up rooms. First I look to see if the wall I want to remove is load bearing. If you have any doubts hire someone who knows, don't knock out a wall unless you know it is not load bearing. If you are going to replace carpets or add hardwoods then now it the time to look at removing walls. Or port a wall. This is cutting out a section and maybe adding a shelf. Visually this opens up space and makes even small homes more attractive. There are no limits to creativity when doing this. You will also be amazed at how cheap it is if you do it yourself. Some things to keep in mind. How about a small drop-in cook top in the master bedroom. Also a small refrigerator and sink. So you can heat up something on a lazy Sunday.

3) Landscaping. Here keep it simple is the rule. I like a little yard work but not a lot. I have many other things to take my time. I like lots of bark dust and simple flower gardens. If you want something that takes a lot of time remember that the next guy you sell to might not. So keep the yard simple and let the next owner decide what he wants to do.

Remember that you should start with finding out if you can qualify for an Everett mortgage. Now when you want to buy a home for sale in Everett you will know what to look for get the best price.

Everett-mortgage-on-line

Jim Johnson E.A. retired; (Enrolled Agent, licensed to practice law in tax court) BS -19+ year experience as an independent loan officer. My background is extensive: 15 years as an Enrolled Agent Licensed to Practice law in tax court, Real Estate Agent 15 years, BS Accounting, Economics University of Wisconsin - Milwaukee.

In 2009 I ran for mayor of Everett, WA I lost but did receive 30% of the votes.

Currently I offer local political commentary in KSER Radio 90.7 FM every Wednesday at 9:05 AM.

Viet Nam Veteran

Everett Mortgage on Line

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