I would suggest getting a second opinion on rates / fees on your loan - ask your Realtor for a referral. Once you have the pre-approval from USAA and have a property in sight, it should only take a few minutes on the phone to get an estimate from another lender. Nothing at all wrong with USAA but with so much money on the line you at least want a comparison point.
DustoffDave wrote: I'm trying to talk my wife into THIS ONE...check out the surprise in the back yard.
Sweet, sweet shop building.
In reply to DustoffDave:
I would LOVE to have that in my back yard. Good luck.
I used to sell real estate (but decided a steady paycheck was more appropriate a few years ago...so I got out of that) and I've bought and sold a few houses of my own (including foreclosures off the courthouse steps...that's not even what you'll be interested in, though).
First, find a good realtor (check).
Next, start looking at houses (in person).
Rent a place for a while.
Keep looking at houses. Look at a lot of them...look at ones you KNOW you don't want for some reason, but like other aspects of (neighborhood, price, features).
The biggest thing is to get in touch with the market. That way when a GOOD home for you comes along, you'll KNOW it's a good one for you and you won't be hesitant to write an offer/contract.
I've seen the following scenario as an agent and a buyer, personally: The first listing that gets you excited enough to actually go look at houses is a dream. You look at it and are excited, but unsure...you're not confident that it's really a good deal. "You can't make an offer on the first house you look at...right?!"
Well guess what...if you had been looking at houses all along, you would know that this is indeed a great house for you and it's time to ACT on it.
That said...don't worry about missing out on a house or two. There will ALWAYS be another house for you...always! No need to hurry (though I realize having a permenant home is very imoportant).
If you know the market and are prepared (with financing, etc), things will go well for you when your next house hits the market.
Clem
Some good advice here. I would add, as someone else mentioned, don't borrow more money just because the lender will loan it to you. Size the house to what you minimally "need" not to maximize the "MTV crib" appeal.
The upkeep, maintenance, and monthly bills associated with home ownership are expensive. You do not want to be house poor. Also, the future is not a given. Part of the mess that the country is in today is that many people bought more than they could reasonably afford when the economy stumbled. You do not want to be one paycheck away from falling behind on your bills. In the long run you will be happier in a smaller house with more disposable income to enjoy other pursuits.
Since I'm in the market myself I've been getting some sage advice from my realtor, who is also a friend of the family.
1: There's no reason to buy somebody else's problem in this market. 2: Houses in a good neighborhood will appreciate more when the market rebounds. 3: Your first house is not your last house. Use it as a stepping stone and set yourself for success. This is an investment, treat it as such.
USAA will not be your least expensive financing source. Do a little shopping and you'll see what I mean.
Also they will be one of the least responsive lenders during the loan process. It will be hard to talk to the same person twice or get someone who knows your file.
If your seller wants updates they won't get them.
I get tons of loans from people who are upset with USAA. They are more of a regional call center. You want a lender you can look in the eye.
People who have never used a lender other than USAA normally think that's just the way VA is, but it's not VA it's USAA.
People who have branched out and have also used someone other than USAA can't believe how much simpler the whole process is with a real live person to deal with.
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