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Re: Horror stories?
With real estate, everyone is a self-proclaimed expert. It is so different from when I practiced law -- then everyone sought after and respected my expertise. As a professional realtor, it's more of an uphill climb, because everyone thinks they know your business!
First, you have to remember that most people have only bought or sold real estate a couple of times in their lives, and it may have been years ago. So they may not be recalling their experiences correctly, and the rules regarding financing and other procedures have most likely changed significantly. Also, everyone's experience is different. It's like when you have kids and you get an onslaught of well-meaning advice from btdt moms. You need to take it with a grain of salt. When it comes to your own house buying situtation/circumstances, just like when it comes to your own child, YOU know best.
Also, some people read one general news article and then spout off information that has nothing to do with the local real estate market here.
And remember - everyone loves to tell their own horror stories. Again, it's like when people talk about their childbirth horror stories... for some reason, people love sharing how everything went wrong. But they are probably exaggerating, and if everything went perfectly, it wouldn't be a great story, right?
But buying a house is a big transaction, and you should make sure that you are working with reputable and knowledgeable experts in their field -- you need a realtor, a loan officer, an attorney, and a home inspector you can trust. If you have all of those people in place, you will be able to get all of your questions answered and resolve any issue that arises before it turns into a "horror story." If you are already working with a realtor, attorney, and mortgage lender that you like/trust, then they are the ones whose advice you should be taking.
As far as your down payment -- if you are getting an FHA loan, as long as you have 3.5% down, you are good. For a conventional loan, your mortgage lender will tell you how much you need to put down to qualify for the loan. Usually it's 10%, but some people can put down as little as 5%. Closing costs will vary, and a big part of it is usually taxes (if you close in the middle of a tax period, you have to reimburse the seller for what they paid out at the beginning, since they didn't occupy the house for the entire period). But again, a good mortgage person can estimate for you what you will need to pay at closing. If you have concerns about these issues, your contact at the mortgage lender should be able to alleviate them!
Good luck, and try to enjoy your house hunt! It's an exciting step, but it should be fun.
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