Buying my first home! Please help!

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I am a first time home buyer! I am 25 years old, make 46K a year, and have 10K to put down. I live in North/West Washington. I am looking for a good home to live in and possibly rent out in 5 or more years. Any suggestions would help, and I also have a few questions.
What kind of locations sell/rent better?
When working with loans as a first time buyer is FHA the best choice?
How do you know when a home is "worth it" or not as far as repairs?
When choosing my Real Estate Agent what are the main things to look for in knowledge?
Any other first time advice would be appreciated! Thank you!!!!!

[Joseph Kaiser]

I just bought my first home in December. My real estate agent was great. I think the most important thing about an agent is that y'all get along and that he understands exactly what you're looking for in a home. Also, the agent needs to have a real knowledge about your current local market and where it's heading. I found the right agent for me and I hope you do too!

PS I love visiting Seattle and the San Juans. Two amazing places.

[Kelly N.]

Hi,
Welcome to BP.

I would look for a place that's in a nice area, close to amenities like shopping or parks or schools. Try to figure out what demographic you are trying to attract and figure out what you would want in their shoes. If you want to attract families, for instance, look for a good school district, 3 bedrooms, 2 baths, with a yard or a park nearby.

I think FHA will be your best bet- lower interest rate, lower down payment, and I don't think you'll have to pay PMI. (Double check that since I know there are some rules changes I don't know about for sure since they don't apply to me)

There are loads of posts on here about estimating costs and whatnot for repairs, try looking in the rehabber section.

Find a realtor that knows the area well, especially if you don't. A buyer's agent that will listen and work with you can be your best friend!

Hope that helps & good luck,
Kelly

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Thank you guys so much! Your advice is great, anything helps!

[Brandon Turner]

Welcome to BP Holli Fiorina! I'm located down near Aberdeen, WA. FHA, like Kelly said, is probably your best bet. Look for an agent who is hungry (eager) yet experienced (been in the game for more than a year.) Hope that helps some!

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You may want to do a conventional loan because in this crazy competitive market, having an FHA loan may put you at a disadvantage. The Greater Seattle area market is very much a sellers market right now. Just a thought.

[Wayne Brooks]

One of your first steps is go get prepproved by a lender. You'll find out how much you qualify to borrow and how much cash you'll need to close. FHA is a little easier to qualify for:credit score 620-640 minimum vs 670-680 minimum for convential, and higher debt to income % allowed on FHA. You will have MIP on any FHA loan and PMI on conventional less than 20% down. You'll also have closing costs and 14-15 months prepaid insurance and taxes. No knowledgable seller will accept your offer without a preapproval.

[Lynn McGeein]

Holli, Just make sure you actually enjoy the process. Like i told my son last year, this is one of the most expensive purchases you may make in your lifetime, so have fun with it! Allow yourself the time to narrow down neighborhoods and streets, if an agent is pressuring you to sign things or make quick decisions that you're not comfortable with, find someone else to work with (so never sign anything exclusive!). FHA is good for first-time buyers, and there may even be programs in your area that help with 0% down loans. FHA is expensive these days with a big funding fee and MIP, but sellers can contribute towards the closing costs (I think up to 6%). As far as locations, you need to learn your area and then use common sense -- good school districts, safe neighborhoods, try to avoid huge power lines or railroad tracks, etc., just research until you're comfortable. There's usually lots of info online.

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Thank you all for your help! I appreciate it!... I found a house that I LOVE, for a very good price. BUT it has LP siding and will need to be replaced at some point. Is this worth it? It is a HUD home so there are no deals to be made. I have been told it can be worth it if I have the money to spend on new siding, and I have also heard don't bother. It is a wonderful location though.

[Lynn McGeein]

Why do you say because it's HUD there's no deals to be made? While they likely won't repair/replace anything, they will consider lower offers. Or will your lender not loan on a home with LP siding?

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I guess I didn't realize that I could offer less, I just think about the competition. The only problem is that maybe some people do not know about the LP, so will offer more. My lenders will still loan to me with the LP. It is a sold as is home!

[Thomas Price]

Holli Fiorina This is just my opinion, but if you are looking at something to live in now and rent out later I would look at a duplex or triplex. They are also available from Fannie plus you could start out investing small while the tenant pays for some of, if not all, the mortgage. Of course it's not all just berry picking. Read up and learn the in's and out's of being a small landlord and as always you'll get alot of advice on here to help you as you go. I would suggest reading the BP Ultimate Beginners Guide here on BP. It's not very long and is full of valuable info. I would post the link but I don't know how yet. maybe Brandon Turner could get it to you and also teach me how to post links ;O)

But that's just my 2 cents. Duplex your money and maybe even make a little by doing it if you find the right situation.

[Brandon Turner]

Hey Holli Fiorina I just replaced a whole house of LP siding and it cost me about $4,000 total (Hardi plank and labor), so it wasn't too bad. I can even let you know the siding guys I used, cause they are up in your area actually :)

And Thomas Price - training time: to do links, do this (minus the spaces, which I have to put in or it will turn my words to a link:)

[ url=http://www.linkhere.com/link ] Linkable Text Here [ /url ]

[Thomas Price]

Holli Fiorina www.biggerpockets.com/UBG

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Thank you guys! This I a lot of help!! @Brandon Turner that would be great! I have been looking online, but don't know anyone this way! Thank you!