What is Naca?

And who is giving a 1/2% interest rate?

Our loan was through NACA. Although it's a good program, we made many offers that were rejected and I suspect it was due to the unfamiliarity with NACA financing and the resulting longer close.

I think agents will work with you now.

NACA=neighborhood assistance corporation of America.

Look at houses in Zillow and Redfin to get an idea of what is out there. When you are ready, it will help you know if a house is something you should jump at and not let it get away. Will also help you to identify if a house is over or underpriced.

I look on Zillow and other sites because I like puzzling over what might be wrong with one house or another after seeing them still up and many not even with a contract for sale pending but taking backup offers after a month or more. The one with bright red quartz counters was the more obvious - probably had to offer more than the 1500 the listing noted was 'countertop allowance' when it was initially put on the market. Even the house with THE most awful orangey beige exterior color eventually got an offer that was accepted - but ORANGEY BEIGE. The inside color scheme wasn't much better what with the brick red, pine green, and more orangey beige.

That orangey beige house is the stuff I could see myself becoming a HOA board president to prevent from ever happening to a house again. For real - I'd be the mean old lady with the weird husband who takes over the HOA and makes anyone considering new paint inside or outside of their home has to get the color approved by my evil mean self.

"Some people simply cannot be trusted to choose an acceptable color of paint. Put that can of cat hairball vomit beige back on the store shelf Bernice, don't make me lock you in the car." - Me as my future evil HOA president lady self. ;)

If I understand you correctly, I would recommend that you never buy down an interest rate unless you are completely sure you will be in the house for the minimum time needed to come out ahead.

You are buying down the interest rate by paying points (money) now, with the assumption that you will recover that cost during the time you own the house. However, if you sell sooner than the payoff period, you lose money. For example, I may need to move in about 3 years. Unless I can recover the cash paid up front by paying a reduced mortgage payment for 3 years, I would never pay points. However, I may use the same amount of cash to just make a larger down payment.

Bruce

I agree with the above. Keep saving and quit looking at things you cannot yet afford.

I understand what you're saying about buying points but through the program the bank will match what I put down so that what makes it worth it to me. I'm also planning on staying in the house at least 15 years.

Yes, there are plenty to do besides saving money and understand how mortgage works.

Buying a house is a huge financial commitment, unlike buying a dress that only takes a few window shopping trips before making a purchase decision.

You may want to learn about houses. If a realtor shows you a house now, can you tell if it is a well constructed house in a good neighborhood of a good part of town? Can you tell if it is a good buy or a rip off?

You should learn about a house's construction, material, appliances, mechanical system...etc. used in the house. Its orientation, floor plan, individual lot's strength and weakness. The neighbors and neighborhood, school district, environment, market value...etc. Each of these subject will take you years to master. There are seminars, books, magazines, website..etc. that provide vast amount of information for you to learn. You had better to get busy.

Agree with elpaso1. You can learn a lot at open houses, especially if you keep your ears open to what other people there are saying.

It's not only the house but the neighborhood. As you know, it's all about location. The websites are useful for you to learn what is out there, asking and selling prices etc.

I agree that open houses can be useful too. You will learn about your likes and dislikes if you see something in person.

That said, you need to be realistic. If you are the type who will be upset if you aren't ready, then wait until your timeframe is closer.