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What do I need to know before buying a home?

Hi. We recently put our home for sale-short sale. We bought it back in 2007 for 700,000(in Anaheim, CA.) Today its value is 415,000 a little more or less. We are selling it because we tried to get a modification in late 2008 to lower our montly payments(with lawyer & Aurora bank. It lasted over a year and we did not get it.) The payments were 4,600+ almost 5,000. We really like the area we live in and will look to see if we can get one thats in a nearby street, behind us. Hopefully we can because the house prices are lower & the agent that is selling our home will help us find a new home or so she says. You can't really trust these guys. I just wanted to know what they ask, what you need to buy a home thats 300,000-430,000. What are the qualifications? Are taxes included in the monthly payments not just once a yr now its every month? How much is down payment? Is the government really giving money to some people to help them buy a home? What about escrow? Is short sale or foreclosure homes good buys? My parents both work. They've been working in the same place for 20+ yrs. We rent to 3 relatives to help out. We asked our agent that is selling our home but she doesn't explain very well. For example- I saw on a website that the estimate for the montly payments for our home now for the new owners will be 1,808. My mom talked earlier today to the real estate agent and she said its 3,500+ close to 4,000 monthly payments are now. I don't get it. If homes are cheaper this yr & last yr why are payments still high? Thanks My dad wont be affected because he wasnt on the mortgage thing. We had help getting the home in 2007. It actually elped my dads credit he had none & by him making the monthly payments on time etc it boosted his credit. Hes working on getting more so he can buy a home on his own and so is my mom.

Public Comments

1. With a short sale, it's going to tank your credit, so it's all going to be a moot point in buying another house, you simply won't qualify. But just so you know, if you did not have this monkey on your back, taxes are paid monthly. The bank holds that money for you in a special account. At the correct time of the year, they write the check to pay them. Also insurance is paid the same way, by the bank, and it's included in your monthly payments. For a $350,000 house with an FHA loan you are going to need about $25k in cash, including closing costs, more or less. If you don't understand what your agent is saying, and they don't make it ice clear, find someone else.
2. As you are sharing your question, what i personally feel few things that may help you out. Before going to buy a new house you need to look for these information given below: 1. Find out a valuable property suitable for you that has growth perspective. 2. Make a list of bank which are giving loan at lower interest rate. 3. Make all the legal documentation very carefully. 4. If you want to buy house early, look for developers as they have very less legal formality. Wish you all the best for your New Home!!!!
3. If you are selling the home you currently live in and own as a short sale, you will NOT be buying another home anytime soon...well, not unless you can pay cash. I sure hope your real estate agent is not leading you on to believe you could get a new mortgage on another home at this point... if she is, she is lying. Are you prequalified for a mortgage with a new lender?