Home Buying

User avatar
PhoenixRising
500 post plus club
Posts: 541
Joined: Mon Oct 12, 2015 2:25 pm
Location: Missouri

Home Buying

Postby PhoenixRising » Mon Jan 11, 2016 9:22 pm

So, I "casually" applied for a home loan with the intent of finding out where I need improvement to qualify for a home loan. The loan officer knew this when I submitted my application and if I didn't qualify, said he would discuss with me what I needed to work on. This morning I got an email that I am Pre-Approved! I don't know anything past that yet, I have an appointment to meet with them tomorrow morning. I am still somewhat shocked, I did not expect this.
Realistically, I probably need several months to come up with a down payment, but I'll know more about that tomorrow.
But honestly, I know NOTHING about buying a house.
I know I want to move closer to where Phoenix is boarded, and I know I want somewhere with a garage where I can house my rabbits.
But honestly, this is all terrifying and intimidating.
Go confidently in the direction of your dreams, live the life you've imagined!

User avatar
Flight
Bringing Life to the DDBB
Posts: 1811
Joined: Sun Oct 11, 2015 11:39 pm
Location: Australia

Re: Home Buying

Postby Flight » Mon Jan 11, 2016 10:00 pm

But exciting!!! :D

User avatar
PhoenixRising
500 post plus club
Posts: 541
Joined: Mon Oct 12, 2015 2:25 pm
Location: Missouri

Re: Home Buying

Postby PhoenixRising » Mon Jan 11, 2016 10:31 pm

Very exciting! I have one I've been looking at online that I'm very interested in. About 15 minutes from the barn with a huge garage! BUT I have no idea yet if it will work out. I will know more after talking to the bank in the morning!
Go confidently in the direction of your dreams, live the life you've imagined!

myleetlepony
Herd Member
Posts: 218
Joined: Sun Oct 11, 2015 8:25 pm
Location: Northern IL

Re: Home Buying

Postby myleetlepony » Mon Jan 11, 2016 11:35 pm

One thing I'm glad my parents warned me about when buying; just because you qualify to a certain amount, you don't have to purchase in that price range. I was approved for $140,000 but bought below $100,000, saving myself a few hundred per month. Download a mortgage calculator phone app and start plugging in numbers to give you an idea for your budget.

Check into any first time homebuyer's assistance. I qualified for $8000 towards my down payment as long as I remained in the home as my primary residence for 3 years.

Unless you are a super saver, see if you can escrow your property taxes. There's never a crunch when they are due, then.

Congratulations and good luck!

PaulaO
Bringing Life to the DDBB
Posts: 2174
Joined: Sun Oct 11, 2015 4:16 pm
Location: Northern Illinois

Re: Home Buying

Postby PaulaO » Tue Jan 12, 2016 12:44 am

Ditto what MLP said. The bank told me I qualified for a mortgage over $200K. I about died. No way and I knew it. Sit down with calculator and paper and figure out what you realistically can afford.

Good luck and you know we want pitchers! LOL

User avatar
PhoenixRising
500 post plus club
Posts: 541
Joined: Mon Oct 12, 2015 2:25 pm
Location: Missouri

Re: Home Buying

Postby PhoenixRising » Tue Jan 12, 2016 1:45 am

I've been playing around with a mortgage calculator, and I think I want to stay under 50,000. I currently pay 500 a month in rent, including all my utilities, and while I can afford to go a little higher, I don't want to go much above that. The biggest issue is the area Phoenix is boarded at is pretty high priced. There are only 2 I can find under 50k and one looks like its going to fall over. The other is the one I really like from the pictures. I even drove past it the other day and drove from there to the barn to see how long it took. Its about half as long of a drive as I make now, which is awesome. Its the most rural, affordable place I've found (even though it doesn't have much land at all) in the few months that I've been daydreaming and monitoring listings.
I'm hoping I can get a pre-approval letter from the bank tomorrow so I can start going and looking at houses. I really want to go take a look at this one. Its a bit different, its actually built in a morton type building. But its two floors and when I add up the room dimensions, its around 900 sq ft. That's bigger than what I live in now! It says it also has a 30x16 heated garage which would be perfect to set up the rabbits. The yard appears to be fenced ( a plus for the dogs) and there is a mostly buried storage container. A bit strange I think, I'm not sure why it is there. BUT I've considered using that for storage, or if I move there and feel I can get away with it, turning it into a shelter for a sheep or two for fiber. Its priced at 49500 and according to the listing hasn't had a price reduction yet, so I'm hoping I could make a lesser offer and get it closer to 45000.
Of course, all of this still depends on what the bank says in the morning. If I need much of anything for a deposit its not happening unless its still for sale in 4-6 months. I have something I have to pay for before I can buy a house.

Thanks for the tip about first time home buyer benefits, I will ask the loan officer if there is anything I qualify for in that regard when I meet with him in the morning- I assume that is who I talk to about that?
I have my fingers crossed that by some miracle I qualified for very little/no downpayment. I really didn't expect to get pre aproved, and now my imagination is running wild maybe a bit before it should.
Go confidently in the direction of your dreams, live the life you've imagined!

myleetlepony
Herd Member
Posts: 218
Joined: Sun Oct 11, 2015 8:25 pm
Location: Northern IL

Re: Home Buying

Postby myleetlepony » Tue Jan 12, 2016 4:20 am

Yes, the loan officer will help you with any programs that may be available. Two things to keep in mind that are a bit contradictory, but use them to your advantage ;)

1. The loan officer is in the business of selling loans - they can get creative and if getting you into a first time buyer program (or any type of assistance program you may qualify for) sells the mortgage, they *should* be working hard for you to find them. Google "FHA" and "Rural Development" loans (you'd be surprised at how little it takes to qualify for a Rural Development program if the house is in a qualified area). Do your research so that you can gauge how hard the officer is working for you...if they come up with more programs than you can find, you know they are "on it".

2. The loan officer is in the business of selling loans - and they may push you to buy, buy quickly, and try to talk you into spending more than you are comfortable with. If you make it clear your budget is $50,000 and they start "getting back to you" over simple questions, it's time to move on...they are pushing for the higher commission. Think of them as the Realtors of financing.

Finally, TAKE A DEEP BREATH :) It is very exciting!!!!!! DO NOT JUMP INTO THE FIRST HOUSE YOU SEE. Even if you fall in love with it, go look at others, even some slightly out of your price range. It is easy to fall into the emotional trap of house buying, thinking you will fix it up just the way you want right away, decorating, etc., but really it's a business transaction. It is an investment and you really don't realize just how far down the rabbit hole you went until you're a few months in. Suddenly, you start hemorrhaging money. Mortgage, taxes, insurance, utilities (if you are on well and septic, start socking away money for maintenance and replacement on those...it WILL come eventually), repairs that seemed like they could hold off but can't. Chances are the big appliances will be older; if they don't need replacement right away, hire someone to come in and clean and inspect them.

Ok, off my soapbox now :) I was in your shoes 8 years ago; granted I don't know how old you are but I was in my late 20's and realized I could actually BUY MY OWN HOUSE!!! My parents were great and very supportive by looking out for me at every turn. I am very thankful for that as even with everything they told me, I was still shell-shocked when the reality set in that I actually bought a house. I can't imagine the mistakes I would have made had I not been given those talks. At one point, after a few months in, I sat crying because I was running close to running out of money and my house was nowhere near what I wanted it to be at that point...and board was due...and the farrier was coming...and....I felt like I had made a mistake and didn't wait until the perfect time financially to buy. Then I realized there is no "perfect time" financially. You have to jump in, take a beating for a bit, and then a year or so later, you can't imagine NOT having your name on that mortgage (oh, and my house still needs updating LOL).

And as Paula said....WE WANT PICTURES!

fergusnc
500 post plus club
Posts: 591
Joined: Wed Oct 14, 2015 11:37 pm
Location: NC

Re: Home Buying

Postby fergusnc » Tue Jan 12, 2016 12:29 pm

If you aren't familiar with the area, look at crime stats, see how many homes are for sale in the area, look into any "improvements" on the books with the city/county to make sure you aren't going to end up with a 4 lane road through your back yard. And 100% get a home inspection on ANY house with which you get involved. It's well worth the money whether you are buying $50K or $500K. The older or more rural, consider EXTRA inspections…like for the septic, well, HVAC, etc. FInd out about flood plains.

And I agree re: what you are approved for. When we bought this fixer upper farm, we qualified for an INSANE loan, and that was running the numbers as if we didn't have a tenant covering our mortgage payment with his rent on DH's condo. What happened to the industry helping to keep people from getting into all of the crunches of old?!

It is SO much fun. Have a blast.

angela9823
Herd Member
Posts: 233
Joined: Sun Oct 11, 2015 12:56 pm

Re: Home Buying

Postby angela9823 » Tue Jan 12, 2016 2:13 pm

Something else to consider. If you are looking at fixer uppers, how long will it take before you can afford to fix it up? Don't jump on a house if you don't have the money for things that need to be done NOW (roof etc). It will frustrate you to no end to not get things done. You don't want it to be a financial burden to you.

We originally bought our house and land for that same price. The house was bought at an auction (when I was at work one day and knew nothing about it!). We were originally planning a log cabin that was much higher priced. That house has now cost us hundreds of thousands and the log cabin would have been much cheaper! We are in the process now of adding a garage that will be another $60k. Don't think because you are getting it at a lower price that it won't cost you more in the future. Buying this house and having it moved to the land is the only thing both DH and I regret. It is finally getting to be close to what we want. But this is after 20 years of owning it, crying over it many times, remodeling it several times. It is fun to do the remodels...not fun to come up with the money to do the remodels though.

piedmontfields
Bringing Life to the DDBB
Posts: 2735
Joined: Mon Oct 19, 2015 4:41 pm
Location: E Tennessee USA

Re: Home Buying

Postby piedmontfields » Tue Jan 12, 2016 5:48 pm

While I am a fan of owning our own home, it is not the right choice for everyone. Given your hope to stay around $500 in housing cost per month, I urge you to be cautious, as that is a very modest housing cost for any dwelling or situation. Even in a low cost area, having a monthly housing/repair/improvement/taxes/insurance budget of around $1000 is likely more realistic.

In general, owning a home does cost more---even though it also stabilizes costs and provides personal and provides some financial rewards (tax deductions, potential for growth in value if you sell). When you're the homeowner, you are responsible for all maintenance and repair costs. Most home owners also like to customize their home---therefore spending more than the typical renter. You also need to be prepared for current and future property tax and insurance costs.

As others have said, be wary of banks and mortgage brokers trying to sell you loans. That is their business. We are happy to be in home with a modest mortgage---so modest that it is about 1/5 of what we were qualified to borrow.

That said, if the numbers line up and you have the resources, today's interest rates continue to make home buying very attractive in a number of locations.

User avatar
PhoenixRising
500 post plus club
Posts: 541
Joined: Mon Oct 12, 2015 2:25 pm
Location: Missouri

Re: Home Buying

Postby PhoenixRising » Tue Jan 12, 2016 7:14 pm

I do realize that around $500 a month is very cheap. But I'm not looking for anything huge. The city I live in now, it should be simple to find something under 50k, the issue is moving closer to Phoenix. Property is so expensive up there, I may have to settle for owning a home in the same city I'm in now, but having a garage with the rabbits at my house would still simplify things, even if I didn't get to move closer to where she is it would save time and money.
My hope is to find something that I just have to "redecorate". Painting is easy if the rest of it is all nice. I have found a couple in the city I live in now that I think I'll go look at, but we'll see.
For instance, this is in my price range and from the pictures looks quite nice to me. I've requested a showing.
http://www.reecenichols.com/homes-for-s ... -149896893
Go confidently in the direction of your dreams, live the life you've imagined!

boots-aregard
Herd Member
Posts: 438
Joined: Sun Oct 11, 2015 7:47 pm
Location: San Jose, CA

Re: Home Buying

Postby boots-aregard » Tue Jan 12, 2016 9:25 pm

Oh, yeah, FACTOR IN PROPERTY TAXES. Some people forget that. Here, it can be upwards of $500 a month.!!!

User avatar
PhoenixRising
500 post plus club
Posts: 541
Joined: Mon Oct 12, 2015 2:25 pm
Location: Missouri

Re: Home Buying

Postby PhoenixRising » Tue Jan 12, 2016 9:34 pm

I'm going to look at the house from the link I posted above tonight! First one to go look at!
Go confidently in the direction of your dreams, live the life you've imagined!

WheresMyWhite
500 post plus club
Posts: 960
Joined: Mon Oct 12, 2015 3:37 pm

Re: Home Buying

Postby WheresMyWhite » Tue Jan 12, 2016 9:47 pm

Yes, factor in property taxes, insurance and potentially PMI (I think it's called) which depends on how much of a down payment you applied.

Having said that, for the moment, your interest is deducted from your income tax (as is, I believe), property taxes...

piedmontfields
Bringing Life to the DDBB
Posts: 2735
Joined: Mon Oct 19, 2015 4:41 pm
Location: E Tennessee USA

Re: Home Buying

Postby piedmontfields » Tue Jan 12, 2016 9:51 pm

Cute house. I think some of us are forgetting that Phoenix is your horse, not the city you live near! Prices in your home town are kind of amazing.

I'll remind you that you will need a good home inspector if you start to get serious about any properties. You may wish to find your inspector independent of your realtor.

FWIW, I find that the first time I look at a house, I do a general assessment
-Am I even interested --is it pleasant, do I like it, does it have potential to be home (this is usually obvious, but you will get better at this with practice)
-Does the layout work for my needs (house and property) (this is usually obvious, but you may be suprised by what you like if you are new to looking)
-Any glaring issues of concern (water infiltration signs, anything broken, problem neighbors or location or views). Try to do an honest intake.

If I bother to look at a house a 2nd time, I systematically go down a checklist of potential issues and check dimensions, etc.---Basically, I am trying to rule the house out in case there is an issue I missed during my first impressions.

I'll add that it can be quite helpful to look at houses at, a bit above and a bit below your target price, in order to get a feel for your market and how far your dollar will go.

User avatar
PhoenixRising
500 post plus club
Posts: 541
Joined: Mon Oct 12, 2015 2:25 pm
Location: Missouri

Re: Home Buying

Postby PhoenixRising » Tue Jan 12, 2016 10:03 pm

piedmontfields wrote:Cute house. I think some of us are forgetting that Phoenix is your horse, not the city you live near!


I didn't even think of that! Yes! I want to be closer to the HORSE! LOL
I have a realtor, as of just a few minutes ago. The lady I got Phoenix from is a realtor, I'm glad I'll be working with someone I already know! She's not going with me to look at this one, but she's going to pull together some stuff and take me to look at some others soon.
Go confidently in the direction of your dreams, live the life you've imagined!

myleetlepony
Herd Member
Posts: 218
Joined: Sun Oct 11, 2015 8:25 pm
Location: Northern IL

Re: Home Buying

Postby myleetlepony » Tue Jan 12, 2016 10:10 pm

boots-aregard wrote:Oh, yeah, FACTOR IN PROPERTY TAXES. Some people forget that. Here, it can be upwards of $500 a month.!!!


My tax payment per month (I escrow without fees) is higher than my actual mortgage payment, with PMI. I live in a townhome :shock:

Phoenix, also be sure to ask about any HOA fees. Surprisingly, there are some lingering HOA's in older subdivisions; you may not know it because they don't actually do a whole lot (i.e. nothing will look uniform), but you will have to add those fees into your budget, too.

User avatar
PhoenixRising
500 post plus club
Posts: 541
Joined: Mon Oct 12, 2015 2:25 pm
Location: Missouri

Re: Home Buying

Postby PhoenixRising » Wed Jan 13, 2016 12:49 am

That one was a definite NO! Super cute upstairs, though the garage was a bit smaller than I want and the hardwood floors had warped in the living room. The basement though looked like a disaster. Water all over the floor, bad looking pipes, what looked like maybe it should have been a door to outside but was boarded up, missing window... Moving on LOL
Go confidently in the direction of your dreams, live the life you've imagined!

Mirabella
Greenie
Posts: 32
Joined: Sun Oct 11, 2015 1:11 pm

Re: Home Buying

Postby Mirabella » Wed Jan 13, 2016 1:58 am

Why on earth would you ever buy a house based on where your horse was boarded? What if the barn burns down? What if the barn is sold? What if your horse dies? What if the board goes up 100%?
You buy a house where it works on all fronts for you - financial, friends, family, interests, etc. Think!

User avatar
PhoenixRising
500 post plus club
Posts: 541
Joined: Mon Oct 12, 2015 2:25 pm
Location: Missouri

Re: Home Buying

Postby PhoenixRising » Wed Jan 13, 2016 2:15 am

Mirabella wrote:Why on earth would you ever buy a house based on where your horse was boarded? What if the barn burns down? What if the barn is sold? What if your horse dies? What if the board goes up 100%?
You buy a house where it works on all fronts for you - financial, friends, family, interests, etc. Think!


Mostly because I also work there part time, and I have a great deal where I work off my board on top of making money working for them. I won't be moving her unless they make me. That's unlikely since its privately owned and in general don't do boarding. I want to be closer so that its more convenient to be there more often, once I start Phoenix I will want to be there 5 days a week and living 30 minutes away makes that a lot more difficult.
If Phoenix were to die, it wouldn't change that i would continue to work for them and take lessons.
Go confidently in the direction of your dreams, live the life you've imagined!

zevida
Herd Member
Posts: 118
Joined: Sun Oct 11, 2015 11:36 pm

Re: Home Buying

Postby zevida » Wed Jan 13, 2016 3:55 am

Don't do it! Home ownership sucks.

Ok, if you are out of your twenties and absolutely sure that where you are buying is where you want to settle down for the next twenty years, then you can think about buying.

As everyone else said, absolutely do NOT listen to what the bank says you can afford. I was always approved for an obscene amount, often more than double what I could afford. Don't buy until you have 20% down, PLUS a 4-6 month emergency fund, and make sure you account for mortgage plus insurance plus taxes plus repairs fund (in other words, don't be house poor).

FlyingLily
Novice
Posts: 63
Joined: Sun Oct 11, 2015 4:21 pm
Location: South Texas

Re: Home Buying

Postby FlyingLily » Wed Jan 13, 2016 10:57 am

I will offer a few notes of caution about home ownership vs. renting in general:

--Things go wrong in a house. Plumbing pipes burst or leak, roofs need replacement, appliances fail, termites move in, the city assesses you for new water pipes, etc. You need to have at least $10K in disposable savings to weather those storms.

--Maintenance is constant in a house. Lawns need mowing, driveways need working on, heating and cooling units need to be monitored. A home is an additional part-time job that, if neglected, does not go away but becomes a monster.

Of course you were pre-approved for a loan. Everybody and their Uncle Fred gets pre-approved in these times. The lender has no interest whatsoever in your long-term ability to pay and keep saving in other areas (retirement, health care) that need your financial attention. The lender has an interest in reeling you in.

OK, that's my horror speech. And I agree that buying a house close to a specific boarding situation is not a good way of thinking. Horses move a lot more often than people, typically. The type of situation where you are financially entangled with the boarding barn, as you describe, is the type that most frequently goes south - judging from horse bulletin boards.

Have fun looking and strategizing but don't get starry-eyed; that is a recipe for many types of disaster.

myleetlepony
Herd Member
Posts: 218
Joined: Sun Oct 11, 2015 8:25 pm
Location: Northern IL

Re: Home Buying

Postby myleetlepony » Wed Jan 13, 2016 3:15 pm

PhoenixRising wrote:That one was a definite NO! Super cute upstairs, though the garage was a bit smaller than I want and the hardwood floors had warped in the living room. The basement though looked like a disaster. Water all over the floor, bad looking pipes, what looked like maybe it should have been a door to outside but was boarded up, missing window... Moving on LOL


It's often bewildering what disasters realtors will agree to take on as listings without telling the homeowner what has to be fixed to make the house saleable.

You are certainly going to see more hidden disasters than hidden gems!

I can understand your desire to buy closer to the barn, but do yourself one favor and study the area you are looking in a bit first. Is it considered a desirable area? Is it a good starter-home area? Are the schools good, accessible to necessities in general (easy to navigate to popular work places, grocery stores, etc). You will have a hard time with resale if it's out in the middle of nowhere, not close to anything, schools are bad, or it's considered "the wrong side of the tracks".

Tarlo Farm
500 post plus club
Posts: 866
Joined: Mon Oct 12, 2015 5:20 pm
Location: NW Michigan

Re: Home Buying

Postby Tarlo Farm » Wed Jan 13, 2016 3:24 pm

I fancy myself pretty knowledgeable about real estate and there is NOTHING I can add to what has already been mentioned. If I were you, I'd print this off and check off everyone's comments when you've accomplished them. Wonderful suggestions!

User avatar
Flight
Bringing Life to the DDBB
Posts: 1811
Joined: Sun Oct 11, 2015 11:39 pm
Location: Australia

Re: Home Buying

Postby Flight » Wed Jan 13, 2016 8:40 pm

You can get a house for under 50k??!!

silk
500 post plus club
Posts: 594
Joined: Tue Oct 13, 2015 7:17 am
Location: Hamilton, New Zealand

Re: Home Buying

Postby silk » Wed Jan 13, 2016 8:55 pm

Flight wrote:You can get a house for under 50k??!!


I'd buy a house outright if I could get one for even 200k... I'd be looking at spending 500k if I wanted a modest house.

I have a decent deposit and will be buying into mum's property (the family home & land) instead of buying in town and doing up/reselling/having flatmates.

ETA: on and FWIW, based on my deposit and repayment ability, the bank would loan me 400k. Fark that for a joke. 30+ years of debt. At current interest rates it's doable, but if they increase at all I'd be stuffed.

scruffy the cat
Herd Member
Posts: 343
Joined: Sun Nov 01, 2015 10:20 pm
Location: New England

Re: Home Buying

Postby scruffy the cat » Wed Jan 13, 2016 10:08 pm

Flight wrote:You can get a house for under 50k??!!


That's what I was thinking and then I had to sit down and fan myself. We have to move soon and prices have gone up so much in our neighborhood that an attached townhome is $1.45 million. We cannot afford anything close to that but $50k with a heated garage? I can't get my head around it. PhoenixRising- NEVER MOVE. You have a sweet deal wherever area it is you live!

User avatar
PhoenixRising
500 post plus club
Posts: 541
Joined: Mon Oct 12, 2015 2:25 pm
Location: Missouri

Re: Home Buying

Postby PhoenixRising » Wed Jan 13, 2016 10:18 pm

I do appreciate that housing costs are so low around here. I wouldn't have a hope of surviving right now if housing (even rentals) cost more. But I'm also trying to leave myself with a large amount of extra monthly to go into savings. So far I'm doing well at that. If I buckled down a little better and cut back extra spending I would be doing even better.
The house with the heated garage is my top choice at the moment, but I don't think it qualifies for an FHA loan which is what I am pre-approved for. So for kicks, this is the link to its listing. I would want to do some redecorating, but otherwise it would suit me and my needs
http://www.reecenichols.com/homes-for-s ... -167703175

I've considered renting out a room if I do get a house, if anyone is interested :lol:
Go confidently in the direction of your dreams, live the life you've imagined!

WheresMyWhite
500 post plus club
Posts: 960
Joined: Mon Oct 12, 2015 3:37 pm

Re: Home Buying

Postby WheresMyWhite » Wed Jan 13, 2016 11:33 pm

silk wrote:At current interest rates it's doable, but if they increase at all I'd be stuffed.


FWIW, I would never consider an adjustable rate mortgage. It's fixed rate or it's a no-go in my book...

PS- HOAs are not just in older outdated neighborhoods. Many newer neighborhoods have them as well. If you are looking at a HOA and/or covenant protected house, find out what the monthly cost is and what the covenants are... paint colors on houses, fencing, etc and then decide if you can live with them or not.

silk
500 post plus club
Posts: 594
Joined: Tue Oct 13, 2015 7:17 am
Location: Hamilton, New Zealand

Re: Home Buying

Postby silk » Wed Jan 13, 2016 11:46 pm

WheresMyWhite wrote:
silk wrote:At current interest rates it's doable, but if they increase at all I'd be stuffed.


FWIW, I would never consider an adjustable rate mortgage. It's fixed rate or it's a no-go in my book...


You can only fix for a certain amount of time. You can arrange to have a set amount on fixed, and a set amount on floating. But the interest rates do change over time so when you have to renew your arrangements you are at the mercy of the "market" to some extent. The interest rates depend on the Official Cash Rate, which changes as a measure of controlling inflation.
You have to take a punt on whether to fix a larger $$ amount at a lower interest rate, if the interest rates are low, or do the opposite if they are high, or hope the floating rate will help you... It is a minefield. In the 1990s our interest rates were hovering around 15%. At the moment they are 4-5%.

http://www.rbnz.govt.nz/statistics/key_ ... age_rates/

scruffy the cat
Herd Member
Posts: 343
Joined: Sun Nov 01, 2015 10:20 pm
Location: New England

Re: Home Buying

Postby scruffy the cat » Thu Jan 14, 2016 12:46 am

Oh hey, and you get a shipping container in which to hide your dead bodies! Excellent.

The house itself looks like a fairly blank slate, so you could do a lot with it. Jokes aside, the shipping container seems like a liability at the very least for resale. But such a roomy property... I'm salivating just thinking about it.

zevida
Herd Member
Posts: 118
Joined: Sun Oct 11, 2015 11:36 pm

Re: Home Buying

Postby zevida » Thu Jan 14, 2016 12:50 am

silk wrote:
WheresMyWhite wrote:You can only fix for a certain amount of time. You can arrange to have a set amount on fixed, and a set amount on floating. But the interest rates do change over time so when you have to renew your arrangements you are at the mercy of the "market" to some extent.


Things are of course different by country. In the United States, a fixed rate mortgage is fixed, period. If you get 4% interested for 30 years, it is 4% interested for 30 years and does not change. The only way you would pay a different interest amount would be if you chose to do a refinance (which is essentially a new mortagage).

Variable interest mortgages are usually something like 5/30 which is fixed interest for the first five years, then variable on market rate. But these are optional, and you can definitely choose a 30 year fixed rate.

silk
500 post plus club
Posts: 594
Joined: Tue Oct 13, 2015 7:17 am
Location: Hamilton, New Zealand

Re: Home Buying

Postby silk » Thu Jan 14, 2016 1:06 am

zevida wrote:
silk wrote:You can only fix for a certain amount of time. You can arrange to have a set amount on fixed, and a set amount on floating. But the interest rates do change over time so when you have to renew your arrangements you are at the mercy of the "market" to some extent.


Things are of course different by country. In the United States, a fixed rate mortgage is fixed, period. If you get 4% interested for 30 years, it is 4% interested for 30 years and does not change. The only way you would pay a different interest amount would be if you chose to do a refinance (which is essentially a new mortagage).

Variable interest mortgages are usually something like 5/30 which is fixed interest for the first five years, then variable on market rate. But these are optional, and you can definitely choose a 30 year fixed rate.


Woah. Basically the complete opposite of here. I suppose our interest rates are much more variable/volatile than yours!

clanter
Herd Member
Posts: 100
Joined: Mon Oct 12, 2015 9:49 am

Re: Home Buying

Postby clanter » Thu Jan 14, 2016 11:49 am

Original Price: $74,900
Current Price: $45,000
Price Change: -$29,900

the property has been on the market for nearly a year.... might want to check out the Why

It appears to be low to the ground, does it flood and is that the reason for the complete update??

fergusnc
500 post plus club
Posts: 591
Joined: Wed Oct 14, 2015 11:37 pm
Location: NC

Re: Home Buying

Postby fergusnc » Thu Jan 14, 2016 12:00 pm

One more thought…
Growing up, my parents owned a real estate business. I can't remember not ever knowing the concept of "every house you look at, consider how easy it will be to sell it" when buying a house. Doesn't matter if you never ever plan to move and hope to die in the house and be buried in the yard…consider it. You never know what life will hold.

Also, in buying properties, I have found out that "you have to disclose problems to buyers" has the potential for loopholes. And not everyone is honest, including realtors unfortunately. So do your own research, even if you have to ask neighbors you run into across the fences.

User avatar
musical comedy
Bringing Life to the DDBB
Posts: 1302
Joined: Sun Oct 11, 2015 3:41 pm
Location: New Jersey

Re: Home Buying

Postby musical comedy » Thu Jan 14, 2016 1:02 pm

clanter wrote:Original Price: $74,900
Current Price: $45,000
Price Change: -$29,900

the property has been on the market for nearly a year.... might want to check out the Why
Maybe because it is basically just a pre-fab box. Has just a few windows and no kitchen cabinets above the counter. Curb appeal is certainly lacking as well, with that container thing outside. Who here besides the OP would live in it?

I am all for buying over renting, assuming the buyer has a good, stable income that will increase over time (I know, we never know that; but you know what I mean). If someone doesn't even have the bare minimum for a down payment saved up, then jumping into home ownership is not the best idea. That said, people 'walk out of' situations like this all the time. You put down a meager amount, find out you can't cut it, and then just leave, sticking the bank with the mortgage. Sure, you get a bad credit from it, but that can be rebuilt. I know of a couple pretty wealthy people that walked out of their mortgages in the recent years.

Moonshine
Greenie
Posts: 28
Joined: Wed Oct 14, 2015 1:27 am

Re: Home Buying

Postby Moonshine » Thu Jan 14, 2016 2:29 pm

OP,

Somehow I just deleted three paragraphs of pedantic lecturing (your gain...I can get really self-righteous), but the Cliff's notes version is don't buy this house. Don't buy *any* house right now. As others have advised you, get a decent chunk of savings and be patient.

User avatar
Saddlebum
Herd Member
Posts: 218
Joined: Sun Oct 18, 2015 12:28 pm
Location: NW Lower Michigan

Re: Home Buying

Postby Saddlebum » Thu Jan 14, 2016 5:10 pm

I'm glad you're working with a realtor you know! She should work on your behalf. My realtor was AWESOME. An older lady who worked hard to do the right thing for me. She wrote into the purchase agreement loads of things the seller had to do before closing and the seller agreed to all. You can write into the purchase agreement anything you want.

My dad, rip, was a realtor and I learned how beneficial it is to purchase a home that is run down in a very nice neighborhood. Fixing it up and voila!, the value doubles nearly overnight. I did that with my first home and over 5 years, I doubled my money when I sold.

Loads of good advise here, GOOD LUCK and have fun!

Dapple Field
Herd Member
Posts: 115
Joined: Sun Oct 11, 2015 11:44 pm
Location: NorthEast Kingdom, VT

Re: Home Buying

Postby Dapple Field » Thu Jan 14, 2016 11:24 pm

I wonder if the storage container is a makeshift storm/tornado shelter. Does the house have a cellar? If not, that's where I'd go rather than staying in a house on a slab.

zevida
Herd Member
Posts: 118
Joined: Sun Oct 11, 2015 11:36 pm

Re: Home Buying

Postby zevida » Fri Jan 15, 2016 1:32 am

Dapple Field wrote:I wonder if the storage container is a makeshift storm/tornado shelter. Does the house have a cellar? If not, that's where I'd go rather than staying in a house on a slab.


It looks like a meth lab...

WheresMyWhite
500 post plus club
Posts: 960
Joined: Mon Oct 12, 2015 3:37 pm

Re: Home Buying

Postby WheresMyWhite » Fri Jan 15, 2016 1:39 am

zevida wrote:It looks like a meth lab...


What does a meth lab look like???

I didn't see any evidence of either meth precursors or cooking from the inside shot of the container (at least IMO)...

zevida
Herd Member
Posts: 118
Joined: Sun Oct 11, 2015 11:36 pm

Re: Home Buying

Postby zevida » Fri Jan 15, 2016 4:08 am

Well obviously they aren't going to have meth equipment in the sales pics! :lol:

Somewhat buried, no windows, added ventilation, just looks like that's what it's purpose may have been originally.

viscountessleftfield
Herd Member
Posts: 211
Joined: Sun Oct 11, 2015 4:14 pm

Re: Home Buying

Postby viscountessleftfield » Fri Jan 15, 2016 4:27 am

fergusnc wrote:One more thought…
Growing up, my parents owned a real estate business. I can't remember not ever knowing the concept of "every house you look at, consider how easy it will be to sell it" when buying a house. Doesn't matter if you never ever plan to move and hope to die in the house and be buried in the yard…consider it. You never know what life will hold.

Also, in buying properties, I have found out that "you have to disclose problems to buyers" has the potential for loopholes. And not everyone is honest, including realtors unfortunately. So do your own research, even if you have to ask neighbors you run into across the fences.


This regarding reselling!

The town my husband purchased his house in long before we met has stagnant real estate. It's too far out to comfortably commute to the city, it's a weird little town that doesn't like outsiders and makes no bones about it. Even though we don't want to live here, we're stuck owning this and can't rent it for more than our expenses are - provided we could even find renters for it!

So, we have an 1800sq ft anchor that we pay for every month even if we don't live in it because we can't sell it.

angela9823
Herd Member
Posts: 233
Joined: Sun Oct 11, 2015 12:56 pm

Re: Home Buying

Postby angela9823 » Fri Jan 15, 2016 3:24 pm

Phoenix,
Before watching a recent episode of Fixer Upper, I would have thought that second property you posted had no potential. Please see the picture of the barn that was renovated: http://www.hgtv.com/shows/fixer-upper/f ... y-pictures IF you have the funds to redo a place like that, I think it is doable. But note this couple had another $180k to sink into fixing it up.

Tuffytown
Herd Member
Posts: 190
Joined: Sun Oct 11, 2015 3:09 pm

Re: Home Buying

Postby Tuffytown » Fri Jan 15, 2016 6:47 pm

If serious about this property I would check into whether it has been legally permitted as a residence. Looking at the pictures makes one question whether it might not conform to the habitability requirements of the building code for a residence.

Rhianon
Herd Member
Posts: 312
Joined: Mon Oct 12, 2015 3:20 pm
Location: Vancouver Island, BC, Canada

Re: Home Buying

Postby Rhianon » Fri Jan 15, 2016 9:02 pm

Phoenix, I'm in the camp that you should continue to save and get into something that is a more "normal" house. Even minor fixes to houses take a lot of talent or a lot of money or both. I think what you are considering is a garage with living quarters. Very hard to re-sell.

My DH and I bought this place 9 years ago. It was half-finished--only one of two floors completed. We had the money to finish it, figured it would be fun and easy. It was fun--we learned a lot (never ask me to design your laundry room), but it was not easy, and we put far more money into the house than we will ever get out of it. It's a good house--we actually love it. But it is unusual in layout, doesn't fit any sort of regular idea of a house. I wouldn't do it again.

User avatar
PhoenixRising
500 post plus club
Posts: 541
Joined: Mon Oct 12, 2015 2:25 pm
Location: Missouri

Re: Home Buying

Postby PhoenixRising » Fri Jan 15, 2016 10:04 pm

Maybe I didn't really say it well enough, but even though I like it, I probably cant buy it because of my loan type.
I'm still looking at more "normal" houses as well.
I found another really cute house today at 60k. If its still there in a month or so I may try and go look at it. I found out at work today how big my yearly bonus will be, and I got a raise (woohoo). I have to pay some back taxes before I can finalize the loan anyway, I'll be making a better decision on whether to buy something or wait a little while longer when I see how much of my savings that wipes out.
Go confidently in the direction of your dreams, live the life you've imagined!


Return to “The Observation Lounge/ Cookbook Forum even Hot Topics”

Who is online

Users browsing this forum: No registered users and 53 guests