Home Buying Thread

[CnCGOD]

Originally Posted by Cad

You can protest the valuation, especially if it is inflated and doesn't reflect the true value of the house. Look into it.

Its the new democrat way to raise taxes when it requires a vote otherwise. They know a tax increase will get voted down, so they jack up valuations. And they blanket reject protests... its a big issue in St.Louis county atm because north part county is populous and poor but elects the officials who stick it to everyone else. Its particularly nasty because it hurts older people who own their homes and to who a tax increase is a serious burden.

[Vandyn]

Here in NC, we're taking full advantage of the market as it stands now to get the best deal. We've decided to buy new and due to the current economy, especially with new home construction, were able to get all the incentives we've asked for, including a mortgage buydown paid for by the seller based on the low rates now. Plus we're 1st time homebuyers so we'll be able to take advantage of that tax credit.

I totally agree with having a payment no more than 20% of your monthly take home. There are additional expenses to home ownership which you have to account for depending on the age/condition of the home. In this area, the county just assesed (they do it every 7 years). In our case though since it's new construction we'll get an initial assessment after it's done.

[Kamven]

I wonder if it's different depending on where you live. I just finished school and got a good job paying 50k-60k a year; Which is good for 23. A cheap house in my area of Washington State is 200-300k. I just put an offer in on a house that was moved from 320k to 250k. I'm offering 245 plus i want them to pay about 10k in closing. The monthly payment will be around 1600, I take home 3500-4k which seems to be a very reasonable payment for me.

[TheCutlery]

Originally Posted by Kamven

I wonder if it's different depending on where you live. I just finished school and got a good job paying 50k-60k a year; Which is good for 23. A cheap house in my area of Washington State is 200-300k. I just put an offer in on a house that was moved from 320k to 250k. I'm offering 245 plus i want them to pay about 10k in closing. The monthly payment will be around 1600, I take home 3500-4k which seems to be a very reasonable payment for me.

I know I can't get anything that's within 30 miles of a freeway or bigger than my bathroom for 20% of my income.

Housing market still hasn't gone much of anywhere here. People can't sell their houses for less than they owe on them, so the same houses have been sitting on the market, empty, for the same overpriced price for almost a year. If you want a decent house to raise a family in, you're looking at 250 for nothing special here still. You can get a rambler or something for under 200, but honestly, you gotta be able to tell the kids to go downstairs once in awhile.

[Kamven]

Yeah this place is 1708 square feet, 3 bedroom 2.5 bath with 2 car garage. It was listed at 329,000 then 320,000 now 250,000. I'm single and it's 10 minutes from work. Seems like a good deal.

[chu]

Originally Posted by Kamven

Yeah this place is 1708 square feet, 3 bedroom 2.5 bath with 2 car garage. It was listed at 329,000 then 320,000 now 250,000. I'm single and it's 10 minutes from work. Seems like a good deal.

You're the reason the country is in this mess. As a single guy, why do you need a 3 bedroom, 2.5 bath and nearly 1700 sq feet?

Buy something more along what you need. You'd need a wife and at least 2 kids to really make use of that house.

[Cad]

Originally Posted by Kamven

Yeah this place is 1708 square feet, 3 bedroom 2.5 bath with 2 car garage. It was listed at 329,000 then 320,000 now 250,000. I'm single and it's 10 minutes from work. Seems like a good deal.

While I wouldn't say "you're the reason this country is a mess" - I would say that I wouldn't lock up so much of your paycheck in a house if you don't need to. Buy a condo somewhere or something cheap since you're a bachelor. When you get married and get a 2nd income, then you can afford/need a place like that. On 60k a year I'd be looking for some place in the 100-150k range, so that as you get raises/move up you can pay the place off quickly. With a 250k house, you'll HAVE to get raises just to get above water, which means you'll end up paying a lot of interest between now and then.

Just my .02

[Heylel Teomim]

Originally Posted by chu

You're the reason the country is in this mess. As a single guy, why do you need a 3 bedroom, 2.5 bath and nearly 1700 sq feet?

Buy something more along what you need. You'd need a wife and at least 2 kids to really make use of that house.

Or a couple roommates who also want a place to live with a quick commute... in which case you're well ahead of the curve.

[AladainAF]

I just refinanced my house, waiting on the close in about a week. Refinanced into a 1% origination, no point 15-year fixed at 4.5%.

The market is great

[chaos]

I got a VA loan about a year ago now, and I am constantly getting notices in the mail from shady sounding companies asking me to refinance. As a rule, I ignore all spam, online and irl. But it seems like it may be a real possibility that I can do this so I may look into it.

Only issue for me is that I don't have money for closing costs, so they would have to add that onto the loan. The house I bought was a foreclosure and I got a dirty deal on it but financed at 6%, so it may be worth it but I'm not sure.

The sad thing about this economy mess is that the average person with little or no financial knowledge (me) doesn't know who to trust and ends up missing opportunities because of that.

[Picasso]

Originally Posted by chu

You're the reason the country is in this mess. As a single guy, why do you need a 3 bedroom, 2.5 bath and nearly 1700 sq feet?

Buy something more along what you need. You'd need a wife and at least 2 kids to really make use of that house.

I think you should wait for him to default before calling him a piece of shit, dont you?

As for buying a house and having roommates, it's a sweet deal. Utilities help, and rent sometimes covers the mortgage if you're in the right area.

But if you're doing that solo, i fucking sure wouldn't want half my income tied up automatically. You probably shouldn't even get approved because after insurance, car payment etc your debt to income should be about fucking 1.

[chaos]

I still don't understand how anyone with a job and a fixed rate mortgage gets behind on payments. Mortgage should be priority #2 behind food. I cannot imagine paying some utility or credit card or something instead of providing my family with shelter.

[AladainAF]

Originally Posted by chaos

I still don't understand how anyone with a job and a fixed rate mortgage gets behind on payments. Mortgage should be priority #2 behind food. I cannot imagine paying some utility or credit card or something instead of providing my family with shelter.

+1

It's mind boggling.

To put in perspective how good the deals are right now.. If I paid the minimum on my current mortgage - I would pay $604.99 a month which $163.18 would be principal. I generally pay an extra $300 a month to pay it down faster, so thats $904.99 a month to pay off $463.18 in principal. With the new loan and rolling the closing costs into it, I am paying $670.90 a month which $342.00 is principal. So for $121.18 more I can pay down the same amount of principal - for a payment of just $792.08.

[namon]

A $1600 payment on $3500 is not much under 50%. I know your range tops out at 4 grand, but when you plan for these always take the lowball to be safe. The magic number is roughly 30% of your income, and with you being single I'd definitely shoot for something smaller or more economical. I'm not going to go as far as say "you are the reason for this mess..", but really a household making ~$50k should not be looking at houses that cost a quarter million dollars. There are just too many variables that can happen real quick that could cause that 50% of your income to balloon to even higher percentages. You may be getting it for a steal, but I guarantee you the local municipality doesn't take that value off their appraisal for taxes, plus you have upkeep and repairs, and if it's in a neighborhood any HOA fees. You are doing good for yourself at this point, I'd hate to see someone in your position sink in over their head because you jumped the gun. Personally, if I were in your shoes I'd find as cheap ass of a place I could to rent, buy a used car cash, and pour every last bit of my income into savings. In 2-5 years you could buy a house like that, and have enough of a down payment to have sizable equity, and you'd be what? 28?

[DisgruntledOrangatang]

^ that be what I am doing. I am renting a cheap apartment (360 rent, its decent enough quality but the management sucks when something breaks so slow) and saving like a mofo, I make as much as him. I have only been working for 6 months and have enough banked to pay for a decent new car in cash. If I do this for 2 more years I'll be exactly where you said.