Originally posted by DesertBerean
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Buying a house
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Originally posted by Cow Poke View PostMake sure you buy what you can afford.
MANY people got into their home with special financing or special options, only to discover they couldn't keep up the mortgage and expenses.
Note EXPENSES besides mortgage --- insurance, taxes, utilities, down payments / deposits on utilities.
Also, PMI - Private Mortgage Insurance. I think most states require you to have additional PMI if you owe more than 80% of the value of your home. It can be another $40/$80 a month, easy. If you pay 20% down, you will likely NOT have to pay PMI.
Also, consider if you want to "escrow" your insurance and taxes - include them in the mortgage payment. I don't like to do that - I like my mortgage to be separate, because I don't trust the finance company to keep up with the other stuff, and I don't pay my taxes until they're due - rather then having the taxes and insurance come out all year long.
There are move-in expenses that a lot of people fail to consider - landscaping, carpet, drapes, changes or modifications - repairs of stuff not found in the inspection.
Oh, yeah... be SURE to pay for an inspection - it will give a "third party" view of problems with the home, and you can assess whether these are worth it or not.
AND- if you're a "fixit" kind of guy, don't be afraid of a fixer-uppper. Obviously, if you're not, then don't consider a fixer-upper.
Those are my first quick thoughts."What has the Church gained if it is popular, but there is no conviction, no repentance, no power?" - A.W. Tozer
"... there are two parties in Washington, the stupid party and the evil party, who occasionally get together and do something both stupid and evil, and this is called bipartisanship." - Everett Dirksen
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It may depend. I recently re fi'd, and nobody told me I had to escrow.Watch your links! http://www.theologyweb.com/campus/fa...corumetiquette
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Originally posted by Littlejoe View PostI don't think you can keep the escrow accounts out of the payment anymore. IIRC, the new laws make the banks collect them.
I think it's the lender that requires you to keep an escrow under certain conditions, not banking laws, but still checking on this.
The fact is that OFTEN times the lender will bluff their way through something making it sound like you don't have any choice in some matters -- it's best to do your homework, and don't take the lender's word for it.The first to state his case seems right until another comes and cross-examines him.
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Originally posted by Teallaura View PostOn the finding the thing side:
Realtor.com
Trulia
ZillowThe first to state his case seems right until another comes and cross-examines him.
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Originally posted by Zymologist View PostI'd never heard of this strategy. Great tip.
One of the biggest problems for the "every other Friday" paydays is that SOME "mortgage months" have two paydays in them, and some have three paydays -- it can be pretty confusing for somebody who's operating on a tight reserve.The first to state his case seems right until another comes and cross-examines him.
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There's that, yes. Some people use those "extra" paydays in the month for major bills and stuff like that. Also, I think the payments may need to be posted in full by the 15th. I think.Watch your links! http://www.theologyweb.com/campus/fa...corumetiquette
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Originally posted by DesertBerean View PostThere's that, yes. Some people use those "extra" paydays in the month for major bills and stuff like that. Also, I think the payments may need to be posted in full by the 15th. I think.
But, yeah, if you're better at budgeting, and not so tight on cash - you can use those as "extra" paydays!The first to state his case seems right until another comes and cross-examines him.
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My wife and I have started looking into buying a house as well. I'm not sure if you have a monthly budget put together already (you should). We removed our current rent payments from ours to see where we stand income/expense wise and figured out about what we'd be comfortable paying every month. We figured it out two ways: one with 15 yr plan and another with 30 yr plan. That gave us a price range to stay within. We can do a 30 yr if we find a house that's more expensive but we think is worth it, but we know what ideal price looks like. Keep in mind that you want to set aside ~1.5% of the house value annually for misc repairs.
Think about resale value. Check the local schools (especially if you plan to have kids), traffic, etc. It can be a good idea to buy a cheaper house that needs some work, but you should understand that you won't necessarily get back all the money you put into it. A lot of it comes down to what needs replaced/replaced. "Behind the wall" repairs (like plumbing or electrical) you can't expect to get back. Updating the kitchen, bathrooms and flooring will increase value if done wisely.I'm not here anymore.
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Originally posted by Cow Poke View PostMake sure you buy what you can afford.
MANY people got into their home with special financing or special options, only to discover they couldn't keep up the mortgage and expenses.
Note EXPENSES besides mortgage --- insurance, taxes, utilities, down payments / deposits on utilities.
Also, PMI - Private Mortgage Insurance. I think most states require you to have additional PMI if you owe more than 80% of the value of your home. It can be another $40/$80 a month, easy. If you pay 20% down, you will likely NOT have to pay PMI.
Also, consider if you want to "escrow" your insurance and taxes - include them in the mortgage payment. I don't like to do that - I like my mortgage to be separate, because I don't trust the finance company to keep up with the other stuff, and I don't pay my taxes until they're due - rather then having the taxes and insurance come out all year long.
There are move-in expenses that a lot of people fail to consider - landscaping, carpet, drapes, changes or modifications - repairs of stuff not found in the inspection.
Oh, yeah... be SURE to pay for an inspection - it will give a "third party" view of problems with the home, and you can assess whether these are worth it or not.
AND- if you're a "fixit" kind of guy, don't be afraid of a fixer-uppper. Obviously, if you're not, then don't consider a fixer-upper.
Those are my first quick thoughts.
If you do find anything wrong in the inspection(s) - you can usually get the previous owners to pay for it, or reduce the price of the house. Also ask for a 1 or 2-year home warranty to be supplied by the sellers. They are not too expensive and they can help out with any unforeseen problems that may arise.
Oh and check out your neighbors. If you are buying a home you will be there for a while, so make sure your neighborhood and neighbors are good. You might even ask some of them about the neighborhood. You can also search online for crime rates and school ratings and such.
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Home Owners Associations... or whatever they call them in your part of the country:
They can be a ROYAL PAIN IN THE BUTT with their rules and enforcements - I know a neighborhood where you have to get the color of paint approved before you can paint the outside of your house. You can't, for example, have the same color house as any house within three houses of you. I lived in one area once where I wanted to build an outdoor BBQ deck with a roof, and it was like an act of congress to get approval to spend my own money!
On the OTHER hand, they can keep somebody from putting a big blue pool in their front yard, or parking junk cars along your property, parking a mobile home next to their house, etc.
Find out what the deed restrictions are, and what - if any - home owner's association (also called property owner's association) restrictions there might be. And the COST of belonging to one of these (no choice but to "belong") can be $50 a year, to $200 to $500 a MONTH.The first to state his case seems right until another comes and cross-examines him.
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Originally posted by Cow Poke View PostHome Owners Associations... or whatever they call them in your part of the country:
They can be a ROYAL PAIN IN THE BUTT with their rules and enforcements - I know a neighborhood where you have to get the color of paint approved before you can paint the outside of your house. You can't, for example, have the same color house as any house within three houses of you. I lived in one area once where I wanted to build an outdoor BBQ deck with a roof, and it was like an act of congress to get approval to spend my own money!
On the OTHER hand, they can keep somebody from putting a big blue pool in their front yard, or parking junk cars along your property, parking a mobile home next to their house, etc.
Find out what the deed restrictions are, and what - if any - home owner's association (also called property owner's association) restrictions there might be. And the COST of belonging to one of these (no choice but to "belong") can be $50 a year, to $200 to $500 a MONTH.I'm not here anymore.
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I would NEVER own a house that has an HOA...
If you buy a house in town, pretty much all those things are covered by City ordinance..."What has the Church gained if it is popular, but there is no conviction, no repentance, no power?" - A.W. Tozer
"... there are two parties in Washington, the stupid party and the evil party, who occasionally get together and do something both stupid and evil, and this is called bipartisanship." - Everett Dirksen
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One of my cousins related how they had found a condo for their mom who was REALLY getting on in years but flat out refused to stop living by herself. The HOA was 350 a month but she had help whenever she wanted. Burnt light bulb? They replaced it. Needed a suitcase packed? They did it. And so on. For the price of their mom's safety it was worth it.Watch your links! http://www.theologyweb.com/campus/fa...corumetiquette
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Originally posted by DesertBerean View PostOne of my cousins related how they had found a condo for their mom who was REALLY getting on in years but flat out refused to stop living by herself. The HOA was 350 a month but she had help whenever she wanted. Burnt light bulb? They replaced it. Needed a suitcase packed? They did it. And so on. For the price of their mom's safety it was worth it.The first to state his case seems right until another comes and cross-examines him.
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