Thinking about buying a house.... any advice?
07-21-2014, 11:47 AM
#1
Thinking about buying a house.... any advice? Pretty much exactly what is in the title. im 25 turning 26 in November. I have a decent career going. (should make right around $80k this year) I have been renting for 6 months. Any advice anyone can offer would be much appreciated.
07-21-2014, 04:55 PM
#5
I was thinking anywhere on the northshore. I have an apartment in salisbury now. Grew up in Haverhill. My gf has a job in portsmouth. i have a job in burlington ma. so southeastern NH or mass northshore. 20% is a lot to put down for me. I'd prolly need to sell my car and trailer to do that...
07-21-2014, 04:58 PM
#6
I was looking at this house. Just taking a peek. not sure how serious i am. but i love the garage and location. But 20% of $239k is $46,000 which i def do not have in cash.
http://www.zillow.com/homedetails/4-...edsearch-image
http://www.zillow.com/homedetails/4-...edsearch-image
07-21-2014, 05:27 PM
#7
TECH Enthusiast
iTrader: (17)
Join Date: Apr 2008
Location: Lehigh Valley ,PA
Posts: 579
Likes: 0
Received 0 Likes
on
0 Posts
See if you can negotiate sellers assist, it will help you a ton with closing costs . Keep in mind if you put 20% down you still have another 7-15k in closing costs which a lot of people don't account for. When I brought my house I paid 14k at
Closing which sucked.
Closing which sucked.
Trending Topics
07-21-2014, 09:01 PM
#8
You can put less than 20% down but you'll pay pmi which is a few hundred extra per month. You can put as little as 3.5% down with an FHA loan. If you have any questions about anything or need a preapproval let me know, I work for a mortgage company and can get one of the sales guys to help you out.
07-22-2014, 04:35 AM
#9
Teching In
iTrader: (5)
Join Date: Apr 2009
Location: MA
Posts: 9
Likes: 0
Received 0 Likes
on
0 Posts
Look into a USDA backed loan. Depends on lactation if the house qualifies. 100 percent finance. No pmi. You pay a fee up front that is financed into the mortgage. I put 3k down at my p and s signing. Got it all back at the closing paid for by the seller. I too sold my gto to buy my first home but later realized I could of done it without. Wish I didn't sell it.
07-22-2014, 11:18 AM
#10
if you make about that $$ you posted and buy a house for $239 you will be HOUSE POOR..if your doing it on just your income.....
you need to TOTALLY UNDERSTAND your bills!!!!
also i would look for a house around $180-210K which will still give you what you want allow you to play with cars and eat
get $20k in the bank and have your credit really good and most of your credit cards etc paid off
you need to TOTALLY UNDERSTAND your bills!!!!
also i would look for a house around $180-210K which will still give you what you want allow you to play with cars and eat
get $20k in the bank and have your credit really good and most of your credit cards etc paid off
07-22-2014, 06:00 PM
#11
Launching!
iTrader: (25)
Join Date: Jan 2006
Location: Hamilton Twp, NJ
Posts: 233
Likes: 0
Received 0 Likes
on
0 Posts
20% down will give you a strong bargaining position. The max house you can afford is 3x your yearly salary, but that's cutting it razor thin. Make sure you have a back up stash of $$$ after the down payment money and closing costs are accounted for. If you blow all your cash just to get into the house, you are screwed.
If the house is near (not just touching, but anywhere near) any sort of a body of water (ocean, lakes, ponds, rivers, creeks etc.) ask if the house is in a flood zone, if it is, run like hell. You do not want to deal with flood insurance.
Don't skip the property survey, you want a current survey showing any and all encroachments BEFORE you sign your name on the line.
Never buy the nicest house in a bad neighborhood, better to buy the bad house in a good neighborhood.
Don't rely soley on the private home inspection report, have a friend in the trades that you trust look the house over with you. Private inspections are nice, but those inspectors are in bed with the realtors, if their reports are overly harsh killing deals, they wouldn't be in business very long.
When buying a house, ask yourself "How easy would it be to sell this in 5-7 years?" Your needs now might be totally different in 5-7 years, so if you had to upgrade, relocate etc. would you be stuck with an undesirable property or could you move it, if needed? School systems, comps in the area, trends of the neighborhood (is it in decline? is it being rejuvinated? % of renters versus ownership) all these things will speak volumes about the area.
Make sure you enlist a real estate attorney to act on your behalf, not a divorce attorney, or a family friend, but someone who knows real estate and can fight for you, if needed.
I'm in land surveying for a living and we run into all sorts of crazy situations on a regular basis. I could go on for days about sheds and fences over the lines, but how about an inground pool halfway onto an adjacent property? Pole barns completely on adjacent properties? Wierd stuff happens, the further from suburbia you get. But the biggest issue right now killing deals and causing fits for people is if the house is in a flood zone. Avoid it at all costs, especially older homes that were not built with flood zones and the associated requirements in mind.
Good luck. There is no better feeling than coming home at the end of the day to something you own.
I added a pic of the FEMA map, looks like that property is clear of the flood zones as currently established, but still worth asking about.
Chris
If the house is near (not just touching, but anywhere near) any sort of a body of water (ocean, lakes, ponds, rivers, creeks etc.) ask if the house is in a flood zone, if it is, run like hell. You do not want to deal with flood insurance.
Don't skip the property survey, you want a current survey showing any and all encroachments BEFORE you sign your name on the line.
Never buy the nicest house in a bad neighborhood, better to buy the bad house in a good neighborhood.
Don't rely soley on the private home inspection report, have a friend in the trades that you trust look the house over with you. Private inspections are nice, but those inspectors are in bed with the realtors, if their reports are overly harsh killing deals, they wouldn't be in business very long.
When buying a house, ask yourself "How easy would it be to sell this in 5-7 years?" Your needs now might be totally different in 5-7 years, so if you had to upgrade, relocate etc. would you be stuck with an undesirable property or could you move it, if needed? School systems, comps in the area, trends of the neighborhood (is it in decline? is it being rejuvinated? % of renters versus ownership) all these things will speak volumes about the area.
Make sure you enlist a real estate attorney to act on your behalf, not a divorce attorney, or a family friend, but someone who knows real estate and can fight for you, if needed.
I'm in land surveying for a living and we run into all sorts of crazy situations on a regular basis. I could go on for days about sheds and fences over the lines, but how about an inground pool halfway onto an adjacent property? Pole barns completely on adjacent properties? Wierd stuff happens, the further from suburbia you get. But the biggest issue right now killing deals and causing fits for people is if the house is in a flood zone. Avoid it at all costs, especially older homes that were not built with flood zones and the associated requirements in mind.
Good luck. There is no better feeling than coming home at the end of the day to something you own.
I added a pic of the FEMA map, looks like that property is clear of the flood zones as currently established, but still worth asking about.
Chris
Last edited by 1QWIKBIRD; 07-22-2014 at 06:10 PM.
07-24-2014, 07:27 PM
#12
If you're not in a rush also look at "short sales." A short sale occurs when the owner can no longer afford the house and the financing bank has decided to allow the seller to sell the house for less than is actually owed. This way the bank still recoups some of its money and the owner/seller doesn't have to deal with the issues of a forclosure. The catch is that there's a lot of back and forth between you and the sellers mortgage company as they decide how much loss they will take. I've bought two short sale houses in the last 5 years...Don't ask, I'm apparently not good at being married. In both cases it took about 3 months. Banks have LOTS of short sales and they seem to take their time, but they can really be worth it.
My first short sale I bought was in 2009. It was a 2500sq/ft colonial on 2 acres. 10' ceilings, first floor master suite and hard wood everywhere, huge basement with 8' ceilings, a koi pond, oversized two car garage etc etc..paid $220,000 for it at a time when other houses in the neighborhood were going for $300,000+. The house I'm in now is smaller as its just my two teenage daughters and I...Its about 1700 sq/ft on a bit over a half acre with 3 bedrooms, 2 baths, basement, real fireplace, one car garage and it was $150,000 when others around here were going for $180,000-200,000..Both needed a little bit of cosmetic work, but were great buys..and I had to go FHA and pay PMI on my current house and its $135/month extra. In both cases I gave them low ball offers, but I had great credit, and no contingencies like having to sell another house, so I was an easy deal for them. It just took time for the bank to get back to me on the offers. Just something to think about...
--Alan
My first short sale I bought was in 2009. It was a 2500sq/ft colonial on 2 acres. 10' ceilings, first floor master suite and hard wood everywhere, huge basement with 8' ceilings, a koi pond, oversized two car garage etc etc..paid $220,000 for it at a time when other houses in the neighborhood were going for $300,000+. The house I'm in now is smaller as its just my two teenage daughters and I...Its about 1700 sq/ft on a bit over a half acre with 3 bedrooms, 2 baths, basement, real fireplace, one car garage and it was $150,000 when others around here were going for $180,000-200,000..Both needed a little bit of cosmetic work, but were great buys..and I had to go FHA and pay PMI on my current house and its $135/month extra. In both cases I gave them low ball offers, but I had great credit, and no contingencies like having to sell another house, so I was an easy deal for them. It just took time for the bank to get back to me on the offers. Just something to think about...
--Alan
07-25-2014, 10:52 AM
#13
Good advice here.
At your age and current circumstances I would say save as much as you can for a down payment, it will be worth it.
This is what you should do. Make a spreadsheet of all your current bills and expenditures for the month, Add in the cost of owning a house, Mortgage, escrow, pmi, extra utilities, etc... Then see if you can live within that budget for 6+ months. Take the extra money you would spend on the house and put it into savings religiously. This will tell you if you can maintain your lifestyle and be comfortable before you commit, at the same time saving money.
(Put everything in the spreadsheet, gas$, groceries, elect, heat, garbage, ect, you are only cheating yourself otherwise. See if you can still save money.) You will want some $ up front to buy things like appliances, curtains, etc. and for closing unless you convince the seller to cover it.
You can certainly finance 100% still these days with stuff like 80/20 loans etc, but the rates blow on the 2nd loan and no refinancing until your LTV is better than 80%. A good down payment and single loan is still best option.
Stay within your budget, and if you can plan to make an extra payment when you can (1 extra payment a year on a 30yr will save you like 7yrs amortized...thousands...). Then after you buy your house keep saving, ideally you want enough money to cover yourself at least 6 months in the event you lose your job.
A nice mortgage is about 1/4 of what you Net per month, if you are over 1/3, reconsider.
At your age and current circumstances I would say save as much as you can for a down payment, it will be worth it.
This is what you should do. Make a spreadsheet of all your current bills and expenditures for the month, Add in the cost of owning a house, Mortgage, escrow, pmi, extra utilities, etc... Then see if you can live within that budget for 6+ months. Take the extra money you would spend on the house and put it into savings religiously. This will tell you if you can maintain your lifestyle and be comfortable before you commit, at the same time saving money.
(Put everything in the spreadsheet, gas$, groceries, elect, heat, garbage, ect, you are only cheating yourself otherwise. See if you can still save money.) You will want some $ up front to buy things like appliances, curtains, etc. and for closing unless you convince the seller to cover it.
You can certainly finance 100% still these days with stuff like 80/20 loans etc, but the rates blow on the 2nd loan and no refinancing until your LTV is better than 80%. A good down payment and single loan is still best option.
Stay within your budget, and if you can plan to make an extra payment when you can (1 extra payment a year on a 30yr will save you like 7yrs amortized...thousands...). Then after you buy your house keep saving, ideally you want enough money to cover yourself at least 6 months in the event you lose your job.
A nice mortgage is about 1/4 of what you Net per month, if you are over 1/3, reconsider.
07-25-2014, 11:43 AM
#14
Staging Lane
Join Date: Sep 2013
Posts: 58
Likes: 0
Received 0 Likes
on
0 Posts
sound advice above. make sure when you are ready to pull the trigger you have as much money in the bank as possible. when applying for the loan they like to see bank statements going back like 6 months so if you have parents that want to give you a *gift* now is the time to do it.
also keep down on the crazy spending if you are ready, they look at everything.
dont rely too heavily on the online mortgage calculators, alot of them dont take into consideration insurance, pmi, taxes etc....
also dont be house poor, make sure you have money left over after paying your mortgage, bills, taxes, etc. I think its better to get a firsttime homebuyers program that doesnt require 20% down then to drop like 45k CASH and not have anything in the bank.
plus if your house appreciates well enough you can always get rid of PMI further down the line.
also keep down on the crazy spending if you are ready, they look at everything.
dont rely too heavily on the online mortgage calculators, alot of them dont take into consideration insurance, pmi, taxes etc....
also dont be house poor, make sure you have money left over after paying your mortgage, bills, taxes, etc. I think its better to get a firsttime homebuyers program that doesnt require 20% down then to drop like 45k CASH and not have anything in the bank.
plus if your house appreciates well enough you can always get rid of PMI further down the line.
07-25-2014, 12:53 PM
#15
TECH Junkie
iTrader: (18)
Join Date: Aug 2005
Location: Amsterdam Ny, the good part
Posts: 3,389
Likes: 0
Received 63 Likes
on
51 Posts
Have someone who can look at the house for structure issues or electrical issues while your looking at it for room size and the easy stuff.
We have a home inspector come and do our house and it was a waste , nice book with pictures but wasn't worth the 4 or 450 we paid. Take off some electrical outlet covers just to get a quick look .
Take a look at the electrical box and see how nice and neat or butchered the wiring is.
Definitely get up on the roof before you make an offer.
Hopefully you know a contractor or someone who can do home improvements and have them go if you take a second look at it .
We have a home inspector come and do our house and it was a waste , nice book with pictures but wasn't worth the 4 or 450 we paid. Take off some electrical outlet covers just to get a quick look .
Take a look at the electrical box and see how nice and neat or butchered the wiring is.
Definitely get up on the roof before you make an offer.
Hopefully you know a contractor or someone who can do home improvements and have them go if you take a second look at it .
08-03-2014, 10:05 AM
#19
Launching!
No sense in looking at anything until you have your bank tell you what your approved for. Don't max yourself out monthly as others have stated above, you will hate life at that point.
08-03-2014, 03:28 PM
#20
What day is your birthday? I turn 26 in November too!
I just bought my house about 3 months ago. Although I was making half of what you are when I got the house. The city i live in is in the top 5% of schools in the US. To me that is important for my future kids future.
Also, always plan on living where you get your house longer than you think. The time will fly by.
Live with in your means.
Just my 2 cents!
I just bought my house about 3 months ago. Although I was making half of what you are when I got the house. The city i live in is in the top 5% of schools in the US. To me that is important for my future kids future.
Also, always plan on living where you get your house longer than you think. The time will fly by.
Live with in your means.
Just my 2 cents!