Buying a House

[Akala]

Madness.

Any boritos have any tips for buying houses? I dunno, buying has become only marginally more than renting, and well...it's time. Tax incentives are wonderful, and I am pretty sure I can swing it. I pretty much ruined my credit in college, but have been slowly repairing it over the past few years to the point where it is pretty much reputable!

I also am buying in the drrty south, so I can get a very nice starter home for $150k give or take.

I've been researching like mad for the past few months, but would still appreciate any pointers/advice.

Already pre-approved, and am going to look at SEVEN of them tomorrow!

[lennedsay]

Just bought our first 2 months ago.

Have fun with the lender. When they tell you, "This is the last thing we need faxed," it's a lie.

They pre-approved us for 30K more than what we ended up finding, so we thought it'd be a breeze.

Also, expect that the day you close could be pushed back, so give yourself enough time between moving out and moving in.

What else... Are you buying by yourself or with another person? Regardless, look at all the houses with at least one other person so you have independent opinions and are able to point out things to each other.

[FlameOfCallandor]

Get a survey. It might be required by the title company but I dont know what state you are in.

[lennedsay]

Yes, buy the best survey and the best inspection you can.

And ask the buyer to pay closing costs. Usually you have to give an actual amount (which of course you won't know), but at that range and in that area, I'd ask for $4K.

[Akala]

Just bought our first 2 months ago.

Have fun with the lender. When they tell you, "This is the last thing we need faxed," it's a lie.

They pre-approved us for 30K more than what we ended up finding, so we thought it'd be a breeze.

Also, expect that the day you close could be pushed back, so give yourself enough time between moving out and moving in.

What else... Are you buying by yourself or with another person? Regardless, look at all the houses with at least one other person so you have independent opinions and are able to point out things to each other.

It's me and my wife. We were preapproved for an obscene amount, but taking it would be totally irresponsible IMO. We want a starter, something where if something were to happen to one of our jobs, we could make it for a while. We also plan on using the tax credit as a total cusion! We are on month-to month at the moment, but are cool enough with the landlords that we only need 2 weeks notice..and we can also prorate into a month if necessary.  

Get a survey. It might be required by the title company but I dont know what state you are in.

I plan on taking off of work to be there when it is inspected. Seems kind of silly not to!

[Akala]

Yes, buy the best survey and the best inspection you can.

And ask the buyer to pay closing costs. Usually you have to give an actual amount (which of course you won't know), but at that range and in that area, I'd ask for $4K.

Apparently including closing costs is really common nowadays. I kind of want to get this in motion since we know what we want, but I am pretty much planning on asking for 5k off asking plus closing costs. Should be very little out of pocket!


Isn't the first year of insurance considered a closing cost? We'll also have to pony up for the inspection and appraisal from the lender.


One good thing is that we are trying to get trough the rural development plan...100% financing and no PMI, among others.

[lennedsay]

It's me and my wife. We were preapproved for an obscene amount, but taking it would be totally irresponsible IMO. We want a starter, something where if something were to happen to one of our jobs, we could make it for a while. We also plan on using the tax credit as a total cusion! We are on month-to month at the moment, but are cool enough with the landlords that we only need 2 weeks notice..and we can also prorate into a month if necessary.  


I plan on taking off of work to be there when it is inspected. Seems kind of silly not to!

My husband took off work for the inspection too. He learned a lot about the house.

That's awesome with the landlord! We're still dealing with ours. 

When you amend your return to take the tax credit, attach a copy of the settlement statement/HUD1 statement (2 page legal-sized papers, ask your R.E. agent which one it is when you close). IRS is getting tons of fraudulent claims, so it's taking forever to process each 1040X. This, apparently, makes the process go faster.

That's awesome about the 100% financing. That wasn't available in our area anymore.

[Akala]

I will check into it. After all this is through (hopefully), we will be paying a visit to our CPA!

This all is very stressful! I'm not used to being stressed. Kind of goes against my nature.

[Bebpo]

Yeah, it seems like a great time to buy a house.  My little brother just bought one that closed this week for ~345k using his inheritance/bonds from my grandfather.  The low prices and obama incentives are what got him going.  I had to spend my share of inheritance to go to law school so I'll be passing on the house buying for another 5 years or so ^^;

[Akala]

I imagine law school is a good investment!  Just ask Malek. In 6years, Bebpo will make a thread to shame me!

I just want something decent that will be ok until we have kids. I sooooo look forward to a washer and dryer. Hopefully we can find something nice on the business end of 1500 sq. Ft! 

[Mr. Gundam]

$150k for a house? smhholycrapomgwtfbbqthatscheap. You could buy three houses down there for the price of my house in Seattle.

Good luck, but with the economic conditions at the moment and the fact that you're preapproved, you'll be fine.

[lennedsay]

I will check into it. After all this is through (hopefully), we will be paying a visit to our CPA!

This all is very stressful! I'm not used to being stressed. Kind of goes against my nature.

If you have any questions about the tax part of it, let me know. I'm a DM for a tax prep co. The real estate part of it, I only know from just going through the bullshit.

When we were closing, it was the last few weeks of tax season. I had already worked 100 or so days straight (well, maybe had a sick day and 2 days off for a funeral). 12+ hour days, 7 days a week. My fucking lender was asking for my college transcripts, and I told her it would take a few days from the school, and she was taken aback. So I paid for them, and the next day (and before the transcripts came), she told me she didn't need those anymore. She needed something else instead, then something else, and so on and so forth. They even needed some of my parents' bank info, because they had written me a check 2 months prior, and they had to know what it was for, and proof that it had cleared (even though it had been in my account for 2 months). Stupid stupid shit like that.

My husband goes by his middle name, so they put that on all the documents. Then last minute we had to put his first name (which isn't even on his SS card). Big hassle, last minute. Then we go into closing, and the girl had to white out all the lenders' documents because they had forgotten to put his real first name on everything. Our title co and real estate agent was blown away by how incredibly unprofessional the loan officer was, and they both had to call her up and yell at her several times.

Oh, and she acted to me like our title co was fucking around, but she had faxed all of our shit over less than 24 hours before closing to the wrong title company! What?! Then she said it was because we had switched title co's, but we hadn't! I knew the girl at the title co. and hadn't even looked into another one.

Be prepared, bro. It's well worth it, and it will be stressful, but seriously it'll all get taken care of in the end. Just expect complete bullshit until you get the keys in your hands (which may or may not happen when you close, it might be later that day or that week!)

[Akala]

$150k for a house? smhholycrapomgwtfbbqthatscheap. You could buy three houses down there for the price of my house in Seattle.

Good luck, but with the economic conditions at the moment and the fact that you're preapproved, you'll be fine.

 

For the price of all the ones on house hunters (HGTV! What have I become?!) we could have a mcmansion around here. My town was on yahoo's list of top 10 undervalued homes in America~

My job isn't the safest at the moment (oilfield :'( ), but c'mon. A note + insurance and everything is like $200 more than renting!

ADVICE

Awesome. seems like closing will be fun. I am already getting nervous about offers! Tomorrow should be a blast. 

[tiesto]

Good luck, mate... I will probably be in your situation in like 2 years time. Looking at a condo but they're like 450k or so over here. Houses are 400+k, and most of them are pretty old, i.e. 50's Levitt homes, 60's splanches, so that means a LOT of work.

[Akala]

We actually made an offer yesterday, so we will know something by 8pm!

The waiting part sucks though. 

We heard an phone-in/initial counter like an hour after we put in the offer, but haven't heard anything since. It's $3k over budget (which we can always put down before closing), but they would be willing to pay closing, throw in the fridge, washer & dryer, and a little above ground pool. 


Everyone wish me luck!

[Veidt]

Good luck man. Hope you find the right house. :]

[Rman]

What mortgage terms are you looking for, Akala? 30 or 15 year fixed?

[Akala]

30 year fixed makes it really manageable. If we can put an extra hundred on a month, it drops it down to like 23 years.

[lennedsay]

We actually made an offer yesterday, so we will know something by 8pm!

The waiting part sucks though. 

We heard an phone-in/initial counter like an hour after we put in the offer, but haven't heard anything since. It's $3k over budget (which we can always put down before closing), but they would be willing to pay closing, throw in the fridge, washer & dryer, and a little above ground pool. 


Everyone wish me luck!

Good luck man! Ours came with a pool, but since it was a foreclosure, it was TRASHED! We drained it, bleached the fuck out of it, patches holes bigger than 3 goatse's put together, and now it's fantastic! Seriously, I forgot how great pools are.

Doing half hour of yardwork then jumping in the pool then more yardwork then more pool = win.

[Akala]

UNDER CONTRACT!!



Seller backed out of the included appliances, the bastard, but now I get to be a nervous wreck for a month!

[muckhole]

Looks nice!

[Mr. Gundam]

Good for you guys, congrats on being homeowners!

[lennedsay]

Beautiful house & yard! Congrats!

[Akala]

Thanks all~~