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[Ourobolus]

I'm in the process of buying a home. I'm currently active duty military so I qualify for a VA loan (which I intend to use), but other than that, I have zero experience when it comes to any sort of home purchasing.

I'm trying to buy a home for < $300k in Cheverly, MD.

I wanted to create a thread for those who are going through a similar process, but also for those who have purchased homes. I noticed that there wasn't an official buying/selling thread, so hopefully people chip in. Why not give advice?

 

[Ourobolus]

dp, whoops.

 

[NinjaMouse]

Bail out now...I know I should have. Buying a home is a huge waste of money and emotion. You'll set yourself up to get bled dry by the house with upkeep, property taxes (especially in MD), and you're now target for lawsuits. Good luck staring out the window making sure some kid doesn't trip and fall on your lawn and their parents sue you out of house and home.

You're especially crazy doing while active duty military. Good luck selling it when you get assigned to a new duty station.

 

[Mattlikewhoa]

Just bought our first home. I would have loved to have had a thread like this...

I'll be in this one for sure, trying to help others out ^_^

 

[R2D4]

In 2008 I bought a foreclosure for $40,800 in central Iowa. 2 story 3 bedroom 2 bath. Put a new roof on it and it already had two wiring and plumbing. Making double payments and hope to have it paid off in the next 5 years. Definitely the way to do it. That is if you want to live in the middle of no where.

 

[distantmantra]

Bought our house in Seattle back in 2007 for $455,000. We renovated the basement and have done lots of work around the place, so we've actually gained about $5,000-$10,000 in value. Seattle didn't get hit as hard as other parts of the country by the real estate crisis, and we live in a desirable neighborhood which helps.

We had fantastic realtors who really looked out for best interests. They never would've let us buy a house that wasn't right for us.

 

[teh_pwn]

Mortgages are not purchases. They're debt. Really clingly, high upkeep debt. If you lose your job or move, it's going to cost you several thousand. You're going to have to get a whole bunch of different services (maintenance, insurance, utilities, community stuff).

 

[Baraka in the White House]

We just moved into our new house in Houston in March. Got a 4 bedroom, 4 bath two-story for $187K in a planned community. The process is confusing as fuck but if you have a good loan agent putting things together then it's not so bad.

 

[TheExodu5]

House prices blow in Ottawa...going to save up for a few years so that I can put 20% down on a townhouse or garden home. I want to put myself in a situation where I can pay off whatever house I buy in about 10 years or less.

 

[distantmantra]

Mortgages are not purchases. They're debt. Really clingly, high upkeep debt. If you lose your job or move, it's going to cost you several thousand. You're going to have to get a whole bunch of different services (maintenance, insurance, utilities, community stuff).

And...?

I like being a homeowner. I like working in my yard and doing improvement projects and maintenance around the house. We pay more than our monthly payment every month and have been able to refinance in the past year, lowering our payment by $500 a month. It's not easy and not realistic for everyone, but coming in here and just posting a highly negative comment is kind of ridiculous.

 

[~Kinggi~]

Home buying is for the wealthy these days. Rising prices everywhere with all the services and upkeep. Then you have the horrible market to worry about. Sure, you could probably land a home making like 50k a year but you are asking for trouble when shit hits the fan. Unless your job is rock solid and you have a two income + home its not a good idea. Im probably never gonna be able to afford a home in the long run, even though technically i could afford one now.

 

[teh_pwn]

And...?

I like being a homeowner. I like working in my yard and doing improvement projects and maintenance around the house. We pay more than our monthly payment every month and have been able to refinance in the past year, lowering our payment by $500 a month. It's not easy and not realistic for everyone, but coming in here and just posting a highly negative comment is kind of ridiculous.

It's not meant to be negative. I'm trying to get the OP to think about what it is that he's doing considering he doesn't understand the process. Many people still think a house is some sort of financial vehicle when it's a commodity. Inflation adjusted prices of houses don't change long term. They neither gain nor lose value, but "owning" one while paying a 30 year loan is a huge financial loss.

I'd recommend 30% down and a 15 year fixed.

 

[NinjaMouse]

And...?

I like being a homeowner. I like working in my yard and doing improvement projects and maintenance around the house. We pay more than our monthly payment every month and have been able to refinance in the past year, lowering our payment by $500 a month. It's not easy and not realistic for everyone, but coming in here and just posting a highly negative comment is kind of ridiculous.

I like how reality is always considered "negative".

 

[distantmantra]

Get a good realtor, someone that's not just looking for a commission, but looking to develop a good working relationship. If they're worth a damn, they will guide in the right direction and find you something that makes sense. And if they're really good, they'll flat out tell you that buying isn't a good idea if that's the truth.

I like how reality is always considered "negative".

That's not my reality. My reality of being a homeowner is not all gloom and doom.

 

[Ourobolus]

Just bought our first home. I would have loved to have had a thread like this...

I'll be in this one for sure, trying to help others out ^_^

I'm active duty military, so I intend to make use of the VA loan. But shit, even with that loan, the fees are ridiculous. I wasn't expecting that at all. I have enough to pay them, sure, but I was not expecting $15k in fees. As it stands right now, I'm between two lenders - one gives me 3.75% and $10k in lender credit at the outset and the other gives me 3.5% over 30 yrs. I did the math and the difference is negligible, and I'd rather have more money at the beginning so I can furnish the house.

I may be retarded, completely idiotic. Anyone else have stories?

 

[deadbeef]

Just finished building a home last month. A stressful but fun experience. I'd be happy to share/ help.

 

[NinjaMouse]

That's not my reality. My reality of being a homeowner is not all gloom and doom.

Give it time. A house will throw you a curveball like no other. You wouldn't believe the crap we've dealt with. I would have loved nothing more than for a landlord to assume the risks. The day I sell this thing and take my loss, I'll be hard pressed to ever buy again.

Just the amount of money it takes to buy and sell a house is ridiculous. Your house will have to move up roughly 10% in price when you sell just to break even. Forget the amount of interest/maintenance over the years.

Your reality may be different and your priorities may lie in that house...that's fine. The truth is, you can't run around telling everyone it's all peaches and cream either. Everyone's situation is different and for the OP to buy a house as active duty military, they are going to have one of two things happen:

1) You'll take a loss on the house when you sell it.

2) You'll learn the pains of being a long distance landlord.

Pick your poison.

 

[distantmantra]

If you don't mind me asking, where do you live?

And you're right, everyone has a different experience. However, my experience is just as a valid as anyone else's. I don't see a problem with giving him good homeowner stories as well as bad ones. OP could have a good experience, or he could have a bad one. Just be careful, do your homework and see if it makes sense for you.

 

[ianp622]

I recently bought a house because mortgage + taxes were less than the rent I would pay. Plus the housing market is very stable in Rochester, NY.

First you need to get preapproved for a loan for about the amount that you're looking for ($300K in your case). You do this through a mortgage broker or a mortgage banker. However, if you approach a real estate agency and tell them you're looking to buy a house, they'll start you out on this process and refer you to someone. They'll basically walk you through the entire process, although occasionally you'll have to deal with other people (the bank, the lawyers, etc.) yourself.

I have to study so I can't go into too much detail right now, but feel free to PM me and I'll respond tomorrow. I can post more details about the process tomorrow too.

 

[Ourobolus]

So irritated - the house we wanted was delisted randomly this morning, but is now back up.

The relator that USAA gave us was less than useful, so we're going to go with someone more local who knows the area. She got lost twice when we went to look at homes.

God I hope the new guy is good.

 

[Chris R]

I'd consider buying a house if prices weren't so damn crazy where I live. I mean sure, there are houses available for right around $200k, but I wouldn't want to live in those neighborhood. For a house in a decent area I'd be looking at $325k min. I'll just continue to rent a place for $1k a month :|

 

[Ourobolus]

I'd consider buying a house if prices weren't so damn crazy where I live. I mean sure, there are houses available for right around $200k, but I wouldn't want to live in those neighborhood. For a house in a decent area I'd be looking at $325k min. I'll just continue to rent a place for $1k a month :|

I'm renting in Old Town Alexandria for ~1.4k, and a mortgage for ~260k is about the same . My wife and I are totally in the "buying a home" bucket,

Where do you live?

 

[distantmantra]

So irritated - the house we wanted was delisted randomly this morning, but is now back up.

Our house was delisted, but our realtors managed to fight for us and we ended up getting it for a great price.

Do you have friends or relatives that had a good experience with a realtor? As you're starting to discover, the realtor you go with can make a huge difference. Someone who doesn't care about you and only wants to make a quick buck is not someone you should be working with. Granted, it is their job and that's how they get paid, but a realtor who is worth their weight will not lead you astray. They want repeat business, they want you to have a good relationship and want you to refer them to your friends and family.

 

[p_xavier]

Just look at these condo prices in Montreal :


ICÔNE LISTE DE PRIX / PRICE LIST
À partir de / Starting at > Entre / Between
Studio > 323 à/to 421 pi2 /sf > 181 900 $ à/to 338 900 $
Une chambre / One bedroom > 530 à/to 771 pi2 /sf > 285 900 $ à/to 499 900 $
2 chambres / Two bedrooms > 788 à/to 1166 pi2 /sf > 420 900 $ à/to 650 900 $
3 chambres / Three bedrooms > 1516 à/to 1524 pi2 /sf > 832 900 $ à/to 862 900 $
Stationnement / Parking > 55 000 $
Casier / Locker > 3 500 $
Frais de condominium (approx.) / fees (approx.) > 0.35 $ / pi2/sf

DÉPÔT / DEPOSIT at Montreal ICÔNE Condominiums
À la signature / Signing > 5 000 $
30 jours après / 30 days after > 10 % (- 5 000 $)
Début des travaux / Beginning of construction > 10 %
Construction du lobby / Lobby construction > 5 %

LIVRAISON JUIN 2016 / Montreal ICÔNE Condominiums DELIVERY JUNE 2016

 

[Chris R]

I'm renting in Old Town Alexandria for ~1.4k, and a mortgage for ~260k is about the same . My wife and I are totally in the "buying a home" bucket,

Where do you live?

Alaska. Plus I'm not sure that I want to spend 20+ more years here. Renting gives me flexibility to move if I wanted to (or a job opportunity opened up, ect). That and I get to work with agents all day long and wouldn't trust 4/5th of them with anything more than Monopoly money

 

[sky]

One of the most important things I learned while home shopping was simply to be patient. Don't rush the prcoess. You may find your dream home on the first go, but more often than not it can be a lengthy process, and you may often find yourself tempted to settle so you can just get the deal done.

If you can, take your time and see as many homes as possible, to get a real picture of what's available. Although it's rare to get everything you want in a home (and you shouldn't really expect to), be sure you really love the place. Ideally you have "that feeling" after a few minutes of being in the home, that it is the one.

 

[NinjaMouse]

If you don't mind me asking, where do you live?

And you're right, everyone has a different experience. However, my experience is just as a valid as anyone else's. I don't see a problem with giving him good homeowner stories as well as bad ones. OP could have a good experience, or he could have a bad one. Just be careful, do your homework and see if it makes sense for you.

NYC

Honestly, I appreciate the fact that there are happy homeowners out there. I hope that when I sell my house, there are busloads of people coming by who feel the same way. Trust me, I have some great times in my house. It's fantastic to have friends over for New Years, back yard cookouts, etc....but I could do this in a rental with MUCH less risk and MUCH less overhead. That's all I'm saying.

I can't reiterate enough that my negative opinion of home ownership is 100% financially driven. Do what you want, I just know I could never be a real estate agent, that's for sure.

 

[daegan]

Personally, I'm in a weird spot. I have a preapproval for $60,000 - which doesn't sound like a lot, but I live in Michigan near Detroit, where it can be enough. I don't make a ton and neither does my fiancé but the rent for an apartment or rentable home without ridiculous living conditions is ~$850+ for a 2br. (You can get them cheaper, but you end up with awful neighbors or a terrible location or both.) Our payments, even just on an FHA with 3.5% down will be much, much, much less than that AFTER taxes, insurance, PMI, etc (in the $400 - $600/month neighborhood.)

Add to this that we really were thinking about just moving away after the wedding - but that was before my mother was diagnosed with breast cancer; and her sister has kids; while we still want to go start over down the line, it's not going to happen for us for at least another 4 or 5 years... and after 18 months in the house, give or take, we'll have made back everything we cobbled together for down payment and closing.

Read about this today - http://moneyland.time.com/2011/08/10/best-wedding-gift-ever-a-house-via-the-fha-bridal-registry/ - its basically a special savings account you can set up so that you can use small gifts toward the house; for example, wedding gifts.

 

[ThLunarian]

I've owned my home for just shy of 7 years now. I've also owned two investment homes for 5 and 6 years respectively. All three of my houses are in the same zip code in Charlotte, North Carolina. The mortgages on them range from 95k to 120k.

I don't regret it at all. Owning your home is empowering, and the tax breaks are excellent. Yes, you do have maintenance costs; in the case of investment properties, they're manageable if the rent you charge is priced properly, and in the case of your own home, yes it is an extra expense that doesn't pay itself back, but to me it's worth it for that freedom and peace of mind of not having to deal with landlords anymore.

Congratulations, Ouro! Best of luck to you in your search!

 

[Litflynt912]

I was active military when we bought in AZ in 2008 (I know...I know) it was the first forclousure in the subdivision we wanted and the house was 150,000 but peaked at 255,000.

Best advice I can offer is MAKE SURE YOU TAKE HEED WITH THE HOME INSPECTION!!!!

A good inspector is going to find EVERY little thing wrong and everything right - and you will have commanding power should something arise that needs to be addressed.

With rates so low (3.88 as of today) I cannot stress that owning a home is great if you can afford it.
Living in a City, I probably wouldn't own a home, but if you have a family/want to start one - owning a home is still a solid investment compared to others.

just my two cents.

 

[IrishNinja]

Personally, I'm in a weird spot. I have a preapproval for $60,000 - which doesn't sound like a lot, but I live in Michigan near Detroit, where it can be enough. I don't make a ton and neither does my fiancé but the rent for an apartment or rentable home without ridiculous living conditions is ~$850+ for a 2br. (You can get them cheaper, but you end up with awful neighbors or a terrible location or both.) Our payments, even just on an FHA with 3.5% down will be much, much, much less than that AFTER taxes, insurance, PMI, etc (in the $400 - $600/month neighborhood.)

kinda my deal too. i'm renting a 1-bed apt here in miami for just over 1k/month, and nice houses down south where i grew up (3/2, @ 2300 sq ft) are going for like $120-130k, which i estimate would cost me less monthly, plus it would actually be going to equity rather than this last decade plus of rent which i've nothing to show for.

few quick questions for those who've gone through the process:

1) is putting down a high % really that important? friends who've bought houses & condos down here in the last year or so have put 5k and still had no closing costs/good rate, i don't know if that's common though.

2) i don't make a great deal of money where i'm at, but i can put close to 1k away a month in savings when i'm not traveling/etc. what kind've outside expenses do you plan for, especially with an older house? like, how much do you tend to keep in savings if shit goes wrong? i admit, i'm very much used to placing work orders for things right now.

3) i've about a 730 credit score, i'm good with my credit union as well but i'm just over 7 years out of a bankruptcy, which im told is good but is public record for 3 more. should i expect very limited options for lenders if i try, say, a year from now?

 

[Ourobolus]

The advice in here is great. Yeah, I've contacted a few friends who have recently gone through this process (and a few that are still working on it) to get some names of realtors, so hopefully they pan out for me as well as it did for them.

Also, in regards to the home inspection - yeah, definitely gonna make sure I get a thorough one. VA loans require an inspection, but we'll get an extra professional one on top of that (VA inspections are supposedly a bit different).

On the plus side, the house we wanted seems to be listed again. I'll have to poke the new realtor for why it suddenly delisted and came back again.

You're especially crazy doing while active duty military. Good luck selling it when you get assigned to a new duty station.

I'm buying a house BECAUSE I'm getting out of the military. The job market around here is actually pretty sweet for my field, so I plan on sticking around the area.

 

[Ash Sparrow]

Been a homeowner since Nov and so far its bliss. Theres just no way I'd ever willingly go back to renting. No way. I really enjoy having my own property to shape however I want. No landlord breathing down your neck. Nobody living over or under me.

Get ready for tons of paperwork.
Make sure your downpayment is all in one bank account.
Get you a good fix it guy that works on the low end.
We were only approved for 70K thorugh FHA, ended up getting a place for 60K.

 

[Woody Invincible]

I bought my home 3 years ago and am very happy. I paid 20% down and am trying to have the mortgage paid off within the next 10 years. It's so nice to landscape your own yard.

 

[Ourobolus]

Ugh, learned something new today. "Procuring Cause."

So we initially went to an open house, didn't like the house, but talked to the agent who then showed us a couple other properties (one of which we really liked). However, then we went to USAA to get an agent. She drove us around to a bunch of homes (including the two from before), but she wasn't very impressive. We didn't like her, she got lost a lot, and she just wasn't very personable.

Fast forward to today, where I want to go back to that agent we met at the open house. I want to make an offer on one of those two houses we were originally shown, but because of procuring cause there's a dispute over which agent would get the commission, because whichever one showed it to you and it led to a sale gets the commission. In this case, I would assume that it's the first guy, but who knows.

God I wish I'd known about this damn thing earlier.

 

[teruterubozu]

That's BS. There is no "procuring cause" until any kind of paperwork comes into play. You can drop/hire real estate agents at any time - unless of course you signed something with them - which would be very odd at the "looking" stage.

 

[Ourobolus]

That's BS. There is no "procuring cause" until any kind of paperwork comes into play. You can drop/hire real estate agents at any time - unless of course you signed something with them - which would be very odd at this stage.

That's what I thought (we didn't sign anything), but quick internet research says that it doesn't matter:

Going to see a property, whether on a private showing or to an Open House, starts a chain of events which essentially shackles you to the agent who showed you the home you wish to purchase. Even though you didn’t sign anything, even though you weren’t told that an obligation was being created, you have, thanks to the Secret Contract of Procuring Cause, lost your right to choose representation. You are now stuck with an agent who almost certainly represents the seller, something else that likely was not disclosed to you. All of which is very likely to cost you dearly, in terms of time, money and effort!

 

[teruterubozu]

That's what I thought (we didn't sign anything), but quick internet research says that it doesn't matter:

But that's for the seller. Of course the agent representing the seller is attached to the house. You can drop the agent representing YOU at any time.

You need someone to represent your negotiating end. Working directly with the seller's agent only benefits the seller.

 

[Ourobolus]

But that's for the seller. Of course the agent representing the seller is attached to the house. You can drop the agent representing YOU at any time.

No, I know I can change realtors, it's just the matter of who gets the commission at this point. If I wanted to go to the new guy but the one I didn't like gets the commission, he's less inclined to be my agent.

 

[Cat Party]

I'm active duty military, so I intend to make use of the VA loan. But shit, even with that loan, the fees are ridiculous. I wasn't expecting that at all. I have enough to pay them, sure, but I was not expecting $15k in fees. As it stands right now, I'm between two lenders - one gives me 3.75% and $10k in lender credit at the outset and the other gives me 3.5% over 30 yrs. I did the math and the difference is negligible, and I'd rather have more money at the beginning so I can furnish the house.

I may be retarded, completely idiotic. Anyone else have stories?

I have no idea how VA loans work. Can you go to your own mortgage broker or are you limited?

 

[teruterubozu]

No, I know I can change realtors, it's just the matter of who gets the commission at this point. If I wanted to go to the new guy but the one I didn't like gets the commission, he's less inclined to be my agent.

That's odd cuz the realtor on the seller's side will get commission off the sale and the realtor representing you will also get a commission. It's not a one-sided thing. Besides, commissions are negotiable items during the offer process (along with inspections, repairs, closing costs, etc.). You'll be surprised what realtors would do just to get a sale.

 

[shinobi602]

Just bought my first house for my wife and I for $149k.

Appraisal came back at $150k. I don't have to pay closing costs though and only $5200 down.

Feelsgoodman.jpg

 

[Ourobolus]

That's odd cuz the realtor on the seller's side will get commission off the sale and the realtor representing you will also get a commission. It's not a one-sided thing. Besides, commissions are negotiable items during the offer process (along with inspections, repairs, closing costs, etc.). You'll be surprised what realtors would do just to get a sale.

That's the part I'm referring to. The commission on the buyer's side would go to whomever initiated the process - e.g. the person who showed you the house.

I have no idea how VA loans work. Can you go to your own mortgage broker or are you limited?

VA Loans are usable all over the place. Most (there are probably a few that don't) lenders have the option for a Conventional or a VA Loan. You can go with whomever you like.

 

[dpatel304]

In the process of moving out of my parents' place and purchasing a condo in the city. Seems like a fantastic time to buy, and I've been able to save a decent amount for a good down payment.

Looking to buy something around 160 - 180K in the uptown area of Dallas, TX.

Right now I've been pre-approved for a loan and am in the process of checking out several properties.

 

[Zhengi]

The main difference with owning and renting a home is that you really have to do all the maintenance work yourself, unless you hire someone like a gardner. It really is quite a bit of work and responsibility maintaining things and whenever something breaks. For example, I noticed that whenever it would rain hard, one of my windows would leak water in. It has been a few weeks since it last rained, so now I have to find a way to fix the window so that it will be ready for the next time it rains. Just little things like that pop up from time to time that you have to take care of as a home owner.

 

[teruterubozu]

That's the part I'm referring to. The commission on the buyer's side would go to whomever initiated the process - e.g. the person who showed you the house.

Yeah, reading up on it a little more. It seems that your old realtor would have to be particularly nefarious to pull out the procuring cause, but it's still a risk.

Either way, you don't have to LIKE your real estate agent. But you can also be up front and just say you would rather go with someone else because you feel your best interests aren't being represented.

 

[Ourobolus]

Yeah, reading up on it a little more. It seems that your old realtor would have to be particularly nefarious to pull out the procuring cause, but it's still a risk.

Either way, you don't have to LIKE your real estate agent. But you can also be up front and just say you would rather go with someone else because you feel your best interests aren't being represented.

Oh, I know you don't have to be friends with them or anything, she just wasn't coming off as knowledgeable or helpful. She may have been an awesome negotiator or something, but she sure as hell wasn't making that known.

 

[teruterubozu]

Oh, I know you don't have to be friends with them or anything, she just wasn't coming off as knowledgeable or helpful. She may have been an awesome negotiator or something, but she sure as hell wasn't making that known.

Well, in the end you determine the course of the negotiations and the realtor merely acts as a go-between. The realtor may try to convince you to offer more or whatnot, but in the end you can walk away at any time. Realtor's main job is to say things like "My buyer isn't happy", etc. Don't let the realtors intimidate you, they are merely tools for the end result - owning a home.

 

[pje122]

Is this where we talk about strategic foreclosures???

 

[Ourobolus]

Well, in the end you determine the course of the negotiations and the realtor merely acts as a go-between. The realtor may try to convince you to offer more or whatnot, but in the end you can walk away at any time. Realtor's main job is to say things like "My buyer isn't happy", etc. Don't let the realtors intimidate you, they are merely tools for the end result - owning a home.

Right.

Also, looks like the procuring cause got sorted out. Since the first guy showed me those two houses (one of which I like), he'd get the commission, not the agent we didn't want to proceed with. Good.