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Home Buying |OT|
- Thread starter Ourobolus
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Zoe
Member
I guess it's more how do you find a good one? The few I tried a few years ago were only interested in running my credit report.
So I'm in the process of selling my town house.
We are relocating out-of-state. So we have decided to rent for a year or two years before we buy anything you. We are hoping that we will be able to buy the home we're going to rent from the owner.
OP, as a vet I have use the VA loan multiple times. It is a very good experience. The best part is, you can use your VA loan to refinance when ever you want to without any additional cost.
We are relocating out-of-state. So we have decided to rent for a year or two years before we buy anything you. We are hoping that we will be able to buy the home we're going to rent from the owner.
OP, as a vet I have use the VA loan multiple times. It is a very good experience. The best part is, you can use your VA loan to refinance when ever you want to without any additional cost.
It's a couple of months late, but I did promise to put up pictures of the fixer-upper home that we bought mid-last year. The renovation started late august till the end of october. We basically moved in with only the bathroom and our room done. All the other rooms were in various stages of renovation.
The living room before:
The living room after:
Side of living room before:
Side of living room after:
living room looking in before:
living room looking in after:
family room before:
family room after:
The restroom, kitchen (which you can see partially), bedrooms were also gutted and redone in the same fashion. I would say it was around 20k to fix what what wrong with the house and then 30-40k in actual renovation costs.
When we got the home we didn't do the traditional 20% so we had pmi but because of the renovations and the rising housing prices our home when up in value enough that we were able to refinance and put down that 20% to get rid of that pmi.
We're still not totally done yet though. Front yard still barren, we're putting in grass/native plants combo next month (around 4k) , garage needs a lot of fixing, house needs to be repainted outside, and the patio needs an upgrade. oh and the gutters lol, wow never-ending really.
The living room before:
The living room after:
Side of living room before:
Side of living room after:
living room looking in before:
living room looking in after:
family room before:
family room after:
The restroom, kitchen (which you can see partially), bedrooms were also gutted and redone in the same fashion. I would say it was around 20k to fix what what wrong with the house and then 30-40k in actual renovation costs.
When we got the home we didn't do the traditional 20% so we had pmi but because of the renovations and the rising housing prices our home when up in value enough that we were able to refinance and put down that 20% to get rid of that pmi.
We're still not totally done yet though. Front yard still barren, we're putting in grass/native plants combo next month (around 4k) , garage needs a lot of fixing, house needs to be repainted outside, and the patio needs an upgrade. oh and the gutters lol, wow never-ending really.
ThatGuyAgain
Member
Nice work!!living room looking in after:
Question for you on the fridge. I just purchsed the same fridge but with the fourth deli drawer. Mine is next to a wall similar to yours. Are you able to open the left door completely without hitting the wall?
Almost. about 95% open. When we were gutting the place we actually had picked the fridge already so we measured how long the wall next to it should be. we didn't want the fridge to stick out by a few inches so we did the wall at that length purposefully ( i think it was a 36 inch measure).
I actually didn't care about it but the supervisor for the project had a pet peeve about the doors sticking out in view so we went with her suggestion.
ThatGuyAgain
Member
It does look better "built-in" instead of sticking out. We are planning to have the wall cut back so it fits better. Looks like it will be a $600-$700 job for us but I think it will be worth it.
Jest Chillin
Member
Great job! Tremendous aesthetic improvement.
Yeah it's worth it. Better to do it than to always be thinking about it.
Oh if you have a similar fridge like mine check the back of the fridge and see how the water line (the plastic one going from the fridge to the valve) is connected to the water valve. Where they connected on mine the water line was an L-shape sharp bend and after 5 months there was a tear because of it. The tech that came to fix it said it happens pretty much 100% after a couple of months and he solved it by straitening out the connection with no bends. Took him less than a minute. I think i have a picture of ripped part, i'll post it if i can find it. Otherwise great fridge.
Thanks Jest C, it was certainly a challenge getting there. It's not like we had an exact plan visually but just overall designs that thankfully came together at the end.
pg2g, that's exactly what our realtor told us, just move in and do what you can in time. Most of the neighbors gave the same advice.
thanks. about 50-60k total. A lot of that went to the basics though like wiring, plumbing, new furnace, putting the walls back up. we were also paying rent for our apartment while the place was being renovated, so like 2 months of paying the mortgage and apartment rent at the same time. Aside from the very flaky but skilled carpenter, every contractor we had was top notch and really cared about doing the job right.
Btw is that table from Macy's? It looks exactly like the table I wanted to purchase for my home. I didn't go with it because my breakfast area was too small and I'm using my dining room as a kids room. Have you thought about adding crown molding? I think it looks nice with high base boards. My home has crown molding in the entry, hall, dining, breakfast, family and master. I guess everywhere but the secondary bedrooms and bathrooms.
grap3fruitman
Banned
Can you guys explain the appeal of being a homeowner to me? I'm not quite sure I get it.
Angelus Errare
Banned
Depending on your monthly it costs less than renting or leasing; down side to owning a home is maintenance is all on you and it can get expensive as fuuuuck. And in America many people still believe that you're not an "adult" until you own a home. I've actually had people tell me if you don't own a home by 30 you've "failed".
I wouldn't mind owning a home, but I doubt I'm going to stay in any one place for 20+ years because well I doubt I'll ever hold a job at any one company for that long. That and the amount of maintenance just isn't my thing.
With that stated, what do people in EU countries do? I assume renting and leasing?
You build equity vs throwing it away by renting/leasing. Why rent when you can own a home in 20-30 years, possibly less. Not only that, you won't have to pay rent anymore after it's paid off and you can sell it to recuperate the majority of the money you put into it or make profit (depending on how fast the values rise). For example, my home went up almost $20k in less than a year. If I sell the home now, after paying for taxes and agent fees, I might be able to squeeze a small profit. That's better than throwing away 1500+ rent per month for a year ($18k).
If you're the type of person who likes to move around a lot, there's no point in purchasing. Well, it's a smart move to purchase because you could rent it out and the rent will cover the expenses. Therefore, you'll own the home in xx amount of years and you could sell it to make $$.
If you're the type of person who likes to move around a lot, there's no point in purchasing. Well, it's a smart move to purchase because you could rent it out and the rent will cover the expenses. Therefore, you'll own the home in xx amount of years and you could sell it to make $$.
ThatGuyAgain
Member
Thanks for the heads up. We replaced our previous fridge because the broken water line and it was making a lot more noise. It was almost 12 years old and decided it was time to upgrade instead of repair. The new fridge is very nice.
RukusProvider
Banned
Cheaper than leasing/renting. You can modify it to your liking.
Tax credits. Increase in value (better the area, better the prospect of this) which means increase in net worth.
Pay it off fast and you can go get another and start building future wealth that way also.
Ash Sparrow
Banned
Home ownership can be great, most important thing is moving somewhere you love that has good neighbors. Take time out to check out the place you move to see if it has any quirks before hand. That is key.
Zoe
Member
Holy fucking shit.
A few weeks ago the bf and I went to one of those new builder mortgage seminars just so we can start learning about this stuff. Like most new builders (around here at least), they have a free counseling program and we liked the girl, so we put in a pre-qual just so we could get to work with her, thinking it would take half a year or a year to get ready.
They just qualified us on the most expensive house in the development ._.
Now I'm overwhelmed. I don't know what to think. We were fully expecting to get rejected. We haven't even looked at other builders because we were more interested in the service.
Now I'm thinking we need to take a step back and look at getting a realtor even though we're looking at new construction...
A few weeks ago the bf and I went to one of those new builder mortgage seminars just so we can start learning about this stuff. Like most new builders (around here at least), they have a free counseling program and we liked the girl, so we put in a pre-qual just so we could get to work with her, thinking it would take half a year or a year to get ready.
They just qualified us on the most expensive house in the development ._.
Now I'm overwhelmed. I don't know what to think. We were fully expecting to get rejected. We haven't even looked at other builders because we were more interested in the service.
Now I'm thinking we need to take a step back and look at getting a realtor even though we're looking at new construction...
Zoe
Member
I might take you up on that. We've got a friend or two to check up on first, but we don't know their track records...
We were pre-qualified for new construction back in November with the assumption that my taxes would show consistent income (I'm self-employed). We put down $1500 as an initial deposit and had to come up with an additional $6k by mid-February-- the time when I would submit my tax returns and officially file for financing.
They told me I needed a 2-year average before I could get financing, I've only been self-employed since 2012. So I submitted my taxes showing significant gains and we still couldn't get financing. They said the 2-year average needs to be established over three years. Bummer.
Construction on our home had already begun, they had the foundation poured and pipes sticking up out of the ground. We ended up having to walk away, but they returned our initial deposit and we never ended up paying the other $6k.
So now we're just building our savings and decreasing our debt. In February I'll have my 3rd self-employed tax return and the ability to establish a 2-year average. We'll be buying early next year for sure.
They told me I needed a 2-year average before I could get financing, I've only been self-employed since 2012. So I submitted my taxes showing significant gains and we still couldn't get financing. They said the 2-year average needs to be established over three years. Bummer.
Construction on our home had already begun, they had the foundation poured and pipes sticking up out of the ground. We ended up having to walk away, but they returned our initial deposit and we never ended up paying the other $6k.
So now we're just building our savings and decreasing our debt. In February I'll have my 3rd self-employed tax return and the ability to establish a 2-year average. We'll be buying early next year for sure.
We did a construction perm loan and they absolutely put us through the ringer and got all up in my business. We ended up putting 10% down up front and 10% down on the back end. This was in 2011/2012.
The amount of paperwork we had to fill out was crazy to prove we had the income and where it came from.
The amount of paperwork we had to fill out was crazy to prove we had the income and where it came from.
Zoe
Member
It's still a ways away because we have to gather up the down payment, but actually hitting that target means we can look at another neighborhood that's nicer rather than settling for this one and only having one choice in builders.
xaosslug
Member
my parents are planning to use father's VA Certificate of Eligibility to either buy a house in Renton, WA area to be closer to family and grandkids, or a back in Honolulu, HI (pretty much 'home')... they currently live in Cali w/ my aunt.
they have no idea what they're doing, and keep turning to me for answers and I have no idea either! LOL
halp?
they have no idea what they're doing, and keep turning to me for answers and I have no idea either! LOL
halp?
anyone mind checking this house out...
http://www.zillow.com/homedetails/6...m=email&utm_campaign=emo-inferredsearch-image
now... I don't make much at my job but my GF and I could eassssily swing the estimated mortgage of $577/month. That's less than we both pay combined in rent at our two apartments right now so we'd even be saving money. I have a great credit score... earlier this year it was 750 or so. I think my GF's is slightly lower but she's good and has no financial issues.
My GF bought a house with her ex so she's been through the entire process. They did some kind of mortgage together that I know she regrets.... obviously because they broke up. From what I gather she lost a good chunk of money because of this.
what kind of down payment would you need to make on a house like this? The place needs some work and isn't in the nicest area of Pittsburgh (though it's on the rise like Lawrenceville was 10 years ago if anyone is familiar with Pittsburgh).
any advice or thoughts? I want to make an appointment to see it and just want to be more knowledgeable beforehand.
edit: scrolling down, I see the estimated monthly is actually $781... that's after mortgage, taxes and insurance.... which is still totally doable between us.
http://www.zillow.com/homedetails/6...m=email&utm_campaign=emo-inferredsearch-image
now... I don't make much at my job but my GF and I could eassssily swing the estimated mortgage of $577/month. That's less than we both pay combined in rent at our two apartments right now so we'd even be saving money. I have a great credit score... earlier this year it was 750 or so. I think my GF's is slightly lower but she's good and has no financial issues.
My GF bought a house with her ex so she's been through the entire process. They did some kind of mortgage together that I know she regrets.... obviously because they broke up. From what I gather she lost a good chunk of money because of this.
what kind of down payment would you need to make on a house like this? The place needs some work and isn't in the nicest area of Pittsburgh (though it's on the rise like Lawrenceville was 10 years ago if anyone is familiar with Pittsburgh).
any advice or thoughts? I want to make an appointment to see it and just want to be more knowledgeable beforehand.
edit: scrolling down, I see the estimated monthly is actually $781... that's after mortgage, taxes and insurance.... which is still totally doable between us.
nicoga3000
Saint Nic
How comfortable are you with home repairs and renovations. If you're serious about the home, you should do a few visits. One to view the property and take note of the major renovations that need to be done, and another couple with contractors to get quotes. The last thing you want to do is buy the house and regret your decision because of the cost to get everything up to snuff.
Also, downstairs looks nice, but 7 bed/5 bath @ ~3500 SF seems tight. Definitely go check it out, though. Just don't make any quick decisions as there are always other places out there.
Icefire1424
Member
A "conventional" down payment on a house is usually 10-20%, with 20% optimal as you wouldn't be required to pay PMI insurance with the mortgage loan. For first time home buyers however, I've heard 3 - 5% isn't out of the question. Just bear in mind that the lower the down payment, the more you pay back in interest over the years, and the more you typically pay monthly for PMI.
Ideally, you put down as much as you can afford, but 10% is usually pretty standard.
Ziltoidia 9
Member
That house reminds me of one from a movie, but I cant remember which...
Eitherway, It looks nice and if the home value has been stable for a long period of time and yall like it/can live comfortable in it now and in the future, then go for it. I wish the Dallas area had nice looking houses around that price range. All the new houses around here start at like 250. There are a lot of older houses built in the 80s but they are all bland.
zephervack
Member
Have a few questions for people with more experience than me (none).
I pretty much dont know where to start, I have some savings that I want to put towards a down payment on a new/used house, but the thing that terrifies my is that with Rent is really easy to say, ok I need X amount of dollars for rent a month and thats it.
But with this, how do I go about finding out what I can actually afford, between mortgage payments, property taxes, reparation costs, and God knows what im not thinking about, how can I find out what can I afford with my salary?
I pretty much dont know where to start, I have some savings that I want to put towards a down payment on a new/used house, but the thing that terrifies my is that with Rent is really easy to say, ok I need X amount of dollars for rent a month and thats it.
But with this, how do I go about finding out what I can actually afford, between mortgage payments, property taxes, reparation costs, and God knows what im not thinking about, how can I find out what can I afford with my salary?
Didn't know this thread existed.
My fiance and I have lived in separate rented apartments for the past two years. We decided to move in together, but both our places are one bedroom and kinda crappy.
We were tired of sinking $1500 a month on rented units when we could own something, so we did something about it. We decided to build a house! Signed the papers about a month ago, and they've started work.
Took a lot of guts on her part, but my fiance makes enough to cover it. I told her it was an investment, and it's something she's been wanting to do for a while. We're excited, but holy crap what a bunch of stuff to do. Doors, floors, colors, layouts, position, driveway, cabinets, countertops, fixtures, lights...hours and hours of important decisions, but we're doing it!
My fiance and I have lived in separate rented apartments for the past two years. We decided to move in together, but both our places are one bedroom and kinda crappy.
We were tired of sinking $1500 a month on rented units when we could own something, so we did something about it. We decided to build a house! Signed the papers about a month ago, and they've started work.
Took a lot of guts on her part, but my fiance makes enough to cover it. I told her it was an investment, and it's something she's been wanting to do for a while. We're excited, but holy crap what a bunch of stuff to do. Doors, floors, colors, layouts, position, driveway, cabinets, countertops, fixtures, lights...hours and hours of important decisions, but we're doing it!
Ziltoidia 9
Member
I'm just now at a possition of where I can start renting, but at the same time I don't want to rent to long (more than 5 years) because I feel like I won't ever get the money back. If I mortgage, I feel like I am just putting my money into something. Is that a wrong mindset to have, from your experience?
Is that in Wilkinsburg......?
It's only too much upkeep because you bought a piece of real estate that required too much upkeep. Hope you're building equity a different way then.
zephervack
Member
Thats exactly my line of reasoning right now, at an average of $1000 a month I have been paying for rent in the last 5 years, which is around $60k.
Even after reparations, property taxes and paying the bank its money, I would still have more than 0, which is what I have right now of that money.
But maybe it is not that simple ?
Icefire1424
Member
I've always been told that it you are planning on staying somewhere for more than 5 years, it's worth investing in a home as you are building equity in that home. As with any type of investment, there is always risk involved.
Unfortunately, I know that all too well. Bought a house in the Carolinas at the peak of the housing boom, and ended up needing to sell three years later due to a job relocate, and ended up losing quite a bit on the house as the economy tanked. Ended up renting for a couple years to build the savings back up to be able to put another down payment on another house. Even through losing money on the first house, I'm glad we bought another, as it truly does feel like "home", a sentiment I never got in an apartment.
yes it is. Do you have an opinion on that? would just be interested. I had pre-conceived notions about the area before I met my GF, but I really am starting to love Wilkinsburg now.
Mister Wilhelm
Member
I can tell you're not experienced with this stuff, so I'll be frank with you.
1.) I would never, EVER buy a home with someone I was not married to or planning to marry soon. I would especially not do it with a house in that condition. You remember that purchase your girlfriend regrets from before? The one she lost money on?
If you buy this house at or close to this asking price, you are not just paying that price shown. There are other fees that need to be covered, and they can come out to be a decent percentage of the closing price. Now, if for some reason, you guys don't work out and you need to sell this house, you are more than likely going to need a real estate agent to sell it. A percentage will go to them, and now you have even more fees to pay that are an even larger portion of the home's value to cover. Maybe your split with cordial enough that you guys split the cost. Maybe she sticks you with the entire bill and still expects her half. Unless you're ALSO willing to cover to court costs to take her up on such a position, you're gonna take that right in the ass. And I'm telling you right now - if she decides to fuck you, you're not going to court. It's not worth it for the price of this place.
If, for some reason, despite all my pleading, you decide to go through with such a transaction at this stage in your relationship, have the brains to draw up a contract with her and use a lawyer to do so.
2.) You say you can afford the monthly payment without issue. I'm sure that's true. Can you also afford the REPAIRS AND MAINTENANCE? Just from those pictures, I can count at least about $6,000 worth of stuff you will need, not want, but need to do within the first few year. That total, by the way, is if you have the ability to do most of the work yourself.
Can you afford to have the furnace serviced? The roof replaced? The plumbing updated? Do you even know what this shit costs or how to do it? No? Don't buy a house in AS-IS condition. That's why the cost is low. This place has problems, probably way more than are noted in the listing, and you will be responsible for them.
3.) What is this gonna take financially? Well, this is just an estimate, but you're looking at just shy of $30,000 for a down payment if you want to do the proper 20% down. If your credit is great, it's very possible you'll get a loan under 5% interest.
Your monthly payment will be right around $600-650. Add in about $330 for tax. Then you have utilities. I can't estimate well because I'm not from your area, but let's just say $150 for gas/water and internet a month (which is conservative). So you're really looking at $1,100 at base cost per month.
Now spread that $6,000 I mentioned before over twelve months and you've got a cost more around $1,600 per month. This, again, is assuming nothing goes really wrong with the place (ex: roof starts leaking, basement floods, electric panel needs replacing).
SUMMARY: Don't buy this house. You don't need a place that big. It's not even in an area you like. You are young and have good credit. Do not fuck yourself over.
I know dozens of people like you that I went to school with that are now destroyed over making such a decision.
OH, BUT I CAN AFFORD A HOUSE, WHY AM I WASTING MONEY IN AN APARTMENT?
Because when all is said and done, even with the money you are putting back into the house, unless you are there for probably five years minimum and make solid improvements/you are handy, you aren't getting that money back. You'd be better off in that apartment.
djSyndrome
Member
You'll need to know five things:
* Principal and Interest, (this is what you'll normally see in the '$XXX/mo.' on sites like Redfin. Note that if you're buying new this will be the base price of the house without any options.
* Annual property taxes. You can get these by loading the APN into your county assessor site. Note that for houses <1 year old these will be prorated and not complete. Many listing sites already have this data built in. Get value, divide by twelve.
* Homeowner's Insurance. Varies wildly depending on house size, area, additional riders and other factors (flood plain, etc.). If you have renter's insurance or car insurance through a major that also offers a HO policy that would be a good place to start.
* HOA. There will almost always be one on any attached property and many newer developments. How are the dues collected? Most are monthly but some smaller ones may take an annual payment.
* PMI. If you are taking out an FHA loan or many other loan products with <20% down, you'll be paying Private Mortgage Insurance. FHA loans have gotten much more expensive in the last few years in this regard.
We're going through this process now on new construction and it's been mostly painless. Well, other than getting the missus to decide on interior colouring and hard surfaces, anyway.
zephervack
Member
Man I dont understand any of those acronyms but I will get to googling, thanks for the response.
Mister Wilhelm
Member
duplicate post, delete
Wilhelm, I really appreciate your detailed post. And you are correct... we are too early in our relationship to buy a house. I like learning about this stuff though and this is eassssily the best and happiest relationship either of us have been in so I start to think about these things (plus I just turned 30 this year!)... I think we might still go look at it just for fun and to learn more.
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