Sociology > Depression > No offense meant, but you seem like a group of older, more experienced people
| Topic: |
Sociology > Depression |
| User: |
"Alistaire" |
| Date: |
21 Apr 2004 09:20:02 AM |
| Object: |
No offense meant, but you seem like a group of older, more experienced people |
Please, tell me what you can about buying a home.
All I know is that I contacted the agent who helped my family find a
home when we moved here ten years ago. We talked and she told me to
contact a mortgage friend of hers (which to me raised a red flag, but
then I am the paranoid type) to get an idea of what I can afford. So
we got a number and I will call back the agent so she has a better
idea of what sort of places to look at.
One friend has mentioned that I should look into various government
programs? I have tried looking through the Fannie Mae site but
everything appeared rather general in nature.
I am certain I should shop around in terms of mortgages.
Should I even be doing this? I suppose people have moved out at worse
times, financially speaking, than this. I am just not sure if I have
any good reason to, save for a nagging feeling that I ought to be
taking the "next step," and if I might be biting off more than I can
chew.
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| User: "Hap Arnold" |
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| Title: Re: No offense meant, but you seem like a group of older, more experienced people |
21 Apr 2004 09:45:28 AM |
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"Alistaire" <ayabech@yahoo.com> wrote in message
news:5d1ebe4.0404210620.7ed3a1@posting.google.com...
Please, tell me what you can about buying a home.
All I know is that I contacted the agent who helped my family find a
home when we moved here ten years ago. We talked and she told me to
contact a mortgage friend of hers (which to me raised a red flag, but
then I am the paranoid type) to get an idea of what I can afford. So
we got a number and I will call back the agent so she has a better
idea of what sort of places to look at.
One friend has mentioned that I should look into various government
programs? I have tried looking through the Fannie Mae site but
everything appeared rather general in nature.
I am certain I should shop around in terms of mortgages.
Should I even be doing this? I suppose people have moved out at worse
times, financially speaking, than this. I am just not sure if I have
any good reason to, save for a nagging feeling that I ought to be
taking the "next step," and if I might be biting off more than I can
chew.
Talk to several mortgage brokers.
Use brokers listed in the yellow pages or ones that your agent or seller
refers you to, not ones that send you spam.
Some home builders have brokers that they deal with often. Many agents have
brokers that they deal with. Some brokers work harder to find an
underwriter than others. Some just approve by guidelines, others can go to
a higher-up and get exceptional approvals, others can find specific
underwriters to take non-traditional financing.
Mortgage brokers are usually the best source for government programs.
Some states have incentives to purchase in underdeveloped areas or in
redeveloping areas.
Beware of PMI. Sometimes you can avoid pmi by financing at a higher APR
instead of a higher downpayment. Interest is deductable, points and PMI may
not be.
If you plan on getting a pay raise you can buy down your initial interest
rate to qualify for more house.
If you receive regular pay, no problem, if you receive non-taxable income
you need to specify that so that your earnings can be 'grossed up'.
Find out if your state allows 'buyers' agents' or if all agents are
'sellers' agents'.
Some states have laws so complex that you need a real estate lawyer as well
as an agent and broker. (eg NY)
Get a copy of your credit report from all three reporting agencies, check
for errors.
You can also check out mortgage banks and their sites, like GMAC, Norwest,
WellsFargo, American Express, etc. Some have online calculators that give
you an idea of what you can afford (if all your income is wages).
This is a great time to move out.
US interest rates are incredibly low.
--
E Sempre l'Ora
--
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| User: "Gayle" |
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| Title: Re: No offense meant, but you seem like a group of older, moreexperienced people |
21 Apr 2004 09:43:10 AM |
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Alistaire wrote:
Please, tell me what you can about buying a home.
All I know is that I contacted the agent who helped my family find a
home when we moved here ten years ago. We talked and she told me to
contact a mortgage friend of hers (which to me raised a red flag, but
then I am the paranoid type) to get an idea of what I can afford. So
we got a number and I will call back the agent so she has a better
idea of what sort of places to look at.
One friend has mentioned that I should look into various government
programs? I have tried looking through the Fannie Mae site but
everything appeared rather general in nature.
I am certain I should shop around in terms of mortgages.
Should I even be doing this? I suppose people have moved out at worse
times, financially speaking, than this. I am just not sure if I have
any good reason to, save for a nagging feeling that I ought to be
taking the "next step," and if I might be biting off more than I can
chew.
There may be a seminar or an adult ed evening in your area that would
spare you tons of research. Sometimes a real estate company will sponsor
them, too. Learn from the pros and you'll likely feel more comfortable
with your decisions. There's also "Buying a House for Dummies" and it's
very helpful, too. For a first time buyer, you might want to check out
2-family residences. The rent from 1 unit can go a long way towards
covering the mortgage. If you think you can handle being a landlord.
Anyways, good luck.
Gayle
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| User: "Waxwing" |
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| Title: Re: No offense meant, but you seem like a group of older, more experienced people |
21 Apr 2004 01:53:10 PM |
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On 21 Apr 2004 07:20:02 -0700, (Alistaire)
wrote:
Please, tell me what you can about buying a home.
It's nerve wracking, the numbers are all so huge.
All I know is that I contacted the agent who helped my family find a
home when we moved here ten years ago. We talked and she told me to
contact a mortgage friend of hers (which to me raised a red flag, but
then I am the paranoid type) to get an idea of what I can afford. So
we got a number and I will call back the agent so she has a better
idea of what sort of places to look at.
One friend has mentioned that I should look into various government
programs? I have tried looking through the Fannie Mae site but
everything appeared rather general in nature.
I am certain I should shop around in terms of mortgages.
When I refinanced I used bankrate.com, and ended going with
Etrade. They gave a good quote, stuck to it and were very
responsive to problems. If you are going to be there more
than 3-5 years think about a fixed, under three a variable
might be advisable, but be prepared for rates to go up.
Beware of anyone who is too eager or has an offer that seems
too good to be true. Get the offer in writing with a good
faith estimate! The mortgage and RE folks will try and sell
you the most you can buy, usually you want to stay under
that. There are going to all kinds of expenses you never
thought of, repairs, landscaping, plumbing and appliances
(maybe you thought of them, I know I didn't). Generally you
want the total payment of mortgage, Insurance, RE taxes to
be under %26 to %28 of gross salary. On the up side a
mortgage is a huge tax break, and it does feel good to be
owning something rather than paying someone else.
Should I even be doing this? I suppose people have moved out at worse
times, financially speaking, than this. I am just not sure if I have
any good reason to, save for a nagging feeling that I ought to be
taking the "next step," and if I might be biting off more than I can
chew.
I wouldn't do it unless you feel comfortable; there is so
much flexibility in renting. I certainly wouldn't feel
pressured by a preconceived idea of what the 'next' or
'expected' step should be. A home gives you roots, but that
also means you're tied down more. Trust your gut instincts,
know your limits and stick to them.
Brian
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| User: "Kelly" |
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| Title: Re: No offense meant, but you seem like a group of older, moreexperienced people |
21 Apr 2004 03:18:57 PM |
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in article 5d1ebe4.0404210620.7ed3a1@posting.google.com, Alistaire at
ayabech@yahoo.com wrote on 4/21/04 10:20 AM:
Please, tell me what you can about buying a home.
All I know is that I contacted the agent who helped my family find a
home when we moved here ten years ago. We talked and she told me to
contact a mortgage friend of hers (which to me raised a red flag, but
then I am the paranoid type) to get an idea of what I can afford. So
we got a number and I will call back the agent so she has a better
idea of what sort of places to look at.<
Remember that the maximum amount of money you might be eligible to borrow is
sometimes more than you can really afford. You don't want the house to own
you. There are all sorts of household incidentals for which you'll need
money, and things like homeowner's insurance and local taxes can add a huge
chunk onto your mortgage payment, more than you would think possible. Oh,
and somebody mentioned PMI, which is insurance that covers your defaulting
on the mortgage that you're usually required to get if you put less than 20%
down. That can add a substantial chunk to your monthly payment as well.
There are ways to get around the PMI, but those ways cost money too. There
are good mortgage calculators online that figure some of these details into
the equation for you, though I don't recall the links.
Someone else also mentioned trying to find a buyer's agent. The laws (and
probably terminology) differ from state to state but, basically, if you can
you want a realtor who is serving your interests, not trying to sell you a
house that he or she also happens to be listing so that they get twice the
commission. You need a realtor with whom you have a decent rapport -- you're
going to be spending a lot of time driving around with this person, which
will be really unpleasant if you dislike or distrust them. This is
especially important when it's your first house, because you need to be able
to rely to a great extent on the realtor's judgment. And I've never met
anyone who's had a good experience buying from a For Sale By Owner. There's
something about FSBO's that turn sellers into megalomaniacs who think they
don't have to abide by the laws of logic and common decency.
Oh, and this is REALLY important - you want to get a thorough home
inspection, which will probably cost you a couple of hundred bucks. You want
an inspector who will aggressively look for problems with the house and
explain those problems to you so that you know what you're getting into. If
Buckingham Palace comes up for sale in your price range do not buy it
without a thorough home inspection. Again, ask for multiple referrals from
your realtor, but remember, in almost any house if an inspector doesn't call
your attention to any potential problems he or she is probably not doing the
job well.
One friend has mentioned that I should look into various government
programs? I have tried looking through the Fannie Mae site but
everything appeared rather general in nature.
I am certain I should shop around in terms of mortgages.<
Yes, but beware of just going for the absolute lowest interest rate. Many
mortgage companies claim to have low rates but stick you with a lot of extra
fees. Ask for an itemized list of all of their fees up front before you
commit to anything. Also, customer service is an issue. There are lots of
companies that will give you a mortgage, but will be unavailable to answer
your questions, or don't show up for closing. I gathered from my realtor
last year that many people have been burned by online mortgage companies in
particular --checks not being cut in time and the whole deal falling through
at the last minute, which is very, very bad, since you're the one with a
down payment on the line. My realtor had a list of suggested banks with whom
they've had good experiences, so ask your realtor if they've got a similar
list. I agree with you that only one referral from the realtor would make me
wonder about the realtor's motives.
Should I even be doing this? I suppose people have moved out at worse
times, financially speaking, than this. I am just not sure if I have
any good reason to, save for a nagging feeling that I ought to be
taking the "next step," and if I might be biting off more than I can
chew.<
Don't have any answers for you here. It's a big decision.
Kelly
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