First time Home-Buyers! Help!!!
zombie boy 2000
Posts: 6,641
So the wife and I have been house-hunting for the last year, and finally believe we have found the "One". Now what seemed like a casual stroll through the park has turned into a veritable maelstrom. Lenders are coming out of the woodwork offering loans that would only insure foreclosure within two months tops. Real estate agents are now like yapping dogs. Prospective sellers are making reduced offers before we've even put one officially on the table.
ARGGGGGGGGHHHHHH!!!
Anyway, this is only the beginning, as we are meeting tonight with a lender to possibly finalize the loan. We're swamped and drowning. And though my wife is an attorney, and I've jumped through my fair-share of academic hoops, this all seems much.
Any and all advise (however seemingly trivial) would be much, much appreciated. Thanks ladies and gents:)
ARGGGGGGGGHHHHHH!!!
Anyway, this is only the beginning, as we are meeting tonight with a lender to possibly finalize the loan. We're swamped and drowning. And though my wife is an attorney, and I've jumped through my fair-share of academic hoops, this all seems much.
Any and all advise (however seemingly trivial) would be much, much appreciated. Thanks ladies and gents:)
I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore
Post edited by RyanC_Masimo on
Comments
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I just bought my first house in February and I was suprised at how quick and easy it was. Found my realtor from a co-worker recommendation and she was great. We actually ended up buying a house just down the street from hers. I initially applied for a loan with a broker she recommended and although they were nice, another co-worker recommended someone else out of town. The out of town guy put together a better loan (lower rate *and* lower closing costs) so I used them instead. Being out of town made me nervous but everything went smoothly.
Just relax and make sure the house is the right one for you. You seem like you have the loan under control. Hopefully the market there is better for buyers than it was here. In my neighborhood, the average house put up for sale is sold within 10 days! And many times the price is above asking. I put in my offer for my house on the 2nd day it was on the market. Now that I own here I hope it continues to go up in value
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This may jot help out much, my wife and I bought our first home 2.5 yrs ago. We both were overwhelmed with everything. We got an agent who did all the paper work and negotiating. We did not encounter a bidding war (thank god).
Take a deep breath try to relax. Just remember it's not a pack of 1$ gum you are buying so it can be quite stressfull. Be sure to keep extra cash for closing costs and little hidden items you did not think of. ie shovel, hose...pizza and beer for those who help you move. Once you secure your mortgage amount, then it's about shopping around, even though you found the "one" it may also be the "one" for someone else so try and get yourself some extra breathing room. -
One good thing we have going for us is that it is definitely a buyer's market here in Louisville. Homes are just languishing, and continue to be reduced and reduced and....
That being said, the home we found (and it's price) has been the product of serendipity, as many factors have come into play to make not only the home perfect for us, but it's price as well. Eager, eager sellers with tons o' motivation in a house that doesn't present well from the outside (not the exterior, but rather the block), but is absolute paradise (to us at least) on the inside.
In other words, the house isn't superficially "showy" enough from the exterior to warrant a quick sale -- which is precisely what the fiance of the owner wants, since he refuses to live in the same house of his fiance's former marriage of 25 years. You get the idea....
And yes, the title will be researched thoroughly in light of these details:pI never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
just hang tough brotha. if your getting counter offers at this point, you must be in what is still a very competitive market.
My closing, for a variety of reasons, was very stressful (actually finalized just before my road trip to last Year's Polkfest, literally left right from the attorney's office)
its worth it when its all over, even though house problems allways pop up that will drive you insane. For me, it seems like small persistent problems tweak me more than the relativly few lardger ones, if that makes any sence.Living Room 2 Channel -
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sorry dp....I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore
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ohskigod wrote:just hang tough brotha. if your getting counter offers at this point, you must be in what is still a very competitive market.
I guess I should rephrase that... we're not getting counter-offers. We're getting reduced offers once the seller gets wind that we're even interested.I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
I have purchased several houses and can say just relax. In your shoes you seem to be in the drivers seat, but remember location, location, location. You must realize that being a first time home buyer you are probably going to move up later on, so resale value must be a consideration. Getting a good price now can mean having a rough time selling later on, for the same reasons the house is a good buy now.
CRj -
zombie boy 2000 wrote:I guess I should rephrase that... we're not getting counter-offers. We're getting reduced offers once the seller gets wind that we're even interested.
yeah, misread that. when that many people (sellers, lenders, etc) are fighting for your business, then, as Carlos said, you are in the Driver seat. that is a GLORIOUS position to be in.
stressed?
dude, you should be sitting in your livingroom sipping frikkin mai tais!!!!
sure, your beleagured by all these people reaching out to you. but stay focussed, know what you want to pay, and a reaosnable interest rate for the mortgae in your area, tell lenders to clearly relate the closing costs etc. take the time to sift through the info and get the best deal. dont let it consume you persay (stress over every penny to be saved), but certainly enjoy your position of buying power.Living Room 2 Channel -
Schiit SYS Passive Pre. Jolida CD player. Songbird streamer. California Audio Labs Sigma II DAC, DIY 300as1/a1 Ice modules Class D amp. LSi15 with MM842 woofer upgrade, Nordost Blue Heaven and Unity interconnects.
Upstairs 2 Channel Rig -
Prometheus Ref. TVC passive pre, SAE A-205 Amp, Wiim pro streamer and Topping E50 DAC, California Audio Labs DX1 CD player, Von Schweikert VR3.5 speakers.
Studio Rig - Scarlett 18i20(Gen3) DAW, Mac Mini, Aiyma A07 Max (BridgedX2), Totem Mites -
ohskigod wrote:yeah, misread that. when that many people (sellers, lenders, etc) are fighting for your business, then, as Carlos said, you are in the Driver seat. that is a GLORIOUS position to be in.
stressed?
dude, you should be sitting in your livingroom sipping frikkin mai tais!!!!
You didn't misread it... I went back and edited it:D
You're right... we have a lot going for us, as it is a buyer's market. I also know we're easy pickins with "First Time Home-Buyer" being so prominently stamped on our foreheads:p
Mai-tai's sound good btw... but Beam and Coke sounds even better:DI never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
I bought my first house 2 years ago and it wasn't that bad. Have a good agent and they will take care of covering your back. I made an offer on my second house and it got accepted yesterday (first will be leased, not sold). Closing on 25th hopefully so I am currently making the lenders compete.
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i was gonna say, stop bitching. sounds like you're on top of the world right now.
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http://polkarmy.com/forums/index.phpbobman1235 wrote:I have no facts to back that up, but I never let facts get in the way of my arguments. -
BIZILL wrote:i was gonna say, stop bitching. sounds like you're on top of the world right now.
You were going to say?:p
I ain't bitchin', but I'm not lifting up my skirt for all who wish to court me. I just want to avoid any of the usual pitfalls and common mistakes that plague first-time home buyers. I've been getting my read on, and our apartment is littered with brochures, pamphlets, magazines, tomes, etc. outlining the general process.
It's just good to hear (and learn from) real experiences, along with the sort of things "they don't tell you". Dig?:)
Looks to me like there is one pot and a million grubby fingers all wanting a hunk o' ham... I just don't want to end up with the gristle...I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
cool. just realize that you are the one in the driver's seat. good place to be!!! good luck with all of it.:cool:
as far as lenders...get quotes in writing! they can change that rate on your **** in a hurry otherwise.
see if seller will toss in a 1 year home warranty too. only costs them around $400-$600, but gives you a little peace of mind.
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http://polkarmy.com/forums/index.phpbobman1235 wrote:I have no facts to back that up, but I never let facts get in the way of my arguments. -
I would be curious as to why lenders are calling you out of the blue. They must have gotten your info from somewhere. The only lenders who called me, I initiated contact with in the first place. I guess if you get a better deal, that's great, but I'd prefer not having all these people calling me out of the blue.
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PhantomOG wrote:I would be curious as to why lenders are calling you out of the blue. They must have gotten your info from somewhere. The only lenders who called me, I initiated contact with in the first place. I guess if you get a better deal, that's great, but I'd prefer not having all these people calling me out of the blue.
We're working with three different realtors (long story). So each of the realtors have their pet lending agents to sick on us. And when you take into account the banks that we personally have contacted, you have a lot of loan officers circling the raft.I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
zombie boy 2000 wrote:We're working with three different realtors (long story). So each of the realtors have their pet lending agents to sick on us. And when you take into account the banks that we personally have contacted, you have a lot of loan officers circling the raft.
ah, I see. So its not unexpected. If it gets you a better deal, its probably worth the hassle. -
I would also suggest putting in a loan request through lendingtree.com. I got my first loan from there because I got the best rate and fees, and it looks like my second loan is ending up being from one of their lenders.
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You should always price shop for your loan amount with a lender then prequalify prior to making any bid on a property. I loath real estate agents and allowing them to suggest a lending insitutution gives them too much info into your world. "Remember the real estate agencies are typically there to represent the seller and not the buyer. Also you need to allow more than enough time for an inspection of the property and you should line them up also so you can be assured they are there for you. If you do this then there is no issues with hand money.
Also, apply the hand money to the points so you can get the lowest interest rate possible plus show it as a wright down the following tax season. If you are first time and can grab an FHA that is competitive with a conventional then all you need to do is ensure when you do have 20% equity that you can kill the PMI. This will also be a savings on your fixed loan.
This is a VERY tough time and I wish you the best. Just don't show your hold cards and keep your cool.
HBomb***WAREMTAE*** -
Sami -- I'm going to shoot on over to that site right now..
HBomb -- what do you mean by "hand money"?I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
Rather than pay PMI I think it's better to do 80/20 but YMMV.HBombToo wrote:Also, apply the hand money to the points so you can get the lowest interest rate possible plus show it as a wright down the following tax season. If you are first time and can grab an FHA that is competitive with a conventional then all you need to do is ensure when you do have 20% equity that you can kill the PMI. -
I'll let him explain that one but he might be referring to any extra money you might have. One thing to remember is that lenders allow you to take money back from the seller for closing costs. I am doing this, I offered asking price but asked for 3% back for closing costs. The extra money left after fees I am using to points to lower my interest rate.zombie boy 2000 wrote:HBomb -- what do you mean by "hand money"? -
Yup, I read it as any extra cash reserves might be better spent paying down the interest rate (points) then adding to the down payment. I would try to get 20 down and then reduce points. I would also strongly reccomend doing an 80/20 as banks can make you jump through all kinds of hoops to kill the PMI payment (they won't do it themselves). Besides the difference in interest payments on the 20 loan just about equals the PMI payment. Much simpler to just do 80/20 IMHO.There is no genuine justice in any scheme of feeding and coddling the loafer whose only ponderable energies are devoted wholly to reproduction. Nine-tenths of the rights he bellows for are really privileges and he does nothing to deserve them. We not only acquired a vast population of morons, we have inculcated all morons, old or young, with the doctrine that the decent and industrious people of the country are bound to support them for all time.-Menkin
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20% down is THE BEST way to go but often times first time buyers don't have that coin available. If not then the PMI route is the only way and just ensure that at 20% it is relieved. beware that a many institutions will also place a time frame to the PMI duration and you will have to pay the PMI over that duration even if your at 20%.
Hand money is the deposit that you place when your offer is accepted. This is referred to in many circles as hand money and is intended as an assurance that it is a real offer to the seller. This deposit can be applied in many different ways such as fee's or points. Make sure it is used for points because any additional cash you have available at the time of closing can help defray the interest burden in the next tax season.
Hope that is clear as mud....?
Just trying to help out a bit.
HBomb***WAREMTAE*** -
And you are HBomb (and more than a "bit" at that)...
Hand money = good faith payment?I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
hand money probably reffering to some of the down-payment/principle payment.
edit...or not. oops.
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http://polkarmy.com/forums/index.phpbobman1235 wrote:I have no facts to back that up, but I never let facts get in the way of my arguments. -
Yuppers... good faith that you need to account for at close.
as a reminder the real estate agency will build in a closing date and if you don't have your finance in order and they have another pending offer you can lose your hand money. Have your wife scrutinize this language of the offer letter and ensure you hit the dates.
and I'm glad to help in any way I can.
Henry
If you don't have 20% down don't worry since that vast majority of first time home buyers do not have it. Just make sure the PMI is "open ended" through your lending institution. If the PMI has a duration attached that would be considered a closed ended duration much like 20% and 5 years.***WAREMTAE*** -
even if you don't have 20 down, 80/20 loan is much better than PMI. Payments will be about the same, but at least some of the 20 loan payment is going towards principle. PMI is money thrown out the window. Absolutely no sense in paying PMI.
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That 20% "extra" money which is in form of interest, is also tax deductable. Not sure if PMI is because I have never been interested in paying it. I think someone already pointed out that any amount you pay for points is also tax deductable.
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if you pay 20% down, you don't have to pay pmi. agreed. waste of hard-earned bank.
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http://polkarmy.com/forums/index.phpbobman1235 wrote:I have no facts to back that up, but I never let facts get in the way of my arguments.
