First time Home-Buyers! Help!!!

24

Comments

  • PhantomOG
    PhantomOG Posts: 2,409
    edited August 2006
    BIZILL wrote:
    if you pay 20% down, you don't have to pay pmi. agreed. waste of hard-earned bank.

    even if you don't have 20% down, getting 80/20 loans prevents PMI payments as well. This works in Texas anyways, I guess other states might have different rules.
  • steveinaz
    steveinaz Posts: 19,538
    edited August 2006
    First of all RELAX. Buying a home is a very safe proposition, and 99% of the time a good one.
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  • HBombToo
    HBombToo Posts: 5,256
    edited August 2006
    Sami wrote:
    80/20 loan, and it's better option.

    Earnest money.

    Unfortunatly many first time buyers do not have the established credit line for this avenue and are compelled into a pmi. I'm not an advocate of it either but it is what it is...

    Earnest money ehh. Learn something new everyday which is what makes life so great.

    h
    ***WAREMTAE***
  • zombie boy 2000
    zombie boy 2000 Posts: 6,641
    edited August 2006
    The wife qualifies for 80/20... the wife and I together, however....
    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
    zombie boy 2000 Posts: 6,641
    edited August 2006
    btw thanks, thanks, and more thanks to Henry, Sami, Bizill and Phantom for keeping up with this thread. All of this info (though at times overwhelming) is nonetheless, invaluable.
    Jason
    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
  • PhantomOG
    PhantomOG Posts: 2,409
    edited August 2006
    The wife qualifies for 80/20... the wife and I together, however....

    does it matter? I had good credit but my wife doesn't. I applied for the mortgage just using my name, however the mortgage has both our names since we are married.

    I'm not 100% sure, but I think applying with both for us would have been worse because of her lower credit rating.
  • PhantomOG
    PhantomOG Posts: 2,409
    edited August 2006
  • zombie boy 2000
    zombie boy 2000 Posts: 6,641
    edited August 2006
    Well this just opens up a can of worms.... I was operating under the premise that combined income would be more of a positive factor, so we've been applying with this in mind. One of our possible lenders alluded to having a sole applicant (the wife), but it certainly wasn't pushed. I wonder why.....
    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
  • HBombToo
    HBombToo Posts: 5,256
    edited August 2006
    PhantomOG wrote:
    does it matter? I had good credit but my wife doesn't. I applied for the mortgage just using my name, however the mortgage has both our names since we are married.

    My wife stays at home and when we purchased our house the note had to have both of us on it and I even "think" the credit rating was also done that way... I don't know if there is any way.

    Jason it sounds like you and the wife are already prequalified so you are well on your way. As Steve pointed out, make sure you have fun with this because there really is only an up side to the purchase of a home.

    Henry
    ***WAREMTAE***
  • BIZILL
    BIZILL Posts: 5,432
    edited August 2006
    real estate is all about 'location, location, location'. friggin' mortgages are all about 'credit, credit, credit'.

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    bobman1235 wrote:
    I have no facts to back that up, but I never let facts get in the way of my arguments.
  • zombie boy 2000
    zombie boy 2000 Posts: 6,641
    edited August 2006
    PhantomOG wrote:
    check out www.zillow.com for kicks

    "no homes found in the area" but really really cool stuff:D

    I'll come back to it...
    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
  • PhantomOG
    PhantomOG Posts: 2,409
    edited August 2006
    I guess it would vary depeding on how good or bad each person's credit is and how much income difference there is. In my case I make considerably more than my wife does so it was no question for us. From what I've read, lenders will almost always allow you to take out loans for way more than your income level would probably cover, but higher credit ratings will help with interest rates. If the loan broker had a relative idea of each of your credit ratings and income level, I'm sure they could offer the best advice on whether joint on single applications would be better.
  • zombie boy 2000
    zombie boy 2000 Posts: 6,641
    edited August 2006
    Phantom -- what you read smacks of truth. Our lenders have generally tried to "pre-approve" us (and would inevitably "pre-qualify" us) for outrageous loans that we would never be able to begin paying back in a timely manner. I'm talking double what I know we can afford. And they know as well, since they are privy to all of our financial records, comings, goings, in's and outs...
    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
  • BIZILL
    BIZILL Posts: 5,432
    edited August 2006
    i always preach that in this country, it's better to have a good credit standing over an ability to pay off your loans. this obviously pertains to obtaining the best interest rates.

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    bobman1235 wrote:
    I have no facts to back that up, but I never let facts get in the way of my arguments.
  • schwarcw
    schwarcw Posts: 7,338
    edited August 2006
    Whatever you do, PMI or no PMI stay away from ARM's (Adjustable Rate Mortgages). Maybe you are already aware of the dangers of these type of loans. But I thought that I'd state it anyways.

    If you in a buyer's market, be a little hard sell. Don't be too committed. Don't be afraid to continue to ask for a lower price, or throw in appliances, new carpeting, etc.

    Make sure you get a very good home inspection, use the inspection report to have the buyer make repairs or reduce the price. Don't be afraid to react to the inspector's report as a "deal breaker" to the seller. All sales agreements should be written such that they can be broken pending an inspection report. These home inspection guys will always find something wrong. If you act as if it's a deal breaker, the seller amy be over accomodating in a buyer's market. Especially, if they HAVE to sell. Giving you a price cut may be a lot less costly than relisting the home and sitting on it for another six months or a year.
    Carl

  • BIZILL
    BIZILL Posts: 5,432
    edited August 2006
    schwarcw hit the nail directly on the head! great post. i utilized all of what was referred to when i got my place.

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    bobman1235 wrote:
    I have no facts to back that up, but I never let facts get in the way of my arguments.
  • Skynut
    Skynut Posts: 2,967
    edited August 2006
    Don't get too excited about any home.
    Some will seem perfect and then another perfect home may come along.
    If you do not fall in love with a house it will be easier to negotiate.
    If you do fall in love with a house do not let the seller know.
    Skynut
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  • BIZILL
    BIZILL Posts: 5,432
    edited August 2006
    but don't over-do it. i've lost two houses i loved by playin' hardball.

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    bobman1235 wrote:
    I have no facts to back that up, but I never let facts get in the way of my arguments.
  • Skynut
    Skynut Posts: 2,967
    edited August 2006
    It hurts to loose one you like playing hardass.
    Skynut
    SOPA® Founder
    The system Almost there
    DVD Onkyo DV-SP802
    Sunfire Theater Grand II
    Sherbourn 7/2100
    Panamax 5510 power conditioner (for electronics)
    2 PSAudio UPC-200 power conditioners (for amps)
    Front L/R RT3000p (Bi-Wired)
    Center CS1000p (Bi-Wired) (under the television)
    Center RT2000p's (Bi-Wired) (on each side of the television)
    Sur FX1000
    SVS ultra plus 2

    www.ShadetreesMachineShop.com
    Thanks for looking
  • Sami
    Sami Posts: 4,634
    edited August 2006
    schwarcw wrote:
    Whatever you do, PMI or no PMI stay away from ARM's (Adjustable Rate Mortgages).
    Unless of course you know you will sell the house within the 5 years (typical ARM loan), then it might be a good deal if you can get those at lower rate. Not sure how it is now but 2 years ago there was a 0.5% difference between 30y fixed and 5y ARM. If you plan to live there less than 5 years or just a few years more, take the lower rate but pay it as it was at the higher, you'll have more equity when you are ready to sell.
  • Sami
    Sami Posts: 4,634
    edited August 2006
    This is the house I should be closing at the end of the month: http://www.ebby.com/details/275148.html

    Location, location, location. Perfect for me and still within a reasonable price. Backyard is a bit small but I can live with that, especially since the den is 17x12 which gives me a decent HT "room" although it is a bit too open.
  • BIZILL
    BIZILL Posts: 5,432
    edited August 2006
    ****, in tucson arizona that house would list for $700,000-1 million, depending on location!

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    bobman1235 wrote:
    I have no facts to back that up, but I never let facts get in the way of my arguments.
  • Sami
    Sami Posts: 4,634
    edited August 2006
    BIZILL wrote:
    ****, in tucson arizona that house would list for $700,000-1 million, depending on location!
    :) One of the reason why I am staying in Dallas. Not that I like the city that much but I find it to be quite affordable to live in.

    All the people I know in San Diego are drooling over our house prices... ;)
  • HBombToo
    HBombToo Posts: 5,256
    edited August 2006
    Good luck Sami and that is a great looking Casa!
    ***WAREMTAE***
  • zombie boy 2000
    zombie boy 2000 Posts: 6,641
    edited August 2006
    Beautiful home Sami!!! Make sure the yard stays that green:)
    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
  • PhantomOG
    PhantomOG Posts: 2,409
    edited August 2006
    Sami wrote:
    :) One of the reason why I am staying in Dallas. Not that I like the city that much but I find it to be quite affordable to live in.

    All the people I know in San Diego are drooling over our house prices... ;)

    nice house... it pisses me off that Austin is getting to be considerably more expensive to live in than anywhere else in Texas. I guess I still did way better than anything in California though :o
  • zombie boy 2000
    zombie boy 2000 Posts: 6,641
    edited August 2006
    Now it looks like we're leaning toward an 80/20 loan in the wife's name. My charge will be to take out a loan of about 5% of the purchase price to earmark for all early expenses and closing costs. That way her credit doesn't get dinged, and we qualify for an even lower interest rate.
    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
  • PolkThug
    PolkThug Posts: 7,532
    edited August 2006
    Now it looks like we're leaning toward an 80/20 loan in the wife's name. My charge will be to take out a loan of about 5% of the purchase price to earmark for all early expenses and closing costs. That way her credit doesn't get dinged, and we qualify for an even lower interest rate.

    We did ours all in my name because I had the better credit rating. I put 5% down and got 80/15 mortgages.

    The 15 part is a 10 year interest only loan, meaning the minimum payment is just the interest. If you never paid more than that, the full amount would be due in 10 years or you could finance it again. If you sell your house in less than 10 years, and your neighborhood doesn't go in the crapper, you can get buy with just paying the minimum. We pay over, just to be safe.
  • Sami
    Sami Posts: 4,634
    edited August 2006
    Now it looks like we're leaning toward an 80/20 loan in the wife's name. My charge will be to take out a loan of about 5% of the purchase price to earmark for all early expenses and closing costs. That way her credit doesn't get dinged, and we qualify for an even lower interest rate.
    Take that 5% and put it into a downpayment instead of closing costs. Have the seller pay closing costs, even if it means higher purchase price.

    If you want to make an offer for $300k, make it for $309k instead and ask $9k back for closing. Then use the 5% for downpayment. Not sure if it is enough to make the interest rate go down or not but it gives you more flexibility, even to leave you with the 5% to spend on the house for improvements, furniture etc. Make sure also that they are paying for the title costs in the contract as that's a big closing cost right there.
  • zombie boy 2000
    zombie boy 2000 Posts: 6,641
    edited August 2006
    Sami wrote:
    Take that 5% and put it into a downpayment instead of closing costs. Have the seller pay closing costs, even if it means higher purchase price.

    Actually, that's what I meant:o By "closing costs", I mean that money which will be needed up front. Looks like the seller will be handling closing costs anyway....
    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