Bender1
Banned
Yup - the amount we got approved for was laughably large, and that was during the crisis.
8
Bad things about owning a house.
- Thread starter rx4brdm
- Start date
Yup - the amount we got approved for was laughably large, and that was during the crisis.
BlueDubbinTDI
Go Kart Champion
Well I seriously doubt I'll get approved for "too" much but Ive been told that the housing values are going back up and that if I'm serious about home ownership now is the time. I'm really just looking at about $130,000 starter home until my fiance and I can get some careers under our belts. How did you all go about getting your first home?
AZN_C300
Ready to race!
Definitely keep a reserve fund cause shit will break.
I just had the pleasure of purchasing my first house a year ago, but have been saving for a while trying to time the market as much as I could. 20% down 30 year fixed 3.325% no points.
Also, if you plan on doing remodeling, although your budget may not allow for it, best time to do remodeling is before you move in your house. Have a plan, budget, contingency budget, and start searching for good reliable contractors. Small jobs you probably don't need someone licensed as I'll pay more attention to your portfolio, but for electrical, plumbing, structural, etc, I'm not cheaping out.
Remember, starter homes typically are cheaper older homes, so you'll need a larger reserve fund as things will break more often.
A good site for searching for homes when I was looking was ziprealty.com. Lots of selection parameter options. When dealing with an agent, remember to negotiate with the agent for a percentage of their commission. Generally they'll give you 1-2% of their 5% commission which helps with closing, but they won't offer this unless you ask and lots of first time buyers aren't aware of this.
I just had the pleasure of purchasing my first house a year ago, but have been saving for a while trying to time the market as much as I could. 20% down 30 year fixed 3.325% no points.
Also, if you plan on doing remodeling, although your budget may not allow for it, best time to do remodeling is before you move in your house. Have a plan, budget, contingency budget, and start searching for good reliable contractors. Small jobs you probably don't need someone licensed as I'll pay more attention to your portfolio, but for electrical, plumbing, structural, etc, I'm not cheaping out.
Remember, starter homes typically are cheaper older homes, so you'll need a larger reserve fund as things will break more often.
A good site for searching for homes when I was looking was ziprealty.com. Lots of selection parameter options. When dealing with an agent, remember to negotiate with the agent for a percentage of their commission. Generally they'll give you 1-2% of their 5% commission which helps with closing, but they won't offer this unless you ask and lots of first time buyers aren't aware of this.
andy_uranium
Go Kart Champion
Bought our house 13 years ago. Was mortgage free after 8 years, and doing 70k in renovations. Pay weekly if you can, it helps in the long run. In Canada we can't write off mortgage interest like you can in the states, so that tends to keep real estate from over inflating in most places. Honestly the way my wife and I run our household is we pay for everything with one of our salaries, the other goes to savings /investments. That way if for whatever reason one of us can't work for a while we are still ok. I have never been a big fan of buy now pay later. If you can't afford it now, don't buy it.
As for the mold, cut out the drywall, say a 2 foot high strip, at the bottom look at the back side, if it has black spots on it that is mold. I'd personally never put regular drywall in any place where there is moisture, basements, bathrooms, kitchens. When we renovated we put paperless glass reinforced drywall in all those areas, cost a few hundred more at the time, it was well worth it in my opinion. The drywall can be saoked in water and will not be damaged. It is based on the yellow gypsum sheathing you see on the exterior of a lot of buildings theses days.
Edit... Just noted my post count.....Gunna party like it's nineteen ninety nine!
As for the mold, cut out the drywall, say a 2 foot high strip, at the bottom look at the back side, if it has black spots on it that is mold. I'd personally never put regular drywall in any place where there is moisture, basements, bathrooms, kitchens. When we renovated we put paperless glass reinforced drywall in all those areas, cost a few hundred more at the time, it was well worth it in my opinion. The drywall can be saoked in water and will not be damaged. It is based on the yellow gypsum sheathing you see on the exterior of a lot of buildings theses days.
Edit... Just noted my post count.....Gunna party like it's nineteen ninety nine!
BlueDubbinTDI
Go Kart Champion
Yeah the place were lookin at was built in the mid 80s so the exterior could use a coat of paint but the interior was recently remodeled with tile and granite everywhere. It's nicer inside than my parents house is...and they're stupid good with money. I just hope everything falls into place. I should get my approved amount sometime today. First time home buyers credits after that Ide imagine
blankwavercade
Ready to race!
I just started the process of getting a mortgage today actually! I'm only 23, don't scare me with this shit
Don't worry too much. I am 23 and In 3 hours i close on my house. Some things get fucked up in the process if there are two real estate agents. I'll post up what happened to me after closing.
Also take gunkatas advice, I bought a house for 54% of what i was approved for. Best decision I could have made.
LightningRhod
Go Kart Champion
If you're looking to get your mold problem fixed caused by your broken water heater, look into filing a claim with your home insurance. I had a co-worker who had a similar problem (some sort of water leak that ruined the kitchen) and he put in a claim with home insurance. Ended up re-modeling the kitchen with it being paid for by his home insurance. He was expecting his home insurance premium to rise (like car insurance) after the claim went through, but it did not. Saved him a bunch of money out of pocket to repair and re-model his kitchen.
Contact your home insurance agent and find out. It's worth a shot.
Contact your home insurance agent and find out. It's worth a shot.
NoSpark
Go Kart Champion
I don't know if I agree with the 60% of bank approval.
As long as you are comfortable with the total monthly payment (mortgage, interest, insurance, PMI, etc), that's what I view as important. Obviously you will need to factor in home improvements if necessary as well.
I'll be closing in about a month, and my house is close to what I was approved for. Granted, it's an 8 year old house, and I don't really have any renovations to worry about (except a water heater replacement relatively soon).
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As long as you are comfortable with the total monthly payment (mortgage, interest, insurance, PMI, etc), that's what I view as important. Obviously you will need to factor in home improvements if necessary as well.
I'll be closing in about a month, and my house is close to what I was approved for. Granted, it's an 8 year old house, and I don't really have any renovations to worry about (except a water heater replacement relatively soon).
sent from mobile
danielj1
Go Kart Champion
For me it would depend on the home size, location, condition etc.
DUBPL8
Go Kart Champion
Nicely kept historic neighborhood (think early 20th century), been fancying those a lot lately
danielj1
Go Kart Champion
There is a lot of beauty in historic homes and neighborhoods that can't be replicated by new builds. Like any home purchase, I'd make sure to have a very thorough home inspection.
DUBPL8
Go Kart Champion
I would love to own a home like this for sure, if I had the money
The strong sense of community that spans back decades is one aspect that can never be replicated.
colslaw87
Ready to race!
If your lucky enough to have a fairly modern home built within an increasing market value ... home ownership is wonderful.
But then again, if you grew up in a 90 year old house with multiple refinances and a laundry list of to-dos, it can become extremely overwhelming. My parents moved out of our family house last year and have never looked back.
Apartment living does have it's downsides, but the benefits are certainly nice.
But then again, if you grew up in a 90 year old house with multiple refinances and a laundry list of to-dos, it can become extremely overwhelming. My parents moved out of our family house last year and have never looked back.
- No gutters to clean out
- No backyard to flood during heavy rain which ends up pouring into the basement, which led to long nights with the shopvac.
- No grass to mow.
- No major appliances to replace and pay out of pocket for.
- No roof to repair and replace.
Apartment living does have it's downsides, but the benefits are certainly nice.
- Appliances break - Call Maintenance
- Shower clogs - Call Maintenance
- Garbage disposal jambed - Call Maintenance
- Light bulb out - Call Maintenance
- Heaters not working - Call Maintenance
danielj1
Go Kart Champion
Gosh I love home repair and improvement. Just like I enjoy tinkering with cars. But I understand not everyone is good with their hands.
Even if your home value doesn't really increase, you still enjoy the benefit of not having a rent increase every year. Insecurity of having the apartment sell out and convert to condos and eventually, you'll be mortgage free! I look forward to retiring without having to pay a mortgage or rent.
Even if your home value doesn't really increase, you still enjoy the benefit of not having a rent increase every year. Insecurity of having the apartment sell out and convert to condos and eventually, you'll be mortgage free! I look forward to retiring without having to pay a mortgage or rent.