anyone here up to snuff on home loans, first time home buyer info?

[jesusno2]

were looking at buying our first home and i,m doing research tonight about the 8000 dollar tax credit deal, and different loans avaliable. looking for some real world loan info regarding fha loans vs usda loans etc i'm meeting with a mortgage lady tues but though i should have some kinda ammo before going into battle. basically which might be better our income is not alot but very stable our credit scores squeak buy the minimum requirements but improving every month. no debit to income ratio execpt for 2 credit cards with less then 500 on them.

Edited November 22, 2009 by datzenmike

[qwik510]

were looking at buying our first home and i,m doing research tonight about the 8000 dollar tax credit deal, and different loans avaliable. looking for some real world loan info regarding fha loans vs usda loans etc i'm meeting with a mortgage lady tues but though i should have some kinda ammo before going into battle. basically which might be better our income is not alot but very stable our credit scores squeak buy the minimum requirements but improving every month. no debit to income ratio execpt for 2 credit cards with less then 500 on them.

 

I am a mortgage broker. PM me if you want more info.

[chumstone]

As a home builder remodeler since 1973 I can tell you the $8000 credit is not what you want to concentrate on, its the best value for the dollar house and garage.

I have owned 12 properties and sold 10.

The first thing is to find a person such as myself that will look at every house that you consider and find the flaws. House are money pits and I have steered many a friend and potential customer away from crappy houses.

Consider the following:

1, never trust inspectors, these people work for the realtors, not you.

2, Realtors work for themselves, not you.

3, Old houses even if remodeled require constant maintanence

4, Old houses are not earthquake resistant

5, Compare all old homes to new houses, unless you can live with the old house as it is, NO UP GRADES, PERIOD $$$$$$$$!!!

6, New houses can be crap also.

7, Never forget that you will sell the house at some point so think about reselling.

8, Do not go for your ultimate home for your first house unless you have at least $350k.

9. CC&R's, water in the crawlspace, busy streets, bad neighbors, high taxes, barking dogs, unreinforced foundations etc.... all things to consider.

10. Do not get in a hurry, Housing prices are falling, there will always be other houses for sale, realtors pressure you, $8000 government rebates, etc....

11. Go to the book store and get a book, it will tell you all you need to know.

[qwik510]

As a home builder remodeler since 1973 I can tell you the $8000 credit is not what you want to concentrate on, its the best value for the dollar house and garage.

I have owned 12 properties and sold 10.

The first thing is to find a person such as myself that will look at every house that you consider and find the flaws. House are money pits and I have steered many a friend and potential customer away from crappy houses.

Consider the following:

1, never trust inspectors, these people work for the realtors, not you.

2, Realtors work for themselves, not you.

3, Old houses even if remodeled require constant maintanence

4, Old houses are not earthquake resistant

5, Compare all old homes to new houses, unless you can live with the old house as it is, NO UP GRADES, PERIOD $$$$$$$$!!!

6, New houses can be crap also.

7, Never forget that you will sell the house at some point so think about reselling.

8, Do not go for your ultimate home for your first house unless you have at least $350k.

9. CC&R's, water in the crawlspace, busy streets, bad neighbors, high taxes, barking dogs, unreinforced foundations etc.... all things to consider.

10. Do not get in a hurry, Housing prices are falling, there will always be other houses for sale, realtors pressure you, $8000 government rebates, etc....

11. Go to the book store and get a book, it will tell you all you need to know.

 

All good advice. In our area, prices are finally on the rise, not falling. Better to buy when the prices start to rise then trying to time the bottom. Most areas have dropped a good bit so there are deal out there. Wait for the right house for you and remember, there is no such thing as "the perfect house". You will not get it all but you can get most of what you are looking for. Also, if you have kids that are or will soon be school aged, buy in the best school district you can afford. Check out the school system website and look at test scores.

[jesusno2]

well see heres the deal, homes in my area hover just under 200,000 for nice places some are brand new at that price right now. the couple houses ive looked at one is priced at 138,900 the other is 169,900 both bank owend forcloser deals. the 169 house is one 1 acre the a 30x50 or 60 shop but as a manufactered home. the other is just your typical ranch style house. nothing super special heres a the links for the adds ive looked at both and they both need work. i honesley have no real desisre to move once i do buy a house especially if i can get what i want the first time around. i'm cool with that, as long as i dont over extend myself.

 

manufactered house

http://www.realestate.com/OR/Dallas/22094796-1187-Oakdale-Dallas-OR-97338-612794-home-for-sale.aspx

 

ranch home

http://www.realestate.com/OR/Dallas/26602738-254-NW-LALACK-Pl-Dallas-OR-97338-619361-home-for-sale.aspx

[67411sss]

Do you have 20% deposit? if so, good. You won't have to pay mortgage insurance (can't write that off in your taxes) We just refinanced, self employed,average credit score, had to go FHA (if you don't have to do FHA then don't about $8000- $10000 in "fees" We got a mortgage fixed for 30 years @ 5.25 which costs use about $1800 a month(includes property taxes, about $1600 a year) on a $250,000 loan. Don't know what is floating around these days but we are happy with that. I would recommend getting a for sale by owner type deal as long as you do your homework (have someone you trust look at the house (even though the bank makes you get a home inspection, always trust a friend to give you the hard answers) go to the county recorder and look up everything you can on the property(you can photocopy anything the recorder has) make sure that nothing funky is going on with the land( i have 2 easements on my property 1 for the irrigation and one for electric) nothing alarming there, just good to know. As long as you find out as much as you can about the property and have the house inspected thoroughly (electrical panel- how old, septic tank(if not on city sewage) how old? when was it last pumped? hot water cylinder- condition? Paint and cosmetic stuff is not that important but stuff like dry rot, sinking or leaning (bad,bad,bad) water damage, replacing old electrical panels, replacing old cast iron septic tanks, all this stuff can get expensive and really ruin the excitement of buying your first home.

[chumstone]

Looked at the ads and the mobile seems like the best deal. Shops that big are really good assets. No problem selling later to someone from Portland or California who has lots of toys to store. The mobile does not looked trashed, make sure the roof is good, check the crawlspace, the siding for any signs of dry rot. also the sepeic, remember 15 years in the rain....... If you plan on staying, this would be the place, you could always get a new mobile or build a convetional house later on. If you don't the next potential owner will be looking at it from this prospect. In my area that property would sell for

$40k more, quickly.

 

I would stay away from the cosmetic fixer. A new kitchen would cost around $7k to $10k just for materials. Probably has galvanized water piping, needs a new bath also, probably funky utilities. All the things that I pointed in my first post apply to that house. Its like a rusty 510, can be fixed but you never will keep up with the maintence.

 

One thing that I want to point out is that lots of men like home remodeling projects and just cannot keep away from the Home Depot. If your that kind, you will move from one house to the next, spending all your time and money on your home. Your wife will love you, maybe. If you live with unfinished projects, divorce will follow.

 

Keep us posted.

Edited November 23, 2009 by chumstone

[slodat]

Luke - I'd go for the manufactured home, for points noted above.

[purple]

We shopped all year to get the house we are in escrow with. We were even in escrow a while back with our supposed dream house. We looked at a few manufactured homes, but if they are 30+ years old they don't qualify for a loan. That is something to think about, because at some point you want to sell it.

[qwik510]

Do you have 20% deposit? if so, good. You won't have to pay mortgage insurance (can't write that off in your taxes) We just refinanced, self employed,average credit score, had to go FHA (if you don't have to do FHA then don't about $8000- $10000 in "fees" .

 

1. PMI = Private Mortgage Insurance is now tax deductible.

 

2. With average credit scores, and if you don't have at least 10% for a down payment, FHA or USDA are the only places to get a mortgage unless you get owner financing.

 

3. It is true that without 20% down you will need to pay mortgage insurance. But it is not so bad now that is it deductible. FHA will automatically remove it once you reach 22% equity.

 

4. FHA fees are not always $8000-$10000. I don't know who told you this but they were probably building in some extra profit for them.

 

5. FHA has an upfront Mortgage Insurance fee of 1.75 of the loan amount but this can be financed on top of the loan. In our area, the average closing costs runs about 3% of the purchase price so on a $200000 home that will run about $6000. You can ask the seller to pay the closing costs too. FHA will allow up to 6% paid on your behalf by the seller.

[BEEBANI]

I hooked him up with my mortgage broker, she's a great lady who treats you like family. She also doesn't bullshit you and has always taken great care of me.

 

I also told him the manufactured home was only good because of the land, the house ain't worth shit.

 

You just need to get outta dallasss, the houses are better over by me, and better prices too. You just have to put up with more mexicans.:lol:

[fastdadd]

. You just have to put up with more mexicans.:lol:

 

 

what he is not one:lol:

[BEEBANI]

what he is not one:lol:

 

He's gonna hit you for that, uhh he's an injun.;)

[Rickie]

As a first time home buyer, your biggest challenge is to balance livability and profitability in a way that makes sense for you and your family. To save time and trouble, first time buyers should have a practical budget in mind before they shop for homes. FHA home loans are purposely useful to borrowers who cannot make a big down payment, who want low monthly payments, whose credit is not great and qualifying for a conventional loan is difficult for them.

[jesusno2]

Well we made an offer on the ranch style house to the bank tonight they dropped the price to 132 we offered 120 with the bank to pay closing costs we'll see what happens the house needs some work but nothing that can't wait while we recover after moving. We tried for the other place but fha won't loan on it due to the well being shit and the septic was old and really needed updated. This place is cheap and I stll would like to have extra money left over for my datsun! Lol

[purple]

Another house came up for sale here that is tempting. Needs lots of work as it was in the middle of a renovation. 32K for 4 bedroom and 1800sf.

[Jason]

Jeeze, house are cheap out your guys ways!

[purple]

We are about to sign for our house, 179,900. About 4 years ago at the height of the market it sold for 330,000. I'm coming out good with this market crash.

[Jason]

Up here, you can't get a 1 bedroom condo for $179K, that sounds like a good deal!

[purple]

This is 1700sf, 2 bed 2 1/2 bath, 2.25 acre and an amazing view. The 2 car garage is long and has the 1/2 bath. Although it is a well and septic, and a few miles out of town.