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warning posted:Is it normal to be 17 hours from closing and the lender keeps telling me they can't get me the HUD form yet so I know the closing amount due? Sadly, not quite normal but not really abnormal either. I just had a closing where we didn't get closing documents at the title company until AFTER the closing was supposed to have happened. My buyers didn't know what they were supposed to bring to closing cash-wise until we finished closing. All this on top of the fact that it was the lender who offered that they could close that day, which was a week earlier than the closing date I'd requested when I put the offer together. It happens more than it should. Banks can drag their feet in underwriting and underwriters are being harder on people nowadays, so I'm not exactly surprised. Has the title company prepared the HUD-1, and if so have they sent it to the lender for approval? The lender has to approve it and then send it back with a clear to close or CTC, and then that's the copy they send to the buyers and sellers. If the loan is still in underwriting (which it very well may be), then there would be no HUD-1 yet. If you have a realtor you really need to get that closing extended if it doesn't look like the lender will have docs to the title company in time.
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Jun 28, 2013 01:25
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Does anyone know of a service/website where you upload a picture of your house and it will make changes to the photo to show how various sidings/colors/etc would look?
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Jun 28, 2013 05:48
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warning posted:Is it normal to be 17 hours from closing and the lender keeps telling me they can't get me the HUD form yet so I know the closing amount due? Yes. I had to call my lender and be EXTREMELY FIRM to get a closing amount at NOON ON THE DAY OF CLOSING. We were scheduled to close at 3. Be a giant pain in the rear end. Call them and tell them you will be calling every hour until you see a HUD form.
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Jun 28, 2013 13:44
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Does anyone know of an easy way to compare multiple rates without having your credit score checked a ton of times? Ideally, I'd like to put in the parameters or what kind of down payment and options I want, then I can see compared rates. I remember there being some ads on tv a few years back proclaiming that this was possible, but I can't find a site that I feel comfortable with. Any suggestions for a good one, or is it best to just reach out directly to individual banks?
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Jun 28, 2013 15:00
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Our seller has requested they lease the house from us 8 additional days past closing (we had previously agreed for 3, so now it's 11) because of when they can move into their newer place. I don't want to be a dick and make them move into a hotel/storage for 8 days, so I want to work with them on this. But their current request gives them through a Sunday to move, so we would have to begin moving on a Monday. That would be a pain in the rear end because of M-F work, plus we would be unable to get any friends/family to come help move until the following Saturday. I am thinking about giving them the options of either only 7 days (they get Saturday, we get Sunday), or loop around to the next week for 13 days (they get through Friday, we start Saturday). Does this sound like a fair offer? As for price per day of leasing to the previous owner, what's the norm? I was thinking just taking the per day cost of our rent, plus the per day of homeowners insurance that we will have already started paying on the house. That would be $49 per day. Our current rent is crazy overpriced right now (for my area) because they are pretty much taking advantage of us on the month-to-month charge. Our last year-long lease was $998/mo, now it's $1370/month-to-month. Ridiculous. But I digress. Does that sound like a fair price and time period? Damn Bananas fucked around with this message at 15:05 on Jun 28, 2013 |
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Jun 28, 2013 15:01
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drat Bananas posted:As for price per day of leasing to the previous owner, what's the norm? I was thinking just taking the per day cost of our rent, plus the per day of homeowners insurance that we will have already started paying on the house. That would be $49 per day. Our current rent is crazy overpriced right now (for my area) because they are pretty much taking advantage of us on the month-to-month charge. Our last year-long lease was $998/mo, now it's $1370/month-to-month. Ridiculous. But I digress. Does that sound like a fair price and time period? Charge way more than just base cost. You are having to take on extra risk and burden for doing this and you should get justly compensated.
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Jun 28, 2013 15:08
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Acrolos posted:Does anyone know of an easy way to compare multiple rates without having your credit score checked a ton of times? Ideally, I'd like to put in the parameters or what kind of down payment and options I want, then I can see compared rates. Go to Costco.com and click on their Costco Services. From there, follow the mortgage link and enter your info. If you're not a Costco member, just say you don't have your membership number. You can compare many different loan types and any kind of payment length etc. I haven't gotten a loan through any of those banks but the reviews on the Internet are all quite positive about it. Of course, the numbers will probably vary slightly if you find one and decide to go through with it, but with Costco services, those banks limits their lender fees to something like $600.
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Jun 28, 2013 15:28
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Chin Strap posted:Charge way more than just base cost. You are having to take on extra risk and burden for doing this and you should get justly compensated. Seriously, they couldn't even get the cheapest motel for $49. Charge $125 a day and be done with it.
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Jun 28, 2013 15:29
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Chin Strap posted:Charge way more than just base cost. You are having to take on extra risk and burden for doing this and you should get justly compensated. johnny sack posted:Seriously, they couldn't even get the cheapest motel for $49. Charge $125 a day and be done with it. Just curious, but what risks? We are not particularly burdened, as long as we get at least part of a weekend like the original agreement had. In fact we could be less burdened - unless our apartment can find someone to lease our unit sooner, we are on the hook for rent until August 20th. Hooray for 60-day move-out notice... And not only are there several cheap motels/hotels around here less than even $40 per night, what does the price of their alternative option have anything to do with me? Not to say $125 isn't a good choice, but I'm curious where that came from.
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Jun 28, 2013 16:11
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drat Bananas posted:Just curious, but what risks? We are not particularly burdened, as long as we get at least part of a weekend like the original agreement had. In fact we could be less burdened - unless our apartment can find someone to lease our unit sooner, we are on the hook for rent until August 20th. Hooray for 60-day move-out notice... The risk is that they trash the place, or injure themselves on what is technically your property and sue you. And you can't compare renting a cheap motel to renting a house. $125 a day is on the low end of where I would even start.
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Jun 28, 2013 16:16
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DJCobol posted:The risk is that they trash the place, or injure themselves on what is technically your property and sue you. It's a good thing that my homeowners insurance covers the injury part, and somehow I don't think $125 will cover any medical bills or legal costs anyway. It's just a strange number, is all, and I was curious where it came from. The comparable house listed for rent down the street is actually only asking for the equivalent rent of $41/day, and the most expensive in this zip code is only $53/day. Just sayin'. I'm not trying to fight for the $49 price at all, just trying to understand what thoughts go into it.  I left a message with my realtor to discuss it, hopefully she'll call back soon.
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Jun 28, 2013 16:31
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drat Bananas posted:It's a good thing that my homeowners insurance covers the injury part, and somehow I don't think $125 will cover any medical bills or legal costs anyway. It's just a strange number, is all, and I was curious where it came from. The comparable house listed for rent down the street is actually only asking for the equivalent rent of $41/day, and the most expensive in this zip code is only $53/day. Just sayin'. Are you sure your insurance will cover you in the situation that you are renting out the house?
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Jun 28, 2013 16:37
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johnny sack posted:Does anyone know of a service/website where you upload a picture of your house and it will make changes to the photo to show how various sidings/colors/etc would look? I can help you out with this, my girlfriend and I do Photoshops and 3D Renderings of interiors/exteriors. The big issue is I don't have an eye for design or decoration, and I don't have a deep knowledge of building and remodeling, so all we could do is implement ideas from source photos you provide. Email me whatever photos/refs and addition ideas you have, and whether you want Photoshop of the sources or a 3d rendering. I can get you a quick quote. Also let me know how detailed you want it. Fast masking, color alteration and texture overlays can give a good (but dirty) reference and not cost an arm and a leg. [username] at gmail if interested
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Jun 28, 2013 16:40
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drat Bananas posted:It's a good thing that my homeowners insurance covers the injury part, and somehow I don't think $125 will cover any medical bills or legal costs anyway. It's just a strange number, is all, and I was curious where it came from. The comparable house listed for rent down the street is actually only asking for the equivalent rent of $41/day, and the most expensive in this zip code is only $53/day. Just sayin'. Then let them move their stuff into the house down the street and pay 50 bucks a day there. Also, those houses aren't doing short term rentals, they are probably signing a contract. You always pay more for short term, just look at your month to month increase. edit. I suggested $125 a day because then if they did not like it you can barter with them down to say $110 per. I feel even 110 is probably a bit too low, but a price they'd agree to if you initially say 125. johnny sack fucked around with this message at 16:48 on Jun 28, 2013 |
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Jun 28, 2013 16:42
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drat Bananas posted:It's a good thing that my homeowners insurance covers the injury part, and somehow I don't think $125 will cover any medical bills or legal costs anyway. It's just a strange number, is all, and I was curious where it came from. The comparable house listed for rent down the street is actually only asking for the equivalent rent of $41/day, and the most expensive in this zip code is only $53/day. Just sayin'. Frankly, I wouldn't let them stay for less than $250/day and I'd check with my insurance agent about getting a short-term umbrella policy to cover any unforeseeables.
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Jun 28, 2013 16:46
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When we bought our last house, we had in the contract that it was $500/day for every full or portion of a day past closing. If they really don't have a choice, they will do it and at least at that point you get some reasonable compensation for delaying your move and any risk you take on (I would seriously double/triple check with your insurance to make sure you are covered in this scenario). It also acts as a pretty big motivator for them to get the hell out on the day they agreed to. edit: The sellers in my case still left all their poo poo in a moving truck overnight because they hadn't planned it ahead. I'm really glad we went that route. Fancy_Lad fucked around with this message at 16:50 on Jun 28, 2013 |
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Jun 28, 2013 16:47
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10-8 posted:Jealous Cow is right, your homeowners insurance most likely doesn't cover renters who trash your place and then break their foot. So no, you aren't covered. That's why most people recommend against letting sellers stay in the home past the closing date. Pretty much this. I'd probably charge a significant amount and also purchase a short term landlord's policy just to be safe.
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Jun 28, 2013 16:48
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After spending the better part of yesterday on the phone with three different banks and brokers, we finally got our mortgage locked in at 4.15% for a 30 year fixed with no origination fee. It's a far cry from the 3.25% quotes we were getting back in January, but I'm chalking it up as a win. Key lesson learned from this exercise: If you're comparison shopping between two people who really want your business, once you decide on one, make sure to call the other to give them the bad news. If they're really desperate, they'll pull out all the stops to get you. In particular, one broker and one bank were really trying to earn our business. They both offered 4.375%, but the bank had an origination fee and the broker didn't. I told the broker we were good to go, but when I called the bank to give them the bad news the mortgage officer asked me "What would it take to earn your business?" I said something to the effect of "Well, I've already started the ball rolling with the broker, but I suppose if you could do something crazy like get me 4% with no origination fee, I'd apologize to him and switch." Two hours later she countered with 4.15% and no origination, as long as I agreed to open a checking account with her bank and have my payments autodrafted. I felt bad calling the broker again to put the kibosh on things (When I told him the bank's offer, his advice was "Get the rate in writing and lock it right away"), but the extra $70 in my pocket every month for 30 years will help ease the guilt a little bit.
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Jun 28, 2013 16:48
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10-8 posted:Jealous Cow is right, your homeowners insurance most likely doesn't cover renters who trash your place and then break their foot. So no, you aren't covered. That's why most people recommend against letting sellers stay in the home past the closing date. Good, I'm glad to hear I was way too low with NY estimate. Agreed you should check with your insurer first before doing ANYTHING.
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Jun 28, 2013 16:50
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Be sure to sign up for your homestead exemptions after closing. I just got a notice in the mail that mine is going through beginning next year, and it will be cutting my tax bill in half. My county allows the request to be made through the tax commissioner's website with just a few clicks, your method may be different. Just be sure to get it done, as soon as possible.
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Jun 28, 2013 17:01
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Warpaint posted:Be sure to sign up for your homestead exemptions after closing. I just got a notice in the mail that mine is going through beginning next year, and it will be cutting my tax bill in half. In NY, this is called the STAR Program.
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Jun 28, 2013 17:48
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johnny sack posted:Does anyone know of a service/website where you upload a picture of your house and it will make changes to the photo to show how various sidings/colors/etc would look? Sherwin Williams has a half-decent system for trying different colors both inside and out; I'd imagine some of the other paint companies do the same. https://www.sherwin-williams.com/visualizer/
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Jun 28, 2013 17:54
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moana posted:http://forums.somethingawful.com/showthread.php?threadid=3504190 - A goon-run free service for finding good real estate agents Is there an active thread for this? The link in the OP is archived.
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Jun 28, 2013 19:00
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Warpaint posted:Be sure to sign up for your homestead exemptions after closing. I just got a notice in the mail that mine is going through beginning next year, and it will be cutting my tax bill in half. I had to send in a form with a copy of my DL showing the property address AND a vehicle registration receipt showing the property address. Who loving keeps the receipt for that once you put the sticker on? I had to get another one from the county.
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Jun 28, 2013 19:22
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Endestroy posted:Sherwin Williams has a half-decent system for trying different colors both inside and out; I'd imagine some of the other paint companies do the same. Thanks, this is a good place to get rough ideas. BossRighteous posted:I can help you out with this, my girlfriend and I do Photoshops and 3D Renderings of interiors/exteriors. The big issue is I don't have an eye for design or decoration, and I don't have a deep knowledge of building and remodeling, so all we could do is implement ideas from source photos you provide. I'll probably send you some pics later tonight or this weekend.
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Jun 28, 2013 20:21
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johnny sack posted:Go to Costco.com and click on their Costco Services. From there, follow the mortgage link and enter your info. If you're not a Costco member, just say you don't have your membership number. You can compare many different loan types and any kind of payment length etc. I haven't gotten a loan through any of those banks but the reviews on the Internet are all quite positive about it. Thanks, I'll give it a shot! I am already pre-approved through BOA and Wells-Fargo (I work for one and my current mortgage is with the other), but I'm thinking that I could find better rates elsewhere. Hopefully I can manage to talk them down a little bit, or I can find a better option. Thanks to some recent discussions, I think that negotiation may not be as impossible as I originally thought. On to another subject, we appear to have an offer coming on our home. If it's at a price that we are comfortable with (after negotiations), we plan on making an offer as soon as possible to one of the two houses we've been watching and hoping would still be available.
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Jun 28, 2013 22:05
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To anyone curious about what happened with my sellers wanting to lease the house 11 days after closing, we ended up just changing the closing date. No harm no foul no risk everybody wins karma stays happy.
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Jun 28, 2013 23:11
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Acrolos posted:Does anyone know of an easy way to compare multiple rates without having your credit score checked a ton of times? Ideally, I'd like to put in the parameters or what kind of down payment and options I want, then I can see compared rates. A broker? I'm Canadian and it could be different in the US, but my broker works with something like 25 lenders, and pulled my credit once. drat Bananas posted:To anyone curious about what happened with my sellers wanting to lease the house 11 days after closing, we ended up just changing the closing date. No harm no foul no risk everybody wins karma stays happy. drat, I would love to move my closing date up a week. I wonder if it's worth the hassle. The seller told me yesterday that she's moving three weeks early.
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Jun 29, 2013 00:24
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Trillian posted:A broker? I'm Canadian and it could be different in the US, but my broker works with something like 25 lenders, and pulled my credit once. Check if the lender will be ready. Can't close until the lender is ready, docs are sent, loan is out of underwriting, etc.
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Jun 29, 2013 02:02
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life is killing me posted:loan is out of underwriting Many of our customers don't seem to let this stop them 
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Jun 29, 2013 04:13
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Update: So after not being given a final amount after several phone calls to the lender and my attorney, I was given a "bring this for worst case" amount certified to my attorneys trust account. This ended up being over 2000 dollars more then I needed to bring. This was about an hour and a half before closing. The plan was to have my attorney cut me a check for whatever was left over. I was being told over and over again by the lender and my attorney that the HUD would be ready for noon closing. I requested to delay the closing and was told the closing could not be delayed as the seller needed to close on another house that same day and obviously my money was needed for that transaction. To top off this stellar start to the day the sellers still have things in the house and are moving out when I show up for the inspection. I cannot possibly push my inspection off any further as I still need to leave time to get the check. So I have to leave the inspection with people and things still inside the house. Great. So I walk into the attorney's office at noon and am told that we have no HUD and we don't have an ETA. I give lots of credit to my loan officer who made tons of phone calls and tried everything he could but the closing department was just being slow and obviously not answering calls. Apparently they had system delays all week in document creation and all their closings from this week have been a poo poo show. Apparently having my loan past underwriting and in front of them 8 business days ago was not enough time. So finally its just shy of 2 hours sitting around waiting for the documents and the wire and we finally get word "docs are on the way". Great, should be soon then. Were patient for about an hour, no docs, no wire. At this point its not reasonable to think the sellers can close on their new house. At one point I'm asked if I was okay going through with my closing and letting the sellers sleep in the house over the weekend as they will have no place to live. I said I would have been okay with that last week if I had time to make sure my homeowners was okay with that and discuss liability and rent etc but I was in no way comfortable with letting someone live in my house on such short notice. Eventually, documents and money are ACTUALLY on the way and just in time for my attorneys other closing that day to walk in, so I have to wait for that to finish and now its 4 hours past closing time. I eventually own my house 4 and a half hours later. Do never buy? Either way, thanks to everyone who posts in this thread it has taught me a lot over the last few years. I hope my tale of a lovely closing can make other people feel better.
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Jun 29, 2013 07:24
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drat Bananas posted:I'm not trying to fight for the $49 price at all, just trying to understand what thoughts go into it.
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Jun 29, 2013 15:26
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adorai posted:I know that you resolved this without having to let them rent, but I wanted to chime in with my anecdotal experience. I am staying in my condo for a few days after I sell it, and paying fairly well (I think) for the privilege. Originally, my sale was going to close on the 5th and my purchase on the 12th (purchase got pushed back from the original by the sellers). My buyer wasn't planning to move until the 15th or so anyway, so I was going to rent through the 13th for $800 ($100/day on a $60k condo). Ultimately, the sale got pushed back to 8th, any my purchase moved forward two days to the 10th, so I am only going to have to pay $500 for 4 days (I am keeping an extra day to move). Interesting, I wonder if it varies by area or something? My realtor (who has been one for 15 years with a huge company so she's not new to this) estimated/suggested $65 without knowing my current rent/taxes/insurance. Hell, her estimate was closer than my own, because I forgot to factor in property taxes, which would have made it $60. Either way, I'm happy to have dodged inconveniencing a family who couldn't get their own sellers to line up the dates quite right.
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Jun 29, 2013 16:16
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I'm pretty excited because tomorrow I finally get to meet with a realtor and take a look at some of the houses I've been staring at online from 450 miles away. I'm prepared with a basic mortgage spreadsheet I made for the 10-12 houses I plan to look at on this 2-day trip, and I plan to take plenty of pictures and notes with my iPad and Noteability app. I'm single and my biggest worry is I will overlook something stupid and not have someone there to catch it, I keep reading those cheesy anecdotes about someone who forgot they wanted 2 bathrooms and were miserable for years (obviously I won't have that particular problem). Any advice fresh in the minds of those of you have successfully navigated this process before? My main question is where I stand in the financing process exactly. I chose a large area real estate company that has an in-house lending company because I'm self-employed and I knew approval could be tricky. I figured having the lender and the real estate agent in the same office would be helpful, at least until I can actually get an initial preapproval and GFE, then maybe shop around. He asked for my last 2 years of tax returns and I explained the nature of my business has been leaning more and more heavily on travel and pointed out the income that was local to my current area, and the income that I would have no matter where I live (as long as I'm close enough to an airport to get anywhere in the USA in a day's time). At first he said an hour, then a day, and eventually the process dragged on for a little over a week. I've done a ton of research into the process, but I'm admittedly a little foggy on the details of mortgages as this is my first time and tomorrow will be my first face to face meeting with the realtor/lending company I've been dealing with. When I called my bank for a prequal letter, they sure as hell didn't talk to an underwriter and I don't think they even ran a credit check, so I'm assuming what I just went through wasn't a prequalification. This lending firm describes themselves as a "Full Service Mortgage Banker," which I assumed meant all of it happened in-house, but the delay in my processing was apparently my lender traveling to meetings with an underwriter. I got a letter from them outlining the credit check they ran on me. It seemed to stall for a while until a personal friend suggested I could get letters from the clients whose income I would be relying on, to certify that they plan to continue to engage my services for the foreseeable future after my relocation. I got letters like that certifying about $50k of my income from 2012 and the day after those letters made it to the underwriter, I was told "You're all good, start shopping for houses." Does anyone know exactly where this puts me in the process? Did they work up a preapproval for me, but I won't get any paperwork or a GFE until I actually fill out the loan application that I haven't seen yet? I'm expecting the realtor to have some sort of paperwork when I meet her tomorrow, but right now as I begin my trip, I'm feeling a little lost. Most importantly as I get closer to making an offer, can I expect to go into closing with the same level of documentation I have already produced and buy a house? This lender hasn't even mentioned longer periods of financial records, yearly profit/loss statements, or detailed accounting of my business outside of tax returns. edit: yea, they're waiting for me to pick a house before they give me the numbers ChristsDickWorship fucked around with this message at 00:28 on Jul 1, 2013 |
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Jun 29, 2013 18:28
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wixard posted:I keep reading those cheesy anecdotes about someone who forgot they wanted 2 bathrooms and were miserable for years (obviously I won't have that particular problem). Any advice fresh in the minds of those of you have successfully navigated this process before? If you are used to having an overhead light/ceiling fan, make sure every room you'd expect one has one! I didn't notice until the inspection that the house we're buying only has a small light above the fireplace, and nothing else in the living room. It has skylights, so it seemed bright while we were there during the day, but at night I'm afraid it might be really dim or hot/stuffy.
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Jun 29, 2013 19:05
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Need some advice goons. I'm 41, single, no kids, with just $3k in the bank. I am a brand new DoD contractor (just started a couple months ago, with the contract up for renewal in April but a very high probability it will be renewed and expanded) with an hourly rate that comes to $47k/yr. I currently live in a friend's house paying him $600/month rent. I have a credit card that I usually pay off in full each month, and I took out a signature loan from my credit union earlier this month for $3500 (which accounts for the majority of the money in my savings). I didn't have any plans for the money - it was just a spur-of-the-moment decision because the credit union was offering it for 4.99%. Anyways my roommate tells me he'd like to have his girlfriend move in, but before that happens he wants me to move out. Not exactly a shock, but the timing sucks because I am not as financially prepared as I had hoped to be. Fortunately he gave me 6 months to get out. Normally this would be a no-brainer and renting would be my best option, however renting an apartment is even more expensive than a $100,000 mortgage with PMI. Any apartment that would be both close to work and family and be in an area I would like to live in starts at $750/month. There are houses for sale, however, under $100k in the nearby vicinity that didn't horrify me when I did some window shopping on the internet to see what my options were. Now for the nitty-gritty - I estimate that I should bring home almost $31k/yr (or about $2,572/month) after taxes and deductions. I have the single loan with a 24-month term paying $154/month. I average about $500/month on my credit card (I can probably reduce that by $300 if I give up my personal training sessions at the gym, but I like the progress I've been making and the accountability). I usually spend about $600 on groceries, gas and money for eating out and entertainment. I have $145 that goes to my cell phone provider, and $600 for rent. tl;dr Income: $2572 Rent: $600 Loan: $154 Credit Card: $500 Essentials: $600 Cell: $145 Total: $1999/month Left over: $573 I want to say that, yeah - I have enough income to afford a house under $100k with PMI and taxes (which would be about $200/month added to the loan), but I'm not feeling it. Add in utilities of around $435/month and I'm left living from paycheck to paycheck. And who the hell knows what would happen if the contract went belly up (doubtful, but still a very slight possibility). But what has me conflicted is the fact that I would be paying a lot more in rent than the mortgage, so even renting doesn't save me a whole lot more - I might save $100/month, but I lose the satisfaction of finally owning my own place (I would be a first-time homebuyer). I've applied for a $100k loan to see if I can get pre-approved before the interest rates just rocket up and make even the thought of trying to buy a house unaffordable, and I'm hoping I can get approved (credit score is around 800). Most of the houses I've looked at online are around $75-80k, and the calculators have the mortgage around $450 or so, but there are a couple $100k houses that have quite a bit more room and a lot more yard space. So conflicted at this point and not sure if I should just chuck it all and find some slum to rent. Since this would be my first attempt at buying a house I would love to hear some thoughts from you guys.
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Jun 30, 2013 14:36
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Daylen Drazzi posted:Need some advice goons. I'm 41, single, no kids, with just $3k in the bank. I am a brand new DoD contractor (just started a couple months ago, with the contract up for renewal in April but a very high probability it will be renewed and expanded) with an hourly rate that comes to $47k/yr. I currently live in a friend's house paying him $600/month rent. I have a credit card that I usually pay off in full each month, and I took out a signature loan from my credit union earlier this month for $3500 (which accounts for the majority of the money in my savings). I didn't have any plans for the money - it was just a spur-of-the-moment decision because the credit union was offering it for 4.99%. I know renting sucks, but it does not sound like you are anywhere near ready for a mortgage. If you only have $3000 in the bank, which is from a loan, what do you plan to use as a down payment? Closing costs? This is all ignoring the fact that it is a sellers market in I think all parts of the country, and your <3% down offer will get passed over probably immediately.
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Jun 30, 2013 15:02
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Besides the fact you simply couldn't get to the closing table (***what funds do you have for any form of downpayment, closing costs, home inspection, appraisal, etc?) there are a couple of red flags in your statement that immediately signal "do not buy". 1-The fact that you're "not feeling it" is major. You need to be prepared to jump all in for a house purchase. 2-The fact you took a 5% loan just for the hell of it, under the guise of "savings", is another huge warning sign. I've got so many statements on that alone its not even funny (5% isn't a good rate, you could have taken that money in the case you HAD an emergency, how did it gain you anything but another monthly payment?) It is clear you're not ready at all. This is a major purchase and should more or less be considered permanent (for the time being). If anything went wrong with it you'd be crippled financially attempting to fix it, or seriously damaging the value of the property by not getting it fixed or fixed appropriately in a timely matter. What happens if your plumbing bursts? Hail storm damages your roof? You mentioned PMI and taxes, but didn't mention insurance. That's another cost. If anything happen to the house, is covered by the plan, and its worth claiming against, you'd still have to account for the plan deductible---$1,000 is the absolute minimum a lot of companies are accepting now---and that's a privilege you're paying for with a larger premium. The value in renting comes in flexibility. You can leave if you want, if something breaks its not your liability, you can move for new employment at the drop of a hat (relative to home ownership), etc. You financially could not afford to get out of the house if you needed to after purchase. Remember---6% commission is owed typically to the agents---so that'd be $6k you'd have to come up with on a $100k house. I hate to be blunt, but I would completely drop the idea immediately. ***You would maybe qualify for a rural development home (100% financed) but that would be incredibly stupid to finagle into, as you'd be immediately underwater.***
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Jun 30, 2013 15:08
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The loan option from those presented in the application that I selected was a FHA 30-yr 4.75% fixed w/no closing costs and 3.5% down. It was also not my intention to immediately go out and buy a house, but something in 5-6 months after saving up another $3,000 or so. The loan is sort of like dipping my toes in the water without actually committing to anything, but I guess I'm being foolishly optimistic about being a homeowner anytime soon. I'm still examining all my options and getting hold of some apartment complexes to see what's available in a range I'm more comfortable with paying. Fortunately I have the time to be picky.
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Jun 30, 2013 17:36
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| # ? May 15, 2024 23:23 |
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Daylen Drazzi posted:The loan option from those presented in the application that I selected was a FHA 30-yr 4.75% fixed w/no closing costs and 3.5% down. It was also not my intention to immediately go out and buy a house, but something in 5-6 months after saving up another $3,000 or so. I am expecting my closing costs to be over 3k, not counting the downpayment. Right now you don't even have an emergency fund for regular stuff, because the money you have in the bank is borrowed.
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Jun 30, 2013 19:00
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