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Thanks for the maintenance horror stories. Would $5k be a reasonable cushion?therobit posted:You are going to need to wait until th BK or the subsequent derogs are off of your credit report. Missed payments AFTER a banko is an automatic turndown for every underwriter I have ever met. Unless your score improves enough for a computer generated approval nobody will underwrite you until those drop off.
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Jan 24, 2016 01:06
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martyrdumb posted:Thanks for the maintenance horror stories. Would $5k be a reasonable cushion? I think that's a reasonable reserve to have when you move in, if the house is pristine , but more realistically you're also going to have some things where you can expect a failure within some number of years. If the roof, water heater, and air conditioner are all on their last legs, then you'll need a lot more than 5k as your reserve. 5k is also only an okay amount (maybe) for emergency surprises, not maintenance. So basically you should have an emergency fund plus you should be setting aside an additional few hundred every month
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Jan 24, 2016 01:52
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Today, I've replaced a faucet, thermostat, and the gasket on a fridge. Replacing the gasket made no difference because the hinges are broken. Thankfully I bought a 2-unit with no intent of renting the second unit so I have a second, 15-year old, crappy fridge to try running for a while to avoid buying a new fridge at the current moment. Our "oh poo poo" cushion is $20k and I'm still not sure that's enough.
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Jan 24, 2016 01:52
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martyrdumb posted:Thanks for the maintenance horror stories. Would $5k be a reasonable cushion? Yes it could matter a lot. You each have your own credit history. A BK can stay on your bureau for 10 years. Typically late payments are off in 7 years or somtimes less. With a prior bankruptcy it will be important that you have re-established credit fo at least two years of history with revolving lines and secured installment such as auto. I don't write purchase loans but there is at least one loan officer in this thread who might have an idea what if any loan programs you may qualify for. It will really depend a lot on both of your financial positions and credit reports. You might want to talk to a local loan officer to see what they can do for you. They may give you a list of things to do for the next two years to help you become better qualified borrowers, although a good loan officer who will do that may be hard to find.
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Jan 24, 2016 05:36
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slap me silly posted:I'd think you were talking about me, except that it was a completely different set of problems that I spent over $2000 in the first three months on for a house that the inspector said was just fine. We're well over $2000 from Lowes in the first month... previous owners just outright neglected various things. The $500 plumber bill to replace the main shutoff was fun too. It was also fun having to clean all the gutters, because they were full of compost.
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Jan 24, 2016 15:53
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devicenull posted:It was also fun having to clean all the gutters, because they were full of compost. gently caress I knew I forgot to do something after raking the leaves. Welp, too late now, anything in the gutters is now frozen solid into one big icicle.
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Jan 24, 2016 18:03
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minivanmegafun posted:Thankfully I bought a 2-unit with no intent of renting the second unit so I have a second, 15-year old, crappy fridge to try running for a while to avoid buying a new fridge at the current moment. Goddamn, that's a power move right there, having a second house on standby.
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Jan 24, 2016 18:09
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devicenull posted:
Yup, did that this weekend. The gutters are deep enough that I bet the previous owners didn't do anything about it for years, especially with the drought, but now that it's raining we started noticing waterfalls on the corners. Fun times.
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Jan 24, 2016 19:54
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martyrdumb posted:My spouse and I have decided we'd like to buy a home. We're first-time homebuyers and could use some guidance. I know we can walk into a bank and ask for a pre-qual, and we will likely do that soon (we're also looking into taking some homebuyer education classes). What I'd like to know is 1) What's our credit score now? Credit Karma puts us both in the 660 range, but I know that number is notoriously inflated. Will the lender run a full credit report before saying we're pre-qualified? Should we buy our scores from a bureau/all 3/FICO now and work on improving our scores before we apply for a pre-qual? I had a bankruptcy discharged in 2009, hoping that won't pose a problem. Also 2) how is DTI actually calculated? We have a few credit cards, one car payment, and one consolidated student loan in ICR between us (plus rent, phones, car insurance x2). Do we just add up the minimum payments for all the debt and divide by our monthly gross? Do phone/auto insurance/utility payments count? Does rent count? How does CreditKarma inflate? It looks like they just give your Equifax and TransUnion scores, so as long as you get a hold of your Experian score you should be able to triangulate pretty accurately.
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Jan 25, 2016 02:20
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Boof Bonser posted:How does CreditKarma inflate? It looks like they just give your Equifax and TransUnion scores, so as long as you get a hold of your Experian score you should be able to triangulate pretty accurately.
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Jan 25, 2016 13:30
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Last I looked into it getting your actual FICO was drat near impossible. All the free scores/reports you get from the likes of Experian and Equifax use a different fake number that is about 25-100 points higher than your real FICO is. According to friend who works at Experian this is to reduce the number of credit history disputes people file which are very costly to service. While this is horrible and should be loving illegal like half the tactics of the credit industry it's still accepted as a best practice. But that was 5 years ago maybe poo poo has changed I haven't needed access to a real FICO in awhile. Fortunately if you have a friend who works at a big bank it's possible to still get a real FICO score without that free report inflated horeshit. Pryor on Fire fucked around with this message at 20:12 on Jan 25, 2016 |
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Jan 25, 2016 20:09
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Last time my friend went to his credit union for a loan product he asked them to tell him his FICO after they pulled it and they gave it to him to the whole digit.
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Jan 25, 2016 22:06
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Pryor on Fire posted:Last I looked into it getting your actual FICO was drat near impossible. All the free scores/reports you get from the likes of Experian and Equifax use a different fake number that is about 25-100 points higher than your real FICO is. According to friend who works at Experian this is to reduce the number of credit history disputes people file which are very costly to service. While this is horrible and should be loving illegal like half the tactics of the credit industry it's still accepted as a best practice. I think its like $40 or $60 to get all 3 credit scores from myfico.com Also if you go to a bank and apply for a mortgage where they pull your credit score (pre-approval), they are required to give you a copy of the results.
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Jan 25, 2016 22:15
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Don't forget there are a lot of different scoring models out there for credit scores. You've got to understand which model is being used in each situation. Last time I bought a car they used an Auto Enhanced score which had a different scale than a classic fico.
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Jan 25, 2016 22:23
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Brigdh posted:I think its like $40 or $60 to get all 3 credit scores from myfico.com Does using myfico.com constitute a hard pull that would temporarily lower your score?
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Jan 25, 2016 22:38
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Boof Bonser posted:Does using myfico.com constitute a hard pull that would temporarily lower your score? It shouldn't because you are not applying for a loan.
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Jan 25, 2016 23:22
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Having a Barclay's credit card, they claim to offer you a true FICO for free.
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Jan 26, 2016 12:54
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martyrdumb posted:Thanks for the maintenance horror stories. Would $5k be a reasonable cushion? Just to pile on, maintenance fees are absolutely inescapable, even if you're pretty handy with diy. Last year one of the pulleys behind a window snapped and it got jammed open, so I figured I'd go ahead and replace the three ancient windows in that room anyways, and that I might as well do it all at once since that size was hard to come by and I didn't want three different windows in the same room. Well, I found the windows for ~150 a pop, but by the time I picked up flashing, pvc trim, caulk and nails, new cement fiber siding, interior trim, discovery of rotten sills and carpenter ant damage, I wound up over two thousand in the hole from a project I figured would be ~500. I shudder to think how much it would have been had I been paying several people 20-50$ an hour. I was just going through old home documents, and the previous owners paid 8500$ for a new shower to be installed, just as an example of expensive things you don't think about. There's a reason that after 23 years, they only walked away with <5,000$ in equity on the house
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Jan 26, 2016 13:20
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Yeah, some DIYers like to pretend that anything done DIY is also free, but it's only the labor that's free, and only if you consider your labor worthless. Likewise for people who garden and then spend shitloads of money on water, soil, and fertilizer; gardening is a fun hobby that produces tasty things but let's not pretend that this poo poo's free I do tons of my stuff DIY now that we own a house and I pay out the nose for it. It is marginally cheaper to build my own raised garden beds than to buy some prefab thing at Home Depot, so long as I ignore the additional time that I have to put into cutting, sanding, staining, sealing, and assembling my own poo poo. QuarkJets fucked around with this message at 20:59 on Jan 26, 2016 |
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Jan 26, 2016 20:55
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QuarkJets posted:Yeah, some DIYers like to pretend that anything done DIY is also free, but it's only the labor that's free, and only if you consider your labor worthless. Likewise for people who garden and then spend shitloads of money on water, soil, and fertilizer; gardening is a fun hobby that produces tasty things but let's not pretend that this poo poo's free DIY can even add negative value! Unless you've got prior experience in things, expect to gently caress things up as you go through the process and hope you don't gently caress up in a major way.
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Jan 27, 2016 14:44
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baquerd posted:DIY can even add negative value! Unless you've got prior experience in things, expect to gently caress things up as you go through the process and hope you don't gently caress up in a major way. Yeah I consider myself pretty good at DIY, but I hadn't done any work for over a year while we were renting. I'm finding that everything I try to do in my new house takes me longer and is much more likely to get hosed up. The added stress of just having moved doesn't help either.
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Jan 27, 2016 14:53
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You do also run the risk of your DIY improvements not being granted value or legal status in future appraisals or with local zoning. Obviously that might only apply in more extreme situations like adding bedrooms or baths, but if you do something that never got a permit, it could end up being a thing if you try to refinance your mortgage or sell your house somewhere down the line. Improvements that are not conforming or not done in a "workmanlike manner" are bad news as far as collateral review goes.
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Jan 27, 2016 18:10
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yeah don't just try to wing it with a crown molding job, it's painfully obvious how good the pro's are.
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Jan 27, 2016 18:29
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can i even talk about condos in here? i notice you're all talking about HOUSES. anyways, so if i bought a 1 bedroom condo i would be spending 50% of my after-tax income on it. this is too risky and i've been thinking about buying a 2 bedroom and renting out the second room. anybody have experience with this? i've never had a roommate before  obviously i would have extra money in the bank to carry me for at least a year if i had a roomie dry spell and couldn't find one for a while. i'm just thinkin about it and it seems really cool like i could boss the other person around because they're my tenant and maybe get naughty favours hehe 
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Jan 28, 2016 07:02
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ghostter posted:can i even talk about condos in here? i notice you're all talking about HOUSES. anyways, so if i bought a 1 bedroom condo i would be spending 50% of my after-tax income on it. this is too risky and i've been thinking about buying a 2 bedroom and renting out the second room. anybody have experience with this? i've never had a roommate before Don't buy yourself into always living with other people, especially if you've never had a roommate. If you have no other expenses, 50% after tax is doable. You should try roommates for AT LEAST a year, preferably several before locking yourself into 30 years of them. If you're super desperate to be a lovely landlord, look for a duplex or a 2BR that was once 2 1BRs so you can re-split it.
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Jan 28, 2016 07:09
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ghostter posted:can i even talk about condos in here? You totally can quote:i notice you're all talking about HOUSES. anyways, so if i bought a 1 bedroom condo That's because buying a condo is often an even worse idea than buying a house. It's all of the downsides of home ownership and all of the downsides of living in an apartment rolled into one. And then you get charged a bunch of special assessments and suddenly you can no longer afford to buy a gun to kill yourself, so you try to slit your wrists with a fondue fork but that predictably fails and you wind up with a huge emergency room bill on top of everything else. As you can plainly see, condos have a lot of hidden costs quote:i would be spending 50% of my after-tax income on it. this is too risky and i've been thinking about buying a 2 bedroom and renting out the second room. anybody have experience with this? i've never had a roommate before You're trying to escape a risky financial decision by making an even riskier financial decision. Rental income can be fickle, and the bank's not going to care if you didn't receive a rent check this month. It might work out, but you're probably going to be better off financially by just renting. And you should definitely see how you enjoy having a room mate before committing yourself to buying a 2-bedroom condo that you can only afford by having a room mate. Rent a 2-bedroom apartment and see how it works out. This should also help you save money in case you do wind up buying a condo some day. quote:obviously i would have extra money in the bank to carry me for at least a year if i had a roomie dry spell and couldn't find one for a while. This is wise, but do you actually know how much that is? Keep in mind that you're not just paying a mortgage throughout that year. quote:i'm just thinkin about it and it seems really cool like i could boss the other person around because they're my tenant and maybe get naughty favours hehe Okay, wow. This is idiotic, and you're a creep. First, having a tenant isn't going to satisfy your power fantasy. You need them more than they need you, fuckwit; while they can just pack up and leave whenever they want, you're always going to be responsible for paying the mortgage, condo fees, etc. Second, don't perv on your room mates. I shouldn't have to explain why this is a hosed up and bad idea.
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Jan 28, 2016 11:56
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Jesus christ this was like reading a 9 year old's thought process who just suddenly had the idea of buying his own condo.
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Jan 28, 2016 15:59
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I think a house with a basement and pit will suit your needs better then a condo. See basement chat a few pages back. You really need to get your income up though if you want to afford the lifestyle you desire in the market you want to live in.
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Jan 28, 2016 16:47
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Pryor on Fire posted:Jesus christ this was like reading a 9 year old's thought process who just suddenly had the idea of buying his own condo. rude. Elephanthead posted:I think a house with a basement and pit will suit your needs better then a condo. See basement chat a few pages back. You really need to get your income up though if you want to afford the lifestyle you desire in the market you want to live in. i live in toronto so i'd need 5 x my income to buy any kind of house. though i do like the sound of a basement with pit hehe 
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Jan 28, 2016 18:58
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ghostter posted:i live in toronto Don't buy property in Toronto, jesus christ. Hey, for future reference, "I'm in Canada" is an important detail when you're asking people on a mostly-American website for financial advice. The Canadian real estate market is presently completely hosed and a lot of people think it's a horrendous bubble due for a big crash any day now. They may be totally wrong, but goddamn it'd be a bad idea to buy a condo in that kind of market. Also, I'm assuming you're just making tasteless jokes about your power fantasies regarding roommates, and not actually serious... but it doesn't come off that way and nobody's going to be particularly inclined to give sound advice to someone who is acting like a creep.
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Jan 28, 2016 19:03
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Everyone should go see The Big Short and understand that even though the sub-prime mortgage problem isn't as bad as it was in 2007 - that the same basic problems with "the system" already exist. It's a little sensationalist and nobody can tell the future but from a risk management perspective, it's something everyone should be educated about. If I'd seen that movie 5 years ago I may not have bought. So re: housing bubbles - in my opinion as long as banks are making risky loans and hiding them in investment products it seems like the question isn't whether a housing market will crash, but when. I'm hoping the US market has another 5-10 years in it but I'm not sold. Wife and I may just take our profit and run in the next 2-5 years.
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Jan 28, 2016 22:29
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I for one would welcome a housing market correction. I'm hoping to buy my "forever" home in 3-5 years and if the market is still shooting up at today's rates I'm not sure I would be able to pull the trigger.
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Jan 29, 2016 00:31
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loving hell. A house comes on the market yesterday at 6:30pm. We get a notice from our realtor's MLS auto-search thingy because it matches our criteria. It's great. Like, beyond great. Exceeds all our minimum criteria, and has several things that put it head and shoulders above similar houses. It had a finished basement (in an area where a basement at all is unheard of). It had a good-sized kitchen. It had a 2-car garage that was pretty huge. It was on 0.35 acres, on a mature wooded lot, at the end of a subdivision and nobody directly behind (dead-end road that MIGHT be more low density residential some day). It has a deck, and a patio a short ways away . We send a note to our realtor instantly saying we're interested. This morning, at 11am, he finally gets back to us: The seller's agent was only taking showings at 1pm or later today. As of 11am today, 27 agents had already scheduled showings/previews for this afternoon. As of 11am today, some out of town buyers had already submitted a "super strong offer" that expired at noon today (they probably sent it in last night) As of 11am today, NOBODY had seen the property except for the pictures. in the listing. Meaning, these out of town buyers hadn't seen it in person and NEITHER HAD THEIR AGENT. As of 11am today, the sellers took the out of town buyers' offer. Son of a bitch. We've seen some houses disappear in 2-3 days around here, that's pretty typical for anything that's good. But less than 24 hours is insane. Our realtor's story, relayed from the seller's agent, is that these out of town buyers had already lost several multiple-offer scenarios on other houses, so apparently they just said gently caress it and went all in. Not going to lie, they probably made a really good buy. I hope the house is infested with termites. DaveSauce fucked around with this message at 00:53 on Jan 29, 2016 |
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Jan 29, 2016 00:50
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As the seller, I'd be furious if my realtor didn't make it clear how much interest there was. I'd have tried to start a bidding war - even if they're in an unbelievable rush they could have had multiple cash offers. Sucks to be you either way though. I ran into the same problem as a non cash buyer because I couldn't possibly move as fast as some of the competition.
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Jan 29, 2016 01:23
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Spamtron7000 posted:Everyone should go see The Big Short and understand that even though the sub-prime mortgage problem isn't as bad as it was in 2007 - that the same basic problems with "the system" already exist. It's a little sensationalist and nobody can tell the future but from a risk management perspective, it's something everyone should be educated about. If I'd seen that movie 5 years ago I may not have bought. Interest rates are still at historical lows. There's won't be another 2008 style crash for a long long time, if ever.
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Jan 29, 2016 01:24
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So I decided I am going to sell my house and rent for a while. The rent is going to be not quite double my mortgage payment, I think it's going to be a little more expensive overall. But, I will be able to walk to work so other considerations can get hosed. I'll be sure to report how the process goes! Babby's first house sale  Luckily the market in my neighborhood is hot right now. We'll see if I regret this after the fact, but I don't think I will. Maintaining a house that's too big for me and was built in 1946 is really kind of a pain in the rear end.
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Jan 29, 2016 04:31
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slap me silly posted:So I decided I am going to sell my house and rent for a while. The rent is going to be not quite double my mortgage payment, I think it's going to be a little more expensive overall. But, I will be able to walk to work so other considerations can get hosed. I'll be sure to report how the process goes! Babby's first house sale Congratulations!
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Jan 29, 2016 04:36
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Andy Dufresne posted:I for one would welcome a housing market correction. I'm hoping to buy my "forever" home in 3-5 years and if the market is still shooting up at today's rates I'm not sure I would be able to pull the trigger. I keep thinking that a correction is due with the current demographics. For example, Millennials not buying houses should be causing an oversupply in housing right? You also got baby boomers retiring who should be selling their homes and heading south to retire. Then I look at the reality of the DC metro housing market and realize that the already rich just buy out these properties for family, to flip, or even rent out if the market is still bad. Meantime reading about rent on the rise seems to just add to the tragedy. gently caress ever finding a house in Fairfax/NoVa.
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Jan 29, 2016 10:18
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A lot of it is really location specific. In my neighborhood, the house market slowed down a bit during the crash but prices never dropped, just leveled off for a couple years and then started flying back up. Other parts of the city prices dropped by 30-40%. Now, tons of new apartments and condos are going up close to downtown, which is probably going to put some downward pressure on the rents in my area and I'm kind of expecting house prices here to level off again in a year or two. I'm not expecting much of a correction in my city overall in the next decade at least, once the new building has started to catch up with demand.
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Jan 29, 2016 15:10
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DaveSauce posted:I hope the house is infested with termites. My best friend put his house on the market last year, went live on MLS at about 9am on a Friday. By 1pm they had accepted an offer for list price and closed a few weeks later. I asked him about waiting on further offers but they wanted to sell so badly they didn't care. Made a ~25% profit on the sale of the house over their purchase price too. CheeseSpawn posted:I keep thinking that a correction is due with the current demographics. For example, Millennials not buying houses should be causing an oversupply in housing right? You also got baby boomers retiring who should be selling their homes and heading south to retire. Then I look at the reality of the DC metro housing market and realize that the already rich just buy out these properties for family, to flip, or even rent out if the market is still bad. The townhome my wife and I sold recently in Illinois was purchased by a rich couple from Florida who wanted to have a 3rd property close to family. Their second property was in a third state. They offered list price and a full cash offer while the several other offers we had from actual families looking for a house couldn't compete. Kinda lovely and I have mixed feelings about it but in the end we took the money and ran. Now wife and I are looking for a home in a market where prices are pretty close to 2007 highs. The Shep fucked around with this message at 10:10 on Jan 30, 2016 |
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Jan 30, 2016 10:04
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