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Spikes32 posted:I'll be doing this late this year early next year in the bay area and am ready to cry this same feeling with you. Did this two years ago. The panic attacks are a nice change of pace from the boredom of social distancing Edit: redfin seems to be wildly off from the market right now, heard from a neighbor that they just sold their unit near ours (same building) for 9% more than we paid at the top of the market in February 2020, but redfin is saying our home value is 15% lower per sq ft than when we bought it (Aug 2020 prices). Zillow is just about spot on. Additionally we've had our house appraised twice in the last 90 days and it's matching the 9% higher number our neighbor got Hadlock fucked around with this message at 01:14 on Jan 21, 2022 |
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Hadlock posted:Edit: redfin seems to be wildly off from the market right now, heard from a neighbor that they just sold their unit near ours (same building) for 9% more than we paid at the top of the market in February 2020, but redfin is saying our home value is 15% lower per sq ft than when we bought it (Aug 2020 prices). Zillow is just about spot on. Additionally we've had our house appraised twice in the last 90 days and it's matching the 9% higher number our neighbor got I gave into the Redfin/Zillow ego searching today after reading yet another article prognosticating on the housing market. They were both drat near the same on estimated values for my house. Which, if that is correct means nothing to me because they're gonna have to roll my dead carcass out of this place but at the same time......hell YES. Like all things housing algo, your specific local market conditions and home matter. But you can't know if they are the ones that are accurate or not, so this is all bullshit.
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Jan 21, 2022 01:20
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typhus posted:General question for those who searched successfully or unsuccessfully in hypercompetitive markets -- how'd you keep your chin up through the process? We're barely two weeks in and I'm already emotionally winded. The idea of throwing 900k+ at our first home is no end of loving madness to me. We bought our first house in a fairly competitive market, second house in a VERY competitive market. It's a box that depreciates on land that may/may not appreciate (I think I read that here). It's just a house: they built more than one. The house that you buy will probably not be the last house that you buy. It's not worth falling in love with any particular house, and you will probably be cursing whatever house that you buy at some point. Yes I majored in engineering why do you ask?
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Jan 21, 2022 01:38
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Motronic posted:I gave into the Redfin/Zillow ego searching today after reading yet another article prognosticating on the housing market. They were both drat near the same on estimated values for my house. Which, if that is correct means nothing to me because they're gonna have to roll my dead carcass out of this place but at the same time......hell YES. Estimated tax values are generally bulk appraisals where they assign a certain $/sqft to the whole neighborhood and then maybe adjust for age or maybe not. Oftentimes the county has incorrect data to begin with, and that skews the results. Back in 2010 when I was a loan officer at a place where we approved our own deals, and as a result I was pulling a lot of AVMs, Zillow was pretty much spot on to both the AVM and even a full appraisal value if a customer wanted to take it that far. However, values in Portland from 2010 to 2013 were fairly stagnant and I have a feeling their models wouldn’t hold up as well in the kind of market we are seeing on the west coast today.
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Jan 21, 2022 02:00
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typhus posted:Just got the pre-approval process rolling to get a sense of what we're able to get as we start our search in the Seattle metro area, which I'm fully expecting to be an absolutely miserable experience. Everything listed in our budget that we like is selling in a day and at 10% over asking with no contingencies. So I'm looking forward to getting to know y'all better as I doomscroll various apps and this here thread. My sweet summer child. Sorry for repeating my story but as someone who recently bought a house in Seattle, I feel like it might help. Moved from Chicago to Seattle in 2015. Married. No kids. Lived in Northgate, then Ballard. We started looking November 2020. Saw a few houses with our realtor just to get a sense of what we liked. We assumed we were priced out of Seattle so everything was in north burbs (shoreline, Edmonds, Lynnwood). We saw a house in Edmonds that we liked enough to put an offer in. 10% over asking and we got it. Jan 2021 you could still do an inspection and be competitive. We did, it failed gloriously. Built in 1993 meant remodeled in 93, actually built in 23. We struggled finding City records of the house. Cast iron drain line. Knob and tube in attic. 5 year old roof failing. Black mold in roof and crawlspace. Foundation was dug out too close when the new foundation was added, seismic or water activity could cause it to sink/shift/drop. Our inspector told us "walk away". It was bad. Six figures worth of repairs just for the things he could see. We walked away, they sold it the next day for 20k more than our 10% over offer with waived inspection. Every week it was wed-sat look at houses, put the offer in on Monday, hear back on Tuesday and repeat. We saw 100 houses in person. We looked at ~5 houses per week for 6 months. We put in 20+ offers. Houses were going 10-30% over asking. All contingencies waived. 20-30 offers submitted. The house with the most offers was 46 and it went 280k over asking. It was a beautiful mid century house. We finally got lucky looking back in Seattle. Because of covid and work from home, the suburb market went bananas. City market is still competitive but not as crazy. In June we finally found a place. 10% over asking and we waived the inspection because it had one already, as well as as sewer scope. It needs some work but it's a mid century modern ranch with a garage in a great area that I never thought we could afford. It's also 12 minutes to my office which is cool. We took a few weeks off every now and then, but it was a long stretch of looking and submitting offers and getting beaten. You get worn out. We spent basically 6 straight months looking at houses. Our realtor was great at keeping us motivated and upbeat but there were times we started to doubt if we would find something. It helped that the weather started to improve and we got close a few times. Honestly there's no real secret. Just try to have a strong and clean offer, I only suggest waiving an inspection if they already have a somewhat thorough inspection done.
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Jan 21, 2022 07:11
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typhus posted:Just got the pre-approval process rolling to get a sense of what we're able to get as we start our search in the Seattle metro area, which I'm fully expecting to be an absolutely miserable experience. Everything listed in our budget that we like is selling in a day and at 10% over asking with no contingencies. So I'm looking forward to getting to know y'all better as I doomscroll various apps and this here thread. The total number doesn't matter as much as the monthly payment, that's the more important figure IMO. Locking down your monthly housing cost is really great, and if the area is high-demand like Puget Sound then you'll probably be able to sell in the future without a loss, if not a tidy profit Just don't let the idea of losing a house get to you too bad, hopefully you have a leased place that you don't mind living in for awhile so that you can take your sweet time.
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Jan 21, 2022 08:21
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Verman posted:My sweet summer child. We put in probably 10 offers across four months (plus six months of looking) and then a coveted 3 bedroom condo came on the market, I just did the math, I think we paid, uh, $135k over market? They held an open house, people wanted to put in a bid but when they heard our bid they just walked away and we ended up with it We got it appraised back in September and it appraised about $35k above what we paid for it, and like I said, another condo, one floor down from ours just sold for more than ours per sq ft (they're all the same finish) Probably not a wise idea if you're gonna buy and move in a year but on a 3-5 year scale it's pretty reasonable. But those are west coast tech city economics, might not work everywhere
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Jan 21, 2022 08:45
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Re: FSBO chat. The way I'd do it is to get my realtor's license in the year or so before i was thinking about selling so I could self-list on the msl. Like, we're talking 40-70k in fees, even if it costs 10-15k after licensing/education fees + 5 for a lawyer to do the real work on a transaction for you you're still way ahead
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Jan 21, 2022 17:18
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OK, but what's the opportunity cost of the time you're taking to get certified?
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Jan 21, 2022 17:22
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We looked for a total timespan of two years, but that includes stopping for 6 months when COVID hit. We started in Fall of 2019 and went under contract pretty quickly, but walked away from the house because of the inspection (shoddy electrical work, a terrible central air installation, etc.). We started back up mid-2020 and between then and until we went under contract in October we saw 100+ houses, put in 20 offers. It was a consistent, every week thing: look Monday and Tuesday, set up viewings on Friday, Saturday and Sunday, offer over the weekend, get rejected. Rinse and repeat.
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Jan 21, 2022 20:08
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typhus posted:Just got the pre-approval process rolling to get a sense of what we're able to get as we start our search in the Seattle metro area, which I'm fully expecting to be an absolutely miserable experience. Everything listed in our budget that we like is selling in a day and at 10% over asking with no contingencies. So I'm looking forward to getting to know y'all better as I doomscroll various apps and this here thread. We just got our pre-approval in the Portland area and it was what we hoped for  We decided to hold off for another 3-4 months while we build up our savings a bit more but hearing how long it can take to even find a place maybe we should start looking now. I am worried about the heartbreak of being outbid on multiple homes we love but overall I am very excited to kick things off! Good luck!
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Jan 21, 2022 20:24
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Verman posted:My sweet summer child. I would echo all of this. We just bought in Seattle too, closed in November, in the Ballard area. Married, no kids, but we were focused on a very specific area of town because we wanted to live within walking distance of our friends who are our chosen family, and also walking distance to a neighborhood core. It's gonna be hard, really. We spent May through October looking, I can't remember how many houses we saw but did put in 8 offers total. Don't fall in love with any place. You'll make compromises and understand what's important and must have vs nice to have. What you think is a must have will change, and you'll discover new must haves that you never knew existed. What helped was having an excellent and knowledgeable realtor, friends who were going through or had just gone through the same thing, and lots and lots of reading/Googling. One of the most important things is that you need to become good at making a snap decision essentially. We spent a total of 40 minutes inside the house before we bought it, but the previous owners had an inspection done and King County does have information available in public records. https://www.urbnlivn.com/seattle-home-buying-guide/#researching We walked away from any place that didn't have a pre inspection done because to buy within Seattle, you're almost guaranteed to have to waive an inspection contingency. Just keep asking questions to the thread, though! I keep reading even though we're past the buying stage, too, and am happy to answer Seattle related questions too.
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Jan 21, 2022 20:27
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raggedphoto posted:
Rule number 1 is don't fall in love with houses. That's how you end up getting into dumb bidding wars and into financial waters that you can't manage. By all means don't just buy the first dump you see, but try to stay very clear headed about what your requirements are (location, construction, layout, school district if applicable, etc) and how what you're looking at does or doesn't meet it. You'll see more than one that meets what you need, and from there you can turn just about anything that checks those boxes into a place you'll love.
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Jan 21, 2022 20:30
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typhus posted:Just got the pre-approval process rolling to get a sense of what we're able to get as we start our search in the Seattle metro area, which I'm fully expecting to be an absolutely miserable experience. Everything listed in our budget that we like is selling in a day and at 10% over asking with no contingencies. So I'm looking forward to getting to know y'all better as I doomscroll various apps and this here thread. As someone who just bought their first home for a lot more than 900k (SF)-- assuming you can actually afford it, it's just a number. Money is fake. Doesn't matter if it's 20x what your parents or 10x what your childhood best friend paid. With regards to keep-your-chin-up tips, having a realtor who is skilled at quickly reviewing comps and ballparking the sale price was very helpful to us. In hyper competitive markets, how much something goes above list price barely means anything since individual list prices are set to the tune of whatever psychological game the selling agent is playing at to instigate a bidding war*. For us this meant we could see a specific house on redfin for 1.8 and our realtor might say "don't bother, it's gonna be 2.5 at least" and then see that bear out when it was sold. This helps lessen the feeling of crushing helplessness that you can't buy anything. Still going to be insane surprise bids of course. Another tip would be to get practiced in basic inspection (and reviewing disclosures) if you're going to have to waive contingencies. Having a friend or family member with home repair knowledge helps a lot. My brother in law is a general contractor and we were constantly texting pictures and asking advice. *example: the agency that sold our house lists everything on their website as 200K over!!! 300k over!!! because they always way underlist.
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Jan 21, 2022 21:26
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A few things you can do before you're actively looking: 1. Get rid of stuff. You probably have more stuff than you need. Evaluate what you use and what you don't, and be ruthless about getting rid of things you might use in favor of things you will use. Regardless of whether you're upsizing or downsizing, you want to cull the things you don't need before you move it. 2. Evaluate your needs and your goals for the space. You want an office space? What things will go in it, specifically? How much space will that take, and what configuration(s) will work? What do you need so it works for you? What can't it have for it to work for you? Write this down. Repeat the process for all your spaces. Having gone through all your stuff, have an idea of where the remaining stuff will go and how much space it will take. 3. Know your plans for the future. If you don't have your job(s) in 5 years, where are you likely to work? Are you likely to add to the people living in the space? What could that look like, and how would it change your requirements? Are school districts a factor in your search? Transportation? Does a yard and space outweigh proximity to shopping and entertainment? Understand that your friends probably aren't going to drive 30 minutes to visit you. 4. Work on your credit. Make sure your reports are clean, pay off debts, don't hold balances on your credit cards (don't do this ever, but especially when looking for a house). If it's going to be 6+ months before you buy, ask your existing credit cards if you can raise your limits. Keeping your available credit high and your utilization low makes you a Good Lending Candidate. Do not apply for new cards or finance a new thing until after you have closed your sale. Applications for credit are stored for 2 years and "recent" requests for new credit make you a Bad Lending Candidate. 5. Know your finances. Have a budget that you stick to. Have a firm price that you know you can afford, and have enough cash to cover incidental costs of the transaction. Keep an eye on interest rates for new loans, and adjust your target price accordingly. 6. Learn a little bit about home construction. HGTV is consumerist trash in a lot of ways, but you can learn about the way homes go wrong and what it takes to fix them from those shows. Mike Holmes' shows have a lot of good stuff (though the climate sealing won't be a thing in most of the US). You shouldn't be planning a renovation right now, but you should be aware of what is and is not fixable before you buy a place. 7. Get a sense of what homes are selling for, not just what they list for. Early in my process I was crushed when I went in on a place at 2% over list and got beat by 200k. As I learned the area I understood that I never had a shot at that house and stopped looking at underlistings like that. The better you prepare yourself, the faster and more confidently you'll be able to move on a house when you find one that works (your perfect home isn't out there, sorry). As you go through the process it'll become easier and you can refine what you're looking for.
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Jan 21, 2022 21:47
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Related to the school district, do you consider that to be a non-factor if you aren't planning on having kids or needing the district in any reasonable timeframe? (single buyer, etc).
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Jan 21, 2022 21:56
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jaffyjaffy posted:Related to the school district, do you consider that to be a non-factor if you aren't planning on having kids or needing the district in any reasonable timeframe? (single buyer, etc). It's still something to take into consideration. It's been shown that quality of the school district a house is in, can materially affect housing prices. I have school aged children, and I live in TX where property taxes fund pretty much everything, but quality of school district, local school district taxes, definitely affect home prices. I live in a national builder cookie cutter community. 10 miles away there is basically the same community but in a different school district. Houses in my neighborhood, which is considered to be in one of the best school districts in the area, sell for $30,000 or more than ones in the community 10 miles away. The tax base in this school district is higher, so our school taxes are actually lower. Exact same houses, but mine is worth 30K or so more than the exact same house 10 miles away, and my taxes are about 1K/yr less. Now I'm sure it might not be the case in lots of places. If you're buying 2M in SF, I'm assuming you're paying for private school for your kids anyway and then school district probably doesn't matter as much. I don't know anything about Seattle, but in many other parts of the country school districts are a big deal when it comes to housing prices.
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Jan 21, 2022 22:14
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jaffyjaffy posted:Related to the school district, do you consider that to be a non-factor if you aren't planning on having kids or needing the district in any reasonable timeframe? (single buyer, etc). you should give it ZERO consideration if you are not having kids. There will be plenty of buyers in the future who want to live in cool place with crappy schools.
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Jan 21, 2022 22:56
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Plus you'll still appeal to people who want a Nice Home & Private Schools
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Jan 21, 2022 23:07
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Looking for opinions... I know nobody's offering financial advice here. I've never had a mortgage before. I've been saving and window shopping for over a year after getting a decent promotion and while I waited to get my school loans forgiven which is finally done. My market seems to be slowing down on new listings but the prices still seem pretty high for what's being offered. One set of new constructions I've been eyeing recently jumped up ~$20k One company I'm working with has found a state funded down payment assistance program - a rider loan for 3.5% down payment forgiven after 3 years if I don't sell in that time - that would just make me need to cover closing costs, but the mortgage must be FHA and have PMI. I'm not terribly fond of paying for PMI; I think it's throwing money into a fire pit and I honestly find it kind of insulting when I've got spotless credit and ~810 score. They ballparked me a mortgage and it's a little less than I'd ideally like to work with. Looking at Navy Federal (I'm not a vet, but a child of one. So VA loan is out for me. I already have an account with them.), one of their mortgage types is not FHA, only require 5% down, and comes with no PMI. They also offer a 0-down loan but the interest rate is higher so I'm kinda meh about it. My father did the 0-down mortgage and thinks it's a good deal. I think I need to talk to them about ballpark payments in each type for what I'm looking to get approved for. If I go with the first company with the PMI I feel like I'll be able to afford a smaller loan and be priced out of my ideal type of home. If I were to go the 5% down Navy Federal route I'd have to save for at least a year which I can do, I just hear about rates increasing and prices supposedly to continue to climb. The climbing prices concern me as I could easily be priced out if it accelerates too fast. Not knowing what Navy Federal is able to give me is probably adding to my uncertainty. First question is: what do you think is the better choice? Is PMI throwing money away? Second question is: since I'll be taking this mortgage on alone I'm guessing they won't consider my partner's "rent" as going towards the payment, will they? If they would I expect that would help secure me the price range I'm looking for.
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Jan 21, 2022 23:23
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FHA loans have MIP, not PMI. It works differently, but you can still always finance out of it later. It sounds like you don't have enough cash to buy the kind of home you want. How about talking numbers? What do you have in cash? What price range of home are you looking at? What is your monthly take home and how much of that is being spent on debt service (cars, credit cards, etc). Also, you say your loans were forgiven. Are you 100% aware of and past the tax implications of that event?
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Jan 21, 2022 23:28
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ultrachrist posted:As someone who just bought their first home for a lot more than 900k (SF)-- assuming you can actually afford it, it's just a number. Money is fake. Doesn't matter if it's 20x what your parents or 10x what your childhood best friend paid. We looked at one unit that had a private balcony/deck that was about 600 sq ft and 50 linear feet long (due to an architectural quirk) with an exceedingly lovely view and was next door to an empty lot that already had a building permit for a 300' tower going in 60ft away across the street. It was listed below going rate at like 900/sq ft but ended up going for like $1800/sq ft because private balconies are super easy to rent. Every other unit in the building was going for about $1000/sq ft which has been about the going rate for a couple years now. We thought it might go for $1090/sq ft but $1800 is just insane
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Jan 21, 2022 23:38
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Motronic posted:FHA loans have MIP, not PMI. It works differently, but you can still always finance out of it later. Ah, good to differentiate, thank you. That company said it would drop off automatically after the payments crossed like a 21% threshold. Reading this thread I know I should make sure that happens, if I were to go that route. quote:It sounds like you don't have enough cash to buy the kind of home you want. How about talking numbers? What do you have in cash? What price range of home are you looking at? What is your monthly take home and how much of that is being spent on debt service (cars, credit cards, etc). I only have about $7k saved up right now. I currently save at about $1k per month and could probably go as high as $1500/mo if I wanted to pinch pennies. I'm paying $700 just for rent right now so I guesstimate I could afford $1700/mo for the home. The homes that seem to fit my partner and I best right now are anywhere from 285K-350K with more money generally being more ideal home. 6125 gross and 4173 net monthly pay. I'm monthly salary so that's consistent. I'm on track for another promotion for more money within another year or two so I'm hoping to grow into finding the mortgage more affordable. I have no other debts. I was thinking of asking $400 or $500 from my partner given their financial situation. The first company said I could get around $285k (with insurance and taxes) for $1703/mo I called Navy Federal after my post and their numbers sound better but they don't include insurance/tax so I'd have to figure that in to what they said. quote:Also, you say your loans were forgiven. Are you 100% aware of and past the tax implications of that event? PSLF forgiveness is not taxable, so I'm good there. But always good to make sure.
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Jan 22, 2022 00:26
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Aexo posted:Ah, good to differentiate, thank you. That company said it would drop off automatically after the payments crossed like a 21% threshold. Reading this thread I know I should make sure that happens, if I were to go that route. I'll let others get into the rest for now because it's friday evening and I'm not busting out a calculator. But the 21% is a PMI thing. MIP used to be a whole rubric, but now it's been simplified: Put down less than 10% and it's for the life of the loan. Put down 10% or more and it's 11 years. But again, you can finance out. But also, at historically low mortgage interest rates is is a good decision to go FHA/MIP right now if it's possible to do traditional financing? It's a math problem as well as some future assumptions.
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Jan 22, 2022 01:23
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Cyrano4747 posted:OK, but what's the opportunity cost of the time you're taking to get certified? I mean, even if the whole process costs me 20,000 (which is unrealistic. A tutored course is like $300-$100 and it looks like there's only another $1,000 or so in fees) and 100 hours that's a 30,000-40,000K payout for that work. I'd essentially earn myself $200-300 an hour doing the work. Even if it takes twice the time I'd expect that's still a good deal. That's a much bigger ROI than taking the full 60K in fees and investing it for a year and more than I'd probably earn doing anything else. El Mero Mero fucked around with this message at 02:08 on Jan 22, 2022 |
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Jan 22, 2022 01:51
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Aexo posted:Ah, good to differentiate, thank you. That company said it would drop off automatically after the payments crossed like a 21% threshold. Reading this thread I know I should make sure that happens, if I were to go that route. I'll go in kind of descending order of what I perceive to be importance. Note I know gently caress all about owning a house since I'm a dirty renter, so I'm approaching this from more of a generic BFC perspective. Also, this will be harsh. You absolutely need to square away the ownership situation with your partner. Do you the house as an individual? Who's on the mortgage? Does your partner get any equity for their $400 or $500 a month? What do they pay now in rent, what are they willing to pay? You need to think through ALL of that poo poo before you start looking for a house and you need your partner's buy in on whatever you plan to do. Your savings estimates are hosed. You need to make a budget. Right now you save 1k a month and pay 700 in rent, so you are assuming 1,700 a month in home cost. First of all, how are you saving money to deal with any of the inevitable joys of home ownership? You need money to keep the home beyond what you pay the bank. Second, how are you saving money for any of the other myriad reasons one ought to save money? You're moving your entire savings-destined cash flow to a mortgage payment. this is A BAD IDEA At minimum you need more money to go move in to a home. Moving costs at least a little money. When you move in, there will inevitably be poo poo that needs fixing. That costs money, too. You need a buffer of money on hand to be able to deal with whatever situations immediately arise with home ownership. The advantage of renting is that you transfer most risk to the landlord. If the furnace is hosed, you aren't the guy paying to fix it. But if you own the house, you need to cough up the money. You don't have the buffer to be able to do so.
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Jan 22, 2022 02:42
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El Mero Mero posted:I mean, even if the whole process costs me 20,000 (which is unrealistic. A tutored course is like $300-$100 and it looks like there's only another $1,000 or so in fees) and 100 hours that's a 30,000-40,000K payout for that work. I'd essentially earn myself $200-300 an hour doing the work. Even if it takes twice the time I'd expect that's still a good deal. That's a much bigger ROI than taking the full 60K in fees and investing it for a year and more than I'd probably earn doing anything else. every minute i could hypothetically spend becoming a REA is a minute i could spend on something more rewarding like autoerotic asphyxiation or repeatedly stubbing my toe or something
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Jan 22, 2022 02:44
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KYOON GRIFFEY JR posted:I'll go in kind of descending order of what I perceive to be importance. Okay, so yeah, it's not just my gut going "you are in no position to buy a home". Going back to look at the numbers, $7k is about half of what you will likely need for closing costs (fees, escrow, etc) on a $285k house. This doesn't include the down payment or moving expenses, all the broken poo poo and all the furniture and poo poo you'll immediately want or need. I guess I can pick the rest apart but Kyoon has done a good job on the savings part and like....yeah, you're just so far away from responsibly buying the details just don't matter.
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Jan 22, 2022 02:51
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There are MLS listing services that will list you for like $100 One of these services is called like Golden coin or something If you go digging around in Santa Cruz or Tehama county California for properties listed under $25,000 you'll find links to these companies
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Jan 22, 2022 02:58
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KYOON GRIFFEY JR posted:every minute i could hypothetically spend becoming a REA is a minute i could spend on something more rewarding like autoerotic asphyxiation or repeatedly stubbing my toe or something that's fair
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Jan 22, 2022 05:19
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The down-payment assistance from the first folks would help for the cost of down payment, I would be saving for a few more months to finish the closing costs. If I were to chose that option. I know I'm not in a position for the Navy Federal mortgage, that's the part of the dilemma for me... waiting could find me with a higher interest rate and potentially more expensive home. But they appear to have a 0% down, 3% down, and 5% down option could would work for me. My partner wouldn't be on the mortgage, I thought I made that clear but I guess my question about their financial contribution could have been misleading. Working out if they get equity wasn't mentioned in my post because that's already been worked out but I appreciate the reminder. The $400-$500 from the partner would be put toward an upkeep and unexpected expenses fund. After getting ballparks from Navy Federal I think I'm gonna go with them, which gives me another year+ to save and figure out which one I want to go with, and to snag the promotion/raise I'm on track to get, giving me of a buffer to work with.
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Jan 22, 2022 05:51
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Aexo posted:The down-payment assistance from the first folks would help for the cost of down payment, I would be saving for a few more months to finish the closing costs. If I were to chose that option. A bank will approve you for more home than you can afford. Your estimates have no cushion for things that will inevitably happen, like, say (what I'm dealing with right now) - a winter colder than any in a decade during a pandemic driven supply chain crisis that spiked natural gas costs up hugely, leaving me with a $500/mo heating bill. Or, as people have pointed out, repairs. And moving is expensive. And not just "paying movers", but all the other poo poo that goes with moving. Buying boxes and packing supplies. Buying new light bulbs for your house. Buying a ladder because you don't own one because you rent and now you need to screw in your lightbulbs. Oh look your roof is fine on the inspection, but now the chimney needs to be repointed ($3500) in the next six months. It adds up. $400 a month is $4800 a year. That is barely going to cover a fridge, let alone a roof, or an AC system. And a lot of that is going to be eaten by regular, ongoing maintenance costs. And with a home you either pay now or you pay later: deferred maintenance will save you money in the short term, and gently caress you in the longterm. Upgrade fucked around with this message at 06:07 on Jan 22, 2022 |
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Jan 22, 2022 06:05
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Just to give some anecdotal evidence. We bought our house 7 months ago. Inspection, walkthrough, etc. all looked great! Awesome! Since moving in, we’ve paid: - $3k to fix ductwork destroyed by raccoons before we moved in. Part was pest control, part was HVAC dudes. - $500 to plumber to fix various plumbing issues around the toilets and kitchen - $2k and lots of weekends DIY’ing GFCI, fixing lights (indoor and outdoor), doors, other plumbing work, touching up exterior paint, sealing up exterior, and buying tools for aforementioned work - Upcoming $500+ to get trees trimmed - Upcoming $500+ to get chimney leak fixed -Upcoming $300 I’d guess to get disposal fixed These are just the unexpected expenses *so far*. There were a lot more we knew we were walking into ahead of time. It worked out, but only because even after moving in and taking on a mortgage, a good chunk of our income is diverted to savings. Without that we’d be SOL. Definitely don’t take on a mortgage assuming nothing being put into savings. You’ll end up living in a house with no AC or heat and putting buckets out every time it rains. If you’re a bit lucky your car won’t break down and you can still go to work.
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Jan 22, 2022 07:18
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Does the mortgage from Navy Federal really truly have no PMI? Or do they just advertise it as no PMI but really they hide it somewhere else like a lender-paid PMI where they just jack up your interest rate to cover the cost?
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Jan 22, 2022 07:48
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They explicitly say no PMI. I assume it's baked into the interest rate. I asked for info about a $350K 30yr mortgage (This is so I know what the top end would be, but can guesstimate what a lower price would cost.) and this is what they ballparked me, didn't even ask my credit rating or income. Conventional Fixed Rate 5% down 4.625% rate 332,500 TLV, after $17,500 down $1710/mo Homebyers choice - 0% down 4.875% + 1.75% funding fee of loan amount ($6125), can be rolled into loan but I said I could probably pay that 350000 TLV $1852/mo - 3% down 4.750% no 1.75% funding fee 10500 down 1770/mo All loans: 2-4% closing costs Does not include tax or insurance In my head if I'm already payin nearly 6200 for the funding fee I may as well just scrape together the 3% down.
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Jan 22, 2022 09:23
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Those are all awful rates/fees and greatly exceed what you'd pay from a traditional lender with PMI. Assuming you have good credit.
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Jan 22, 2022 15:28
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Motronic posted:Those are all awful rates/fees and greatly exceed what you'd pay from a traditional lender with PMI. Assuming you have good credit. Yeah, an average 30 year fixed right now is something like 3.5%, so a full point under what they quoted. Standard disclaimers about good credit etc.
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Jan 22, 2022 16:58
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The bigger issue isn’t even the rate it’s that you don’t have enough free cash
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Jan 22, 2022 17:02
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Upgrade posted:The bigger issue isn’t even the rate it’s that you don’t have enough free cash No but the rate is an indication that there's an underlying issue that is making lenders more wary.
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Jan 22, 2022 17:04
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Yeah, those rates are pretty terrible, but their website advertises rates as low as 3.125%, so I’m thinking there might be other reasons they quoted you higher rates (maybe because your down payment is so low?).
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Jan 22, 2022 18:09
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