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I have a "sticky" situation. I know better than this but made a mistake due to pressure, so no lectures please. I want to buy a home. Someday. I'm 24 and can't afford a down payment right now, as my savings are effectively 0 due to some stupid poo poo that has happened lately. I have expressed this wish to my parents in casual conversation. I often go to open houses with them for fun and to motivate me to save. Since the 8k$ tax credit, both them and my girlfriend have been pushing and pushing me to "dive in" and buy a house. The final push was when Kentucky housing announced a 4.5k$ down payment advance that takes advantage of the tax credit. After all of that pushing I decided to give it a whirl. I found a good agent and started talking with him. He went ahead and showed me a bunch of houses and told me I can work out the financing after getting an offer together. Fair enough, he knows more about this than me. I found a great house and after some back and forth, we settled on an offer of 163k$, with the seller providing 4k$ in closing costs. I went to a mortgage broker and we started working on a 3.5% down FHA loan. (oh god oh god I knew better than this, but I'm bad with familial pressure) It turns out the down payment advance is honored by basically no lenders, so that's not an option anymore. Now I have my broker and agent wanting me to take out a loan secured against my car or getting gifts or some other batshit insane ways of getting down payment money, which I will have none of. I went ahead and chewed out my agent for advising me to offer first and finance later, and he's acknowledged that, but is still trying to talk me into it, and has asked me to get some advice before turning him down. I went ahead and told my parents off as well, and drew a very hard line in the sand regarding financial stuff. I want a house, but this is a situation I think I want out of. Long story short, feel free to skip to this Can someone give me some concrete facts on on why or why not it might be better for me to buy a house now, rather than wait and do it The Right Way? My agent is telling me I'm making a huge mistake by not buy a house right now. My big concern of course is money wasted on PMI, but he says that I can have 20% of my principal paid off in a couple of years if I use what I have left of the 8k$ and pay it as a lump sum and pay a little extra on the mortgage each month. He's also saying that I won't get an interest rate like this in a few years, saying that it could be something like 9%, and that most importantly I won't be getting 8000$ for free. My bullshit detector is going nuts right now, but I don't know enough about this stuff to clearly articulate to him that he is full of poo poo.
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Jun 10, 2009 20:12
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dreesemonkey posted:So the question is, how can you back out of your sales contract? Lecture: You're not ready to buy a house. There's a clause stating that the contract is completely nulled if I cannot get financing. From the sounds of it, that's exactly where I am. And yes, I had a feeling I was getting into a mess from the start. I basically just knew I needed 20% for some reason, and that I didn't have that. This thread is amazing and now I feel a lot more confident in myself and can rightly tell my agent, parents, and girlfriend to gently caress off. Thanks a ton.
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Jun 10, 2009 20:43
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moana posted:Yeah, don't let them pressure you into anything. What is your girlfriend doing trying to push you into something like that anyway? Shouldn't she be helping? My boyfriend and I are both on the drat mortgage. If she's not even going to help, she has no right to coax you into $160k worth of debt. Same with your parents - if they're not even going to gift you part of the down payment, they shouldn't be pushing you to get into a bad mortgage that requires PMI. Sheesh. Yeah. My parents are in a terrible financial situation themselves so I probably shouldn't listen to them anyway, and my girlfriend whom I've been wanting to break up with for a while anyway is pretty selfish. Sheesh most accurately describes it.
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Jun 10, 2009 21:10
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Don Wrigley posted:You've decided against buying the house--and that's good--but I'm gonna use your post as an example in my "wtf is wrong with people" post. Feel free. It's a wonderful "lesson learned" sort of story. necrobobsledder posted:Your agent is working in his interest unless he's a good friend of sorts. There are very, very, very few people in this world that will give you genuinely good, educated advice whatsoever, and even smart, educated people can be grossly wrong. Don't trust anyone whatsoever when they stand to make money off of you in any way or there's enough legal tape that doing anything remotely nasty to you would result in a lot of pain on the other party's part. That's a lesson I learned a long time ago. The agent is a nice guy, (that's his job, naturally) but apparently an aggressive seller. When I told him "it's simple, I can't get financing, so get me out of this" he tried to scare me into staying with it by saying that the seller is a real estate attourney and that I won't be getting my escrow money back, even though the contract clearly says I should.
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Jun 11, 2009 20:15
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