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#1
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House buying
I'm looking to buy my first place to live and was looking for advice...i dont want to do an apartment because I dont want to through my money away every month.
Im looking at foreclosures mainly right now they are kind of fixer uppers but not so bad that you couldnt live comfortably though....what am I going to need to get started and for peoe to take me serious? Thanks in advance
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Jared 1992 dark teal SVX LS |
#2
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Re: House buying
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you'll need a good credit score, and a decent down payment. don't buy more house than you can afford. when you do buy, have a nice wad of cash set aside in addition to any money you have budgeted for improvement and repairs (had my furnace die in the middle of winter in my last house.) get a good home inspector, and watch "Holmes Improvement"!
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Alan 1987 928 S4 (Black) SOLD! 1997 SVX LSi (Ebony) SOLD! 2005 Legacy GT (Silver) [Cobb Stg 2+] SOLD! 1987 928 S4 (Black) SOLD! 2005 Forester XT Premium (Crystal Gray Metallic) SOLD! 2008 Lancer Evolution X MR (Apex Silver) [Cobb Stg 1+] 2015 Outlander Sport 2.4GT AWD (Mercury Gray) 2013 G37xS (Obsidian Black) |
#3
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Re: House buying
If your serious about buying a house, the first step is to get pre-approved for your home lone. Who you choose is up to you. Look into FHA programs, unless you have about 10% to put as a down payment. FHA programs typically require 3.5% down to close.
Next step is finding a real-estate agent. If possible in your area, try to get sellers concessions (it means the seller pays closing costs, which is about an additional 3-5% of the cost of the home). Try to find a real estate agent who is patient, and has been around for a while. Experience is everything right now, since there are so many people who have gotten into it the last 10 years, and so many who failed to do well. If you can find someone who has been around for 20 years or so, they will have a better feel for the market, what you'll be able to take on (project-wise and in other areas as well). Also, overspend a bit. This is mostly true if you have a very dependable job, and one that you can manipulate your wage at(overtime, etc.). The reason I say this is because if you have to eat top ramen and hot pockets for a year to get by, you will not regret it since you'll have more/nicer house to live at. I do not recommend doing this if you have any sort of uncertainty with your career. The last bit of advice I want to give you is be patient. Everyone will tell you this, but it mostly has to be learned the hard way. You'll probably find a place you love, and someone will make an offer on it before you. Or the sellers will entertain multiple offers and you will not be able to compete. Just walk away from those, there are many fish in the sea. Good luck on your house hunting! ( I just closed on my first home and no matter how stressful it gets, the end result is very much worth it!)
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Cam '92 Ls-L Dark Teal 11:1 CR ECUTUNE pistons ECUTUNE .256 duration intake/exhaust cams ECUTUNE STAGE 2AV1 ECU Z32 MAF/SR20DET injectors Balanced & Blueprinted |
#4
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Re: House buying
To get the most favorable interest rate, most lenders would want to see great credit scores, no missed or late payments over the past 12 months, a secure job and a down payment of at least 20%.
There are government programs that let you put down substantionally less, but Skirting the traditional 20% down payment means a mandatory additional expense: private mortgage insurance. PMI might not seem like a big deal, but it comes with a few hitches. This insurance typically costs between 0.5% to 1% of the entire loan amount on an annual basis. In other words, a $150,000 loan at a 1% insurance rate adds an extra $125 per month to your monthly payment. The insurance protects your lender against the possibility of you defaulting on the property and can be charged until as much as 50% of the loan is paid off. The good news is PMI is currently tax deductible for married couples jointly making up to $110,000 annually. .
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. Subaru Ambassador 1996 Polo Green LSi #216..138,100 miles...SOLD JFICX8659TH100216.....Date of Manufacture: November 16, 1995..... Fuji Heavy Industries..Ōta North Plant....Ōta City,. Gunma Prefecture, Japan In-Service Date: January 2, 1997 "The Pristine Green Polo Machine” First Polo Green on the Network First Clear front turn signals, JDM Alcyone hood emblem, rear panel, and BOXER engine cover on the Network (US) (2000) First 5000K HID factory fog lights (2007) First SVX JDM BBS wheels on a USDM SVX (2013) HID lighting (5000K) for headlight and H3 fog lights, PIAA SuperExtreme 120W high beams, rebuilt EG33 longblock, Cometic head gaskets, Phase II flexplate, AMR aluminum radiator with custom silicone hoses, 160A high-output alternator in aluminum-ceramic coated case, new design alternator wiring upgrade v.4, rare factory headlight protectors, refinished JDM BBS mesh aluminum wheels and custom, polished billet aluminum new hex center caps, LED grille mod, R1 Concepts high-carbon cryo slotted rotors, Akebono ceramic pads, Goodridge S/S braided brake lines, Smallcar Stage 1 shift kit, ThermalTech aluminum/ceramic-coated valve covers, Energy Suspension urethane front & rear swaybar bushings, Bontrager22 rear swaybar with QS Components Chromoly Teflon/Kevlar endlinks, "$15.00/5 minute" suspension mod. Hella Supertone horns, Custom stainless steel exhaust system with 2" headpipes, Magnaflow cats, AeroTurbine AR25 resonator /AWD "Bullet" muffler. R.I.P. 2010 Subaru Outback Limited 2.5 CVT...338,000 miles. Totaled by a 1,300 lb. COW March 4, 2016 2014 Hyundai Avante Limited ...178,000 miles. Actually quieter and smoother than the Outback 2007 Mazda Miata MX-5 PRHT...102,000 miles. Plenty of parts, service and windshields. 4th Registered Network member —2/21/2001 My NEW locker..I...My Email..I..Wikipedia/SVX . . |
#5
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Re: House buying
Foreclosures are fine (I bought a foreclosure and got a great deal), but avoid short sales. Banks are notoriously difficult to deal with involving these. I have several friends who attempted to buy short sales and eventually gave up as the banks made it so difficult.
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2009 Volvo C70 T5 2008 Volvo S80 V8 2006 Range Rover Sport 2001 Audi S8 |
#6
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Re: House buying
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If you dont have at least 20% to put down, you arent ready to buy a house yet. Whats going to happen after a year of eating ramen noodles and living like a hobo? Same big mortgage payment.
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Alan 1987 928 S4 (Black) SOLD! 1997 SVX LSi (Ebony) SOLD! 2005 Legacy GT (Silver) [Cobb Stg 2+] SOLD! 1987 928 S4 (Black) SOLD! 2005 Forester XT Premium (Crystal Gray Metallic) SOLD! 2008 Lancer Evolution X MR (Apex Silver) [Cobb Stg 1+] 2015 Outlander Sport 2.4GT AWD (Mercury Gray) 2013 G37xS (Obsidian Black) |
#7
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Re: House buying
Overspend a bit, and only put 3.5% down? This sounds more like "dont do this" than advice.
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2009 Volvo C70 T5 2008 Volvo S80 V8 2006 Range Rover Sport 2001 Audi S8 |
#8
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Re: House buying
Depends on what your job situation is like. With rates as low as they are, you don't have as much to gain from putting 20% down. About 30 years ago when interest rates were over 10%, it was definately much more advantageous to get as much principal out of the way quickly. Also, with my job I get periodic raises and know when and how much money I will make. You also have to take into account the area I live in. 20% down here is serious coin, not like the Midwest (for example) where you can get a decent house for 100k.
And putting 3.5% down doesn't necessarily mean that's all that person can afford. It was a financial decision for me. Why would I put 40k down when I could put 7? To save 100 dollars a month? It doesnt make sense with the plans I have for this house. I agree that you don't want to rush into it without being ready but those programs are in place for first time homebuyers so that they can get into a place and afford to fix it up. House prices are so high these days that most first time home buyers don't have anywhere close to 20% for a down payment. Even if the housing bubble did pop. At least, that's the situation up here.
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Cam '92 Ls-L Dark Teal 11:1 CR ECUTUNE pistons ECUTUNE .256 duration intake/exhaust cams ECUTUNE STAGE 2AV1 ECU Z32 MAF/SR20DET injectors Balanced & Blueprinted |
#9
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Re: House buying
Have a plan for your first house. Do you plan to live in it for 2 years, 5 years, 10 years? Have that in mind when you pick your mortgage.
Best thing we did on our first home was to make sure it was something we could sell very quickly when the time came. Pick a nice neighborhood, nice location, and make sure the price you pay for the amount of house will leave you with a fair return when you do sell. We were able to sell our first home within 2 weeks of listing. They kicked us out of the house it sold so quick. I'd advise against buying on the upper end of what you can afford. Buy at the middle or lower end of what you can afford. It will make your life much easier and you won't have to eat ramen and drink natural light.
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Matt Locker Link 2015 BRZ Limited 6MT 92 Ebony LS-L ECUtune Stage2av1, Z32 MAF, 370cc injectors, TomsSVX intake, BontragerWorks 22mm RSB #003, HID Hi and Lo beams, OT endlink and bushing mods, PWR Aluminum radiator, Harvey's QC shift kit, 2.5" flowmaster 80 exhaust, 17" Michelin Pilot Sport A/S, Poly sway bar bushings, Slotted Bradi rotors, AFBeefcake powdercoated calipers, 97 grill, and a huge set of air horns. 300,000 miles and counting 92 Ebony LS-L. ecutune stage1v4, motorsport 1pc pulley. Garage Queen - sold to Dad in upstate NY 155,000 miles 19 Subaru Ascent Premium - -Hers !. 89 DL 4x4 little red wagon - a.k.a. The immortal suby. 275k R.I.P. |
#10
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Re: House buying
Simple old-school formula for what you can comfortably afford (and this applies to a mortgage or rent): Your monthly payment shouldn't exceed one week's gross pay.
I wouldn't worry about a big down payment. It might be a better play to divert your down payment cash to get the bigger "fixer-upper" projects out of the way. Fixer-uppers have a notorious way of never really getting fixed-up, once real life intervenes. Good luck. dcb |
#11
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Re: House buying
thanks for the advice guys...i am actually looking at 100k houses at the moment and a lot of them dont look too bad...im also looking at houses for rent because from what i hear a lot of the time when people rent out houses it is because they cant sell it and they end up offering it to buy after a year or 2 if you are in good standing....
is this true?
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Jared 1992 dark teal SVX LS |
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