Buying a house

**WATTS** · 07-30-2006, 08:16 PM

how much money does one need to put down on a house? like percentage of actual cost.

what other things do you have to pay for when you puchise a home? im trying to look into it but im not having termendous sucess.

**GSXR750** · 07-30-2006, 08:20 PM

Usually 10-20%. Minimum

**MyK** · 07-30-2006, 08:29 PM

I suggest renting an apartment. its a much better financial option!

**bigss75** · 07-30-2006, 08:52 PM

They are now doing 0% down now but you will get completely screwed over on the apr

**GSXR750** · 07-30-2006, 08:55 PM

The way real estate prices are in certain places its actually more affordable to get a ARM and pay interest only as opposed to renting an appartment. After 5-10 years before your finally going to be paying on the principle you just sell. Youll loose some money to defered interest if you choose that option. In the end youll still make a profit and have had a place to live for that time. Look at the market in your location...or talk to a real estate attorney.

**TJ Cline** · 07-30-2006, 09:19 PM

Originally Posted by WATTS

how much money does one need to put down on a house? like percentage of actual cost.

what other things do you have to pay for when you puchise a home? im trying to look into it but im not having termendous sucess.

At 19 in CA you can't afford a house.

**Big Smoothy** · 07-30-2006, 09:40 PM

Originally Posted by WATTS

how much money does one need to put down on a house? like percentage of actual cost.

Do you want to include PMI?

80-20 fixed, or Arm?

If you're asking on this forum, you better start reading and researching.

what other things do you have to pay for when you puchise a home? im trying to look into it but im not having termendous sucess.

Loan origination, title searches, escrow....

My point is...if you're asking here, you better go a good search, and talk with current homeowners.

**fatale** · 07-30-2006, 09:43 PM

Originally Posted by MyK

I suggest renting an apartment. its a much better financial option!

you dont want to live an apartment forever would you?

YOu want to own a house someday right? The money that you put monthly on your rent is more better to be putting your house investment.

I guess if your paying 1200 on your apartment then might as well put that money on a house. Is all I am saying!

**Nachez** · 08-02-2006, 03:22 PM

im actually going to do that
I found a nice 3 bedroom home north of Atlanta 10-15 minutes from downtown ATL. 104,000.
im waiting till I get my credit cards payed off first.

**the nut** · 08-02-2006, 03:26 PM

Originally Posted by Nachez

im actually going to do that
I found a nice 3 bedroom home north of Atlanta 10-15 minutes from downtown ATL. 104,000.
im waiting till I get my credit cards payed off first.

You shouldn't have to put anything down for 104k, thats a low payment even if you include PMI and taxes in the payments.

**Nachez** · 08-02-2006, 03:30 PM

current credit score 685
credit goal 755.

**Prince** · 08-02-2006, 03:39 PM

on my first house I did an FHA loan and it required 3% down, plus closing costs.

be careful buying an apartment, they can be difficult to get rid of, either a townhouse or a single family house is a better option.

http://homebuying.about.com/cs/finan.../fha_loans.htm

**SuperFlex** · 08-02-2006, 03:50 PM

Originally Posted by WATTS

how much money does one need to put down on a house? like percentage of actual cost.

what other things do you have to pay for when you puchise a home? im trying to look into it but im not having termendous sucess.

Possibly $0-10% down. There are plenty of first time home buyer program that allow for $0 down. Some will even pay your down payment for you! Your rate will depend on your credit and income to debt ratio...

**busyLivin** · 08-02-2006, 07:53 PM

I'm currently approved for a loan, with 0 down. I haven't done anything yet, but the apr i'm looking at is 6.75. The PMI for a 200k house is 160/month.. pretty steep.

Rates are dropping, the market is congested. I'm going to sit tight for a bit & save.

**Doublebase** · 08-03-2006, 08:35 AM

Originally Posted by busyLivin

I'm currently approved for a loan, with 0 down. I haven't done anything yet, but the apr i'm looking at is 6.75. The PMI for a 200k house is 160/month.. pretty steep.

Rates are dropping, the market is congested. I'm going to sit tight for a bit & save.

I'm with you. Everything is so expensive right now. You can't touch anything for under 200K. I'm just saving as much as possible. I hope to have 20% so I can avoid the PMI. It's just so hard now days to have 20% down. Houses are so expensive as is everything. Gas, food, clothes, bills. It's tough to save up 50K. If I married my current gf we could easily afford a house. I make around 60 and she makes around 50. Thats a whole other story though.

**busyLivin** · 08-03-2006, 09:31 AM

I'm not concerned with the 20%.. I've rented a year now & I'm not going to continue dumping money down the tubes... It would take me years to save 20% with my bills & the PMI is still cheaper than renting which is going nowhere. 5% is more realistic.. I could always refinance in a couple years & hopefully take care of the PMI.

What's nice is my lease is up and from what I hear from other tennants, I don't have to sign another one... I'm paying month to month now with my sister, so if something comes along I can't pass up I can jump on it. Otherwise, I'll be looking to buy next spring.

**Doublebase** · 08-03-2006, 09:49 AM

Originally Posted by busyLivin

I'm not concerned with the 20%.. I've rented a year now & I'm not going to continue dumping money down the tubes... It would take me years to save 20% with my bills & the PMI is still cheaper than renting which is going nowhere. 5% is more realistic.. I could always refinance in a couple years & hopefully take care of the PMI.

What's nice is my lease is up and from what I hear from other tennants, I don't have to sign another one... I'm paying month to month now with my sister, so if something comes along I can't pass up I can jump on it. Otherwise, I'll be looking to buy next spring.

Now days they offer pretty good loans with little down. I am going to aim for 20% but it would probably take me 3 more years. If I found something now for 200 or 225 that I really loved, I would buy it. I currently live in a buddy's house and pay rent month to month. I had an apartment last year. I am saving a lot right now living with somebody.

**busyLivin** · 08-03-2006, 10:02 AM

Originally Posted by Doublebase

Now days they offer pretty good loans with little down. I am going to aim for 20% but it would probably take me 3 more years. If I found something now for 200 or 225 that I really loved, I would buy it. I currently live in a buddy's house and pay rent month to month. I had an apartment last year. I am saving a lot right now living with somebody.

definitely.. I'm only paying about 435/month & my sister the same. That way were both able to save & pay off debt. She's been dating a guy pretty steadily now though, so for all I know she could be married in six months. At that point I would buy a house right away... I could never throw away 875 bucks/month in rent. I'd rather get into a house & be tight for awhile.

Price range is about 200k, hopefully less.. the condos around my work are at that price, but if I move about 30 minutes south I can get a 3 bedroom house for the same. Only worry is the commute, and my car is a gas guzzler.

Though my boss did say I could work from home most of the week.

I'd hate to go from an apartment to a condo though... I still have my workout equipment @ my parents house & am always planning on the gym I'm going to setup

**Doublebase** · 08-03-2006, 10:06 AM

Originally Posted by busyLivin

definitely.. I'm only paying about 435/month & my sister the same. That way were both able to save & pay off debt. She's been dating a guy pretty steadily now though, so for all I know she could be married in six months. At that point I would buy a house right away... I could never throw away 875 bucks/month in rent. I'd rather get into a house & be tight for awhile.

Price range is about 200k, hopefully less.. the condos around my work are at that price, but if I move about 30 minutes south I can get a 3 bedroom house for the same. Only worry is the commute, and my car is a gas guzzler.

Though my boss did say I could work from home most of the week.

I'd hate to go from an apartment to a condo though... I still have my workout equipment @ my parents house & am always planning on the gym I'm going to setup

My location is expensive. I work right outside the city so single family's are all over 300K. Condo's are around 200K. I pay 425/month for rent. I used to pay 800/month for my apt. I could buy a house here in Philly for under 200k but I don't want to live in Philly anymore. My gym is also at my parents house. My dad uses it.

**busyLivin** · 08-03-2006, 10:18 AM

Yeah, I'm in the suburbs, too. Crazy: about 5 years ago my Grandma died & her 3br/3ba house sold for about 130k.. It's about 5 minutes from my work. Same house now would go for over 300k.

Ridiculous how expensive everything has become in such a short time. All the Chicagoland area construction is moving south.

**Prince** · 08-03-2006, 12:08 PM

the advantage of putting 20% down is you avoid paying mortgage insurance.

**Jodi** · 08-03-2006, 12:19 PM

You can also get a second mortgage. So one mortgage is 80% and the other is 20%. This avoids having to come up with 20% and you won't have to pay mortgage insurance. The downfall is that the interest rate of the 2nd is higher. However, if you live in an area where prices are rising this isn't an issue because in a year, you can refinance for a regular 30 year mortgage and when the appraisal is done you now show that you owe less so you can get a regular mortgage and get rid of the 2nd.

Just an idea.

**Doublebase** · 08-03-2006, 12:50 PM

I am aware of taking out a second mortgage. A lot of first time home buyers do this. I understand how to buy a house I just need the money to do it.

**SuperFlex** · 08-03-2006, 01:57 PM

Originally Posted by Robert DiMaggio

the advantage of putting 20% down is you avoid paying mortgage insurance.

Another way to do that is to buy smart. Buy a foreclosure if one fits what you're looking for. You can make $40,000 buying a new home for yourself... Jodi also raises a good point!

**largepkg** · 08-03-2006, 03:18 PM

This is a great beginner tool to decide whether buying is better for you than renting. http://www.homefair.com/homefair/usr/rentbuyform.html

Let's use an average case for instance. Household income of $70K-$80K. Currently renting at $900 per month. Looking at a comparable condo in this area in the $230K range. Given an expected appreciation of 3% and property tax of 2% you are much better off renting.

In most cases here in South Florida it's wiser to rent at this time. Mainly due to the lack luster property market. If the market was like it's been over the last 5-7 years than the appreciation alone would make you a very wealthy person. Unfortunately that's not the case now.

**Prince** · 08-03-2006, 03:47 PM

Originally Posted by SuperFlex

Another way to do that is to buy smart. Buy a foreclosure if one fits what you're looking for. You can make $40,000 buying a new home for yourself... Jodi also raises a good point!

yeah, but you gotta be careful buying foreclosures.

**GSXR750** · 08-03-2006, 04:45 PM

Originally Posted by Robert DiMaggio

yeah, but you gotta be careful buying foreclosures.

Can you elaborate on that?

**SuperFlex** · 08-03-2006, 08:51 PM

Originally Posted by Robert DiMaggio

yeah, but you gotta be careful buying foreclosures.

True, but that's always true. It's easy to find homes that are only 1 or 2 years old. Inspect them just like any other purchase if you are worried and you should be fine.

**Prince** · 08-03-2006, 10:10 PM

Originally Posted by GSXR750

Can you elaborate on that?

Risks

The biggest risk with a foreclosure is poor physical condition of the property. Someone who is being thrown out of a house has no incentive to maintain it, and indeed they may go so far as to destroy it. Some lenders repair their foreclosures before they sell them, but many do not. In some cases, the lender does not allow bidders at a foreclosure auction to inspect the properties prior to bidding, which makes it difficult to assess their condition.

The next biggest risk associated with a foreclosure is risk of legal entanglement. As long as the owner still occupies the property and/or the lender has not taken clear title to the property, the legal dangers are very serious. You could end up trying to process an eviction or finding yourself liable for back taxes on the property that never were paid.

http://www.homefair.com/homefair/ser...e&cid=homefair

**SuperFlex** · 08-04-2006, 01:06 AM

Originally Posted by Robert DiMaggio

Risks

The biggest risk with a foreclosure is poor physical condition of the property. Someone who is being thrown out of a house has no incentive to maintain it, and indeed they may go so far as to destroy it. Some lenders repair their foreclosures before they sell them, but many do not. In some cases, the lender does not allow bidders at a foreclosure auction to inspect the properties prior to bidding, which makes it difficult to assess their condition.

The next biggest risk associated with a foreclosure is risk of legal entanglement. As long as the owner still occupies the property and/or the lender has not taken clear title to the property, the legal dangers are very serious. You could end up trying to process an eviction or finding yourself liable for back taxes on the property that never were paid.

http://www.homefair.com/homefair/ser...e&cid=homefair

Rewards

"In general, foreclosures sell for lower prices than comparable homes. This is true in part because the financial institution has no use for the home, making the institution a motivated seller. Often, foreclosures are sold at auctions, where lenders try to unload many properties as quickly as they can. Another reason that prices tend to be lower is to compensate buyers for some of the risks of buying a foreclosure (see below).
Another benefit of buying a foreclosure is negotiating leverage. You may be able to extract concessions from the seller, such as a below-market mortgage or funds to cover repairs."

When you close on a home you should get a clear title. If that's not possible then don't take the home unless it's at such a great deal you can pay whatever liens it may have and still have great equity. This covers your butt... Ask for a ALTA 98 title.

Besides, the vast majority of foreclosures have already gone through this process. I know the foreclosures here can't close without clear title and the opportunity to have an inspection. People get filthy rich doing nothing but foreclosure deals... These homes you can see with any licensed realtor whenever you want to. I'm a broker and had 40 or more VA foreclosures at one time myself...

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