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Need advise
Posted: May 24, 2011
For those who have experience with home buying etc, I really need your opinions. DH & I are in the process of thinking about buying a place to live, but we've got some decisions to make. We have to move (the area we are in has 0 employment for DH). He's looking for a job so would try to purchase something based on just my income because there is no guarantee he will get a job (no guarantee about anyones job really and as an IC I'm a bit nervous). However...another issue is we have pets. A cat, a stray cat and her litter of kittens, so going to rent something is going to be pretty impossible. We're looking at places where the mortgage would be even lower than a lot of rents and I think it's a good idea to have a place of our own. After 30 years tired of moving and want to settle, but the economy and unemployment rate have me very nervous. We are also talking about the idea of buying a place, I stay there and my DH travel to a different area and rent a studio apartment and come home on weekends if that is necessary. We don't want to move so far because of the cost to rent, no reasonable housing so far away and it will take us 3 moving trucks to move all our stuff.
My question is do you think its a good idea to buy. For those who have bought what are some unexpected things you came upon. Just need another opinion as we have no family to kick ideas around with, just us.
Tx.
;
Step 1...Speak with a mortgage lender - sm
[ In Reply To ..](assuming you need a loan). Do you know your credit score? You can get a free credit report on line, but you will have to pay to find out your credit score.
Do you have a down payment and money for closing costs? Will you have some money put aside for unexpected expenses associated with a house such as repairs to electrical and plumbing systems in necessary?
Can you provide the necessary documentation to a mortgage loan processor to qualify for a loan, ie, tax returns, employment verification?
A mortgage lender will be able to go over everything with you and tell you how much you qualify to borrow. If you get pre approval, then all you need to do is find your dream home and make an offer.
This is a great time to buy as interest rates are low and inventory is high almost everywhere in the country.
Adding to sm's post... - sm also
[ In Reply To ..]I agree with "sm" about talking to a mortgage lender. You can get things started and find out how much you can borrow, even if you decide later not to buy a house.
Also, make sure you have enough for real estate taxes. If you decide on a location near the state or county line, compare the 2 rates. Had I moved a mere 5 miles south to another county, I could have saved about $1000/year in taxes. I would definitely buy over renting. Lots of good bargains out there. Good luck deciding!
home owner's insurance and personal property taxes, both a cost to you - when you own your own home
[ In Reply To ..]I guess the cost of rent depends on where you live as to whether it would be cheaper versus the other. You add taxes and insurance onto your payment, then you may be paying out more. Also, if anything goes wrong, you need the money to fix it.
First Time Home Buyer Program! - Check it out.
[ In Reply To ..]Check with your community education or Community Action Agency to see if there is a first-time home buyer program available. With all the cut backs, I don\'t know if they still exist, but check it out. Hopefully those shady mortgage lenders are out of business, but buyer beware! When looking, ask to see past utility bills. Be informed about age of wiring, water problems (look for rot and mold), signs of a wet basement or damp attic. Is there insultation? Look at recent repairs--what is that paint covering up? Visit home at different times of the day just to get a feel for the neighborhood. Good luck. It is worth it, but very stressful.
Buying a home - Anonymous
[ In Reply To ..]The first thing, as others have mentioned, would be to see a mortgage lender and get prequalified for a home loan. There are programs for first time buyers but don't be tempted to go in with no money down. Quite a few people did that and then ended up owing more than their house was worth when the housing market went sour. After you find a place you will need to hire an inspector and possibly a Realtor. You need money for closing costs, property taxes and home owners/flood insurance. Then, of course, there are those unexpected expenses like painting, a new roof, appliances and carpet. You may want to do some landscaping. Those things, plus your house payment, need to be compared to what you would be paying for rent. My advice would be to wait until your employment situation is a little more stable unless your husband already has work lined up near the new location. Is it possible to find homes for some of the pets?
For example - Check it out
[ In Reply To ..]The community action first-time home buyer program I am speaking of is a non-profit, more of an educational/financial counseling program. The people I know who would work with you would help you to figure out how to reach your goals, perhaps even giving DH some career counseling. It may not happen today or next year, but you should start working on your goals now! If you could get stable employment, I think it is an excellent time to look at buying considering the depressed prices and low interest. Most agencies have their own web sites--here is one for Tulsa.
http://www.captc.org/financialServices/fthbp.php
Sometimes they coordinate with - Habitat for Humanity - nm
[ In Reply To ..]
Do Not Buy - BTDT and I am telling you!
[ In Reply To ..]Your nervous feeling is your instinct telling you it is not the right thing to do.
Rent, even if it costs a little bit more, at least until things are more stable.
He is unemployed, and you are an IC MT? It would be foolish to get yourself tangled up in such a huge committment as home ownership.
Thank you all - see message
[ In Reply To ..]You have all given very good advice. While the home buying sounds ideal and I'm sick of paying rent to live in someone else's house, having to go through yearly inspections, have them constantly drive by and look at the house then call us and tell us they want to do things to the house while we live here. We can't fix it the way we want (build a porch off to the side and make use of one side of the house, put in a doorway leading out where there is no exit, paint the walls a deep olive green or any color to make the rooms look warm and inviting, have a greenhouse that extends out from the house, build a sun room in our existing walkway with screens to sit out at night or keep the door open for a nice breeze coming in, have gardens, build a fence for a little privacy, and all the other things I dream of having with our own place, I think I may continue to rent at least until the economy is a little more stable or DH gets a job. Probably will be never. Just unsure about the whole thing. I'm sick of getting ripped off by places charging a lot of rent when mortgages could be 200 and less. Then when you leave they do everything imaginable to keep most of the deposit. But without a ton of money in the bank, DH still out of work, and other things I'm getting a feeling deep down to keep renting. I'd love my own place, something I can paint and fix the way I want, set up the yard the way I want (gardens, etc) and no neighbors so close. But until I'm more sure I will keep renting. At 54 I would just like something to call my own (even though it's not really my own, but nothing someone else owns and dictates how we are suppose to keep their property.
Mortgage - Jackie
[ In Reply To ..]If you can find a mortgage for $200 or less with taxes and insurance included, I would jump on that like stink on you-know-what....
One man's castle. - ya never know
[ In Reply To ..]Recently a house near here sold for $10,000 at auction. There are some structural problems, but if you have some resources, that is a good deal. Different locations can vary a lot. Not a house with a sunroom, but a one-bedroom with a little yard.
I don't know about other landlords, but I do know - that I lose $400/month on my rental
[ In Reply To ..]and only wish I could sell it. The problem I see with letting the renters do whatever they want with my house is that I end up with a house with dark green walls (not everyone's cup of tea and not easily painted over), as well as workmanship that might not be up to my standards (not saying that you would not do a beautiful job). It just isn't worth the risk. I am just trying to help you understand the other side of the aisle here.
You should get together with the OP - You would both be ahead :)
[ In Reply To ..]I hear you. Between extra taxes and insurance and hassle, it does not pay to be a landlord. You are building equity, though.
Not to be harsh but I don't know anyone with - sm - INKMT
[ In Reply To ..]with a $200 mortgage payment. We borrowed $102K on a 15 year mortgage, refinanced with a slightly lower interest rate (went from 6.5 to 4.5 about 8 years ago) and did a 10 year mortgage then (had a 15 year mortgage before that we were 5 years in on) so we lowered our interest a bit and try to make extra principle payments too, have shaved off about 8 months from our loan and saved some more interest as well. We pay $1000 a month now. About $700 is the mortgage and the rest is escrow for the home owners insurance (not PMI) and our county taxes. Our escrow payments alone are $300 a month. ONce we have paid of the mortgage in two years then we hav to make the tax payments to the county ($2K+) and to State Farm for our hme owner insurance $650 a year. From the sounds of your post though you have money to burn, i.e. all the home improvement plans you have, so then go and buy a house, put down at least 20% and get a 30 year mortgage if they are still available... the only way you will get a lower payment, and make sure you get a fixed interest rate. My DH has owned since he was about 21, he is not so thrilled these days as we keep having things break, leaking plumbing, broken toilets, appliances die, all have to be fixed on your dime when it is your home. We just tackle one thing at a time as we can afford, but it never seems to end around here. Our home is not that old, about 23 years, and we have been pretty lucky, have put on a new roof, replaced water heater, fixed a few water leaks, replaced skylights, fixed range stove, replaced microwave, fixed the furnace/AC unit a zillion times (cannot afford the $10K+ it would be to get a new system). NEED/WANT to paint interior, replace carpeting, replace furnace and AC system, need 3 new screen back doors, all windows need resealing/caulking, need new gutters, bathrooms need updating (toilets and sinks and faucets)....all the "NEED" is on my to do list for after we pay off the house and will again tackle as we can afford to do them. Also thinking about converting to solar too, figure in a few years the tax incentives should be even better! But a lot goes to "owning". I am not sure at 54 I'd want to deal with it.
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