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4/25/2017 7:42:44 PM
Posted: 5/30/2002 2:23:00 PM EDT
Ok, I am growing weary of apartment living and I am feeling a definite pull towards getting a house in.....let's say 5 years. I have a good job and have been cleaning up my credit a great deal. Anyway, what I want to know from those of you who have purchased a house recently is what steps I should begin now to make buying a house in five years easier. I am about to eliminate two credit cards and start saving money. I also ran a credit report and have begun fixing/cleaning up any open issues. Thankfully, the credit-dinging folly of my early 20s is no longer on my credit record. So, lay it on me, what are the dos and don'ts in planning to buy a house? Thanks for any help!
Link Posted: 5/30/2002 2:37:35 PM EDT
location. first and foremost, make sure youre going to be happy where youre going to live. nice neighborhood? gangs? proximity to a place you can shoot? schools? grocery stores? strip joint? bar? closing costs/down payments. save as much as you can. then save some more. a bigger down payment means smaller (read: easier) mortgage payments. know what you can afford. dont buy a colonial style house with all the trimmings when you (and family, assuming you got one) will be perfectly happy with a small, cozy cape. start looking around. go to open houses/homes that are for sale. get brochures about loans and real estate agents. better yet, buy a house that an owner is selling by himself and not through an agent. trust me, you can buy without one. i did. lots of legwork, but you save some bucks. AND....it pains me to say this, get a good LAWYER. too much legal mumbo jumbo for us regular folks to comprehend. (buy a good pen, as youll be signing papers like you wouldnt believe) ill post more when i think of more........ to be continued.
Link Posted: 5/30/2002 2:46:40 PM EDT
oh yeah, what about land? do you want a couple of acres? three? 20? think about property taxes as well.
Link Posted: 5/30/2002 2:54:28 PM EDT
Are you sure you really want to buy a house? I own one and I'm sick of it. It costs way more than an apartment and I have no time for the up keep. Sure, there is the equity that MIGHT be available in 5-6 years, but think of it, you can NEVER really own your place because of TAXES which are always being jacked up.
Link Posted: 5/30/2002 3:04:48 PM EDT
Originally Posted By DevilsAdvocate: Are you sure you really want to buy a house? I own one and I'm sick of it. It costs way more than an apartment and I have no time for the up keep. Sure, there is the equity that MIGHT be available in 5-6 years, but think of it, you can NEVER really own your place because of TAXES which are always being jacked up.
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What state do you live in? I'd take that house off your hands and pay you for your equity if you lived close enough to me. I'll take an unwanted house off anybodys hands and pay them cash if close enough. Thats what I do for a living[:D] CAPITALIST
Link Posted: 5/30/2002 3:15:21 PM EDT
cyoung, There are several great money reasons to buy a house and most of them will be great reasons to not wait 5 years. In 5 years, houses will cost more than they do now, and this increase will make it very difficult for you to save enough money to catch up. I'm curious why you would like to wait? Is it because of saving the closing costs and dowm payment? Have you not found the right city to live in? Are you nervous about owning a house? There are some great programs out there for just your situation. I know a little about this as I am a new homeowner, and I help people buy houses for a living.[;)] Email me with any questions and I'll help you out. Matt
Link Posted: 5/30/2002 3:57:07 PM EDT
I agree, location is a big factor. Once you find one, take a day off work and drive around for a few hours in the morning then again in the afternoon during the peak traffic hours. This will give you a good indication of the congestion. I have seen numerous places that appear great on the weekend, but try traveling 15 miles to work during the week and it takes an hour. If you live in a place like Florida, you definitely want to check out a location a few times after a heavy rain storm. You will find many places get flooded during some of the littlest storms. I suggest you also look into building a new home as you may be able to get a better rate then if purchasing a used home.
Link Posted: 5/30/2002 6:54:21 PM EDT
Cyoung, You can save yourself a lot of time and grief very easily. Ask your friends, co-workers and relatives if any of them can recommend a mortgage broker. If not, just start calling through the yellow pages. This is NOT the same as a bank loan officer. A good broker will talk to you over the phone, run your credit history, then give you an honest opinion on your chances of getting a loan. The broker doen't make the loan, just finds it for you, and gets a commission from the lender. My broker only charged me for the credit report, about $20. He reviewed everything with my girlfriend and I, then was able to find us a loan. My gf had changed jobs three times in two years, a bad thing to a loan officer, and I had not had a real 9-5 job for four years! I'd been working constantly as a freelancer in my field, and had worked for most of the major companies in my area and could prove it with copies of billing records and tax statements. He worked hard, and got us pre-approved. With that we found a buyer's agent through a friend. This is a real estate agent that represents you, the buyer, and NOT the seller. His job is to find you the house you want, can afford, and get the deal done for YOU! Most re agents contractually work for the seller, and thus do not have your best interest in mind. The loan broker only gets paid when you sign for the mortgage, and the buyer's agent only gets paid when you close on the house. Perfect for you! Start with a broker, he'll be able to tell in 20 minutes if you're even in the ballpark, and what it would take to qualify you. It could save you years of rent. Good luck, you won't regret it. Pepper
Link Posted: 5/31/2002 6:17:47 AM EDT
Thanks for the information so far. LEt me answer a few Qs and ask a few more. The reason for five years - it is going to take me about that long to pile up some dollars in the bank. Also, at that point I will be vested in our state (FL) retirement system and I will have more flexibility job-wise. I am currently in Gainesville, FL which is in Alachua county. Our tax rates on property here are simply insane. Probably something to do with the all Democrat commision! I hope to buy soething in an adjacent county with lower taxes or move to another area alltogether. depends on what the job market does for me. Pepper, thanks for your suggestion. I have a close friend who is a real estate agent and I *may* rely on him, but is nice to know there are other options.
Link Posted: 5/31/2002 6:25:04 AM EDT
A few *minor* things not mentioned. Check out the zoning for the area, can commerical buildings be built ? (want to live next to a factory or mall) Check out public/private schools, assuming you have or plan to have children. Also, kids need kids, what may seem ideal to you may be a remote area and your kids will have no friends , other children in the neighborhood is a plus.
Link Posted: 5/31/2002 6:47:25 AM EDT
Always remember that the realtor has a fiduciary responsibilty to his or her agency, not you. They are, first and foremost, in businees to get you to buy a house. Any house. While it would be nice if the house was a good one at a fair price that you could afford, these are not necessary conditions. I've always had good luck buying the crappiest house in the best neighborhood.
Link Posted: 5/31/2002 7:04:48 AM EDT
Cyoung, FYI, you can get into a house for zero down if you like, nowadays. It's what I do for a living in the mortgage business. You sound like you are relatively young, so you can probably use the tax deduction. Plus, even though you are into the property for 100%, appreciation is relatively high depending on where you live. You just want to take care not to buy a home somewhere where the market is on a downswing. Good luck!
Link Posted: 5/31/2002 7:08:29 AM EDT
BTW, pepper is totally right about mortgage brokers. I am a lender rep who works with brokers all day and you can usually get the best deal working with a competant mortgage broker. Find one who has personally been doing it for at least 5 years.
Link Posted: 5/31/2002 7:09:47 AM EDT
Link Posted: 5/31/2002 7:52:49 AM EDT
Originally Posted By DevilsAdvocate: Are you sure you really want to buy a house? I own one and I'm sick of it. It costs way more than an apartment and I have no time for the up keep. Sure, there is the equity that MIGHT be available in 5-6 years, but think of it, you can NEVER really own your place because of TAXES which are always being jacked up.
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I thought the purpose of a Devil's Advocate was to offer a differing but [b]realistic[/b] viewpoint. The above quoted post doesn't even make sense. Upkeep and maintenance annoying you? Get a townhome. As far as comparing rent to mortgages and property tax, you can't itemized rent! If you must pay for a roof over your head, you might as well be able to itemize it.
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