Home purchasing

[Ratters]

Originally Posted by ATobin

Thanks for your thoughts so far guys. A walk in humi is definitely a no go at this point in time, but a nice smoking porch is a must.

Our plan is to pay off the second car next week and wait 3-4 months then check our credit score and see where we're at (my student loan balance makes my income-debt ratio look outstanding ) Right now I think we're looking at a 30 year VA @ 5.5%, which isn't bad IMO and we would repay early.

Has anyone dealt with buying a foreclosure or short sale property? There seems to be a lot of them in today's market and they seem like a deal, and we (me) aren't afraid to get our hands a little dirty with slight remodeling.

Mine was a short sale. They can take a long time to get approved. Luckily mine had already been through the approval process so it only took a month to get back to me with the approval. But waits of a few months are common. Short sales are better than forclosures in that people are usually still living in them and they are better cared for. All the foreclosures I looked at were pretty thrashed or the previous owner gutted them before leaving.

In a couple years 5.5% will seem rediculously low.

And yeah, don't buy at the top of your price range, make sure the payments are comfortable. I got approved for way more than I was comfortable spending. And make sure you have a cash reserve for all the stuff you'll need to do moving and after you move in.

[neoflex]

Some great advice thus far. My wife and I bought our house almost 4.5 years ago and it has been great so far. A lot of work but well worth it in the end. You get a sense of pride when the lawn is nice and green and mowed and the beds look great and people say things like "Your house looks great!" I felt just like you leading up to the home purchase as it's a huge financial commitment though. At the time we were living in NY on Long Island and were renting a one bedroom apartment. We had been looking there for a home for some time but we were just never satisfied with what we would get for our money. Keep in mind this was before the market took a huge hit and the market on LI was at it's peak so $4-500,000 bought you a decent fixer upper which would have taken most of the homes an additional $150-200K to get to our liking with 9-14K in taxes every year tacked on. We had friends move to the Charlotte, NC area and we decided to visit one weekend and fell in love with the area. While we were here they took us to look at homes and we were amazed at what we could get for our money here as opposed to NY. Needless to say a couple months later we were having a house built here and preparing to move. We did buy a house that was larger than we actually needed at the time with the intention of not outgrowing it and staying for a long time. We are more of less paying the same amount of money now for almost 2900sq/ft (4bd/2.5bath) new construction home that we were paying for a bread box of a one bedroom apt in NY. We figured worse case scenario if we weren't happy with the move we were young enough where we could move back to NY and more or less have our jobs back and sell or rent the house in NC and say we gave it a shot and move on. Needless to say that never happened and when people ask me when I am coming back to NY for good I respond "NEVER!" My only regret with the whole thing is I wish we would have moved here first and rented for a few months to get the lay of the land and than buy a house after rather than buy a house after a few weekend visits and do everything from NY. Simply because a lot of the places we like to go and things we enjoy doing are a little ways from where we are living now and there are other neighborhoods I would have much preferred living in now that I know the area very well. Not that ours is bad but I have friends who live in some neighborhoods that have clusters of people from the same area and the neighbors seem friendlier where a lot of the neighbors here keep to themselves and aren't as outgoing or friendly. I can go to a buddies neighborhood and if he's not home a neighbor will see me and invite me over for a beer or just come over to shoot the sh*t and hang out and I'll end up hanging out there with them whereas here it seems like a lot of the neighbors avoid each other although once the weather breaks I am breaking in my new neighbor since I learned that he too is a cigar smoker. It's because of that though that my wife and I plan on eventually selling this house and moving if and when the housing market ever improves. We're fine with traveling to go do things but we just want a friendlier neighborhood where getting together with a group of neighbors for a BBQ in the Summer won't make you think hell just froze over.
Good luck with it! It sounds like you'll be moving to a new area and buying a house there so learn from my mistake and rent first and buy later even if it's only for a couple months just so you get a feel for the area and all it has to offer.

[ATobin]

Originally Posted by Ratters

Mine was a short sale. They can take a long time to get approved. Luckily mine had already been through the approval process so it only took a month to get back to me with the approval. But waits of a few months are common. Short sales are better than forclosures in that people are usually still living in them and they are better cared for. All the foreclosures I looked at were pretty thrashed or the previous owner gutted them before leaving.

In a couple years 5.5% will seem rediculously low.

And yeah, don't buy at the top of your price range, make sure the payments are comfortable. I got approved for way more than I was comfortable spending. And make sure you have a cash reserve for all the stuff you'll need to do moving and after you move in.

If we have to go that route we definitely will shoot for a short sale, for the exact reasons you listed. And to my surprise we're looking at a 30 year fixed at 4.75%, so we're going try to lock that up here shortly.

Now when you said your price had already been through approval, does that mean that was they price they had listed it at? We've been thinking of offering list price or list price + closing just to speed things along.

We would like to rent in the area first if we can find a month to month, but we just don't want to get locked into a year lease, and moving that often with a 2 year old just plain sucks.

[PeteSB75]

Originally Posted by ATobin

If we have to go that route we definitely will shoot for a short sale, for the exact reasons you listed. And to my surprise we're looking at a 30 year fixed at 4.75%, so we're going try to lock that up here shortly.

Now when you said your price had already been through approval, does that mean that was they price they had listed it at? We've been thinking of offering list price or list price + closing just to speed things along.

We would like to rent in the area first if we can find a month to month, but we just don't want to get locked into a year lease, and moving that often with a 2 year old just plain sucks.

This is very much a buyer's market. I wouldn't offer anyone listing price. Offer 10% below, if not more. Short sales and foreclosures are a different ballgame, but if you are dealing with people, you have the power, so use it, but be prepared to walk away.

[floydpink]

Drive through the neighborhood you are looking at a few times and a few different times of day and night to see what it's like after dark, etc.

Nothing like discovering you have a neighbor who throws parties all night and has a vicious pit bull after the closing.

[cmitch]

So you can see yourself settling down in this new town where you'll serve the remaining 2 years of service to our country.

What I would do is rent for awhile. Here are the reasons:

1. You've not actually lived there. Cities and towns are notorious for fudging on economic and crime facts to attract settlers.
2. You'll have to find gainful full or part time employment depending on your financial needs. Make sure you have a dependable job that you like, first.
3. House fever can turn quickly into house regret. Move into town and cool your heels. GEt you a 6 month or 1 year lease on a modest apartment. Once you've had time to decide what it is you want, then make the move.
4. Rent is the best short term value for your money. No responsibility, no upkeep. No, you're not throwing your money away. If you rent for a year to make a decision, chances are, you've only 'lost' about $500 worth of principle on the average loan.

The most critical of mistakes are made by FIRST TIME home buyers. More often than not, desire clouds the skies of reason. Experience is a good teacher. Hire a reputable home inspector for your first purchase.