Searching for a new home, help

MadHops21 · March 2015

AprilH81 said:

MadHops21 said:

AprilH81 said:
Very good advice, thanks! Glad to hear other's stories and learn more from it.

I have another question, if we get married in June, when should we actually buy? I know that sometimes an offer takes a while, then might be rejected, then you have to look again, but if we want to move in about a month before (so May), when's the best time to say "This is the house, here is our offer." ? I don't know the general rule of thumb for how long it takes, just been told "it can take a while".
Traditional closings (no short sells, foreclosures or estate sales) usually close in 4-8 weeks after the signed offer. If both parties have their acts together regarding paperwork and there isn't protracted negotiations over the inspection results it will be closer to 4-5 weeks. My first house was a foreclosure and closed in 6-7 weeks, my last two houses were "normal" sales and closed in 4 weeks.

After the sale price is accepted and contract signed you will need to get an inspection (you pay this out of pocket, usually about $400-500 depending on the size of the house and market). Once you get the results you negotiate with the seller to address any major issues. You can ask for them to fix it or you can ask for a reduction in sale price, but nothing is guaranteed. Save this for MAJOR issues (furnace, roof, water damage, foundation, true safety issues, etc.). If it is a "minor" issue you are better waiting and fixing it yourself or hiring someone you trust to do the work.

After the inspection is finalized you start working closely with your mortgage lender to finalize your application. You will need to provide two years worth of tax returns for everyone on the mortgage, your last two pay stubs (for both of you), two months worth of bank statements for any accounts you will be drawing from for your down payment, copies of investment documents (non-retirement) and possibly more paperwork based on your individual situation. The faster you do this the faster your closing will be.

At the same time you are working with your mortgage broker they will be ordering an appraisal and the seller will be working on any items that they agreed to fix in the Request to Remedy.

So you need to get an offer accepted before doing the inspection? Can you take it back if the inspection shows up something bad, like a bad foundation or...something horribly expensive? I don't think I know what "sale price being accepted" means.

Sale price being accepted is my poor way of saying that both parties agree to a selling price. It may take a few rounds of negotiation to get to that point and that process can take several days depending on the agents involved and how stubborn the buyers and sellers are.

Ohhh, got it! I thought that meant money already in the process of paying for the full mortgage, not just the sale price being finally done negotiated. That makes more sense now. Thanks! You really know your stuff. I'll window shop for now using my apps, and when the time comes closer, I'll be sure to follow these steps. This is completely new to me.

AprilH81 · March 2015

MadHops21 said:

AprilH81 said:

MadHops21 said:

AprilH81 said:
Very good advice, thanks! Glad to hear other's stories and learn more from it.

I have another question, if we get married in June, when should we actually buy? I know that sometimes an offer takes a while, then might be rejected, then you have to look again, but if we want to move in about a month before (so May), when's the best time to say "This is the house, here is our offer." ? I don't know the general rule of thumb for how long it takes, just been told "it can take a while".
Traditional closings (no short sells, foreclosures or estate sales) usually close in 4-8 weeks after the signed offer. If both parties have their acts together regarding paperwork and there isn't protracted negotiations over the inspection results it will be closer to 4-5 weeks. My first house was a foreclosure and closed in 6-7 weeks, my last two houses were "normal" sales and closed in 4 weeks.

After the sale price is accepted and contract signed you will need to get an inspection (you pay this out of pocket, usually about $400-500 depending on the size of the house and market). Once you get the results you negotiate with the seller to address any major issues. You can ask for them to fix it or you can ask for a reduction in sale price, but nothing is guaranteed. Save this for MAJOR issues (furnace, roof, water damage, foundation, true safety issues, etc.). If it is a "minor" issue you are better waiting and fixing it yourself or hiring someone you trust to do the work.

After the inspection is finalized you start working closely with your mortgage lender to finalize your application. You will need to provide two years worth of tax returns for everyone on the mortgage, your last two pay stubs (for both of you), two months worth of bank statements for any accounts you will be drawing from for your down payment, copies of investment documents (non-retirement) and possibly more paperwork based on your individual situation. The faster you do this the faster your closing will be.

At the same time you are working with your mortgage broker they will be ordering an appraisal and the seller will be working on any items that they agreed to fix in the Request to Remedy.

So you need to get an offer accepted before doing the inspection? Can you take it back if the inspection shows up something bad, like a bad foundation or...something horribly expensive? I don't think I know what "sale price being accepted" means.
Sale price being accepted is my poor way of saying that both parties agree to a selling price. It may take a few rounds of negotiation to get to that point and that process can take several days depending on the agents involved and how stubborn the buyers and sellers are.

Ohhh, got it! I thought that meant money already in the process of paying for the full mortgage, not just the sale price being finally done negotiated. That makes more sense now. Thanks! You really know your stuff. I'll window shop for now using my apps, and when the time comes closer, I'll be sure to follow these steps. This is completely new to me.

Good luck! It is a very stressful process, but it can also be a lot of fun. Attend open houses in neighborhoods you are interested in. That will allow you to see homes in a low pressure situation and get a feel for what homes in your preferred area are like and what they cost.

Also, keep in mind when you are browsing online that good Realtors know how to take pictures to mask flaws and make rooms seem larger/brighter than they really are.

MadHops21 · March 2015

AprilH81 said:

MadHops21 said:

AprilH81 said:

MadHops21 said:

AprilH81 said:
Very good advice, thanks! Glad to hear other's stories and learn more from it.

I have another question, if we get married in June, when should we actually buy? I know that sometimes an offer takes a while, then might be rejected, then you have to look again, but if we want to move in about a month before (so May), when's the best time to say "This is the house, here is our offer." ? I don't know the general rule of thumb for how long it takes, just been told "it can take a while".
Traditional closings (no short sells, foreclosures or estate sales) usually close in 4-8 weeks after the signed offer. If both parties have their acts together regarding paperwork and there isn't protracted negotiations over the inspection results it will be closer to 4-5 weeks. My first house was a foreclosure and closed in 6-7 weeks, my last two houses were "normal" sales and closed in 4 weeks.

After the sale price is accepted and contract signed you will need to get an inspection (you pay this out of pocket, usually about $400-500 depending on the size of the house and market). Once you get the results you negotiate with the seller to address any major issues. You can ask for them to fix it or you can ask for a reduction in sale price, but nothing is guaranteed. Save this for MAJOR issues (furnace, roof, water damage, foundation, true safety issues, etc.). If it is a "minor" issue you are better waiting and fixing it yourself or hiring someone you trust to do the work.

After the inspection is finalized you start working closely with your mortgage lender to finalize your application. You will need to provide two years worth of tax returns for everyone on the mortgage, your last two pay stubs (for both of you), two months worth of bank statements for any accounts you will be drawing from for your down payment, copies of investment documents (non-retirement) and possibly more paperwork based on your individual situation. The faster you do this the faster your closing will be.

At the same time you are working with your mortgage broker they will be ordering an appraisal and the seller will be working on any items that they agreed to fix in the Request to Remedy.

So you need to get an offer accepted before doing the inspection? Can you take it back if the inspection shows up something bad, like a bad foundation or...something horribly expensive? I don't think I know what "sale price being accepted" means.
Sale price being accepted is my poor way of saying that both parties agree to a selling price. It may take a few rounds of negotiation to get to that point and that process can take several days depending on the agents involved and how stubborn the buyers and sellers are.
Ohhh, got it! I thought that meant money already in the process of paying for the full mortgage, not just the sale price being finally done negotiated. That makes more sense now. Thanks! You really know your stuff. I'll window shop for now using my apps, and when the time comes closer, I'll be sure to follow these steps. This is completely new to me.

Good luck! It is a very stressful process, but it can also be a lot of fun. Attend open houses in neighborhoods you are interested in. That will allow you to see homes in a low pressure situation and get a feel for what homes in your preferred area are like and what they cost.

Also, keep in mind when you are browsing online that good Realtors know how to take pictures to mask flaws and make rooms seem larger/brighter than they really are.

One of my brothers told me this. I was showing him homes, and he didn't like how one house showed the home from a corner shot or something, so make it look bigger than it actually was (or something like that). He has a townhome with his wife and kids and wants to move out, but with my nephew having leukemia, he had to put his move on hold. I never knew pictures could be deceiving for homes, now I'm wary of looking through apps with fabulous pictures. Would you recommend walking through open houses when I'm just looking and haven't done a pre-approval yet with a bank?

theartistformerlyknownas · March 2015

Remember a good Realtor should be explaining all these things to you along the way, too. They'll help you write an offer in a way that protects you, with things like a deadline by which the seller has to accept or counter, conditions about inspection and appraisal, requests for seller concessions if there are things you want cash back for at closing (like we're offering ~$1500 toward exterior painting, because we're listing the house before the weather improves enough to do it ourselves), etc. They'll explain to the seller's agent why your offer is the way it is, like "comps in the market don't support an $x list price for a home that needs a new roof and furnace within 5 years, but we're confident the house will appraise at $y."

And your lender should be working with you on the best down payment, possibly a 15 year mortgage instead of 30 (you save BOATLOADS in interest over the life of the loan), etc.

Kahlyla · March 2015

Lots of good advice from PPs. I'll just add that you can start the process in a loose way without a realtor by simply going to open houses that you're curious about, as @luckya23 mentioned. That way you'll be able to meet a few realtors and see if you really click with one of them. If you do, you can then engage that realtor to work on your behalf (at no cost, as PPs have mentioned). They're not going to push you to buy the house at which you met them - it may be in a completely different market or they may even just be showing it as a favor for a colleague or something.

A good realtor will be very open to showing you what you want to see, and they should go out of their way to disclose any sticky areas (like they may have some of their own listings that they can show you but they will make that very clear to you). They're just people, and some are sort of slimy while others are excruciatingly honest and decent.

When you do make an offer, make sure it's conditional upon inspection and I would suggest conditional upon financing as well. Even if you know that your financing on a given property will have no issues, it gives you another "out" should you need it.

Good luck, and have fun! I LOVE searching for houses - we've bought four now, and I almost wish we weren't in our forever home so we could keep looking. We may do more rentals at a future date, or a cottage, but not right now... I do really enjoy the process, though.

MadHops21 · March 2015

Kahlyla said:
Lots of good advice from PPs. I'll just add that you can start the process in a loose way without a realtor by simply going to open houses that you're curious about, as @luckya23 mentioned. That way you'll be able to meet a few realtors and see if you really click with one of them. If you do, you can then engage that realtor to work on your behalf (at no cost, as PPs have mentioned). They're not going to push you to buy the house at which you met them - it may be in a completely different market or they may even just be showing it as a favor for a colleague or something.

A good realtor will be very open to showing you what you want to see, and they should go out of their way to disclose any sticky areas (like they may have some of their own listings that they can show you but they will make that very clear to you). They're just people, and some are sort of slimy while others are excruciatingly honest and decent.

When you do make an offer, make sure it's conditional upon inspection and I would suggest conditional upon financing as well. Even if you know that your financing on a given property will have no issues, it gives you another "out" should you need it.

Good luck, and have fun! I LOVE searching for houses - we've bought four now, and I almost wish we weren't in our forever home so we could keep looking. We may do more rentals at a future date, or a cottage, but not right now... I do really enjoy the process, though.

Very smart. What about homes that are listed at "contingent" ? Does that mean they won't sell until they find another home to buy themselves to move out? Should I avoid those?

Okay, I googled contingent and that's not what I was looking for. I remember seeing homes listed as something specific, but it was some sort of deal that they wanted to sell their home, but needed to buy another home first or something before selling this one. Any thoughts?

theartistformerlyknownas · March 2015

Kahlyla said:

Very smart. What about homes that are listed at "contingent" ? Does that mean they won't sell until they find another home to buy themselves to move out? Should I avoid those?

Okay, I googled contingent and that's not what I was looking for. I remember seeing homes listed as something specific, but it was some sort of deal that they wanted to sell their home, but needed to buy another home first or something before selling this one. Any thoughts?

Right, that means there's a contingent offer on the house already - so an offer is contingent on an inspection, or on financing being approved.

Honestly I'd avoid any type of conditional listings.

Here's a full list of the abbreviations you'll see.

http://activerain.trulia.com/blogsview/123786/home-status-code-examples

MadHops21 · March 2015

lolo883 Yeah, that'd be easier just to go through them all now than just googling them when I run into them. Thanks!

AprilH81 · March 2015

MadHops21 said:

AprilH81 said:

MadHops21 said:

AprilH81 said:

MadHops21 said:

AprilH81 said:
Very good advice, thanks! Glad to hear other's stories and learn more from it.

I have another question, if we get married in June, when should we actually buy? I know that sometimes an offer takes a while, then might be rejected, then you have to look again, but if we want to move in about a month before (so May), when's the best time to say "This is the house, here is our offer." ? I don't know the general rule of thumb for how long it takes, just been told "it can take a while".
Traditional closings (no short sells, foreclosures or estate sales) usually close in 4-8 weeks after the signed offer. If both parties have their acts together regarding paperwork and there isn't protracted negotiations over the inspection results it will be closer to 4-5 weeks. My first house was a foreclosure and closed in 6-7 weeks, my last two houses were "normal" sales and closed in 4 weeks.

After the sale price is accepted and contract signed you will need to get an inspection (you pay this out of pocket, usually about $400-500 depending on the size of the house and market). Once you get the results you negotiate with the seller to address any major issues. You can ask for them to fix it or you can ask for a reduction in sale price, but nothing is guaranteed. Save this for MAJOR issues (furnace, roof, water damage, foundation, true safety issues, etc.). If it is a "minor" issue you are better waiting and fixing it yourself or hiring someone you trust to do the work.

After the inspection is finalized you start working closely with your mortgage lender to finalize your application. You will need to provide two years worth of tax returns for everyone on the mortgage, your last two pay stubs (for both of you), two months worth of bank statements for any accounts you will be drawing from for your down payment, copies of investment documents (non-retirement) and possibly more paperwork based on your individual situation. The faster you do this the faster your closing will be.

At the same time you are working with your mortgage broker they will be ordering an appraisal and the seller will be working on any items that they agreed to fix in the Request to Remedy.

So you need to get an offer accepted before doing the inspection? Can you take it back if the inspection shows up something bad, like a bad foundation or...something horribly expensive? I don't think I know what "sale price being accepted" means.
Sale price being accepted is my poor way of saying that both parties agree to a selling price. It may take a few rounds of negotiation to get to that point and that process can take several days depending on the agents involved and how stubborn the buyers and sellers are.
Ohhh, got it! I thought that meant money already in the process of paying for the full mortgage, not just the sale price being finally done negotiated. That makes more sense now. Thanks! You really know your stuff. I'll window shop for now using my apps, and when the time comes closer, I'll be sure to follow these steps. This is completely new to me.
Good luck! It is a very stressful process, but it can also be a lot of fun. Attend open houses in neighborhoods you are interested in. That will allow you to see homes in a low pressure situation and get a feel for what homes in your preferred area are like and what they cost.

Also, keep in mind when you are browsing online that good Realtors know how to take pictures to mask flaws and make rooms seem larger/brighter than they really are.

One of my brothers told me this. I was showing him homes, and he didn't like how one house showed the home from a corner shot or something, so make it look bigger than it actually was (or something like that). He has a townhome with his wife and kids and wants to move out, but with my nephew having leukemia, he had to put his move on hold. I never knew pictures could be deceiving for homes, now I'm wary of looking through apps with fabulous pictures. Would you recommend walking through open houses when I'm just looking and haven't done a pre-approval yet with a bank?

Yes, it doesn't hurt to look, but if you see something you want you may get your heart broken because it might sell before you get everything together, just be prepared.

For an open house you can come in, speak to the seller's realtor (listing agent) and then usually are free to wander around the home without anyone hovering. Other people may be in the house but the sellers are usually not there. If you find "the one" you can get your own agent and put in an offer.

I warned you about the pictures because we thought we found several "perfect" houses online and then once we got to the property there was a power tower in the back yard, the house was smaller than the pictures indicated or an awkward layout that wouldn't show up in pictures anyway. Just take the pictures with a grain of salt (both good and bad). On the flip side, bad pictures doesn't mean the house is bad. The sellers may be unwilling to stage the house properly or it could be that the agent is a bad photographer.

teddygirl9 · March 2015

thisismynickname said:
Everyone has already provided great advice.
I will second that the bank will tell you they can give you far more than you can really afford. Crunch your personal numbers.

One good part of the process is that after you choose a home or two, the mortgage provider is supposed to give you what's called a Good Faith Estimate. That should show your mortgage, taxes, home insurance, and HOA fees (if applicable) in one fell swoop with a variety of mortgage/down payment options, if you ask.

Do NOT go for a variable rate! Get a fixed rate! This is part of the reason so many people who bought in the early 2000's got into a crisis. They assumed they'd be better off financially in a few more years and could then afford a higher monthly payment or they assumed they could refinance. Nope and nope. Too risky. Lock that rate down for 20, 25, 30 years.

Be realistic. Please don't be like the people on House Hunters. Me, I had a very small budget so had to accept a place that was move-in-ready enough (nice kitchen, bathroom needed some work which I'm finally getting around to after almost 5 years). I saw a much bigger place that needed serious remodeling I couldn't afford, so I had to walk away. You are probably going to have to have some trade-offs.

Taxes- I think listings normally say what the taxes are. If the existing homeowner gets exemptions, you're not going to get the same rate. Find out how and when the town or county re-assesses property taxes. Many people I know were swayed into the exurbs with new construction and low taxes, but then with the boom, taxes went sky-high to pay for all the new schools and services needed for a bigger population.

And yes, get a bigger down payment. If you borrow too much of a percentage of the purchase price, you'll throw your money away on PMI (mortgage insurance). To be perfectly honest, my parents loaned me part of my down payment and I pay them back monthly. I was skeptical when my parents offered (because I had pride and wanted to go it alone), but I actually saved money paying my parents in addition to the bank than if I had just borrowed 90% from the bank and paid PMI! My parents saw it as an investment (yup, they're charging me interest) and I'd rather give them grocery money than give more fees to a bank. Win-win.

Um, that's all I got for now. Good luck OP!

First bolded - not always true! Your mortgage person should be able to give you the pros and cons of variable and fixed. Right now I'm on a variable, and since the bank of canada lowered interest rates, we're saving a good chunk of change with the lower rate. Of course, it will go back up, but when that time comes we can lock in.

Second bolded - so much yes. Where I live you only need 5% down for a mortgage as a first time home buyer (I believe after first time its 10% min), which is nothing. You also need mortgage insurance for 20% of the value. So we were looking at doing 15% or 20%. 15% we would have had a bit more left over for furniture/moving/etc, but the insurance was like 8k on that. It was only like 13k to make up th entire difference, so I kind of look at it like we spent 5k and saved on a ton of interest. Its worthwhile to look at all options, but def save up as much as you can.

kvruns · March 2015

Bypassing the part about knowing what you can afford, not overextending yourself, etc.....

My first step was going to open houses in areas I was considering or home styles that I was interested in. This was an easy way to get a feel for how far (or not far) my money would go. You get to see things in person without the pressure of buying -- although don't fall in love with something! I've always heard that open houses are more about the agent getting potential new clients than the house actually selling via open house so I don't feel too bad going to them.

Another thing you can do is periodically look at houses online in the areas you're considering to see how they are selling . Do they normally sell quickly or does it seem to sit for a while? Sometimes you can find out what they actually sold for, although that's where a realtor can help too. But it is good to know the market. One area here, good houses sell in a day, so it would be good to know that you have to jump on houses right away. Other areas sell slower and so you can take your time, but it is good to know.

Kahlyla · March 2015

I've seen some HORRENDOUS real estate photography! I wouldn't put too much stock in photos either way because it seems like half of the listings are trying to make them look far better than they are and the other half simply give zero fucks and the houses look bloody awful.

Also bear in mind that the wide angle shots are sometimes the only way to really capture a room - the space itself and things like dining tables and cabinets will end up looking much larger because of it, but that may not be the intention. If you try to photograph one of your rooms you'll see what I mean; they may not always be trying to pull a fast one but rather trying to actually fit what they want in the photo. If you see wide-angle shots (you can tell because really, chairs are simply not three feet wide...) just try to imagine it all much smaller.

AprilH81 · March 2015

MadHops21 said:

Kahlyla said:
Lots of good advice from PPs. I'll just add that you can start the process in a loose way without a realtor by simply going to open houses that you're curious about, as @luckya23 mentioned. That way you'll be able to meet a few realtors and see if you really click with one of them. If you do, you can then engage that realtor to work on your behalf (at no cost, as PPs have mentioned). They're not going to push you to buy the house at which you met them - it may be in a completely different market or they may even just be showing it as a favor for a colleague or something.

A good realtor will be very open to showing you what you want to see, and they should go out of their way to disclose any sticky areas (like they may have some of their own listings that they can show you but they will make that very clear to you). They're just people, and some are sort of slimy while others are excruciatingly honest and decent.

When you do make an offer, make sure it's conditional upon inspection and I would suggest conditional upon financing as well. Even if you know that your financing on a given property will have no issues, it gives you another "out" should you need it.

Good luck, and have fun! I LOVE searching for houses - we've bought four now, and I almost wish we weren't in our forever home so we could keep looking. We may do more rentals at a future date, or a cottage, but not right now... I do really enjoy the process, though.
Very smart. What about homes that are listed at "contingent" ? Does that mean they won't sell until they find another home to buy themselves to move out? Should I avoid those?

Okay, I googled contingent and that's not what I was looking for. I remember seeing homes listed as something specific, but it was some sort of deal that they wanted to sell their home, but needed to buy another home first or something before selling this one. Any thoughts?

There are several phrases used to tell buyers the status of a home. If it is anything other than "for sale" it usually means that there is an offer pending. Contingent means that the property is under contract pending inspection and financing. Under contract means that the offer has been accepted, passed inspection and financing approved and they are just waiting for closing.

lovemesomemonster · March 2015

I agree with everyone on here! First step I would say is figuring out your budget, and I don't mean what you are approved for. Find a mortgage broker you really like, we loved ours when we bought the first house and when we moved an 8hr drive from there he was still able to do our second home. He really helped with the process and broke down payments for us, would run any house I sent him and give us great information to talk over. Decide how much you have to put down, this will affect what your overall budget is, and look at different types of loans.

Also, get a realtor, one you really like and trust, they can make a world of difference! Our first one was AWESOME, she was super honest, not pushy, and really worked to find us what we wanted. The second one was OK but we had been through it before so we didn't really care too much as long as the paperwork was handled correctly.

We used actual real estate sites to find houses, the ones on Zillow can already be gone and usually isn't as up to date. We printed every house we wanted to look at or had seen and made notes on them. Also make sure you make a list together of your "must have, nice to have, and do not wants", it makes it a lot easier to find what you really want.

As for short sales/bank owned.. our first house was a short sale, it took 5 months to close which was actually really fast but we got an amazing deal on the house so it can be worth it if you have time to close it. Our second was a bank owned, these typically are faster to close and it took us 2 months with an issue that shouldn't have happened anyways so it should have been a 30 day close. For sure get an inspection, bank owned are most likely "as is" so you have to make sure you can live with/will be able to fix anything you find.

Have fun and good luck!

MadHops21 · March 2015

thisismynickname said:
Everyone has already provided great advice.
I will second that the bank will tell you they can give you far more than you can really afford. Crunch your personal numbers.

One good part of the process is that after you choose a home or two, the mortgage provider is supposed to give you what's called a Good Faith Estimate. That should show your mortgage, taxes, home insurance, and HOA fees (if applicable) in one fell swoop with a variety of mortgage/down payment options, if you ask.

Do NOT go for a variable rate! Get a fixed rate! This is part of the reason so many people who bought in the early 2000's got into a crisis. They assumed they'd be better off financially in a few more years and could then afford a higher monthly payment or they assumed they could refinance. Nope and nope. Too risky. Lock that rate down for 20, 25, 30 years.

Be realistic. Please don't be like the people on House Hunters. Me, I had a very small budget so had to accept a place that was move-in-ready enough (nice kitchen, bathroom needed some work which I'm finally getting around to after almost 5 years). I saw a much bigger place that needed serious remodeling I couldn't afford, so I had to walk away. You are probably going to have to have some trade-offs.

Taxes- I think listings normally say what the taxes are. If the existing homeowner gets exemptions, you're not going to get the same rate. Find out how and when the town or county re-assesses property taxes. Many people I know were swayed into the exurbs with new construction and low taxes, but then with the boom, taxes went sky-high to pay for all the new schools and services needed for a bigger population.

And yes, get a bigger down payment. If you borrow too much of a percentage of the purchase price, you'll throw your money away on PMI (mortgage insurance). To be perfectly honest, my parents loaned me part of my down payment and I pay them back monthly. I was skeptical when my parents offered (because I had pride and wanted to go it alone), but I actually saved money paying my parents in addition to the bank than if I had just borrowed 90% from the bank and paid PMI! My parents saw it as an investment (yup, they're charging me interest) and I'd rather give them grocery money than give more fees to a bank. Win-win.

Um, that's all I got for now. Good luck OP!

Oh, that's brilliant. My brother actually bought my motorcycle using his credit card, and I pay him back monthly. He gets points and cash back for such a big purchase, and I don't have to pay interest for using their credit to help pay for it. Everyone wins!

AprilH81 · March 2015

MadHops21 said:

thisismynickname said:
Everyone has already provided great advice.
I will second that the bank will tell you they can give you far more than you can really afford. Crunch your personal numbers.

One good part of the process is that after you choose a home or two, the mortgage provider is supposed to give you what's called a Good Faith Estimate. That should show your mortgage, taxes, home insurance, and HOA fees (if applicable) in one fell swoop with a variety of mortgage/down payment options, if you ask.

Do NOT go for a variable rate! Get a fixed rate! This is part of the reason so many people who bought in the early 2000's got into a crisis. They assumed they'd be better off financially in a few more years and could then afford a higher monthly payment or they assumed they could refinance. Nope and nope. Too risky. Lock that rate down for 20, 25, 30 years.

Be realistic. Please don't be like the people on House Hunters. Me, I had a very small budget so had to accept a place that was move-in-ready enough (nice kitchen, bathroom needed some work which I'm finally getting around to after almost 5 years). I saw a much bigger place that needed serious remodeling I couldn't afford, so I had to walk away. You are probably going to have to have some trade-offs.

Taxes- I think listings normally say what the taxes are. If the existing homeowner gets exemptions, you're not going to get the same rate. Find out how and when the town or county re-assesses property taxes. Many people I know were swayed into the exurbs with new construction and low taxes, but then with the boom, taxes went sky-high to pay for all the new schools and services needed for a bigger population.

And yes, get a bigger down payment. If you borrow too much of a percentage of the purchase price, you'll throw your money away on PMI (mortgage insurance). To be perfectly honest, my parents loaned me part of my down payment and I pay them back monthly. I was skeptical when my parents offered (because I had pride and wanted to go it alone), but I actually saved money paying my parents in addition to the bank than if I had just borrowed 90% from the bank and paid PMI! My parents saw it as an investment (yup, they're charging me interest) and I'd rather give them grocery money than give more fees to a bank. Win-win.

Um, that's all I got for now. Good luck OP!

Oh, that's brilliant. My brother actually bought my motorcycle using his credit card, and I pay him back monthly. He gets points and cash back for such a big purchase, and I don't have to pay interest for using their credit to help pay for it. Everyone wins!

Don't get your hopes up with borrowing down payment money. They have really cracked down on that. You will have to show a paper trail of where the down payment money came from (hence the several months of bank statements) and if someone is giving you a gift or a loan you will have to provide documentation for that as well.

teddygirl9 · March 2015

AprilH81 said:

MadHops21 said:

thisismynickname said:
Everyone has already provided great advice.

snip
Um, that's all I got for now. Good luck OP!

Oh, that's brilliant. My brother actually bought my motorcycle using his credit card, and I pay him back monthly. He gets points and cash back for such a big purchase, and I don't have to pay interest for using their credit to help pay for it. Everyone wins!
Don't get your hopes up with borrowing down payment money. They have really cracked down on that. You will have to show a paper trail of where the down payment money came from (hence the several months of bank statements) and if someone is giving you a gift or a loan you will have to provide documentation for that as well.

I think this depends where you are. For us, you had to have the money in your account for 3 months before you sign the papers. So SO's brother actually borrowed money from him, kept it for 3 months just to beef up his bank account, and then gave it back as soon as they moved in. We didnt have to show a paper trail of where it came from, just that it was in the account for 3 months.

hellosweetie1015 · March 2015

I've got zero info on actually buying a house, but I do want to say - closings can be done faster than the 4-6 week timeline. I don't think it's recommended, and if the sellers are living in the house it's probably not possible. BUT. The timeline on the new house we had to get last spring went like this:

3/26 - the house my parents bought in 2000 with no intent to buy another home ever, burned to the ground. My youngest sister, myself, and my parents are living there.

3/31 - insurance puts all four of us in a tiny hotel room. We bum around for a week feeling sorry for ourselves.

4/5ish - we figure out that we can't bum around feeling sorry for ourselves in a hotel room forever. We start finding houses we want to see on the internet.

4/9ish - we see our new house, along with several others, with our realtor.

4/13 - we put in an offer.

4/14 - offer accepted.

5/1 - closed in AM, moved right in.

Now, obviously that timeline is not a normal timeline for house purchasing, and we were in somewhat of an emergent situation, but it's possible that a closing can happen on fast-forward under some set circumstances.

Also - DEFINITELY get a realtor you're comfortable with. It will make your whole entire life so much easier for the whole time you're house-hunting, and if you sell, you've got someone you're comfortable with to go talk to. And don't be afraid to go separately to see houses to weed out ones that look good online but suck in person.

AprilH81 · March 2015

hellosweetie1015 said:
I've got zero info on actually buying a house, but I do want to say - closings can be done faster than the 4-6 week timeline. I don't think it's recommended, and if the sellers are living in the house it's probably not possible. BUT. The timeline on the new house we had to get last spring went like this:

3/26 - the house my parents bought in 2000 with no intent to buy another home ever, burned to the ground. My youngest sister, myself, and my parents are living there.
3/31 - insurance puts all four of us in a tiny hotel room. We bum around for a week feeling sorry for ourselves.
4/5ish - we figure out that we can't bum around feeling sorry for ourselves in a hotel room forever. We start finding houses we want to see on the internet.
4/9ish - we see our new house, along with several others, with our realtor.
4/13 - we put in an offer.
4/14 - offer accepted.
5/1 - closed in AM, moved right in.

Now, obviously that timeline is not a normal timeline for house purchasing, and we were in somewhat of an emergent situation, but it's possible that a closing can happen on fast-forward under some set circumstances.

Also - DEFINITELY get a realtor you're comfortable with. It will make your whole entire life so much easier for the whole time you're house-hunting, and if you sell, you've got someone you're comfortable with to go talk to. And don't be afraid to go separately to see houses to weed out ones that look good online but suck in person.

Was that a cash offer? That is the only way I can think of that you can close that early in the United States. There is just too many puzzle pieces and processes that have to be managed.

MadHops21 · March 2015

AprilH81 said:

MadHops21 said:

thisismynickname said:
Everyone has already provided great advice.
I will second that the bank will tell you they can give you far more than you can really afford. Crunch your personal numbers.

One good part of the process is that after you choose a home or two, the mortgage provider is supposed to give you what's called a Good Faith Estimate. That should show your mortgage, taxes, home insurance, and HOA fees (if applicable) in one fell swoop with a variety of mortgage/down payment options, if you ask.

Do NOT go for a variable rate! Get a fixed rate! This is part of the reason so many people who bought in the early 2000's got into a crisis. They assumed they'd be better off financially in a few more years and could then afford a higher monthly payment or they assumed they could refinance. Nope and nope. Too risky. Lock that rate down for 20, 25, 30 years.

Be realistic. Please don't be like the people on House Hunters. Me, I had a very small budget so had to accept a place that was move-in-ready enough (nice kitchen, bathroom needed some work which I'm finally getting around to after almost 5 years). I saw a much bigger place that needed serious remodeling I couldn't afford, so I had to walk away. You are probably going to have to have some trade-offs.

Taxes- I think listings normally say what the taxes are. If the existing homeowner gets exemptions, you're not going to get the same rate. Find out how and when the town or county re-assesses property taxes. Many people I know were swayed into the exurbs with new construction and low taxes, but then with the boom, taxes went sky-high to pay for all the new schools and services needed for a bigger population.

And yes, get a bigger down payment. If you borrow too much of a percentage of the purchase price, you'll throw your money away on PMI (mortgage insurance). To be perfectly honest, my parents loaned me part of my down payment and I pay them back monthly. I was skeptical when my parents offered (because I had pride and wanted to go it alone), but I actually saved money paying my parents in addition to the bank than if I had just borrowed 90% from the bank and paid PMI! My parents saw it as an investment (yup, they're charging me interest) and I'd rather give them grocery money than give more fees to a bank. Win-win.

Um, that's all I got for now. Good luck OP!

Oh, that's brilliant. My brother actually bought my motorcycle using his credit card, and I pay him back monthly. He gets points and cash back for such a big purchase, and I don't have to pay interest for using their credit to help pay for it. Everyone wins!
Don't get your hopes up with borrowing down payment money. They have really cracked down on that. You will have to show a paper trail of where the down payment money came from (hence the several months of bank statements) and if someone is giving you a gift or a loan you will have to provide documentation for that as well.

Oh, wow, that's crazy. If the parents deposited money into my bank account, the lenders want to know where it came from? I never knew that.

AprilH81 · March 2015

MadHops21 said:

AprilH81 said:

MadHops21 said:

thisismynickname said:
Everyone has already provided great advice.
I will second that the bank will tell you they can give you far more than you can really afford. Crunch your personal numbers.

One good part of the process is that after you choose a home or two, the mortgage provider is supposed to give you what's called a Good Faith Estimate. That should show your mortgage, taxes, home insurance, and HOA fees (if applicable) in one fell swoop with a variety of mortgage/down payment options, if you ask.

Do NOT go for a variable rate! Get a fixed rate! This is part of the reason so many people who bought in the early 2000's got into a crisis. They assumed they'd be better off financially in a few more years and could then afford a higher monthly payment or they assumed they could refinance. Nope and nope. Too risky. Lock that rate down for 20, 25, 30 years.

Be realistic. Please don't be like the people on House Hunters. Me, I had a very small budget so had to accept a place that was move-in-ready enough (nice kitchen, bathroom needed some work which I'm finally getting around to after almost 5 years). I saw a much bigger place that needed serious remodeling I couldn't afford, so I had to walk away. You are probably going to have to have some trade-offs.

Taxes- I think listings normally say what the taxes are. If the existing homeowner gets exemptions, you're not going to get the same rate. Find out how and when the town or county re-assesses property taxes. Many people I know were swayed into the exurbs with new construction and low taxes, but then with the boom, taxes went sky-high to pay for all the new schools and services needed for a bigger population.

And yes, get a bigger down payment. If you borrow too much of a percentage of the purchase price, you'll throw your money away on PMI (mortgage insurance). To be perfectly honest, my parents loaned me part of my down payment and I pay them back monthly. I was skeptical when my parents offered (because I had pride and wanted to go it alone), but I actually saved money paying my parents in addition to the bank than if I had just borrowed 90% from the bank and paid PMI! My parents saw it as an investment (yup, they're charging me interest) and I'd rather give them grocery money than give more fees to a bank. Win-win.

Um, that's all I got for now. Good luck OP!

Oh, that's brilliant. My brother actually bought my motorcycle using his credit card, and I pay him back monthly. He gets points and cash back for such a big purchase, and I don't have to pay interest for using their credit to help pay for it. Everyone wins!
Don't get your hopes up with borrowing down payment money. They have really cracked down on that. You will have to show a paper trail of where the down payment money came from (hence the several months of bank statements) and if someone is giving you a gift or a loan you will have to provide documentation for that as well.
Oh, wow, that's crazy. If the parents deposited money into my bank account, the lenders want to know where it came from? I never knew that.

The rules keep changing, but yes, it is very possible that they will ask about any lump sum donations. DH got a large bonus that we used towards the down payment and they wanted to see a copy of the pay stub.

If your parents gift you the money they have to sign off on the fact it is a gift and they don't expect repayment. Plus there is a limit on how much can be gifted.

hellosweetie1015 · March 2015

AprilH81 said:

hellosweetie1015 said:
I've got zero info on actually buying a house, but I do want to say - closings can be done faster than the 4-6 week timeline. I don't think it's recommended, and if the sellers are living in the house it's probably not possible. BUT. The timeline on the new house we had to get last spring went like this:

3/26 - the house my parents bought in 2000 with no intent to buy another home ever, burned to the ground. My youngest sister, myself, and my parents are living there.
3/31 - insurance puts all four of us in a tiny hotel room. We bum around for a week feeling sorry for ourselves.
4/5ish - we figure out that we can't bum around feeling sorry for ourselves in a hotel room forever. We start finding houses we want to see on the internet.
4/9ish - we see our new house, along with several others, with our realtor.
4/13 - we put in an offer.
4/14 - offer accepted.
5/1 - closed in AM, moved right in.

Now, obviously that timeline is not a normal timeline for house purchasing, and we were in somewhat of an emergent situation, but it's possible that a closing can happen on fast-forward under some set circumstances.

Also - DEFINITELY get a realtor you're comfortable with. It will make your whole entire life so much easier for the whole time you're house-hunting, and if you sell, you've got someone you're comfortable with to go talk to. And don't be afraid to go separately to see houses to weed out ones that look good online but suck in person.
Was that a cash offer? That is the only way I can think of that you can close that early in the United States. There is just too many puzzle pieces and processes that have to be managed.

I have no idea, honestly. I know it's insanely fast, because it was a couple months when we bought the house in 2000. I just thought it got the spurs because of the time constraints we were under.

lyndausvi · March 2015

MadHops21 said:

AprilH81 said:

MadHops21 said:

thisismynickname said:
Everyone has already provided great advice.
I will second that the bank will tell you they can give you far more than you can really afford. Crunch your personal numbers.

One good part of the process is that after you choose a home or two, the mortgage provider is supposed to give you what's called a Good Faith Estimate. That should show your mortgage, taxes, home insurance, and HOA fees (if applicable) in one fell swoop with a variety of mortgage/down payment options, if you ask.

Do NOT go for a variable rate! Get a fixed rate! This is part of the reason so many people who bought in the early 2000's got into a crisis. They assumed they'd be better off financially in a few more years and could then afford a higher monthly payment or they assumed they could refinance. Nope and nope. Too risky. Lock that rate down for 20, 25, 30 years.

Be realistic. Please don't be like the people on House Hunters. Me, I had a very small budget so had to accept a place that was move-in-ready enough (nice kitchen, bathroom needed some work which I'm finally getting around to after almost 5 years). I saw a much bigger place that needed serious remodeling I couldn't afford, so I had to walk away. You are probably going to have to have some trade-offs.

Taxes- I think listings normally say what the taxes are. If the existing homeowner gets exemptions, you're not going to get the same rate. Find out how and when the town or county re-assesses property taxes. Many people I know were swayed into the exurbs with new construction and low taxes, but then with the boom, taxes went sky-high to pay for all the new schools and services needed for a bigger population.

And yes, get a bigger down payment. If you borrow too much of a percentage of the purchase price, you'll throw your money away on PMI (mortgage insurance). To be perfectly honest, my parents loaned me part of my down payment and I pay them back monthly. I was skeptical when my parents offered (because I had pride and wanted to go it alone), but I actually saved money paying my parents in addition to the bank than if I had just borrowed 90% from the bank and paid PMI! My parents saw it as an investment (yup, they're charging me interest) and I'd rather give them grocery money than give more fees to a bank. Win-win.

Um, that's all I got for now. Good luck OP!

Oh, that's brilliant. My brother actually bought my motorcycle using his credit card, and I pay him back monthly. He gets points and cash back for such a big purchase, and I don't have to pay interest for using their credit to help pay for it. Everyone wins!
Don't get your hopes up with borrowing down payment money. They have really cracked down on that. You will have to show a paper trail of where the down payment money came from (hence the several months of bank statements) and if someone is giving you a gift or a loan you will have to provide documentation for that as well.
Oh, wow, that's crazy. If the parents deposited money into my bank account, the lenders want to know where it came from? I never knew that.

They want to know where EVERY deposit comes from. Generally for 3-4 months before applying for the mortgage They will concentrate on larger deposits, but I've heard of people being questioned about a lot of small deposits from say an Esty business. .

I've been a 1099 employee for less than 2 years, so they will not consider my income. DH will buy the house on his own. I make so little it's not really an issue. Anyway, my deposits into the joint savings needs to be documented.

When my parents gifted me money for my DP they had to sign a letter saying it was not a loan and I would not be paying them back. If it's a loan then it gets deducted from how much you can afford.

julieanne912 · March 2015

AprilH81 said:

hellosweetie1015 said:
I've got zero info on actually buying a house, but I do want to say - closings can be done faster than the 4-6 week timeline. I don't think it's recommended, and if the sellers are living in the house it's probably not possible. BUT. The timeline on the new house we had to get last spring went like this:

3/26 - the house my parents bought in 2000 with no intent to buy another home ever, burned to the ground. My youngest sister, myself, and my parents are living there.
3/31 - insurance puts all four of us in a tiny hotel room. We bum around for a week feeling sorry for ourselves.
4/5ish - we figure out that we can't bum around feeling sorry for ourselves in a hotel room forever. We start finding houses we want to see on the internet.
4/9ish - we see our new house, along with several others, with our realtor.
4/13 - we put in an offer.
4/14 - offer accepted.
5/1 - closed in AM, moved right in.

Now, obviously that timeline is not a normal timeline for house purchasing, and we were in somewhat of an emergent situation, but it's possible that a closing can happen on fast-forward under some set circumstances.

Also - DEFINITELY get a realtor you're comfortable with. It will make your whole entire life so much easier for the whole time you're house-hunting, and if you sell, you've got someone you're comfortable with to go talk to. And don't be afraid to go separately to see houses to weed out ones that look good online but suck in person.
Was that a cash offer? That is the only way I can think of that you can close that early in the United States. There is just too many puzzle pieces and processes that have to be managed.

I've had loan closings happen in less than 4 weeks. Depends on the lender, and how much up front work you've done ahead of time with the lender. National banks and credit unions generally cannot do them that fast. Some buyers might have been under contract and well into the mortgage process with a lender, and then that sale fell apart for whatever reason. So since all their stuff is done, the lender can move much faster than if they're starting brand new.

julieanne912 · March 2015

teddygirl9 said:

AprilH81 said:

MadHops21 said:

thisismynickname said:
Everyone has already provided great advice.

snip
Um, that's all I got for now. Good luck OP!

Oh, that's brilliant. My brother actually bought my motorcycle using his credit card, and I pay him back monthly. He gets points and cash back for such a big purchase, and I don't have to pay interest for using their credit to help pay for it. Everyone wins!
Don't get your hopes up with borrowing down payment money. They have really cracked down on that. You will have to show a paper trail of where the down payment money came from (hence the several months of bank statements) and if someone is giving you a gift or a loan you will have to provide documentation for that as well.
I think this depends where you are. For us, you had to have the money in your account for 3 months before you sign the papers. So SO's brother actually borrowed money from him, kept it for 3 months just to beef up his bank account, and then gave it back as soon as they moved in. We didnt have to show a paper trail of where it came from, just that it was in the account for 3 months.

It actually just depends on the individual lender and their requirements, not location. For example, we just bought a house a month ago, but it's only in FI's name (my income is 1099 so we weren't even going to bother jumping through all those hoops since we qualified with his income only). I gave him $5,000 towards the earnest money deposit (which then goes as part of the down payment). Our lender just made me sign a letter stating that I gave him the money as a gift, and that it wasn't a loan that he had to pay back.

ETA, forgot they also asked for a copy of MY bank statement showing the wire transfer from my account, to prove that it was me that gave him the money.

MadHops21 · March 2015

hellosweetie1015 said:
I've got zero info on actually buying a house, but I do want to say - closings can be done faster than the 4-6 week timeline. I don't think it's recommended, and if the sellers are living in the house it's probably not possible. BUT. The timeline on the new house we had to get last spring went like this:

3/26 - the house my parents bought in 2000 with no intent to buy another home ever, burned to the ground. My youngest sister, myself, and my parents are living there.
3/31 - insurance puts all four of us in a tiny hotel room. We bum around for a week feeling sorry for ourselves.
4/5ish - we figure out that we can't bum around feeling sorry for ourselves in a hotel room forever. We start finding houses we want to see on the internet.
4/9ish - we see our new house, along with several others, with our realtor.
4/13 - we put in an offer.
4/14 - offer accepted.
5/1 - closed in AM, moved right in.

Now, obviously that timeline is not a normal timeline for house purchasing, and we were in somewhat of an emergent situation, but it's possible that a closing can happen on fast-forward under some set circumstances.

Also - DEFINITELY get a realtor you're comfortable with. It will make your whole entire life so much easier for the whole time you're house-hunting, and if you sell, you've got someone you're comfortable with to go talk to. And don't be afraid to go separately to see houses to weed out ones that look good online but suck in person.

Wow, that's the fastest I've heard of before. If you close in the morning, you can move right in in the afternoon? I never knew how it worked once it was all done and over with, like how long you have to wait after closing to move it. Once it's closed, do the people that own the house leave before then? I'm assuming, but I just don't know. Like, if we closed on May 20th, do we have to wait a certain amount of time before moving in and getting furniture set up?

ETASPellingishard

thisismynickname2 · March 2015

AprilH81 said: MadHops21 said: AprilH81 said: MadHops21 said: thisismynickname said:Everyone has already provided great advice.I will second that the bank will tell you they can give you far more than you can really afford. Crunch your personal numbers.
One good part of the process is that after you choose a home or two, the mortgage provider is supposed to give you what's called a Good Faith Estimate. That should show your mortgage, taxes, home insurance, and HOA fees (if applicable) in one fell swoop with a variety of mortgage/down payment options, if you ask.
Do NOT go for a variable rate! Get a fixed rate! This is part of the reason so many people who bought in the early 2000's got into a crisis. They assumed they'd be better off financially in a few more years and could then afford a higher monthly payment or they assumed they could refinance. Nope and nope. Too risky. Lock that rate down for 20, 25, 30 years.
Be realistic. Please don't be like the people on House Hunters. Me, I had a very small budget so had to accept a place that was move-in-ready enough (nice kitchen, bathroom needed some work which I'm finally getting around to after almost 5 years). I saw a much bigger place that needed serious remodeling I couldn't afford, so I had to walk away. You are probably going to have to have some trade-offs.
Taxes- I think listings normally say what the taxes are. If the existing homeowner gets exemptions, you're not going to get the same rate. Find out how and when the town or county re-assesses property taxes. Many people I know were swayed into the exurbs with new construction and low taxes, but then with the boom, taxes went sky-high to pay for all the new schools and services needed for a bigger population.
And yes, get a bigger down payment. If you borrow too much of a percentage of the purchase price, you'll throw your money away on PMI (mortgage insurance). To be perfectly honest, my parents loaned me part of my down payment and I pay them back monthly. I was skeptical when my parents offered (because I had pride and wanted to go it alone), but I actually saved money paying my parents in addition to the bank than if I had just borrowed 90% from the bank and paid PMI! My parents saw it as an investment (yup, they're charging me interest) and I'd rather give them grocery money than give more fees to a bank. Win-win.
Um, that's all I got for now. Good luck OP!

Oh, that's brilliant. My brother actually bought my motorcycle using his credit card, and I pay him back monthly. He gets points and cash back for such a big purchase, and I don't have to pay interest for using their credit to help pay for it. Everyone wins!

Don't get your hopes up with borrowing down payment money. They have really cracked down on that. You will have to show a paper trail of where the down payment money came from (hence the several months of bank statements) and if someone is giving you a gift or a loan you will have to provide documentation for that as well.

Oh, wow, that's crazy. If the parents deposited money into my bank account, the lenders want to know where it came from? I never knew that.

The rules keep changing, but yes, it is very possible that they will ask about any lump sum donations. DH got a large bonus that we used towards the down payment and they wanted to see a copy of the pay stub.
If your parents gift you the money they have to sign off on the fact it is a gift and they don't expect repayment. Plus there is a limit on how much can be gifted.----------------------------------------------------- Yikes, boxes!

Yes, my dad didn't sign the gift thing, but since I was purchasing below what I could afford, it didn't change the terms of the primary bank mortgage. My dad had legal papers drawn up for loan and we filed it as a junior mortgage with the county. I certainly don't recommend this; it just happened to work for us, let me be clear! But heck, you see problems all the time with "I loaned my kid money and they're not paying it back..." Well, not like you want to sue your kid, but people who loan that kind of cash should be legally protected. Plus, since it's on record as a junior mortgage, I can claim the interest as a tax deduction. Bank of Dad worked out well for me.

Also, I provided 3 months of bank statements and that deposit from my dad was the only one questioned. I don't get the rhyme or reason why other people get nitpicked; I've heard of it happening, but my entire process was smooth sailing in 2010. Easiest thing ever.

katiekessler123 · March 2015

Agreed with previous posters that they will want to know where your money is coming from. We received a small inheretence from my grandparents about 3 months previous to buying our house. We put the money into our savings and used it as part of our down payment. We needed to show a paper trail of where that money came from.

AprilH81 · March 2015

MadHops21 said:

hellosweetie1015 said:
I've got zero info on actually buying a house, but I do want to say - closings can be done faster than the 4-6 week timeline. I don't think it's recommended, and if the sellers are living in the house it's probably not possible. BUT. The timeline on the new house we had to get last spring went like this:

3/26 - the house my parents bought in 2000 with no intent to buy another home ever, burned to the ground. My youngest sister, myself, and my parents are living there.
3/31 - insurance puts all four of us in a tiny hotel room. We bum around for a week feeling sorry for ourselves.
4/5ish - we figure out that we can't bum around feeling sorry for ourselves in a hotel room forever. We start finding houses we want to see on the internet.
4/9ish - we see our new house, along with several others, with our realtor.
4/13 - we put in an offer.
4/14 - offer accepted.
5/1 - closed in AM, moved right in.

Now, obviously that timeline is not a normal timeline for house purchasing, and we were in somewhat of an emergent situation, but it's possible that a closing can happen on fast-forward under some set circumstances.

Also - DEFINITELY get a realtor you're comfortable with. It will make your whole entire life so much easier for the whole time you're house-hunting, and if you sell, you've got someone you're comfortable with to go talk to. And don't be afraid to go separately to see houses to weed out ones that look good online but suck in person.
Wow, that's the fastest I've heard of before. If you close in the morning, you can move right in in the afternoon? I never knew how it worked once it was all done and over with, like how long you have to wait after closing to move it. Once it's closed, do the people that own the house leave before then? I'm assuming, but I just don't know. Like, if we closed on May 20th, do we have to wait a certain amount of time before moving in and getting furniture set up?

ETASPellingishard

Possession of the house is also negotiated. Mostly it is "possession upon closing" meaning you get the keys at closing and you can move in whenever you want. Sometimes people delay moving out because the sellers are waiting to close on a new house. If that is the case you can close on the house and the sellers "rent" the house for the agreed upon period. If you do that make sure that there are protections in place about property damage.

southernbelle0915 · March 2015

AprilH81 said:

MadHops21 said:

AprilH81 said:

MadHops21 said:

thisismynickname said:
Everyone has already provided great advice.
I will second that the bank will tell you they can give you far more than you can really afford. Crunch your personal numbers.

One good part of the process is that after you choose a home or two, the mortgage provider is supposed to give you what's called a Good Faith Estimate. That should show your mortgage, taxes, home insurance, and HOA fees (if applicable) in one fell swoop with a variety of mortgage/down payment options, if you ask.

Do NOT go for a variable rate! Get a fixed rate! This is part of the reason so many people who bought in the early 2000's got into a crisis. They assumed they'd be better off financially in a few more years and could then afford a higher monthly payment or they assumed they could refinance. Nope and nope. Too risky. Lock that rate down for 20, 25, 30 years.

Be realistic. Please don't be like the people on House Hunters. Me, I had a very small budget so had to accept a place that was move-in-ready enough (nice kitchen, bathroom needed some work which I'm finally getting around to after almost 5 years). I saw a much bigger place that needed serious remodeling I couldn't afford, so I had to walk away. You are probably going to have to have some trade-offs.

Taxes- I think listings normally say what the taxes are. If the existing homeowner gets exemptions, you're not going to get the same rate. Find out how and when the town or county re-assesses property taxes. Many people I know were swayed into the exurbs with new construction and low taxes, but then with the boom, taxes went sky-high to pay for all the new schools and services needed for a bigger population.

And yes, get a bigger down payment. If you borrow too much of a percentage of the purchase price, you'll throw your money away on PMI (mortgage insurance). To be perfectly honest, my parents loaned me part of my down payment and I pay them back monthly. I was skeptical when my parents offered (because I had pride and wanted to go it alone), but I actually saved money paying my parents in addition to the bank than if I had just borrowed 90% from the bank and paid PMI! My parents saw it as an investment (yup, they're charging me interest) and I'd rather give them grocery money than give more fees to a bank. Win-win.

Um, that's all I got for now. Good luck OP!

Oh, that's brilliant. My brother actually bought my motorcycle using his credit card, and I pay him back monthly. He gets points and cash back for such a big purchase, and I don't have to pay interest for using their credit to help pay for it. Everyone wins!
Don't get your hopes up with borrowing down payment money. They have really cracked down on that. You will have to show a paper trail of where the down payment money came from (hence the several months of bank statements) and if someone is giving you a gift or a loan you will have to provide documentation for that as well.
Oh, wow, that's crazy. If the parents deposited money into my bank account, the lenders want to know where it came from? I never knew that.
The rules keep changing, but yes, it is very possible that they will ask about any lump sum donations. DH got a large bonus that we used towards the down payment and they wanted to see a copy of the pay stub.

If your parents gift you the money they have to sign off on the fact it is a gift and they don't expect repayment. Plus there is a limit on how much can be gifted.

True. Our home loan is in DH's name (we're both on the title). We did that so if anything happens and his credit gets ruined by us not being able to afford the house somehow....my credit will still be good and able to get us through any issues.

Anyway, we weren't married when we bought the house and had totally separate finances. We decided to split the down payment. So I gave him a very sizable cash "gift" to cover my share. The bank needed all kinds of info to back it up - forms, my bank statements, my pay stubs, etc.

Searching for a new home, help

Re: Searching for a new home, help

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