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Posted on 8/15/13 at 3:13 pm to dallastiger55
quote:
dave ramsey will tell you that if you cant afford to put 20% down and avoid PMI then you cant afford the house.
I know thats ideal but how realistic is it for a first time home buyer to come up with 20k on a 100k house which will likely be a dump. I never could see how that all worked out for younger people starting out, like myself.
ETA: hawkeye just read your post. I'm trying to buy in the next 6 months to a year and am saving as much as possible. First time home buyer. Suggestions on down payment, house cost range, etc.? I was shooting for 5-10% down on a 150-160k house.
This post was edited on 8/15/13 at 3:18 pm
Posted on 8/15/13 at 3:34 pm to cberni1
quote:
150-160k house.
I didnt know such houses existed with todays prices
Posted on 8/15/13 at 3:46 pm to dallastiger55
quote:
it would get rid of all the rift raft
Why would we want that? We need the raft for when it floods.
Posted on 8/15/13 at 3:51 pm to theBeard
quote:
I didnt know such houses existed with todays prices
I've been looking in Metairie and a decent 1200-1500 sq ft house that could use a little work is very plausible. I don't mind doing the work and I'd like to avoid pitfalls of buying outside a budget.Posted on 8/15/13 at 6:39 pm to hawkeye007
quote:
i would say 15% of my customers have 20% down. I dont believe in 100% financing but 20% down is just crazy with the prices of houses these days.
You saying its crazy to put 20% on a house now a days?
Posted on 8/15/13 at 7:01 pm to CQQ
You can make an offer on a house contingent on the sale of your home. The seller would likely negotiate a price with you and still keep the house on the market but give you first right of refusal if another offer came in.
It doesn't cost you anything to use a realtor - find one realtor that you trust and they will keep you informed of anything that comes on the market and the realtor will represent you. The realtor has a fiduciary responsibility to look out for your interest. If the same realtor is representing the seller also, they are having to walk a tight rope between the 2 of you. It can work to your advantage if the realtor is willling to take a discount on the commission, but it can also result in problems if you don't feel like the realtor is looking after your best interest as well as the seller's. FSBO can save you money, but in most cases the seller feels like he has a right to save the extra money which doesn't result in any advantage to you. Also, many FSBO get very emotional when pricing their homes and feel the house is worth more than the market supports. The majority of FSBOs I see are overpriced.
It is certainly in your best interest to have 20% down if possible and avoid PMI altogether. I agree that too many people are getting into home ownership without enough vested interest in the house - I used to do mortgages for a commercial bank back in the late 70's and early 80's. I never made a mortgage to anyone with less than 30% down. That was also when interest rates were at 15%+. I really don't get that involved with the financing end any more but if I can answer any questions for you on the buying or selling end, just let me know.
It doesn't cost you anything to use a realtor - find one realtor that you trust and they will keep you informed of anything that comes on the market and the realtor will represent you. The realtor has a fiduciary responsibility to look out for your interest. If the same realtor is representing the seller also, they are having to walk a tight rope between the 2 of you. It can work to your advantage if the realtor is willling to take a discount on the commission, but it can also result in problems if you don't feel like the realtor is looking after your best interest as well as the seller's. FSBO can save you money, but in most cases the seller feels like he has a right to save the extra money which doesn't result in any advantage to you. Also, many FSBO get very emotional when pricing their homes and feel the house is worth more than the market supports. The majority of FSBOs I see are overpriced.
It is certainly in your best interest to have 20% down if possible and avoid PMI altogether. I agree that too many people are getting into home ownership without enough vested interest in the house - I used to do mortgages for a commercial bank back in the late 70's and early 80's. I never made a mortgage to anyone with less than 30% down. That was also when interest rates were at 15%+. I really don't get that involved with the financing end any more but if I can answer any questions for you on the buying or selling end, just let me know.
Posted on 8/15/13 at 7:44 pm to hawkeye007
quote:
i would say 15% of my customers have 20% down. I dont believe in 100% financing but 20% down is just crazy with the prices of houses these days.
You saying its crazy to put 20% on a house now a days?
Posted on 8/16/13 at 6:34 am to CQQ
No offense, but you seem way too wishy washy and/or have too many ongoing variables to be buying another house. Just wait until things are less hurried and finances improve.
Posted on 8/16/13 at 7:53 am to iknowmorethanyou
You're probably right. We don't want to put our house up unless we find something we love and people will most likely be unwilling to wait through that process. In a year or two we'll have to take the leap, sell, move into an apartment, and start looking hard.
Posted on 8/16/13 at 8:20 am to CP3LSU25
quote:
You saying its crazy to put 20% on a house now a days?
No its not crazy but it depends what age group you are asking and what their situation is. There is no way the average young couple will come up with 20% unless they have gift funds from family or make well above average pay(like $150K and up) on a decent house. Most are just getting done with college and have student loan debt(again this could of been paid for by family in which case there are golden). The market where you live in is a big factor because prices vary. In my neck of the woods a decent house is at least $185K-$200k. $40K downpayment(not to mention other costs) will usually clear all the liquid cash you have.
Posted on 8/16/13 at 8:28 am to AUtigerNOLA
Yeah. I'm trying to buy a house around Lafayette. I can't find anything decent under 170k. I have the 20% to put down but I don't wanna throw all my cash out the window at one time
Posted on 8/16/13 at 9:24 am to CP3LSU25
quote:
Yeah. I'm trying to buy a house around Lafayette. I can't find anything decent under 170k. I have the 20% to put down but I don't wanna throw all my cash out the window at one time
I hear ya. Tough decision. Ideally, you want at least 25-30K in emergency funds/cash on hand at all times. Its a bad idea to throw all your cash on a down payment on a house, IMO. You can try to look for a 10% down from a lender. FHA loans kind of suck now because of PMI for the life of the loan(if im not mistaken). Used to be 5 years or until 20% equity in the house. There were probably some other ways to avoid PMI years ago but now its pretty much unavoidable with FHA.
Posted on 8/16/13 at 9:30 am to CQQ
Just keep looking and banking whatever you can muster. The right home will fall in your lap when the time is right.
Posted on 8/16/13 at 9:32 am to CP3LSU25
quote:
CP3LSU25
What area of LFT are you looking to buy in? What square footage?
Posted on 8/16/13 at 9:37 am to dallastiger55
quote:
dave ramsey will tell you that if you cant afford to put 20% down and avoid PMI then you cant afford the house.
except when you could get 3.5% on a 30 year
Posted on 8/16/13 at 9:49 am to Latebloomer
quote:
It doesn't cost you anything to use a realtor
LULZ what?
Posted on 8/16/13 at 12:48 pm to Golfer
Not if the house is listed.
Posted on 8/16/13 at 12:50 pm to CP3LSU25
If you don't have a good realtor, let me know and I'll give you my email address. I've been in real estate a long time and in Laffy for about 12 years now. Would be happy to help or just answer any questions you might have.
Posted on 8/16/13 at 2:27 pm to hawkeye007
quote:
I dont believe in 100% financing but 20% down is just crazy with the prices of houses these days.
Could it be that housing prices are so high because people don't feel like they need to put down 20% anymore. If I'm selling my house and I can sell it for 50k more if a bank is willing to lend that money to someone without them needing the extra down-payment money, then I'm going to do that. Obviously other factors go into the value of a home, but I think over time, the fact that you can get loans without serious down-payment has caused housing prices to rise.
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