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Posted on 12/7/17 at 9:25 am to AUsteriskPride
quote:
Live well inside your means on a first time home purchase.
this is what my wife and I did back in April, despite coming very close to not doing so. It wasn't 3 months later and I received a new job offer and actually doubled my income. Now we are remodeling like hell, built a deck, etc and could already turn a hefty profit if we wanted. Best decision I've/we've made was buying an affordable home. Plus, I've learned a lot. I am on first name basis with some folks at Home Depot.
Posted on 12/7/17 at 9:26 am to Salmon
quote:
Why not correct him then instead of being a passive aggressive douche?
Sure. I thought it was implied, but I'm happy to clarify.
You usually don't need 20% down for a conventional home loan. Less than that, you can still get a conventional loan and not have to get an FHA loan which carries PM.
Oh, and another thing I love about this place? Blowhard badasses who believe they are way more important on an internet board than what they really are in real life, that call people names behind the safety of their keyboards.
Posted on 12/7/17 at 9:27 am to scott8811
quote:
I think the most reassuring thing is that my savings isn't dooming me. I was really worried about the amount I had saved
When my wife and I bought our 1st house, we didn't have squat saved. But buying fairly young gave us a jump-start on where we are now. We were in the house for 3 years and sold it for 23% more than we bought for. If we had waited till after Katrina, could have made a ton more.
Posted on 12/7/17 at 9:27 am to Festus
quote:
This is so wrong.
I love this place.
Most of the time that is the case for first time home buyers
. I never stated it was the rule, just the standard now.
This post was edited on 12/7/17 at 9:29 am
Posted on 12/7/17 at 9:28 am to LSUBoo
This is in response to your reply but OP *pay attention* to this.
You really, really have to pay attention during this part of the process. When you find a home you want, and get all super excited about it - don't let the seller push you around. Some sellers out there refuse to wheel and deal. Realize that when somebody is coming up with a number to sell their home, they usually add at least a $5,000 fluff to the final number. Secondly, closing costs.
Closing costs are like extras added to a newly purchased vehicle. This is where the seller can go in dry on you. When you work down the selling price, PAY CLOSE ATTENTION to the closing costs. Because there are sellers out there who will try to knock off $5,000 from the price, but then bow out of paying any closing costs. So, basically when you think you got them to knock off $5,000 - they really just went ahead by a few thousand because now you're paying closing costs. Just be aware of that part.
Closing costs are an often forgotten piece of the bargaining process.
You really, really have to pay attention during this part of the process. When you find a home you want, and get all super excited about it - don't let the seller push you around. Some sellers out there refuse to wheel and deal. Realize that when somebody is coming up with a number to sell their home, they usually add at least a $5,000 fluff to the final number. Secondly, closing costs.
Closing costs are like extras added to a newly purchased vehicle. This is where the seller can go in dry on you. When you work down the selling price, PAY CLOSE ATTENTION to the closing costs. Because there are sellers out there who will try to knock off $5,000 from the price, but then bow out of paying any closing costs. So, basically when you think you got them to knock off $5,000 - they really just went ahead by a few thousand because now you're paying closing costs. Just be aware of that part.
Closing costs are an often forgotten piece of the bargaining process.
Posted on 12/7/17 at 9:29 am to scott8811
quote:Pics of her?
We are in our 20's and each have about $10,000 in savings.
And would she be open to making $100 the “hard way”?
Posted on 12/7/17 at 9:31 am to RealityTiger
Just to add more information here.
Do not rush the buy. It's noticeable by anyone. In fact, if you are in a current state where you can comfortably look for months without rush, lowball houses and see what happens. You never know how much the person really needs to sell and how fast. Every situation is different. As a seller, I was in a situation where I wasn't buying and selling at the same time. Many times, people are more willing to come down just so they can get their equity out to buy another home.
Do not rush the buy. It's noticeable by anyone. In fact, if you are in a current state where you can comfortably look for months without rush, lowball houses and see what happens. You never know how much the person really needs to sell and how fast. Every situation is different. As a seller, I was in a situation where I wasn't buying and selling at the same time. Many times, people are more willing to come down just so they can get their equity out to buy another home.
Posted on 12/7/17 at 9:32 am to Festus
quote:
You usually don't need 20% down for a conventional home loan. Less than that, you can still get a conventional loan and not have to get an FHA loan which carries PM.
Of course, but that's dependent on the loan value and credit score, no? I never stated he couldn't get a conventional loan with less than 20% down, just stated that's usually the case for first time home buyers.
Posted on 12/7/17 at 9:34 am to Brageous
quote:
, do EVERYTHING you can to get seller to cover closing costs, even if it means going up on the price of the house. Upfront costs need to be as low as possible.
That's all that is happening when a seller pays closing costs. It just comes out of the cash they get when they settle up. So knock 5k off the selling price or pay 5k in closing, pretty much same to them. Difference for the buyer is that if they pay, it comes out of the cash they have. If the seller pays, but increases the price of the home by 5k, they can finance that 5k, so you don't need the cash up front.
Posted on 12/7/17 at 9:34 am to SilverStallion
quote:
I’m too lazy to explain everything, but if all you each have is 10k in savings, that really isn’t a smart idea to buy a home. Just my 2 cents
OP, this is bad advice. Don't pay attention to it.
Posted on 12/7/17 at 9:34 am to Festus
quote:
Blowhard badasses who believe they are way more important on an internet board than what they really are in real life, that call people names behind the safety of their keyboards.
this is definitely me
Posted on 12/7/17 at 9:36 am to AUsteriskPride
quote:
Most of the time that is the case for first time home buyers
The VAST majority of first time home buyers that are getting conventional financing are not putting 20% down like you alleged. You can be a first time home buyer and get conventional financing for as little as 3% down. You just have to pay the PMI.
Having less than 20% in no way puts you automatically into the FHA alternative.
I would say confidently that in fact is not the standard now.
Posted on 12/7/17 at 9:36 am to The Mick
Doesn’t NFCU have some no PMI deal?
Anyway mostly know what you want to pay and don’t get emotionally attached to any home. Everything in parts of BR is over priced from the flood and only recently has seemed to pull back a little bit, but some still feel their home is worth an extra 10k because it didn’t flood
Anyway mostly know what you want to pay and don’t get emotionally attached to any home. Everything in parts of BR is over priced from the flood and only recently has seemed to pull back a little bit, but some still feel their home is worth an extra 10k because it didn’t flood
Posted on 12/7/17 at 9:38 am to AUsteriskPride
Me and the wife have excellent credit. The guy who handled our mortgage is a personal friend of mine. We had 20%, but from what I remember if you want a regular 30 year mortgage with no PMI added, you have to put down 20%.
Of course there are 15 year mortgages, and then there are HUD and RD mortgages, VA mortgages, etc. I'm certainly no expert here, but it seems like the OP is looking for a "regular 'ole" 30 year mortgage.
Of course there are 15 year mortgages, and then there are HUD and RD mortgages, VA mortgages, etc. I'm certainly no expert here, but it seems like the OP is looking for a "regular 'ole" 30 year mortgage.
Posted on 12/7/17 at 9:38 am to scott8811
quote:The true norm, with housing prices being higher, is it is damn near impossible to have 20% for your first house.....
I have heard I should expect to pay 20-30% down, but have also seen I could pay as little as 3%. What is the norm?
Dont listen to people telling you differently, they are a 1%er or had help from their family...
With starter homes costing around 200k and up, saving up 40k in cash isnt realistic, and not smart to waste time doing so with interest rates this low.
Posted on 12/7/17 at 9:40 am to Festus
quote:
You can be a first time home buyer and get conventional financing for as little as 3% down. You just have to pay the PMI.
My post specifically refers to paying PMI. Just telling the guy to keep that in mind, as we had to pay it on our first home purchase. No reason to be a dick over verbage. FHA loan or not he needs to be aware of the added cost of PMI.
Posted on 12/7/17 at 9:44 am to BilJ
quote:
Doesn’t NFCU have some no PMI deal?
GMFS does... not sure exactly how it works, maybe they are self-insured so they can spread out the costs?
Either way, it was explained to me that unless I plan on being in the house for 20+ years (not the case) that I'll come out ahead by not paying the PMI up front until I'm at 80%.
Posted on 12/7/17 at 9:46 am to Displaced
quote:
Financed through NFCU
When we bought our first house we paid 0% down with our Navy Federal CU loan and didn't have to pay PMI.
We bought a perfect condition foreclosed house also. We needed to move away for jobs, and are now renting it out (basically breaking even after the property manager fees) while we continue to chip away the principal. Bought another house and paid the 20% down.
Posted on 12/7/17 at 9:53 am to lsupride87
quote:
The true norm, with housing prices being higher, is it is damn near impossible to have 20% for your first house.....
Dont listen to people telling you differently, they are a 1%er or had help from their family...
With starter homes costing around 200k and up, saving up 40k in cash isnt realistic, and not smart to waste time doing so with interest rates this low.
So this is exactly the reason housing prices are higher in the first place. It just common place to overextend yourself before you even build a savings. "Who cares, the note is only $xxxx a month." If people would actually save 20%, then you are right, many wouldn't be spending 200k. And you know what would happen, housing prices would stay reasonable. "But Jim-Bob got a job at the plant and we can afford $2000 a month. We can't pay any down because we just got a new side by side and a lift for the truck, but we can afford it. Mr. bank man said I only got to put 3% down!"
And starter homes do not need to cost 200k. I lived in an area with relatively high housing prices when I bought my first home. I paid 175k, and I was making a better living than most. It wasn't an amazing house. It wasn't the best neighborhood in town. But it wasn't dangerous and a little hard work had me selling it for 190k three years later. I was 25 years old, no reason I "had to have" a certain level of house. That house spring boarded me into now living in a highly regarded area where I was able to put down 20% again on 300k+ house.
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