Current Events > so who here has bought a house before

(+) Yeah! (+)

give me ur best tips
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JustMyOpinion posted...

I bought a house.

did u put down a 20% down payment?

lots of closing fees?

i am looking now and its tough, especially since my options are limited given where i want to live
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Hire a reputable inspector through your own research and not whoever the realtor suggests. Sometimes the one suggested is decent but often not, so check.
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voldothegr8 posted...

Hire a reputable inspector through your own research and not whoever the realtor suggests. Sometimes the one suggested is decent but often not, so check.

good to know, ty
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i've had a house for 6+ years now.

- don't get a corner lot, it's just extra yard to maintain (mow)

- consider using your own home inspector instead of one suggested by the realtor (there's an inherent conflict of interest, IMO, when you use one sent your way by the person trying to sell the house)

may have more later

edit: another

- it's easy to pay extra on your mortgage if you have the extra cash flow but it's hard if you can't afford a payment. i opted for a 30-year mortgage even though i could have probably afforded a 10-year one. the 10-year one would have been very tight on my budget. with my 30-year one, my payment is way lower than i can afford so most months i double the payment and the extra goes 100% towards the principle.
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I bought a house and am currently paying off a mortgage...

Few tips:

1. Get your credit score as high as possible before applying for mortgage
2. The bank or mortgage broker is going to offer you a mortgage likely double what you could ACTUALLY AFFORD. Be 100% aware that the amount you are offered for a loan is almost definitely FAR MORE then you should actually be looking for... In my case I was offered 500k loan, I went with a 250k house.
3. Only get house with a lawn that you are actually willing to take care of, don't get a house with a huge yard if you don't plan to put in the work to maintain said yard.
4. Consider hiring your own inspector, unless your realtor is a family friend or someone you trust very much
5. Keep in mind that a house will inevitably "break", and you will have to pay to repair it just like a car...
6. Get a snowblower if you have even a medium sized driveway
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JustMyOpinion posted...

Nah. I put down 12ish%. 20% wouldn't have affected my mortgage rate, although having PMI for awhile does suck. Mortgage rates are pretty low right now though. Closing costs were like 3ish% of total home value but not much I could do to get around that. There's a ton of uncertainty when buying a home so you need to carefully go through the home inspection phase and make sure you get all your stuff addressed during your contingency period or you're not getting that deposit back.

for the houses in the range im looking at, 20% would deplete a lot of our savings that we want to save for home renovations/closing costs/home inspection/furniture/general savings/etc but then we will get burned on PMI and im worried about that because it's basically more wasted money on top of my mortgage/already very high property taxes, and i hear this doesnt go away till you're at like 75% LTV and you have to hire someone to appraise your mortgage again.

JustMyOpinion posted...

For what you can afford, zillow has a pretty good calculator.

https://www.zillow.com/mortgage-calculator/house-affordability/

thanks, i read somewhere that this is actually fairly spot on
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I put down 20% and yet my mortgage is still through the roof, and they keep raising it bit by bit every year. Thought it was supposed to be fixed rate but no, it just keeps going up. Sometimes I wonder if it's all worth it. All the money I've sunk into this house, and have to deal with roommates that annoy the piss out of me just to stay above water.
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Talk to the neighbors before you buy the house!!!
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JustMyOpinion posted...

They say to budget 1-2% per year of total home value on repairs/maintenance. It doesn't mean something goes wrong every year, but if everything is fine for like 3 or 4 years and then the roof leaks, well that's pretty much the cost. As an example, my house is pretty much turnkey and I'm still spending like $6k on repairs. PMI is costing me an extra $100 a month so it's not too terrible and houses usually appreciate so hopefully in a couple years I can get it removed. The lender seemed to think I could get rid of it in 2 or 3 years, but I think that is optimistic. And yeah, pretty sure someone has to reappraise to get it gone and for some reason it has to be 25%, when it would have been fine for a 20% down payment. Don't drain everything to get 20% down. Save up and wait or put less down. If something breaks or you have an emergency you'd be screwed.

good to know. i figure I will need to put in a lot of money upfront to get the house move-in ready based on my price point and where the house is (north NJ) so that is what concerns me. originally i planned on doing a 20% down payment to avoid PMI but i dont want to end up house poor. but after that the house would appreciate in value
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JustMyOpinion posted...

KazumaKiryu posted...

I put down 20% and yet my mortgage is still through the roof, and they keep raising it bit by bit every year. Thought it was supposed to be fixed rate but no, it just keeps going up. Sometimes I wonder if it's all worth it. All the money I've sunk into this house, and have to deal with roommates that annoy the piss out of me just to stay above water.

How can your mortgage possibly go up if it's fixed? Are you referring to hoa and property taxes which can change and are usually bundled in with your payment?

Yeah it's the taxes I think. I'm up to $1750 a month on the mortgage, just insane. So assuming it doesn't go up again (it will) that means if I stayed with it for 30 years, I'm paying $630,000 for a $200,000 loan.
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Look into FHA. You only need to put 3.5% down. And there are first time home buyer programs, that will give you grant money towards it.

I just bought my house in June, so I'd be happy to answer any questions.
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JustMyOpinion posted...

Romulox28 posted...

JustMyOpinion posted...

They say to budget 1-2% per year of total home value on repairs/maintenance. It doesn't mean something goes wrong every year, but if everything is fine for like 3 or 4 years and then the roof leaks, well that's pretty much the cost. As an example, my house is pretty much turnkey and I'm still spending like $6k on repairs. PMI is costing me an extra $100 a month so it's not too terrible and houses usually appreciate so hopefully in a couple years I can get it removed. The lender seemed to think I could get rid of it in 2 or 3 years, but I think that is optimistic. And yeah, pretty sure someone has to reappraise to get it gone and for some reason it has to be 25%, when it would have been fine for a 20% down payment. Don't drain everything to get 20% down. Save up and wait or put less down. If something breaks or you have an emergency you'd be screwed.

good to know. i figure I will need to put in a lot of money upfront to get the house move-in ready based on my price point and where the house is (north NJ) so that is what concerns me. originally i planned on doing a 20% down payment to avoid PMI but i dont want to end up house poor. but after that the house would appreciate in value

Oh snap I'm in North NJ too. Bergen County. Love those property taxes.

gotta love the 3.5 - 4 percent property taxes i keep seeing every time we look at a house lol

i am looking in Morris County at the moment. houses are cheaper out west but it's better for commuting to future jobs if I stay east. unfortunately that doesnt leave me a lot of options because shit is ridiculously expensive there and all the houses in my price range are really old and kind of run down.

currently my wife works in bergen county and im working in union, but she starts a new job in a month that's also in union county. im trying to convince her to leave morris county but she loves it here too much
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Go to the inspection with the inspector. You'll want to see everything first hand
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i can't afford a house because i spend all my money on avocado toast
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Caution999 posted...

Go to the inspection with the inspector. You'll want to see everything first hand

addon to this

make sure when they test the shower that they aim the shower head at any flat, non-wall caulked surface, and leave it for 10 minutes min

if someone did a shit job on a shower seat and installed sans membrane, it will leak to the ceiling below
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Darkman124 posted...

Caution999 posted...

Go to the inspection with the inspector. You'll want to see everything first hand

addon to this

make sure when they test the shower that they aim the shower head at any flat, non-wall caulked surface, and leave it for 10 minutes min

if someone did a shit job on a shower seat and installed sans membrane, it will leak to the ceiling below

cool ill add this to the list
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We bought a house a little over a year ago. We put down about 15% IIRC.

Research the area. Schools, crime rates, what the HOA is like for the area, what stores are near by, etc. Also, the exact location of the house. If its by a freeway or loud busy street, that will hurt the value. We saw a lot of houses that seemed to have too good to be true prices only to see the yard backed into a busy road or the freeway was right by. Those seemed to stay on the market far longer than other houses.

Buy a house that you are sure you will happily live in for the next 15-20 years. Dont by something crappy thinking youll just trade up in 5 years. You dont know what the housing market will be then.

Finally, take your time. Finding the right house can be a long process. Dont feel pressured to pull the trigger too soon on a house you have doubts on just because someone else will make an offer. There will be other houses. There were many houses I liked that we had minor concerns on, they were off the market in weeks and I used to get stressed out. But when we found our current house, we knew it was just perfect and worth the wait.

also, don't get your mortgage from a bank you've heard of

their rate is gonna be way above the prevailing market rate

compare:

https://www.wellsfargo.com/mortgage/rates/
4.25% interest rate with origination fees

https://www.provident.com/QuickRatesCalculator
3.875% interest rate with origination fees

wondering where that extra .375% goes?

into the pockets of wells fargo after they sell the loan for more than it cost them to get
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Darkman124 posted...

also, don't get your mortgage from a bank you've heard of

their rate is gonna be way above the prevailing market rate

my wife wants to do it with a credit union shes part of because she thinks the rates will be better than a conventional bank or going with the greasy mortgage guy that works with the realtor

Cleo_II posted...

Buy a house that you are sure you will happily live in for the next 15-20 years. Dont by something crappy thinking youll just trade up in 5 years. You dont know what the housing market will be then.

we are just kind of looking at a starter home at the moment, a small 3 br / 2 bath
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Romulox28 posted...

my wife wants to do it with a credit union shes part of because she thinks the rates will be better than a conventional bank or going with the greasy mortgage guy that works with the realtor

credit unions arent the best either

they won't overcharge like wells fargo but they won't match rates of tiny direct lenders
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Just buy a huge lot, and build your own dream house
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Romulox28 posted...

Darkman124 posted...

also, don't get your mortgage from a bank you've heard of

their rate is gonna be way above the prevailing market rate

my wife wants to do it with a credit union shes part of because she thinks the rates will be better than a conventional bank or going with the greasy mortgage guy that works with the realtor

Cleo_II posted...

Buy a house that you are sure you will happily live in for the next 15-20 years. Dont by something crappy thinking youll just trade up in 5 years. You dont know what the housing market will be then.

we are just kind of looking at a starter home at the moment, a small 3 br / 2 bath

Thats fine but just make sure it has what youre looking for. If it has a kitchen the size of a closet and cooking is important to you, then Id say hold out. Discuss what features are absolutely necessary and reasonable for your price point, and hold out for the houses that meet your criteria.

And if you live in a snowy/stormy state, you absolutely want a two car garage, unless you only have one car shared in your family...
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V-E-G-Y- posted...

Just buy a huge lot, and build your own dream house

Even if I ever had the money for that - I wouldn't have had the patience to wait around for half a year or however long that takes.

I'm happy with my house. Yeah, I had to sacrifice some stuff I wanted (like a big kitchen), but I love the location, and everything is in good working order and looks nice. Love my basement.
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Caution999 posted...

V-E-G-Y- posted...

Just buy a huge lot, and build your own dream house

Even if I ever had the money for that - I wouldn't have had the patience to wait around for half a year or however long that takes.

I'm happy with my house. Yeah, I had to sacrifice some stuff I wanted (like a big kitchen), but I love the location, and everything is in good working order and looks nice. Love my basement.

all i want are laundry machines that dont take quarters and to not have to hear my downstairs neighbors fight and have sex constantly
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Romulox28 posted...

Caution999 posted...

V-E-G-Y- posted...

Just buy a huge lot, and build your own dream house

Even if I ever had the money for that - I wouldn't have had the patience to wait around for half a year or however long that takes.

I'm happy with my house. Yeah, I had to sacrifice some stuff I wanted (like a big kitchen), but I love the location, and everything is in good working order and looks nice. Love my basement.

all i want are laundry machines that dont take quarters and to not have to hear my downstairs neighbors fight and have sex constantly

THIS. This is what I was dealing with up until last year. My downstairs neighbor brought in a new girl after a couple of months, and she moved in with her son. The old girl was never taken off the lease, and the landlord was on his ass about her. They always fought, too. My gal and I usually let them fight - except for one time, we heard the guy say that he would beat her child. We called the police. I could hear the guy talking below us that "we called the police over this but not for X, Y, Z times?" In my mind I was like, dude, those times you didn't threaten to hurt a fuckin toddler.

The last day I swung by my old apartment (Feb. 27-28 2017) to clean everything before I left, I could hear him downstairs with a third girl that had moved in with him. He's probably on like #4 or #5 by now.
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Yeah def try to save up 20%.

We didn't but we had an unconventional mortgage where we managed to avoid PMI. We did get around 12% saved up but when it turned out we wouldn't need the rest we went ahead and jumped on it.

Our mortgage was as an investment property loan instead if a traditional mortgage. I'm actually not sure how that whole thing went down behind the scenes. Was necessary since I had no credit and Mrs. DevsBro only had a little. All I really know is I knew someone who wad owed a favor by a bank manager and isn't anymore. So I wouldn't count on stumbling on the same deal.
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Caution999 posted...

THIS. This is what I was dealing with up until last year. My downstairs neighbor brought in a new girl after a couple of months, and she moved in with her son. The old girl was never taken off the lease, and the landlord was on his ass about her. They always fought, too. My gal and I usually let them fight - except for one time, we heard the guy say that he would beat her child. We called the police. I could hear the guy talking below us that "we called the police over this but not for X, Y, Z times?" In my mind I was like, dude, those times you didn't threaten to hurt a fuckin toddler.

The last day I swung by my old apartment (Feb. 27-28 2017) to clean everything before I left, I could hear him downstairs with a third girl that had moved in with him. He's probably on like #4 or #5 by now.

yikes

DevsBro posted...

We didn't but we had an unconventional mortgage where we managed to avoid PMI. We did get around 12% saved up but when it turned out we wouldn't need the rest we went ahead and jumped on it.

hmmm

but i was a house NOW
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