Current Events > What's the process of buying a house?

(+) Yeah! (+)

From what I know:

• Get approved for a loan to buy a house
• Put down at least 20% of what the house is worth
• Be able to afford all monthly bills

That's all I know.

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uh....lots more goes into it. like...enough to fill out a book

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krazychao5 posted...

uh....lots more goes into it. like...enough to fill out a book

Hit the general bullet points if you can kind sir

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https://www.theonion.com/ask-the-onion-how-to-buy-your-first-home-1846791463

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budgeting
financing
market research
browsing
inspecting
repairs
move in plan
purchasing lots of shit
lots and lots of shit
you will need to buy

i just moved into new home 3 weeks ago

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Veggeta_MAX posted...

From what I know:

* Get approved for a loan to buy a house
* Put down at least 20% of what the house is worth
* Be able to afford all monthly bills

That's all I know.

you dont always need that much down. FHA loans only need 3.5%


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Yeah, I did an FHA loan and put down 3.5%

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we put down 5%, but our agent told the seller we putting down 20% >_>

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krazychao5 posted...

uh....lots more goes into it. like...enough to fill out a book

The vast majority of it would fall under getting approved for a loan

That's pretty much the jist. Do your due diligence and don't overpay for emotional reasons

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I did a conventional mortgage and only did 10% down. You have to pay for PMI anything less than 20% but it wasnt much for me in that 10-20% range and the appreciation of the home quickly pulled my equity above 20% and allowed me to take it off.

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A relative of mine is tryna sell me his house. Says he was tryna sell it on the market for 160k but he'll give it to me for 150k. I dunno where to begin with this shit lmao. It is a nice house, though.

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The process is:

1. You make offer
2. Seller reviews
3. If you are accepted now you inspect
4. Inspector might find bad things
5. Negotiate with seller to fix them
6. Chances for you and seller to back out
7. Closing
8. Sign tons of papers and pay a premium so you will be paying more than cost of the house fyi

Pitlord_Special posted...

I did a conventional mortgage and only did 10% down. You have to pay for PMI anything less than 20% but it wasnt much for me in that 10-20% range and the appreciation of the home quickly pulled my equity above 20% and allowed me to take it off.

Did you have to have an appraisal done to assess the equity value once it was above 20%? If not, what did you have to do?

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Veggeta_MAX posted...

A relative of mine is tryna sell me his house. Says he was tryna sell it on the market for 160k but he'll give it to me for 150k. I dunno where to begin with this shit lmao. It is a nice house, though.

Sounds like he couldn't sell it at 160k if he tried and yet it is still not sold.
Must be overpriced.

There are conventional loans that can allow as low as 3% down. There are USDA loans and VA loans that allow as low as 0% down. And FHA loans, as mentioned, with 3.5% down. The challenge is finding out which loans you qualify for based on the region you are buying, your credit score, your debts, your income, the type of house, the condition of the house, and the lot size.

The bare-bones house-buying process:

• Find the right loan for you
• Get preapproved
• Shop for a house within your preapproved price range
• Make an attractive offer
• Submit paperwork for actual loan approval (this is a HUGE part of it involving pay stubs, tax statements, proof of secondary income, credit reports, assets list, bank statements, etc)
• Get home inspection
• Get home appraised
• Seller fixes issues found in inspection and/or appraisal or lowers house price
• Shop for housing insurance
• Do a title search on property for liens
• Pay the "good faith" fee deposit (necessary in competitive markets)
• Pay the down payment based on loan terms
• Set up escrow account and pay initial setup fees
• Get a survey completed on the property
• Do a final house walkthrough
• Sign all the paperwork at closing
• Set up electricity, water, internet, etc.
• Move in

There can be additional steps required if there are any issues above, such as the house appraising for less than the selling price. Now your preapproval purchase amount could be lowered which would require you to either pay a higher down payment, or renegotiate a lower house price with the owner. That's just one example.

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Fuck it, I'm not gonna buy a house unless I can cash it.

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CableZL posted...

Did you have to have an appraisal done to assess the equity value once it was above 20%? If not, what did you have to do?

I had called my lender asking about getting it removed based on market prices in my area. They still insisted on an appraisal so I went with it anyways.

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Veggeta_MAX posted...

Fuck it, I'm not gonna buy a house unless I can cash it.

its worth it man. My mortgage is less than rent for our 2br apt

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I pay 250 a month right now for rent living at another relative's duplex.

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Well, cant beat that. As long as the relationship between yall is good, ride that wave.


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PRO TIP: don't do ANYTHING that will ping your credit score between loan approval and closing. I knew a guy who decided he was going to buy a motorcycle before closing, and just pulling his credit score to get the auto loan caused his mortgage to fall through

I might buy the house just to rent it out though.

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Veggeta_MAX posted...

I might buy the house just to rent it out though.

So if my relative sells the house to me for 150k I can rent it out for 750 a month.

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how come no one in this thread talks about getting a real estate agent, a step that probably helps buying a house 1000x easier they can answer all questions etc.

That's why I don't trust CE some times with serious discussions like this

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Pitlord_Special posted...

I had called my lender asking about getting it removed based on market prices in my area. They still insisted on an appraisal so I went with it anyways.

What did you use to determine market prices?

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People are just posting what they know, it's not intended to be professional expert advice.

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Veggeta_MAX posted...

So if my relative sells the house to me for 150k I can rent it out for 750 a month.

750 seems low

Try 1500

I wish a house here was $150k. I live in the Lower Mainland of BC, around Vancouver

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But tc, if you don't intend to live on the property it not only changes the loan parameters but you will pay higher taxes.

Veggeta_MAX posted...

A relative of mine is tryna sell me his house. Says he was tryna sell it on the market for 160k but he'll give it to me for 150k. I dunno where to begin with this shit lmao. It is a nice house, though.

Really wish I could get a house for 150k. I need to move. Like in my state it's at least 350k at the absolute cheapest for a non-shack in a just OK area.

WingsOfGood posted...

But tc, if you don't intend to live on the property it not only changes the loan parameters but you will pay higher taxes.

How much higher?

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Veggeta_MAX posted...

How much higher?

Lookup homestead exemption for your state.

This is an exemption to a percent of taxes that is only given when you youself live on the property.

in good news, we got back $2.1k from title company for summer taxes adjustment so that basically pays first mortgage payment

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Zillow says it is listing for 160k and it last sold 11/16/2000 for 100k. Guess he bought the house 21 years ago.

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CableZL posted...

What did you use to determine market prices?

its a condo townhouse with like 150 units in the neighborhood with an even split among 3 different floor plans so I looked at comparable sales of the same floor plan in my neighborhood within a recent time period (on Zillow)

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