Khane
Got something right about marriage
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Home buying thread
- Thread starter Pasteton
- Start date
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Guest, did you like the last podcast notification?? Well here's the second one, and for the third podcast! Yep. This Thursday 8-8-24 at 7pm Central
Go here to check out his podcast thread for info on topics and links!Go into the FoH discord and find the Happy Time Fun Hour channel and give it a listen!
In 2013 I had just graduated college and then qualified for a mortgage with just 1 month of income as salary to show. I gave them a second pay stub during the whole process. I did have excellent credit from a car loan and always payed my CC off every month prior to getting qualified. Anything leading up to that was all hourly and nothing close to the new salary. I didn't go through any first time homebuyer programs. So maybe it just depends?
Unrelated to your question. They were also willing to loan me up to $150k on a salary of about $38k, which seemed totally absurd to me. I was looking at houses under $100k and found a foreclosure for $80k(yay midwest). I make a little over $60k now. So lending for that amount would have worked out in my case. Imagine how many people they allowed to do dumb shit like that, and will probably end up foreclosed.
Edit: Had to fix my story. The timeframe was more ridiculous than I originally remembered.
Khane
Got something right about marriage
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No I think they haven't really stopped. I bought my house right after the crisis in 2009 and got the free $8k (Thanks Obama!) from the stimulation effort. This was when you could buy properties in the hardest hit areas of the country like Detroit, Florida, Arizona and Las Vegas for the price of a Corolla.
During that time I still had mortgage companies trying to sell me loans in the ~$320k range on an income of $75k/yr. They were actively and aggressively trying to sell me on being house poor. I only really wanted to spend around $190k but found a pristine investment property for $245k that I couldn't pass up. And even that made me a little uneasy.
During that time I still had mortgage companies trying to sell me loans in the ~$320k range on an income of $75k/yr. They were actively and aggressively trying to sell me on being house poor. I only really wanted to spend around $190k but found a pristine investment property for $245k that I couldn't pass up. And even that made me a little uneasy.
stupidmonkey
Not Smrt
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Buddy of mine used to live around Detroit back before the crash. He started looking for houses. He ran his own small business but only took home like 45K. He told me every person he talked to was trying to sell him on 400K+ houses. He would ask them how they thought he could afford them and the loan officers and realtors would all tell him that the cost would be really small and by the time his business picked up he wouldn't have to worry about it. Yeah really small for 5 years or so, huh? Now think of that attitude toward the majority of the population.... But you told me I could afford it????
I've noticed the same trend picking back up here in Phoenix again. Bought my place in 2009 for around $130K, thanks short sale, and now these houses are going for $220K+, almost the price the original people bought it in 2006 for, $268K.
AladainAF
Best Rabbit
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What kind of loan did you get? Your income is OK, as long as you have 2 paycheck stubs at least from the new job, and 4 from the old (to show continuing income). Also curious on your LTV prior to the refi. As for your opening up 8 new credit cards 3 months prior, that's honestly not a big problem. Well, it is (Why the fuck are you opening 8 cards?!) in that your credit score has to take a hit from so many credit inquiries and your credit aging time has to be terrible, but you can still get a loan but it wouldn't surprise me if you didn't get the best deal as there is no way in hell your credit score is over 700 from opening 8 credit cards within 3 months. Just don't open lines of credit 1 month prior or while you're still in the process and you're fine.
AladainAF
Best Rabbit
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I already posted my houses, but you can also see the ones I posted, almost all of them have gone up 50% in value in just 3 years. It's dumb. I'm seriously contemplating selling them all and waiting for the next crash, but fuck... the thought of actually renting or living in an apartment makes me want to kill myself.
spronk
FPS noob
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the difference between now and 2007 is that now most people are buying just one home to live in. in 2007 you had a shit ton of people buying multiple homes and just riding out the appreciation wave, looking to cash in on real estate like its a stock market. when credit got squeezed suddenly there were no buyers and everyone with multiple short term ARM mortgages were left holding their dicks and houses with nobody to sell to. There are very, very few 1 or 5 year ARM mortgages going out now either.
Its nowhere near as bad as that right now, and a lot of the people who got burned before are slowly starting to crawl back in just for a house for themselves. No doubt some markets are overvalued, especially in the regions that have been riding the oil boom, but most places with decent growth should be fine.
Its nowhere near as bad as that right now, and a lot of the people who got burned before are slowly starting to crawl back in just for a house for themselves. No doubt some markets are overvalued, especially in the regions that have been riding the oil boom, but most places with decent growth should be fine.
Palum
what Suineg set it to
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Yes, but at some point you have to question the value of a home. So you can add up the relative labor cost, design price (portion of likely) and materials for a house based on current dollar valuation. You can then look at new plots and figure out a relative price. Of course, there's lots of little subjective things but if you add up the cost of everything and find the price of everything that goes into purchasing the land and building a house is somehow twice what it should be then there is a problem.
The core of 2009 and any further related disasters (even if not as comprehensive) is that the supply in many areas is now controlled by huge banks, huge builders and city councils looking for the best tax base and voters. The demand is driven up by population movement and increases and artificially by loose lending practices. Even if you fix the latter slightly, the former can still cause unreasonable rises in pricing.
I don't think it's going to be as severe as 2009 but I do think with current economic conditions you will see more frequent market corrections in housing which were historically very rare - it was the unassailable 'investment' (which was always sort of a lie due to maintenance and update costs but whatever).
Khane
Got something right about marriage
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Just a standard 10 year and I got the best available rate at that time (I shopped around and paid attention to what the best possible rates were)
8 new credit cards should be a pretty big flag for a bank when it comes to loaning someone money and they did ask me quite a lot of questions about that but ultimately it was fine. My average age of credit is so good that the new cards didn't hit my credit score in any meaningful way. It ranged from 790 to 820 from the credit reporting agencies before the new cards were opened and when I applied for the mortgage refi they were in the 770-790 range. After I got the sign up bonuses I closed out the ones that had annual fees so I wouldn't have to pay them and kept 4 of them that are fee free. My credit score is back in the 790-820 range.
meStevo
I think your wife's a bigfoot gus.
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We're a week or two into contract but now back to negotiating after the appraisal came in at $300k... $9k shorter than the $309k we'd agreed to.
So we asked to drop the price, and they said 'cool, so we're not going to pay $9k in closing costs either and do we need to still give you this $500 repairs credit that was already agreed to in the contract?'
.....
Should know today if we can meet in the middle somewhere.
So we asked to drop the price, and they said 'cool, so we're not going to pay $9k in closing costs either and do we need to still give you this $500 repairs credit that was already agreed to in the contract?'
.....
Should know today if we can meet in the middle somewhere.
Big Phoenix
Pronouns: zie/zhem/zer
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Nester
Vyemm Raider
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So you are cranky that they are cranky you no longer want to pay what you agreed to pay?
Palum
what Suineg set it to
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As your avatar might say "Won't... can't... what's the difference?"
You won't be able to fund a loan at the same ltv if your offer is above appraised value, if at all.
So we had our design meeting. We were quite efficient during it and our realtor said some people need to come back multiple times because they just can't make a decision. Here are the things we are being charged extra for.
- Blinds ($2380)
- Flood light ($200)
- Screen in covered porch ($2500)
- 8 lb carpet pad ($500)
- Laminate in family room ($2534)
- Laminate in hall ($397)
- Tile master bath floor ($2436)
- Tile master shower ($3500) + bench ($500)
- Stagger tile in master shower ($400)
- Egg shell interior paint ($3500)
- Upgrade dishwasher ($299)
- Add 2 outlets in game room ($200)
- Gameroom breaker ($295)
- CAT 6 cables x5 rooms ($900)
- Smart box in game room, where the CAT 6 terminates ($250)
So a grand total of almost $21k. Not too bad.
- Blinds ($2380)
- Flood light ($200)
- Screen in covered porch ($2500)
- 8 lb carpet pad ($500)
- Laminate in family room ($2534)
- Laminate in hall ($397)
- Tile master bath floor ($2436)
- Tile master shower ($3500) + bench ($500)
- Stagger tile in master shower ($400)
- Egg shell interior paint ($3500)
- Upgrade dishwasher ($299)
- Add 2 outlets in game room ($200)
- Gameroom breaker ($295)
- CAT 6 cables x5 rooms ($900)
- Smart box in game room, where the CAT 6 terminates ($250)
So a grand total of almost $21k. Not too bad.
Arative
Ahn'Qiraj Raider
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We went back several times picking different options. It helped or maybe hurt us that we walked through several different display homes so we could see some options. We also had meetings with wiring, so we could pick different outlet locations and cat5e/coax and flooring. We hit the big 3, upgraded kitchen, upgraded master bath, larger garage. Some options, either our sales guy didn't tell us about because he was newer or we just didn't think to bring up, like venting the range hood outside instead of back into the kitchen. $21k is pretty good. We did 65k or so in upgrades.
Oh there's the rub. Just got an email saying that now that all the paperwork is done and we are good to go if we could mail in a check for 50% of the upgrades we chose. I have to write a check for $10.5k about 6 months before I wanted to.