Home buying thread

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Tenks_sl said:
Perfect. I'm not in the situation at the moment just wasn't sure how it all worked since I'm 99% sure I'll probably buy a house before selling my current for our next home.
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What most people do is just schedule the closing of their first house, arrange a lease-back for a month from the buyers, then get closed on the other house and move before the lease-back is over. Some people do bridge loans to cover the down that you pay back out of the equity of your first house, others just do a low-down loan and then refi when their first house sells. Bear in mind you'll have to qualify for both mortgages at once if you do that. Your DTI will have to cover PITI for both mortgages simultaneously.

It puts you in a bit of a pickle for sure. The "best" thing would be to sell your current house at best market value, rent somewhere and put your shit in storage for a few months, find your perfect house, then buy it and move in. It's a hassle personal-space wise but its the best way to ensure you don't get pressured into a decision quickly on any particular house. You need to retain the power to walk away after inspections/etc and if you're on a short timeline due to bridge loans or two mortgages or contingency contracts then you'll be under a lot of pressure.

Its not an easy decision to make on that.
 
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Tenks

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Cad_sl said:
What most people do is just schedule the closing of their first house, arrange a lease-back for a month from the buyers, then get closed on the other house and move before the lease-back is over. Some people do bridge loans to cover the down that you pay back out of the equity of your first house, others just do a low-down loan and then refi when their first house sells. Bear in mind you'll have to qualify for both mortgages at once if you do that. Your DTI will have to cover PITI for both mortgages simultaneously.

It puts you in a bit of a pickle for sure. The "best" thing would be to sell your current house at best market value, rent somewhere and put your shit in storage for a few months, find your perfect house, then buy it and move in. It's a hassle personal-space wise but its the best way to ensure you don't get pressured into a decision quickly on any particular house. You need to retain the power to walk away after inspections/etc and if you're on a short timeline due to bridge loans or two mortgages or contingency contracts then you'll be under a lot of pressure.

Its not an easy decision to make on that.
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The issue is where we want to move the houses don't come up often and it is very, very specific. Maybe only 100-150 properties really fit our criteria and that is just the property not even including the house size and things of that nature. When it comes down to it maybe only 20-25 homes really fit our criteria. So unless we relax where we want to live I think I'll be stuck just waiting for a house to come up.
 
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Tenks_sl said:
The issue is where we want to move the houses don't come up often and it is very, very specific. Maybe only 100-150 properties really fit our criteria and that is just the property not even including the house size and things of that nature. When it comes down to it maybe only 20-25 homes really fit our criteria. So unless we relax where we want to live I think I'll be stuck just waiting for a house to come up.
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Well, thats cool and I did kinda the same thing moving where I live.

Just realize that this choice is going to handcuff you a bit and you won't have the room to negotiate or be as tough as you might like to be in the buying process.
 
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Tenks

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Cad_sl said:
Well, thats cool and I did kinda the same thing moving where I live.

Just realize that this choice is going to handcuff you a bit and you won't have the room to negotiate or be as tough as you might like to be in the buying process.
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Yeah I'm well aware of the pitfalls. It isn't perfect but we're not trying to grow the family or anything so we can't be quite as generic as "4k sq ft 5 BR 4 BA" We're more concerned with acreage and not getting too large a house in a specific area. So it isn't easy. And it seems like sellers know that because the few homes for sale we'd be interested in are pretty overpriced (and not selling.)
 
AladainAF

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My first house built in 2001 had like half the floor in the master bathroom as carpet. I really didn't get it, but shit I got that house so cheap I didn't care. But when I renovated parts of it for rental, one of the first things we did was pull that shit out and just put faux wood vinyl on the floor of the bathroom. Worked great since.
 
Big Phoenix

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Well they are, but paying a mortgage is a hell of a lot better use of money than paying rent.
 
Palum

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Yea, I would agree that houses are not an investment, at best they are an asset that secures some of your wealth outside the banking system. You simply lose less money owning a comparable home than renting in some market conditions. Right now comparable rent around here is going for about 30% higher than 30y payments and that's before the tax deduction for interest and PMI. It only looks like it's going to get worse as well as the lower cost housing brackets (<200K) have gone up 10% in the last 4-6 months and are probably going to go up another 10-15% within a year before they stabilize again at appropriate values. Meanwhile new construction is still basically done besides luxury homes in the 300+ range (that's luxury out here) near the city while the population obviously keeps increasing.

It's going to be crazy, I may manage to get 20% equity out of my home just from appreciation in 2 years time because of how low the market still was. Plus the massive tax break. Plus the fact that it's cheaper each month by about $300 for me (min payment anyway) vs. renting a 1 bedroom apt... lol.
 
Jysin

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Palum_sl said:
Yea, I would agree that houses are not an investment, at best they are an asset that secures some of your wealth outside the banking system. You simply lose less money owning a comparable home than renting in some market conditions. Right now comparable rent around here is going for about 30% higher than 30y payments and that's before the tax deduction for interest and PMI. It only looks like it's going to get worse as well as the lower cost housing brackets (<200K) have gone up 10% in the last 4-6 months and are probably going to go up another 10-15% within a year before they stabilize again at appropriate values. Meanwhile new construction is still basically done besides luxury homes in the 300+ range (that's luxury out here) near the city while the population obviously keeps increasing.

It's going to be crazy, I may manage to get 20% equity out of my home just from appreciation in 2 years time because of how low the market still was. Plus the massive tax break. Plus the fact that it's cheaper each month by about $300 for me (min payment anyway) vs. renting a 1 bedroom apt... lol.
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I'm not so sure housing will continue to climb at the same pace. Fed is projected to keep raising interest rates and soon everything else (mortgages, auto, etc) will follow. People are retarded and do not look at how much they are paying for the house, they only care about monthly payments. So if mortgage rates go up, people can afford less house. Housing values will likely stagnate, if not decrease in certain markets.
 
Big Phoenix

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That's why housing isn't an investment. On average you get back what you put in when you take into account inflation, property taxes, home repairs etc.

But yea rental market here is annoying. 2 bed/bath condo I'm at rents for 750. 750 mortgage wise around here gets you a detached 3 bed 2 bath 1300sqft with a double car garage easily.
 
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Picasso3

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So you can can buy a house and better your situation for the same dollar amount, sounds like a good thing-to-do-with-money-to-improve-your-current-and-future-prospects
 
Noodleface

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That's cool, in MA our mortgage is $2000 for 3 bed 2 bath 1500sq feet and no garage and I live in diarrhea town
 
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Noodlemod_sl said:
That's cool, in MA our mortgage is $2000 for 3 bed 2 bath 1500sq feet and no garage and I live in diarrhea town
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How much is the loan for? PITI of $2000 should be for a ~400k loan or so... so your 3/2 1500 sq feet is ~$500k out in the sticks?
 
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