Author Topic: Advice  (Read 3012 times)

MgoSam

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Advice
« on: February 20, 2014, 06:15:13 PM »
I have been preapproved for a mortgage and am going to be looking at properties with my Realtor. I am really nervous, though I suppose this is the easy part.

golfer44

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Re: Advice
« Reply #1 on: February 20, 2014, 06:41:12 PM »
I have been preapproved for a mortgage and am going to be looking at properties with my Realtor. I am really nervous, though I suppose this is the easy part.

Hey Sam,
What type of advice are you looking for?

Kriegsspiel

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Re: Advice
« Reply #2 on: February 20, 2014, 06:48:11 PM »
Always go for the groin.

Or the eyes. The eyes are the groin of the head.

MgoSam

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Re: Advice
« Reply #3 on: February 21, 2014, 11:39:50 AM »
I realized I was really vague. I have been preapproved for a loan, looking to a buy a house for upto 200,000, which in MN I can find some good 3 bedroom places that are less than 10 miles from work. Me and my realtor have a list of properties that might work that are less than 5 miles from work, which is awesome as this will enable me to bike instead of relying on driving each day.

I am not urgently looking for a place but I want to close and be able to move in my mid-May, this enables me to time to move in and settle during warmer months. Also it will be easier for me to find roommates if I want to go down that path. Right now these properties are things that I can afford with my salary, and am planning on putting extra down to pay off my mortgage faster. I also have more than enough to pay for the house in cash though that requires cashing in most of my Vanguard fund. I would rather not, I would have this grow and pay down the mortgage slowly. What do you think? Another issue is that for the past 4 years I have lived at home with my parents. For the past years they have liked this arrangement as it is a paid for house that is way too big for just them. The past few months though have been harder, as I know that I need to get out. As far as I can tell they want me to live, but the lack of autonomy is really starting to affect me and I know that until I live on my own, I will always be seen in the same light. This is also coupled with the fact that I cannot relax at home if they are home as every thing I do gets scrutinized by them. This leads to me either trying to spend every waking moment out of the house, or locking myself in my room to avoid them and either thing isn't beneficial.

I have zero to no handyman skills so am not looking at a fixer-upper. Several of my friends work in either construction or home remodeling companies and have offered to help, but I do want to limit how much work I will need to do for my house. The leader of my Bible study owns a kitchen remodeling company and so I think I would be able to get some help from him, but I don't want to rely on favors if I can find a place that I can maintain on my own.

I need any and all advice from everyone here that has bought a home.

Milspecstache

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Re: Advice
« Reply #4 on: February 21, 2014, 04:26:28 PM »
First house I bought was move-in ready and was a smart choice for us.
Second home needed slightly more work (plumbing fixtures, paint, roof, minor stuff).
Third home we tried to buy was a foreclosure that needed massive work (fell through, thankfully, as market didn't recover as I hoped).
Last home I built myself.

I think you are smart to start with easy (as I did above).  I do recommend reading a lot of books and talking to many people.  I liked "Complete Idiot's Guide to Buying a Home" when I first stated out.  Highly recommend a fixed 30yr loan and don't recommend ARMs.  Also wouldn't recommend buying the most expensive place you can afford either.

Poorman

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Re: Advice
« Reply #5 on: February 21, 2014, 05:35:40 PM »
First house I bought was move-in ready and was a smart choice for us.
Second home needed slightly more work (plumbing fixtures, paint, roof, minor stuff).
Third home we tried to buy was a foreclosure that needed massive work (fell through, thankfully, as market didn't recover as I hoped).
Last home I built myself.

I think you are smart to start with easy (as I did above).  I do recommend reading a lot of books and talking to many people.  I liked "Complete Idiot's Guide to Buying a Home" when I first stated out.  Highly recommend a fixed 30yr loan and don't recommend ARMs.   Also wouldn't recommend buying the most expensive place you can afford either.

MgoSam-

If you plan to sell the property within 12 years, it doesn't make sense to get a 30 year fixed loan.  You'll end paying more interest than necessary.  Instead get an ARM with a fixed period of 5, 7, or 10 years, (depending on your timeline for selling), and save that extra interest money.  (ARM's have a lower starting interest rate than a 30 year fixed.)  As long as you sell within the starting fixed period, or even withing a couple years after, you'll come out ahead in total interest paid.  The hard part at your age is knowing when you will want to move, but the average is 7 years. 

Banks make a ton of extra interest from people getting 30 year fixed loans that don't need them.  Notice that the person advising a 30 year fixed has owned 4 different residences, probably none of them for long enough to justify a 30 year fixed rate loan.

StarryC

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Re: Advice
« Reply #6 on: February 21, 2014, 05:49:16 PM »
If you have never not lived at home, my advice would be this:

1) Look around for people you know where you can join in/ be roommates while renting.
or 2) Rent your own place.

Seriously, until you have lived on your own for at least a year, I don't think you should commit to any house.   If you've done that, but were back with the folks for a while to save up, then ok, buy.

Don't buy something that needs major work, but get interested in getting skills.  You can paint for sure.  I did it alone as a 12 year old, and I'm sure you are more capable than that!  As things come up, you will have to learn to fix them.  You don't have to remodel the kitchen, but you are probably going to have to fix a leaky faucet or plugged drain now and then.  No one is born with handy-man skills.  Everyone learns them.