Buying a house - IT'S MINE!!!!

Posted: Tue Jul 03, 2007 7:20 pm

Well shit. Looks like the Sanchez' might be buying a house. Decided to go look at one recommended by a friend last Saturday and we put in the offer yesterday. Trying to close by the end of this month. Things are looking pretty good so far.

Anyone have any special recommendations to look out for? Already checked on wiring, plumbing, no foundation cracks, no driveway or patio cracks on 4+ year old concrete, non-creaky hardwood floors. Couple year old central heat/air with Trane compressor unit. Need to get a real home inspector out there and a bug guy too.

Need all the good luck we can get on this one. Man is home buying freaking stressful or what?

Jose

Posted: Tue Jul 03, 2007 7:40 pm

Good luck! And good for you guys.

If you are getting an independent inspector working for you, you should be all set.

Hawk Joined: Jun 24, 2003 Posts: 270 Location: Tujunga, CA

Da_Hose wrote:

Man is home buying freaking stressful or what?

Jose

Yes it is.

See if you can get the seller to include one of those insurance policies, which covers any/all repairs that come up during your first year in the house. Because of today’s market, you may not be able to get the seller to pay for it all but maybe they will meet you half way.

Make friends at Home Depo. Wink

Congratulations.

Posted: Thu Jul 05, 2007 12:52 pm

Get the inspector and the home warranty insurance, even if you have to pay for it out of pocket. In this part of the world a 1 year policy is $400 to $600.
Three years ago, I bought a ten year old house. Before the first year had passed, three service calls on the heating/AC unit easily covered the warranty cost.

Posted: Thu Jul 05, 2007 2:44 pm

Thanks for reading guys. I will make sure to ask about that warranty. I can do most anything, but A/C problems would certainly be an issue for me. Especially in Ca., where everything is an environmental (read:FINES) issue. Escrow opens today and we will close by the end of the month. I'll tell you what, houses are freaking expensive in California!

Jose

Posted: Fri Jul 06, 2007 12:35 am

What county?
As it happens, I'm in the title/escrow business.

Ask about a first-time buyer discount. I don't think you can get the senior citizens discount.

Posted: Fri Jul 06, 2007 2:00 am

everybody is invited to a BBQ at Hose's new House!!!!

Posted: Fri Jul 06, 2007 2:10 am

I'll tell you what, Grump. The sale goes through, you are invited first. A home purchase fully deserves a party! beerchug

Jose

CB1100F Joined: Mar 03, 2004 Posts: 3278 Location: Seattle

Do NOT accept PMI insurance on any loan you are going to sign. State it up front.. Stay away from ARMs.... Go fixed ASAP, and spend money up front, to buy down the points (Interest rate)....

Shocked

Posted: Fri Jul 06, 2007 2:52 am

Got most of that already, Blaine. We're fixed 30, no points with seller covering closing costs. Hey LJ we're in Napa County. Can you opt out of PMI in California? I thought that is a requirement of the bank. We turned in the loan app. today.

Jose

Posted: Fri Jul 06, 2007 3:29 am

If loan is under 70% of the value, you may be able refuse the mortage insurance. Not sure if 70% is correct, but something around there as I understand it.

Good luck, you will not regret it, at least in the long run.

Posted: Fri Jul 06, 2007 4:08 am

good luck with the buying,

Posted: Fri Jul 06, 2007 5:12 am

Da_Hose wrote:

Got most of that already, Blaine. We're fixed 30, no points with seller covering closing costs. Hey LJ we're in Napa County. Can you opt out of PMI in California? I thought that is a requirement of the bank. We turned in the loan app. today.
Jose

The bank will have loan requirements. Generally if it is an 80% loan PMI isn't required. It's why on the 100% financed deals there is a first loan for 80 and a second loan for 20. Avoids PMI. Very little of that going on now with all the defaults.

CB1100F Joined: Jul 02, 2003 Posts: 3189 Location: Phoenix

Quote:

Need to get a real home inspector out there and a bug guy too.

Bingo, find a good inspector. My brother found one and it was a bit pricey, but well worth it and a great bargaining tool.

Posted: Fri Jul 06, 2007 4:41 pm

Thanks LJ. I looked at the loan info. we have and what the broker put together is an 80/20. It does not show any PMI on there and that goes right along with what you are saying. Thanks for all the help and advice so far, guys. I feel like we are on the right track here.

Jose

Posted: Fri Jul 06, 2007 5:25 pm

So confusing... Confused

I want a house, but this is scaring me. Shocked

Posted: Fri Jul 06, 2007 5:54 pm

No joke, Ben. There is tons to worry about and this is the scariest friggin purchase I have ever made. Monthly payment is WAY more than my current rent. You have to weigh this decision VERY heavily.

Jose

Posted: Fri Jul 06, 2007 6:11 pm

Da_Hose wrote:

No joke, Ben. There is tons to worry about and this is the scariest friggin purchase I have ever made. Monthly payment is WAY more than my current rent. You have to weigh this decision VERY heavily.
Jose

When you get to be a creaky old fart like me, you will look back with great regret on the homes you didn't buy because it so far exceeded the rent. Seems like an awful lot of money now, but don't let that put you off. I could bore you spitless with tales of the 17k house that's now worth a mil five (true). My dad bored me with those kind of stories, so I won't.

Posted: Fri Jul 06, 2007 6:31 pm

I hear ya LJ. My uncle bought his house/property for $225K about 20 yrs. ago. Now it's worth $2.75M. Pretty good return on investment, I'd say.

Jose

Posted: Fri Jul 06, 2007 6:48 pm

lj wrote:

When you get to be a creaky old fart like me, you will look back with great regret on the homes you didn't buy because it so far exceeded the rent. Seems like an awful lot of money now, but don't let that put you off ...

I completely agree. As long as you aren't totally unrealistic when you go in, you'll find a way to make the ends meet. I was scared of having kids for a long time because of the expense, and all of the other unknowns. But once you have them, you find a way to change the schedules, and to make the payments, and get the sleep, and learn what you're doing. The adjustments seem very natural as you are going through them, and once you've made them, you wonder what all the reluctance was about. I felt the same way with my house.

Good Luck Jose! ( and maybe Ben).

Posted: Fri Jul 06, 2007 9:11 pm

They ain't makin no more real estate Hose!! cept maybe in Hawaii when the volcanos go off. mi casa 9-2000/250 7-07 650.

Posted: Tue Jul 17, 2007 2:57 am

Ok, my brotha's. Got the word today that the loan has been approved. We file for final loan documents tomorrow. I have to supply another copy of a bank statement that doesn't have all the numbers visible.

Another thing, the appraisal came in at $30K higher than our buying price. Instant equity. It looks like all systems go for closing escrow on the 1st. Thanks for the positive comments so far. Keep the good juju coming, it seems to be working.

Jose

CB1100F Joined: Mar 03, 2004 Posts: 3278 Location: Seattle

Nice thing about mortgage payments..... you have a 2 week window to get them in on time... Shocked

Posted: Tue Jul 17, 2007 11:57 am

Also don't forget about city taxes on the house. It adds at least another couple of hundred a month so most folks tack it on to their mortgage payment.

I understand that in the States you can declare the interest payments as an expense and lower you tax rate. How much of the interest are you allowed to claim?

CB1100F Joined: Mar 03, 2004 Posts: 3278 Location: Seattle

Quote:

How much of the interest are you allowed to claim?

ALL of it........ mortgage interest, that is......

Posted: Tue Jul 17, 2007 1:58 pm

two thumbs up HOSE!!! I'll bring some Italian food to the BBQ

Posted: Tue Jul 17, 2007 1:58 pm

two thumbs up HOSE!!! I'll bring some Italian food to the BBQ

Posted: Thu Jul 19, 2007 2:39 pm

dont want to pee in your bowl of cheerios..owning a house has been quite a ride so far..to suggest first things that come to mind id have to say two words of warning...

HOUSE TAXES!!!! ARRRGGHHH!

congrats on the home too!!

ps. lock your refrigerators...the partys back!!

Posted: Thu Jul 19, 2007 3:15 pm

Congrats! Home ownership kicks ass if you can afford it! I'll be riding in the Bay area more often in the near future. I'll cruise by for some BBQ and Italiano food. I'll bring some brews! Very Happy

Posted: Thu Jul 19, 2007 3:43 pm

Fitter wrote:

Also don't forget about city taxes on the house. It adds at least another couple of hundred a month so most folks tack it on to their mortgage payment.
I understand that in the States you can declare the interest payments as an expense and lower you tax rate. How much of the interest are you allowed to claim?

Generally here in Murrica, an impound account (where you pay a monthly amount to your lender for taxes and insurance) is a lenders requirement which should be avoided if possible. Why give them your money to pay your taxes and insurance? Easiest thing is establish an automatic withdrawal from your checking account going to a savings account that pays you some interest. Ing Direct springs to mind, pays about 4.5%. When taxes come due (Dec 10 and Apr 10 in California) pull the money back and pay it yourownself.
In the US, mortgage interest and property taxes paid are generally deductible from your gross income for income tax purposes. There are some exceptions, but normal folks will never run up against them. Essentially, we subsidize property owners to a degree.