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Old 10-19-2008, 09:38 PM #1
automagwarrior
 
 
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Buying a house

For those of you who have bought a house (which i suspect will be a very small number, but well see) what was your financial situation like? I'm thinking in the next year or two I'll be able to put a down payment and get approved for a mortgage.

I was wondering if you could list some numbers if you remember them. Things like your mortgage payment, along with other monthly expenses?
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Old 10-20-2008, 12:55 PM #2
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I bought my first place at 25 (i'm now 30, and recently bought a new house). It was a townhouse. I had 10% down, outside of the $18M in closing costs (which included prepaying 1 year of taxes and association fees). The place was inexpensive ('Bout $220k) and my monthly payment (with taxes and association fees) was about $1,200. There is alot that comes with owning Real Estate. Just be prepared and make sure to buy within your means.
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Old 10-20-2008, 01:26 PM #3
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I'm pretty realistic, I'm not looking for anything I can't afford, even if it means a long move. I'm not ready to buy a house I'm just thinking ahead. I'm 23 and make pretty good money, but saving for a house is defiantly something that is important to me right now. I just wanted to see where others sat as far as income, mortgage rates and other monthly payments.
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Old 10-20-2008, 02:40 PM #4
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I was doing well when i bought the townhome. I had paid off all my credit card debt, and also paid off my auto (at the time). The first two years i had my best friend living with me and he paid me rent. But when he got married, i never saught a new roommate. So, there is always that option you can consider.

My mortgage rate was great. Below 5.5 for the 1st mortgage and less than 6 for the small second (which bridged from 80% to 90%).

Other things to keep in mind are Home Owners insurance (for that townhome it was $120/month), Electric ($200+), Heating (oil or gas), and local school tax (which i'm not sure they have in CT, but they have in the Philly burbs).

So. there is alot involved. But nothing that can't be done if you buy within your means.
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Old 10-20-2008, 04:04 PM #5
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I'd wait to buy a home. Right now credit is tight so if you don't have pristine credit you are going to be paying alot for your house.

An interesting fact, I believe it was 2005-2007 home builders were building 2 million brand new homes every year. And the demand for homes (new or recycled) was only 1.4 million homes a year. So you have more than 600,000 homes that had no demand and that was only the new homes and not couting the recycled ones.

Basically what I'm saying is wait to buy. Right now cash is king. My personal rule of thumb is that I won't buy something unless I think I can buy it 3 times over.

And as for your numbers you were asking for. 275,000 before the appreciation of the housing bubble. I paid 30% of that and my rate is 4.85 on a 30 year fixed.
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Old 10-20-2008, 04:53 PM #6
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I won't be buying for the next few years, but like I said its something I need to seriously consider. I'm hoping I will still be able to take advantage of forclosures and a housing slump when I'm looking to buy in a few years.
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Old 10-22-2008, 09:13 AM #7
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Quote:
Originally Posted by Calin View Post
I'd wait to buy a home. Right now credit is tight so if you don't have pristine credit you are going to be paying alot for your house.

An interesting fact, I believe it was 2005-2007 home builders were building 2 million brand new homes every year. And the demand for homes (new or recycled) was only 1.4 million homes a year. So you have more than 600,000 homes that had no demand and that was only the new homes and not couting the recycled ones.

Basically what I'm saying is wait to buy. Right now cash is king. My personal rule of thumb is that I won't buy something unless I think I can buy it 3 times over.

And as for your numbers you were asking for. 275,000 before the appreciation of the housing bubble. I paid 30% of that and my rate is 4.85 on a 30 year fixed.

This is good advice, but there are advantages to buying in this market. Specifically if you're going to hold the property for a while. I wouldn't expect much (if any) property appreciation (without captial injection) for 4-6 years.

I'm Banker (Credit Officer) for a living, and i work for a regional bank here in the Philadelphia Market. While my job is strictly commercial, i do have co-workers who manage the Consumer side of things. They've mentioned credit is definately more difficult to get right now, but is not as bad as the media portrays it to be. People are still lending money, just not has hap-hazardly as they were before. If you're qualified you can get a mortgage. Plus, good credit isn't hard to have so long as you pay your bills.

If you're saving now, then you're in good shape. The more money you can bring to the table, the better off you will be.

Edit:
I bought a new home 2-months ago and i got a really fair rate (less than 5.85%).

Last edited by Zacko23 : 10-22-2008 at 03:17 PM. Reason: added additional information
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Old 10-22-2008, 04:59 PM #8
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I don't currently own a house, but I am planning to buy within the next year. I've already met with some real estate agents to see what kind of places I should set my targets for and what kind of monthly expenses they would be.

I am very interested in a condo a few blocks from the sears tower which is going for about $250k. I want to put a 20% down payment on so I need 50k. So far I've saved about 18kish. Hopefully I'll have enough by next summer.

Going over the numbers, I would told my monthly payment would be about $1600 including taxes and insurance and all that.
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Old 10-22-2008, 05:56 PM #9
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In April I was looking at a condo in downtown Tampa. It was going for 235k and my mortgage would have been 1200. With Taxs and the association fees it would have ran me around 1550; very similar to what Morreo said.


Edit: 680 Sqft. which is now going for 30k less.
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Old 11-14-2008, 01:28 PM #10
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Im 19 and I own a house and am closing on another this week. I bought it on a foreclosed auction for $12500. Its 1800 sq ft. and took about a weeks work to fix up. I had it rented in a few days. Before the auction it was listed at $38,000. My advice is to look at the foreclosure market in your area. especially if you don't mind putting a little work into it and after you find something make a lowball offer on it and submit your bid on wednesday (when the agent/bank gets a bid towards the end of the week they are much more likely to take a low offer before the weekend). Also check for auctions in your area. Hope this helps and pm me if youve got any other questions
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