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need home buying advice

Discussion in 'The Lounge' started by beater_k20, Dec 29, 2004.

  1. beater_k20

    beater_k20 Banned

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    i'm ready to move out of my parents house. too many things are getting to me lately that wouldnt be an issue if i lived on my own. however, i have 2 close friends who are in the same boat. we're conisdering buying a house. i may go on my own on this one, and let them move in as roomates. we're always together anyways, and we're always working on projects together. it would be a lot easier if we were living in the same place. however, if i cannot get the financing by myself, i may try to get financed together with one of them, just to get my foot in the door, then eventually refinance it in my name only. what can i do to protect myself from getting taken advantage of? not that i think my friends would do that to me, but just in case.

    also, anything else i should be aware of when buying a house?
     
  2. cbbr

    cbbr 1 ton status GMOTM Winner

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    Make sure that you find a good lawyer. Get a referral from a friend. It is the best $ that you can spend to protect yourself. Only a lawyer admitted to the bar in your state will be able to truely answer this question.

    Other than that, make sure that everything is in writing and clear. No latin doublespeak. Just plain english.
     
  3. 4GUNZ4X4Z

    4GUNZ4X4Z 1/2 ton status

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    I would highly advise against financing with anyone, besides a spouse or maybe a close family member. If you do the advice above should be taken seriously.

    What does your credit score look like? Your work stability? These 2 things and income will be the deciding factor in purchasing a new home.
     
  4. beater_k20

    beater_k20 Banned

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    credit score cant be too bad, i've had credit cards and truck loans for the last 5 years, not to mention my student loans. i've been pretty decent with the payments, i think i was only late once or twice when i was laid off a couple years ago. as far as work history, i'm going to have a year in where i'm at next week.
     
  5. Can Can

    Can Can Pusher Man Staff Member Super Moderator

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    I would personally avoid a joint evnture with a friend like the plague. There's nothing better than money to ruin a friendship....

    And buying a house with someone other than yourself or a spouse is a recipe for disaster, IMHO. Who's responsible for what? What happens when friend A or B is unable to come up with his portion of the mortgage/utility/furnace repair/property tax/insurance bill?

    You do realize that if you as a group are unable to cover the mortgage because one of your buddies gets sick/loses his job/becomes a drunk, you are ALL up **** creek as your names are all on title. I would hate to have my credit destroyed because of someone else's fockup...And as far as buying someone out after a little while, remember that your idea of fair market value might be a little different than someone else's. And how much money will you really make after paying out legal and land title fees for a second time?

    Think hard about this, brother. Maybe you should lower your standards and find something you can afford all by yourself.
     
  6. 4GUNZ4X4Z

    4GUNZ4X4Z 1/2 ton status

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    Believe it or not too many credit cards can hurt your score and to many open accts can hurt it as well, but if you don't have anything negative then you'll proll be in good shape. Wow thats one long sentence. Anyhow the 1 year at work thing will help. As long as your credit score is at least a 600 your n good shape. Expect to not be financed for anything over 3 times your annual income.
     
  7. Poohbair

    Poohbair 1/2 ton status

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    The first thing to do is go talk to a loan officer at a mortgage company or a bank and let them pull your credit, fill out an app, and try to get pre-approved. Then you will know if you can buy on your own or not. If you can, you should be given a price range for what you can afford the payments for. Then go shopping. Try to find an agent to help you that won't ass rape you on their commission (ie, any friends or family members agents..?). If you can, try to find a forclosure or a fixer that you can put some $$ and time into and build fast equity in the property. Try to avoid buying a manufactured home if you are planning on using the property for an investment. Not that they are bad or anything, but you usually can't get as good of a financing package on a Manf. home, and they are harder to re-sell in a few years when you want to move on to something better.

    Personal advise, look for something on as much property as you can afford... houses can be made bigger/better... but the property is what it is. Get as much land or as big of a lot as you can afford.

    Make sure that w/ your loan you get your land taxes and prop. insurance in your house payment, otherwise you have a big chunk of change to come up w/ once a year.

    Also, talk to your friends that are potential roommates and see if they will sign a rental aggrement for you to take in w/ your loan app because then you can usually claim their rent as income, which will help you get approved.

    BUY LOW AND SELL HIGH!!!!
     
  8. Poohbair

    Poohbair 1/2 ton status

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    Oh, try to make sure that your credit cards are paid down to less than 50% balance before you go to get your loan and it will make your credit score higher...

    There are some great 0 down first time buyer packages out there right now...but try to at least come up w/ your prepaids if you can. That way you don't have to pay interest for 30 years on that money.
     
  9. kgblazerfive

    kgblazerfive keymaster Premium Member GMOTM Winner

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    Get your parents to cosign then have your friends rent rooms from you one of the guys I use to work with did that and he had his house paid off in like ten years but he also put alot of money down.
     
  10. beater_k20

    beater_k20 Banned

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    the credit card i have now (i have only had 2, not counting my Mac Tools card i just got) is at about 1/3 of it limit, the Mac card has a 0 balance.

    what do you mean "come up w/ your prepaids"?
     
  11. tunedportk5

    tunedportk5 1/2 ton status

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    first find out about how much your going to need to get what you want, A nice down payment will help, and make sure the loan has no prepayment penalties so when it comes time to refinance to get some equity out you'll save some money. Fannie mae is a good place to visit for first time buyers
    http://www.fanniemae.com/aboutfm/in...O3XFRWLJ2FECHSFGFHQUQJCIV5?p=About+Fannie+Mae
    any questons ask and I'll ask my Wife she an accountant and we've bought a couple houses sofar
     
  12. Poohbair

    Poohbair 1/2 ton status

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    Usually your prepaids are your 1st years insurance and your 1st years prop taxes. These are not always required for you to come up w/ depending on the loan plan you get on, but it is a good thing to pay (if you can) so that you don't end up paying interest on that money.

    A GOOD Loan Officer will take your info and go out and shop your loan for the lender that best fits your needs... or at least that is what they are getting paid to do!
     
  13. 4GUNZ4X4Z

    4GUNZ4X4Z 1/2 ton status

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    ....and your inspections, apprasails(ms),your realitor, their realitor, well these r part of closing cost anyhow. Closing cost on my house 6 months ago was $19k, however I only come out of pocket $3k. Its all on how you make an offer. You'll also need to have earnest money when you make the offer.


    Oh and before you even have the loan officer pull your credit ask them how many points they charge. This is the percentage of the loan, that they get, which is tacked on to the loan. i.e. If you get a loan for $100K and their points are 2 then basically you are paying them $2k which is tacked onto the loan. By the way 2 points is on the high side. My first loan officer didnt bother to tell me about this until it was time to sign, his charge was 4points, which was nearly $10k just for getting me the loan, I walked. My second loan officer was free, she was paid by the loan company, which was not tacked on to my loan.
     
  14. Thunder

    Thunder 3/4 ton status

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    You should be able to buy a house by yourself no problem. You will need good credit and a down payment.
    You might try financing online. Its usually cheaper. Rember many loan offices are working for themselfs. They get a commission off loans they sell. You have to be careful. Also be careful if a realator recomends a particular mortguage company or person to get a loan from. They usually have some kind of a back door deal going.
    I have arranged financing for both houses and autos on line. Its easy. Everything is handled by E-mail and phone. I would never use a mortgage co again. I like it because you dont have to deal with some jerk who is sitting across from you and thinking. "How much can I take him for"
    Try http://www.gmacmortgage.com
    Its a good site to learn about the things you will need to buy a house. They have a bunch of tools to help you calculate how much house you can afford, what the payments will be ECT ECT. At least go there and check out "The Learning Center" lotsa good info there for the first time buyer.

    Be an informed buyer! You won't get screwed.

    http://www.ditech.com/ Is also a good online broker. They are owned by GMAC and are a rock solid company.
     

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