House Buying Questions

[TulipsAndSunscreen]

You usually apply up to a certain amount but don't have to take it all. We locked ours for 90 days, I think?

[Deebs]

You apply for a mortgage based on the specific house you are going to purchase. You can't go and apply, and then just spend it on something less than or equal to that amount. The mortgage is tied to the property (maybe you know that, but it seems like maybe not). In some states, you can get a mortgage for more than the price of the house, and then get money kicked back to you for improvements, but I think most states have eliminated that in the past few years. If you plan to put 20% down and take the rest of the mortgage, but then find that you have a bunch of money just lying around (like the rest of us all do, of COURSE), you can pay ahead on your mortgage. We have a thirty year mortgage right now, but are paying it off at a rate where we'll be done in 15 years. We weren't comfortable with doing a fifteen year mortgage, though because we don't know if Dh's income will be sustained at its current rate.

[SoonerTexan]

FWIW I looked into loans that allowed you to borrow more and use it on improvements because we looked at a few fixer uppers. Apparently they are really hard to get and were dissuaded from even applying. Our landlord did it on the duplex we used to live in and said it was a nightmare. He had to spend the money in specific ways via a general contracter, etc.We were looking at FHA loans, though. Maybe private is different.

[ides]

I really know almost nothing about this, so thanks!

Hmmm, ok. So find the property then get mortgage. So maybe a prequal letter or exercise would be good.

Not sure if we'll do any updates straight away. Something to think about though. Depends on the house I guess. I know Dh doesn't want to do any DIY projects but I also have a couple standards I don't want to bend on.

[SuzySunshine]

Get the pre qual letter because if you come up against any kind of competition they'll want it.

If you decide to do updates you can always get a Home Equity Line, rates are ridiculously low for those too.

[ides]

So we got pre qualified today from a regional bank. We have 'just' enough for 20% down and closing costs at our top price. There are several houses we are going to look at shortly. A few are at the top of our budget and some are below. I also found a real estate agent that was recommend from a newish friend here and heard good things about her from a few others. Guess we'll see what shakes out. Man, I have butterflies in my belly! This is kinda scary.

Think I'm going to estimate our taxes now to make sure we'll have enough incase we owe this year.

[Thirteen]

Also keep in mind how much per month property taxes will average out to be, should you be paying to an escrow account.

Our monthly payment went up significantly due to PT. However, we prefer paying in installments rather than a lump sum annually.

Your PT should be lower than ours, but I could be wrong.


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[ides]

Thanks T. I got an estimate from the lender of what our monthly would be. His estimate of property taxes seems high but I'd rather a high estimate. We would pay it monthly into escrow and I did notice that our monthly with all added stuff is a few hundred more than the loan itself. Our top price is still low for our income so even with all the above we would be paying less than our current rent for more house. I'm a bit worried about tax time and us having a giant bill and being cash poor. We would be putting all our savings into this transaction. Not sure its the best timing.

I'm off to see if I can estimate our tax burden so we aren't caught off guard and can adjust accordingly. I am pretty excited though!

[weeniegeniewife]

You can write off mortgage interest, so it might be a wash if you owe in taxes. Good luck with the house-hunting!

[ides]

Well according to an internet calculator we will be getting a refund. I'm still skeptical, but I definitely feel more at ease.

[SoonerTexan]

Yay! Our mortgage monthly amount is half taxes, PMI, and house insurance! It was really good to see the prequal number before we started looking. Don't forget you can negotiate closing costs, especially if you are offering close to asking or less in other areas. Can't wait to see what you find.

[ides]

So we found one we like lots in a nice neighborhood 15 min to dhs hospital. Now the anxiety begins on making an offer. Ack. Someone hold me.

[Bittersweet]

Oh wow, that's great! Good luck!

[Alacrity]

You can write off mortgage interest, so it might be a wash if you owe in taxes. Good luck with the house-hunting!

This is very important.
We looked at a couple of places.
One was $750K with $800 assesments (and little reserve)
The other was 1,020K with $300 assesment. (with a full years of reserve)

Guess which one was cheaper?

[spaz]

There is a website somewhere that shows what the price is of property...might be a property tax or property value site. I found my stepbrothers house and it listed the owners and what they had paid. I just can't remember the name of the site.. I've searched, but I can't find it. Anyone else know the name of it..

Found it:

http://www.zillow.com/