chrissy

So,

Got a wild hair up our butts on Friday. Started thinking that this is where we are going to settle in at.

applied for a house loan (small, we want to be able to afford it) and got it. This was a surprise for us because we feel we are still working on repairing my credit from the custody cases and such over the years. But, we did ask for a VA loan, so that probably helped.

Anyway, we are starting to look, we have a realtor who is supposed to call us today.

Scared beyond belief about this knowing that Donnie will be out in September of 09 and will have about 4 months when he gets back from Qatar (yes, orders again!) to find a job.

See, we found out Friday while applying, if we don't purchase a home by July, or early (and I mean EARLY) August, they will only count 40% of Donnie's income because of him retiring. So, if we don't buy in this window, it was explained to us, we wouldn't be able to qualify for anything worth qualifing for until 2010 because of income (they would have to use the 40% of Donnie's income from Aug 20th of this year through Dec of 2009)

So, what do I need to know? What am I forgetting to ask?

MrGreg

Take a look at this:
http://www.mymoneyblog.com/archives/...ry/real-estate

There are several posts about choosing a lender, etc.

__________________
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zippyjuan

Don't forget to include property taxes and maintance in your budget. You will be the landlord and responsible for fixing what breaks. I would definately get a fixed rate loan.

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chrissy

Thanks for more to read MrGreg Been doing a lot of that over the last year or so. I mean, I know enough to be dangerous, but I don't feel comfortable in my knowledge to go through with this for the next 30 years.

I mean, it's like Donnie said last night to friends, the military has been telling us where to live for just shy of 20 years, it's weird looking at places that we can call our own and call it forever.

And yeah, zippy, I think we can only get a 30 flat VA. right? I wouldn't want anything adjustable. I don't trust them. I can't tell the future and what will happen in the next few years to say, yeah we can afford a larger payment then.

We don't have a large budget, but we don't have a lot of income either. I pull in a bit to help "roll" our bills which are almost gone (we have about $6,000 in CC bills left that can/will be paid off by spring and another $6,000 that will be paid off over the following year).

And that plan has been working for the past few years. We have worked so hard at this deadline - paying things off by donnie's retirement date in Sept 09. We will have my car paid off in 2010 and Donnie's truck should be paid off maybe this spring BUT that depends. A house is now in the picture and I think I will feel more comfortable with that in the bank rather than paying off the truck that will be paid off in that year... BUT, I could always sock that extra $300 away each month too...

ugg...

How do new homeowners sleep at night?

MrGreg

Just repaint right after moving in. The fumes will knock you right out. The trick is waking back up.

chrissy

Are you kidding!??! I will be taking paint to the closing! I haven't been able to paint a room EVER in my adult life (exception would be my mom's kitchen two summers ago).

I am going to paint each room red at least once. Dammit.

Daedalus

Would you entertain the idea of renting till at least 2010, as it seems housing markets may stay weak through 2012? Depends on where you're buying too. I know you're very excited to buy, but just throwing it out there as it's one thing prospective buyers need to consider. Most people rationalize buying in a declining market by saying they're buying for the long term, but the reality for most is that it is very unpleasant being underwater, even if only on paper. When your neighbors are buying similar places in your neighborhood for 20-30% less within a year or 2, it does kind of hurt. Just saying you need to consider the possibility, and know that it won't bother you too much before jumping in.

Jeffbx

He's right on... I know the prospect of owning a place today sounds great, but we're still sliding down a declinging slope of housing values, and the end is not yet in sight.

Chances are really good that whatever you buy today will continue to decline in value, and you'll be paying on a mortgage that's more than your house is worth.

I'd recommend that you do some reading on rent vs. buy in this market, and I think you'll find that many analysts are pointing to continuing to rent at least for the next few years.

That being said, if you're considering living there for a long, long time (like 20+ years), it won't make that much of a difference in the long run.

chrissy

We currently are in base housing. In July, they will be charging us $841/mo for rent on a 1350 sq ft quad unit. Donnie has just a bit over a year left and for 6 months out of that year he is going to be in Qatar. When he gets back, he will have 4 months to find a job and we would need a place to live. So, if we don't buy, we would have to move again in a year AND then again when we buy a house later that year or the following year (there is a plus to this, more debt would be paid off and my FICO would be better and so would Donnie's for that matter and we could buy more house)

BUT to get the VA loan (remember, my credit is rough), we have to do it now, and I really mean NOW because if we don't close on a house by the end of July they will only count 40% of Donnie's income until 2010.

If we don't find something this week, I am not sweating it, we will wait. We are keeping our house expenses (projected budget HA) at/below $845 because I don't want it to eat us alive. I want to be able to pay things off and eat food.

Believe me, both my eyes are open - and I prob won't sleep until it's all over one way or another.

MrGreg

I wouldn't rush into it.

chrissy

I don't feel rushed.

I feel... like I did when I got my first appartment 17 years ago. Like what I am I overlooking when I view a house.

Saw 10 houses today and took it down to two. Going back with Donnie tonight to see them.

One is a 4 bedroom, 1611 sq ft 1.5 bath with a one car garage and they want $89xxx for it. Good neighborhood/schools

The other is a 3 bedroom 1470 sq ft 2 bath with a two car garage and they want $104xxx for it. Good neighborhood/schools. This one is newer than the other, and the kitchen is bigger among other things that keep it in the running until tonight.

Leaning a lot toward the 4 bedroom

zippyjuan

That is certainly a lot cheaper than things are here in SoCal. I bought my 700sq ft condo before the bubble really hit for over $100k. They are still more than twice that now. At those prices, you are probably paying close to rental rates so with the tax deduction you may be better off buying. Just make sure the payment numbers will work out. In the old days they used to say about one third of your income going towards housing.

dbax791

Those prices are cheap!

First, spend $16 and get Home Buying for dummies. Stay away from ARM's, get a fixed. IMO, make sure your mortgage allows direct deductions from your bank and make sure there is no pre-payment penalty.

Get the house throroughly inspected before buying.

Budget time to sign the paperwork. It will take at least one hour if not 2-3 in the title office to sign everything.

Oh and welcome to tax deduction land. You can deduct all mortgage interest instead of tbrowing money down the crapper in rent.

chrissy

Well, we did go for the 4 bedroom.

They have to replace the siding on the back addition and repair a soffit (sp?)

Our offer went in for $89,900 with them paying $3200 toward the closing and a year warranty for the house (and for the repairs to be done).

The house has to be inspected by the VA before we can buy it so it will be inspected and appraised.

He looked up the property while we were writing up the offer and the house is appraised at $95000 and the tax assessment is at $104,000. So, hopefully they will agree to the offer and we will close at the end of July.

Daedalus

Whew! Glad you guys took your time.

Wait, they wanted 89,xxx and you offered 98,xxx? Typo?

chrissy

What are you talking about? Typo? Me? Never...




Thanks.

Yeah. It's been a long time coming.

But only a couple days of house hunting.

There isn't a lot of 4 bedroom houses for what we are willing to pay right now so yeah, we jumped on it.

I looked at a 3br with den three doors down from this one today also and they wanted $108,000. They had done some work on the house and it was shoddy. They didn't do it right on so many levels that was obvious that I didn't care to see what wasn't done right underneath. It was only 200 sq ft more than what we are buying.

renovation

get a home inspection by a license building inspector .one out of the phone book and don't use just the va inspection .it cost up to $250. for this service to be done .but its money well spent. then after the reports done you can make adjustments to the seller on the final buying price .or you may walk away.with a smile knowing you saved you and donny a ton in hidden repairs. these people know what signs to look for if a seller is trying to cover up a problem .they will check everything from the basement to the attic and roof. the company should give you a list of its findings and he working for you not the realitor or the seller. and yes some realitor will play you saying they have a inspector . if they dont offer you more then 2 or 3 companys or say why its time to walk away and find a new one to deal with.

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smile or f-off

chrissy

Oh the realtor said that.

Yeah. We are having a VA done and another inspection done along with a termite inspection.

He said something about our lender and how they want to see an inspection along with the VA inspection.

I will confirm that though..

Markel

That's the truth. They guy we had inspecting our house looked behind every picture (to make sure that they weren't hiding any holes in the walls), checked the polarity of every outlet, checked the inside of the furnace (found evidence of a fire that had singed the wiring - seller ended up having it serviced) - very thorough.

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stay low... keep moving...

chrissy

Well, we didn't get it.

There was another offer and they took it. The realtor is assuming it was the siding that made them take the other offer.

Who knows.

That was about the only 4 bedroom in our price range. Found another 3 bedroom to look at. It has a second living area that has a half wall that could easily be closed up for a 4th bedroom. 200 sq ft less and in a good neighborhood. Bad thing is I know this area was hit by a tornado a couple years back so there might be a reason it's been on the market for a while - and back on the market two days ago $7,000 cheaper... dunno. I guess I will find out tomorrow.

This is the house I will look at tomorrow
http://www.openhouseok.com/showhome....ewood+Dr&st=ok

And our still back up house

http://www.realtor.com/realestate/ok...60-1100121183/

UPDATE:
I won't be seeing that house tomorrow.
It's a short sale.

Sucks.

Daedalus

Sorry, I know you were starting to imagine life in the new home and that you're very disappointed. But it's not all bad. You get to avoid the costs and headaches of owning a home, especially one that's decades old. And you get to keep looking for an even better home next time. For all the homes that will go up for sale, and for what little time you spent looking, there have got to be a bunch of better homes out there that you will come across in the future.

chrissy

The age really didn't bother me. My parent's house is over 100 yrs old. And that's the beauty of an older home, you can make it your own one room at a time. Good bones was all I was really worried about I would love to go back to Marissa or near there and buy one of the old Sears homes and restore it. I don't think I will ever be given the chance so I will find something else.

We did look at some more closer to our high end and found a few we liked. But I got cold feet. I know we could afford it, but at what cost AND freaking economy right now is buggin me. We didn't put an offer in and I want to pay off a few more bills and have mobility when he gets out.

I know Donnie hates moving and he doesn't want to move out of here into a rental when he retires and again into whatever we buy. But I really don't want to be locked down here - which I felt that was what we were doing in the end. When Donnie gets out, we can go anywhere, we don't have to stay here. If we bought a house here, we would have stayed here because Donnie is that way - we are here, not going to change, the world has beat me, and I am content. I love him, but sometimes...

As much as I am enjoying OK right now, I don't know if I will say the same in a year. I really miss NV and CA. And I never thought I would say that. I do miss IL too. Donnie's best friend is moving to northern TX and I can see Donnie wanting to move there too.

I learned a lot. It was fast paced, but I was okay with that. But I will feel a lot more comfortable next time.