FARK.com: (6889333) If you actually can afford to buy a house *and* convince a bank to give you a mortgage, have we got some great news for you

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		If you actually can afford to buy a house and convince a bank to give you a mortgage, have we got some great news for you (wrcbtv.com)		101
		More: Spiffy, fixed rate mortgage, National Association of Home Builders, adjusted basis, home construction

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101 Comments (+0 »)

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rf134a

2012-01-19 02:34:56 PM

So, only fiscally responsible people should apply? Or perhaps 1%ers?

Wellon Dowd

2012-01-19 02:40:25 PM

We just closed on our refinance last night. Saving money is fun.

Mikey1969

2012-01-19 02:42:54 PM

We make enough to own. Unfortunately, the credit companies make farking with your credit a kind of spectator sport nowadays. It's almost impossible to get ANYONE to give you advice that doesn't start with a qualifier, and it's not because they don't know how to do their job, it's because the credit agencies get to keep their fortune teller techniques a secret. Once I get a house, I will probably buy an occasional new car over the next 25 years or so, but I will b e officially done waiting on approval from these crooks. Once we pay off the house, we sell it, retire into something smaller, and pay for it with money from the sale of the first house...

Of course, on the upside, thanks to the housing market, we'll probably get to build new...

syberpud

2012-01-19 02:43:22 PM

You mean people that have been smart with their money finally catch a break? Sounds fishy, given the trend.

Tom_Slick

2012-01-19 02:51:23 PM

Now I am really wondering if it makes sense to refinance my 4.25% loan, I only owe $60,000

YixilTesiphon

2012-01-19 02:57:58 PM

Tom_Slick: Now I am really wondering if it makes sense to refinance my 4.25% loan, I only owe $60,000

Might make sense to just try to pay it off ASAP. It's a high-return investment.

karmaceutical

2012-01-19 03:05:17 PM

It means that if you are pretty set financially, you can buy a couple "investment" properties and leech some money off renters backs.

clear_prop

2012-01-19 03:06:55 PM

syberpud: You mean people that have been smart with their money finally catch a break? Sounds fishy, given the trend.

Even if you have been smart with your money, you still have to convince the bank to give you a mortgage. My credit scores were all over 800, and I still had trouble with the banks.

Even once they approved my mortgage, they still fscked with the paper work so much that I had to close two weeks late and almost lost the house.

Tom_Slick

2012-01-19 03:11:59 PM

YixilTesiphon: Might make sense to just try to pay it off ASAP. It's a high-return investment.

That is what I am doing making double payments, It is amazing how fast your balance drops when you do that.

/Bought my house at a foreclosure auction in 2009 for 1/3 what it sold for in 2004.

Tom_Slick

2012-01-19 03:16:27 PM

clear_prop: Even if you have been smart with your money, you still have to convince the bank to give you a mortgage. My credit scores were all over 800, and I still had trouble with the banks.

The hoops are just horrible, My credit score was also over 800 and I was putting 20% down but good god the paperwork enough to make you want to say screw I will continue renting.

/The worst was having to obtain a letter from my bank that said I was allowed to withdraw my savings for the down payment, then at closing they would not take the certified check, oh and the bank issuing the Mortgage was the same bank the money was in. They will get that $30.00 wire transfer fee somehow.

SinPiEqualsZero

2012-01-19 03:16:50 PM

Tom_Slick: That is what I am doing making double payments, It is amazing how fast your balance drops when you do that.

/Bought my house at a foreclosure auction in 2009 for 1/3 what it sold for in 2004.

In that case it's very unlikely you'll save much money (if any) on top of the new fees, etc. No need to over-analyze the good deal you got.

Enjoy the house and by the time it's ready for selling you should be in good shape.

Tom_Slick

2012-01-19 03:23:34 PM

SinPiEqualsZero: In that case it's very unlikely you'll save much money (if any) on top of the new fees, etc. No need to over-analyze the good deal you got.

Enjoy the house and by the time it's ready for selling you should be in good shape.

That is what I have figured and I am in no hurry to sell, the neighboring unit (these are townhomes) just sold for $60,000 more than I paid and it was at Auction. It is amazing how cheap a foreclosure goes at auction when all the appliances have been ripped out, I looked at it like an opportunity, a great deal on a house and hey new appliances I get to pick out. Plus at the time Lowes had no interest financing for 12 months that took the sting out of the appliance purchase.

mainstreet62

2012-01-19 03:23:51 PM

I'm looking to buy, so I'm getting a kick....

there their theyre

2012-01-19 03:33:12 PM

I am looking at buying a house in the next few months and my mother is currently looking for one as well. Great time, I guess.

Tom_Slick

2012-01-19 03:34:01 PM

mainstreet62: I'm looking to buy, so I'm getting a kick....

Two pieces of unsolicited advice:

Buy as much house as your budget can afford, sure you may not need that much space now but you might and bigger houses are easier to resell.

If you are buying a resale paint every room before you move in or it may never get done. I wish I had followed that advice sure the spare bedrooms looked OK when I moved in but now it is just looking tired 2+ years later and on top of that now I have to move furniture to paint.

mod3072

2012-01-19 03:37:10 PM

December's payment was my first payment that was more principal than interest. I'm over the hump!

I'd refinance, but I'm only paying 4.875% on ~60k over 15 years. I'm a couple of years in, so I'm down to somewhere in the 40's now.

arcas

2012-01-19 03:38:53 PM

I refinanced from 5.25% down to 3.75% back in October. A few more house payments and I will have recouped my closing costs.

mainstreet62

2012-01-19 03:40:03 PM

Tom_Slick: mainstreet62: I'm looking to buy, so I'm getting a kick....

Two pieces of unsolicited advice:

Buy as much house as your budget can afford, sure you may not need that much space now but you might and bigger houses are easier to resell.

If you are buying a resale paint every room before you move in or it may never get done. I wish I had followed that advice sure the spare bedrooms looked OK when I moved in but now it is just looking tired 2+ years later and on top of that now I have to move furniture to paint.

Good advice. I had the first point kicking around in my brain, but never considered your 2nd point. I'll be sure to do that.

Thanks. :-)

pute kisses like a man

2012-01-19 03:44:11 PM

oh lord. by the time I'll be able to buy, there'll be a whole new housing bubble.

fark it.

TheSelphie

2012-01-19 03:45:47 PM

Man, makes me feel like a sucker that we got our loan at 4.25% for a 30 year when we bought in October.

TheSelphie

2012-01-19 03:47:41 PM

Tom_Slick: mainstreet62: I'm looking to buy, so I'm getting a kick....

Two pieces of unsolicited advice:

Buy as much house as your budget can afford, sure you may not need that much space now but you might and bigger houses are easier to resell.

If you are buying a resale paint every room before you move in or it may never get done. I wish I had followed that advice sure the spare bedrooms looked OK when I moved in but now it is just looking tired 2+ years later and on top of that now I have to move furniture to paint.

Heh, the house we bought a few months ago is badly in need of an interior repaint for all rooms (outside looks great at least though, and that's more costly). It'll probably never get done because my husband and I are lazy and don't really care. If we sold the house we'd probably have to repaint though because they really do look like shiat.

natazha

2012-01-19 03:48:22 PM

Bought a FMA-foreclosure Dec '10 for $150,000. Dropped $31K in repairs, including a new roof. Assessed at $225,000 last month. Anyone want a 5-gallon bucket of staples, small nails and bottle caps?

Negligible

2012-01-19 03:48:35 PM

Yeah, I'm flipping a house I bought at a writ of execution sale right now. Since it's investment property they said it would take a higher interest rate and I got scared. Then they came back and said 5%. Crisis averted.

K.B.O. Winston

2012-01-19 03:54:53 PM

karmaceutical: It means that if you are pretty set financially, you can buy a couple "investment" properties and leech some money off renters backs.

This is either hilarious or you consider the people that provide others with shelter leeches for expecting a form of payment in return.

/I'm voting hilarious
//it's the optimist in me

Jobber8742

2012-01-19 03:56:20 PM

Tom_Slick: mainstreet62: I'm looking to buy, so I'm getting a kick....

Two pieces of unsolicited advice:

Buy as much house as your budget can afford, sure you may not need that much space now but you might and bigger houses are easier to resell.

If you are buying a resale paint every room before you move in or it may never get done. I wish I had followed that advice sure the spare bedrooms looked OK when I moved in but now it is just looking tired 2+ years later and on top of that now I have to move furniture to paint.

Isn't this why the housing market is crap? People bought all the house they could afford, then something changed and suddenly they couldn't afford it anymore.

bulldg4life

2012-01-19 03:56:45 PM

yay for me

I'm hoping to make a purchase before the end of the year.

A student loan screw-up destroyed my credit score, so I'm in the process of getting that resolved...but, hopefully, this means a good rate for me in October or so.

PillsHere

2012-01-19 04:07:47 PM

rf134a: So, only fiscally responsible people should apply? Or perhaps 1%ers?

Pfft, 1%er's don't need mortgages.

Mortgages - 99%er's problem.

ddam

2012-01-19 04:12:20 PM

Good news for me. Both me and my wife have credit scores north of 720 and we're hoping to buy our first house by end of the year. By then I should be able to pay my remaining credit card with balance and my motorcycle loan. Only bad part is that I probably won't have much for down payment but there's FHA if it comes to that.

mainstreet62

2012-01-19 04:13:15 PM

Uncle_Git

2012-01-19 04:17:42 PM

My biggest concern with buying at historic low rates after a housing bubble is you basically are guaranteed to end up underwater for 10 years until inflation does it's thing.

If rates tick back to a more normal 8% buying power drops by 30% - what's that going to do to this housing market ?

Tom_Slick

2012-01-19 04:35:23 PM

Jobber8742: Isn't this why the housing market is crap? People bought all the house they could afford, then something changed and suddenly they couldn't afford it anymore.

I am not saying all the house you can afford, all the house that is in your budget, example: $150,000 budget, you can get a 2 bedroom in a nice neighborhood that needs nothing, or a 3 bedroom in the same neighborhood that needs some sweat equity in the form of painting and other cosmetic touches. Buy the 3 bedroom for the same money you will be better off.

daskleft

2012-01-19 04:36:56 PM

This is FARK, we have people here who own homes.
Where do you think you are, subby, reddit?

m1ke

2012-01-19 04:38:28 PM

I just locked in 3.35% on a 15 year loan. We close next week! So glad to finally be out of my shiatty apartment!

Satanic_Hamster

2012-01-19 04:39:11 PM

natazha: Bought a FMA-foreclosure Dec '10 for $150,000. Dropped $31K in repairs, including a new roof. Assessed at $225,000 last month. Anyone want a 5-gallon bucket of staples, small nails and bottle caps?

I'll take the bottle caps.

Satanic_Hamster

2012-01-19 04:40:02 PM

Satanic_Hamster: natazha: Bought a FMA-foreclosure Dec '10 for $150,000. Dropped $31K in repairs, including a new roof. Assessed at $225,000 last month. Anyone want a 5-gallon bucket of staples, small nails and bottle caps?

I'll take the bottle caps.

Dammit, stupid jerk image rejected.

Boondock3806

2012-01-19 04:42:54 PM

Jobber8742: Tom_Slick: mainstreet62: I'm looking to buy, so I'm getting a kick....

Two pieces of unsolicited advice:

Buy as much house as your budget can afford, sure you may not need that much space now but you might and bigger houses are easier to resell.

If you are buying a resale paint every room before you move in or it may never get done. I wish I had followed that advice sure the spare bedrooms looked OK when I moved in but now it is just looking tired 2+ years later and on top of that now I have to move furniture to paint.

Isn't this why the housing market is crap? People bought all the house they could afford, then something changed and suddenly they couldn't afford it anymore.

It sounds like you're confusing "as much as your budget can afford" as saying "stretch yourself thin buying as much house as you can."

Boondock3806

2012-01-19 04:43:54 PM

*looks WAY above my post*

sigh, as you were, fark.

bhcompy

2012-01-19 04:57:57 PM

Preapproved... but since houses are 5-7x income, it's stupid to buy. Need a lot more than 5 years of downward trajectory for housing to fall to realistic 2.5-3x income rates where I live.

Teenwolf

2012-01-19 04:58:13 PM

Tom_Slick: I am not saying all the house you can afford, all the house that is in your budget, example: $150,000 budget, you can get a 2 bedroom in a nice neighborhood that needs nothing, or a 3 bedroom in the same neighborhood that needs some sweat equity in the form of painting and other cosmetic touches. Buy the 3 bedroom for the same money you will be better off.

Whenever I see people post examples of housing prices, it makes me shed a little tear for living in the NY metro area.
/at least it's not L.A.

bad_blood

2012-01-19 05:01:09 PM

this seems as good a place as any to ask for thoughts without going to a financial adviser-

when you were saving for a down payment, what the the best place to put the money? I'm looking at saving much more than qualifies for a housing disbursement from a 401k or IRA ($10k limit), and it's on a short time frame (1-2 years). Do you just have to stick the money after taxes into a high yield savings account or bonds? Are there any pre-tax investments you can make to save money and not get penalized when you pull a large sum out for a first time home purchase?

Capt._ARGH!!!

2012-01-19 05:09:15 PM

Bought a foreclosed home 1500SQFT + detached 4 car garage for about $62K @ 3.625%, mortgage+taxes in escrow comes out to $503 a month. I rent a room out for $550 a month.
Living "free" but I still worry about the possibility of losing a job and losing a house.

Tom_Slick

2012-01-19 05:14:38 PM

Teenwolf: Whenever I see people post examples of housing prices, it makes me shed a little tear for living in the NY metro area.
/at least it's not L.A.

For the record those are townhome prices in the outer Atlanta suburbs. I am 30 miles from the city but my job is another suburb only 10 miles and 15-20 mins away. It wold have cost more to live closer to my job, plus I am close to being on the lake.

bhcompy

2012-01-19 05:16:14 PM

bad_blood: this seems as good a place as any to ask for thoughts without going to a financial adviser-

when you were saving for a down payment, what the the best place to put the money? I'm looking at saving much more than qualifies for a housing disbursement from a 401k or IRA ($10k limit), and it's on a short time frame (1-2 years). Do you just have to stick the money after taxes into a high yield savings account or bonds? Are there any pre-tax investments you can make to save money and not get penalized when you pull a large sum out for a first time home purchase?

Pre-tax? I don't know of anything. Post-tax I use CDs if I can find a good rate, but rates are awful recently. Saw a local bank advertising a 24 month CD with a 0.69 APY.. okay......

jst3p

2012-01-19 05:25:50 PM

bhcompy: bad_blood: this seems as good a place as any to ask for thoughts without going to a financial adviser-

when you were saving for a down payment, what the the best place to put the money? I'm looking at saving much more than qualifies for a housing disbursement from a 401k or IRA ($10k limit), and it's on a short time frame (1-2 years). Do you just have to stick the money after taxes into a high yield savings account or bonds? Are there any pre-tax investments you can make to save money and not get penalized when you pull a large sum out for a first time home purchase?

Pre-tax? I don't know of anything. Post-tax I use CDs if I can find a good rate, but rates are awful recently. Saw a local bank advertising a 24 month CD with a 0.69 APY.. okay......

Wow, you could keep it in a no fee savings account at ING and be better off:

Current Annual Percentage Yield: 0.80%

pute kisses like a man

2012-01-19 05:27:37 PM

where on earth do you people live where houses go for $60k? I couldn't get a studio for that, and I don't live in a big city.

/ the last person I know to get a house for 60K, the house didn't have floors, walls, or working a/c, electical, or plumbing systems. although, that same guy fixed all those things on his own, and his house now is the coolest out of everyone I know. wow, how I envy those who know how to do.

bad_blood

2012-01-19 05:28:42 PM

bhcompy: bad_blood: this seems as good a place as any to ask for thoughts without going to a financial adviser-

when you were saving for a down payment, what the the best place to put the money? I'm looking at saving much more than qualifies for a housing disbursement from a 401k or IRA ($10k limit), and it's on a short time frame (1-2 years). Do you just have to stick the money after taxes into a high yield savings account or bonds? Are there any pre-tax investments you can make to save money and not get penalized when you pull a large sum out for a first time home purchase?

Pre-tax? I don't know of anything. Post-tax I use CDs if I can find a good rate, but rates are awful recently. Saw a local bank advertising a 24 month CD with a 0.69 APY.. okay......

thanks - that's what I found, too. my bank has a 1% high yield money market account I'll probably just sock it away in. The rates on CDs I've seen tend to be what you mentioned - I can get 1% if it's 5 years, but that's longer than I want. I kept reading about first time home buyer withdrawals from 401ks and things of that nature, but the limits don't even get you close to the necessary down payment on a sizable house in the Boston area.

Tourney3p0

2012-01-19 05:29:12 PM

Anyone with a credit score over 640 could get approved for an FHA $100 down loan at Wells Fargo or any number of other large banks. If you can't get approved for a mortgage, you've probably made some pretty bad mistakes in your life.

pute kisses like a man

2012-01-19 05:33:23 PM

Tourney3p0: Anyone with a credit score over 640 could get approved for an FHA $100 down loan at Wells Fargo or any number of other large banks. If you can't get approved for a mortgage, you've probably made some pretty bad mistakes in your life.

thanks, oh sagacious and perfect one. the issue is not whether you can get approved for a mortgage, it's whether you can get approved for a mortgage with desirable terms.

bhcompy

2012-01-19 05:39:43 PM

bad_blood: bhcompy: bad_blood: this seems as good a place as any to ask for thoughts without going to a financial adviser-

when you were saving for a down payment, what the the best place to put the money? I'm looking at saving much more than qualifies for a housing disbursement from a 401k or IRA ($10k limit), and it's on a short time frame (1-2 years). Do you just have to stick the money after taxes into a high yield savings account or bonds? Are there any pre-tax investments you can make to save money and not get penalized when you pull a large sum out for a first time home purchase?

Pre-tax? I don't know of anything. Post-tax I use CDs if I can find a good rate, but rates are awful recently. Saw a local bank advertising a 24 month CD with a 0.69 APY.. okay......

thanks - that's what I found, too. my bank has a 1% high yield money market account I'll probably just sock it away in. The rates on CDs I've seen tend to be what you mentioned - I can get 1% if it's 5 years, but that's longer than I want. I kept reading about first time home buyer withdrawals from 401ks and things of that nature, but the limits don't even get you close to the necessary down payment on a sizable house in the Boston area.

Yea, the only way it may work is with a 3.5% down FHA loan or something similar, depending on home values. You could borrow against your 401k, and many 401k plans have special home loans available, but then you're going to have to pay that back as well as pay your mortgage, and if you lose your job you're boned

Tylercn

2012-01-19 05:44:36 PM

Tourney3p0: Anyone with a credit score over 640 could get approved for an FHA $100 down loan at Wells Fargo or any number of other large banks. If you can't get approved for a mortgage, you've probably made some pretty bad mistakes in your life.

thanks, oh sagacious and perfect one. the issue is not whether you can get approved for a mortgage, it's whether you can get approved for a mortgage with desirable terms.

There aren't any "exotic" mortgage products any more. It's all Freddie and Fannie, VA or FHA? Vanilla terms with many hoops to jump through.

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