Home Buying & Real Estate Thread

[lightweight champion]

It depends on the appraiser. Make sure whoever is sent to your home is familiar with the market for your property. You don't want someone undervaluing your home and being screwed out of a couple hundred bucks.

 

[n3rd]

Hey Im looking into buying some income property and just wanted to know if anyone had any experience in dealing with Property Management companies?

Good vs Bad. If you continued to use one or decided to do it yourself? I'm in SoCal and the property would be within an hour drive fyi

 

[Xennial]

bay area folks looking to buy..

GOOD LUCK. #dead

 

[capital sb]

I wouldn't buy a million dollar loft.

 

[Xennial]

 
I wouldn't buy a million dollar loft.

I don't even think we can without help.  It really is only realistic to buy if we move to Austin or something

 

[crcballer55]

 

 

Anyone have any experience with a Broker Price opinion vs an appraisal?


Trying to get the PMI from my loan taken off. The company im with states to do a "borrower requested cancellation based upon current property value" it would need to showcase a LTV of 75% and not 80-78% which i believe is typical.


Basically i can pay $105 for the BPO or 445$ for a full appraisal.


Should or has there been instances where a full appraisal brings back a higher value than a BPO ?


Id rather pay for the BPO and get a high (or as high) of an estimate as the appraisal.


what are your thoughts? The value has went up based on quick comparables my bank did, and zillow/sites...


anyone got any thoughts?

BPO's are typically done on foreclosures by the bank to determine the price they want to sell the property at and are done either at the broker's desk just basing the property value off comps or by driving by the property. An appraisal though is the person actually coming out to the property to see the condition of the home along with any upgrade and/or issues and then basing that on the other home sales in the area. That's why the price is so different. If you've done upgrades to the home to make it more valuable those probably won't be in the BPO since the Realtor/Broker has no way to determine that.

The BPO according to the paperwork will include them coming inside.
My question is, SHOULD I expect a huge difference between the two. Should i assume the full appraisal will bring back a higher price? thanks for the above info.

With that much of a difference, I have to think that there will be shortcuts being taken. I'm guessing the actual appraisal process is either being outsourced to someone else or it's an agent desperate for some income. Most appraisals I've gotten are around $4-500. Personally, I wouldn't risk it for $340 when it would pay itself back within a month or two if you're right.

 

[jthagreat]

Thanks yo^

 

[tim teufel]

Rates are the lowest they've been in a long time. Locked a few people in at 3.75 par on a conventional 30 year fixed

 

[capital sb]

Hopefully rates are still this low when I refi 

 

[babygawd]

Rates are the lowest they've been in a long time. Locked a few people in at 3.75 par on a conventional 30 year fixed

Might be a stupid question, but I literally know nothing about mortgages...

Whats the difference between a conventional 30 year fixed and a 30 year FHA?

 

[tim teufel]

We have a market analysis with who we work with directly. What sucks is that in an appraisal they use three comps in your area that may not even be comparable to yours depending where you live. Our person checks for home improvements inside and out.

 

[tim teufel]

Fha loans are for borrowers that don't bring 20% down when they purchase a home. Fha charges you a monthly mortgage insurance premium and the conventional loan does not

 

[tim teufel]

Beezy what's stopping you now? Jump on it

 

[babygawd]

So if I get a conventional 30 year, I HAVE to bring 20%? That's like a requirement? 

 

[capital sb]

Fha loans are for borrowers that don't bring 20% down when they purchase a home. Fha charges you a monthly mortgage insurance premium and the conventional loan does not

@BabyGawd  Not 100% accurate there are 0%, 3.5% , 5%, 10% down conventional loans . With conventional they charge you PMI at a lower rate than FHA and your PMI is cancelled once the Loan to Value (LTV) on your property hits 78%.

FHA PMI never goes away no matter what your LTV is.

I'm not refinancing now because I'm already at 3.75% but I have a FHA loan. I will refi to a conventional when my score is as high as possible probable around March 2017.

 

[tim teufel]

no. You can still put 10% on a conventional loan but it will carry pmi. Private mortgage insurance. Remember fha you can put as little as 3.5% down in a purchase

 

[tim teufel]

No pmi for fha. It's mortgage insurance premium

 

[babygawd]

Ok, so then what is the difference between PMI and mortgage insurance premiums?

 Sorry for all the questions

 

[tim teufel]

Fha mortgage premium are there just in case you default. I do fha streamlines for people all day that took out their loan in 2013 as fha charges them a higher mip. Fha has reduced their mip to 0.80 from 1.35. Depending on the loan amount I can save people a few hundred bucks keeping the rate the same.

 

[CrownRoyalDaddy]

Would you guys ever recommend buying a place before youve ever rented somewhere?

 

[tim teufel]

If the price is right hell yes. If you buy in the right area at the right price, hell yes

 

[crcballer55]

Would you guys ever recommend buying a place before youve ever rented somewhere?

Not unless you have some kind of Real Estate background. Home ownership is so much more than just "the payment is the same". There's so much responsibility with home ownership that often goes unreported. When you rent, your only responsibility is to pay the rent and make sure nothing is damaged when you leave (or else your security deposit gets taken). With home ownership, you have to save for the emergencies yourself. What happens when your hot water heater breaks? If your HVAC unit goes out, how are you going to pick up that >$6000 tab?

Not to mention you'll have to also buy all of your appliances and decorations for the house unless you want just want something super basic. Besides the upfront fees associated with the loan and paperwork you'll be shocked how much you'll have to spend after moving in just to get the house to feel like a home. (fridge, Washer & dryer, furniture, etc.). It's also helpful to know a little handyman work before buying a home too. Repairs on basic stuff can add up if you don't know how to do it yourself.

 

[keko jones]

I need someone to explain to me how a housing bubble would even impact a regular person that doesn't plan on moving anytime soon.

Like my interest rate is fixed and me and my family would always need somewhere to live so if my house dropped to half its worth tomorrow oh well.

You have the right idea .. when purchasing a home, it can no longer be view as accumulation of wealth or long term investment as prices can up down just as fast as they go up. So if you have a stable job aren't planning on relocating and or that's hour retirement place. Then buying is probably your best option.

I'm a licensed mlo. Time to buy is now. My bank goes as low as 580 fico on a purchase or refinance. Being a home owner is not for everyone.

Time to buy depends on the individuals purchasing the house. If you are a recent college grad that might not be the options as initially the income and job is not what you ultimately want. If you just got married or had kids, you need to find out of adding another stress like home ownership is right. Lastly, there was a study that indicated when home ownership went up also did unemployment. Meaning people were not willing to relocate because of their commitment ... crazy.

 

[babygawd]

OMG! I've been looking at this house online for two weeks. It's just enough space for my husband and I. Not too expensive, considering this will be our first home. Has a big backyard for my dog. They're asking price is reasonable AND it's been on the market for over a year so I feel like there's probably room for negotiations. I FINALLY call the realtor today to ask some questions and schedule a time to go and see it. The realtor tells me that he loves the house and he was actually just there last week showing it 

Anyways, I go to look at the listing online this afternoon, and it's OFF the ******* MARKET!

I'm seriously devastated. 

 

[ekrev98]

OMG! I've been looking at this house online for two weeks. It's just enough space for my husband and I. Not too expensive, considering this will be our first home. Has a big backyard for my dog. They're asking price is reasonable AND it's been on the market for over a year so I feel like there's probably room for negotiations. I FINALLY call the realtor today to ask some questions and schedule a time to go and see it. The realtor tells me that he loves the house and he was actually just there last week showing it >:

Anyways, I go to look at the listing online this afternoon, and it's OFF the ******* MARKET!

I'm seriously devastated. 

I'm sorry to hear that.

But time is the killer of all deals. I can't stress that enough to my clients when they want to think about it or give it a couple days. In that time, somebody else is ready to put in an offer.

If you have an agent, have them call the listing agent and see if an offer can still be submitted.