Home Buying & Real Estate Thread

[john hancock]

 
Lol real live when I went over there I saw a white couple walking with their suitcases to the metro.

I immediately thought , oh it can't be that bad around here lol. From what you all are saying it seems like its a really bad area.

I'm torn on where to purchase around here. VA isn't really an option right now. I will be working in Annapolis Junction , MD thats too far of a commute.

DC and Baltimore is weird, one minute you're in booming community by the harbor, then next thing you know you're expecting Cheese Wagstaff to jump out and rob you. DC is a little more nicer, but it's the same thing, about 2 miles from the White House it looks like a ghost town in the ghetto. 

But over all the people are nicer in DC and safer. I wouldn't buy any property there though.

 

[lazyj10]

Does anyone know a reliable site to see what houses sold for ? I'm looking on zillow,I checked off sold homes then I click on the listing and its for sale for 100k more.

Property shark. May not have free runs anymore

 

[capital sb]

 
DC and Baltimore is weird, one minute you're in booming community by the harbor, then next thing you know you're expecting Cheese Wagstaff to jump out and rob you. DC is a little more nicer, but it's the same thing, about 2 miles from the White House it looks like a ghost town in the ghetto. 

But over all the people are nicer in DC and safer. I wouldn't buy any property there though.

Its not DC, the property is in Capitol Heights, MD. DC it depends where you are, nicer and safer is very subjective.

 

[degenerate423]

Hey guys, I know there's a lot of different factors that go into get pre-approved for a mortgage, but is 6 months generally how long you'd need to be working to even be considered?  I've been working for 3 months for the state of California and I want to buy a condo (< $100k) to rent out while interest rates are low, but I'm not sure how long I'll have to be working before I can realistically get pre-approved.  I'll have to look up my credit score, but I don't have much on my report aside from a credit card I've had since 2009 with Bank of America (never had a missed or late payment) and a personal loan I took out with Chase for school (just started paying it off).  Any help would be greatly appreciated as I'm new to the process.  Thanks in advance!

 

[3am scholar]

I live in NYC. Reason I say 100 is because I'm trying to avoid PMI on a mortgage.

Most homes are around 500-600k and 20% of that is about 100-120k :x

I'd have to live very modestly to be able to save that amount

What area of NYC are you finding homes for that price?

 

[throwback1718]

^^^ probably queens

 

[solefx]

Maybe in the worst parts of Queens if you find a desperate seller....Prob talking about the Bronx or some parts of Brooklyn

 

[bravelude]

 
Just to clarify... mortgage rates are based on the 10 year treasury note. Correct me if I'm wrong, but most of the decline in rates over the past 3-4 months has been to the flight to safety in light of turmoil overseas. Our treasuries are the reserve of the world, so the more demand there is, the less we need to pay to attract investors.

EDIT: Here's an interesting article I came across: If this drop in long-term interest rates has legs, look for mortgage rates to follow

Yes, the US dollar is the reserve currency, and yes the US Treasury market is also a place to park money. NO OTHER CURRENCY can support this.

Mtge rates aren't primarily decided by the 10 year note, although it is just seen as a 'general' benchmark.  Many other factors play a role in determining mortgage rates.  Heck, the whole purpose of the QE was to bring down the mortgage rates!  It's kind of tough to explain it, but I'm sure people can can google and read.  Understanding MBSs, bond market is quit interesting.

Basically you have to understand the fixed income side of this to understand how rates move.  It goes hand in hand, which is why when you see the 10 year move, everything tend to follow suit, but it's not because of the 10 year.  It comes down to supply and demand.  You can never just look at one aspect.  Meaning, you tracking the 10 year note for CLOSING is not a good thing to do!  MONEY needs to be parked somewhere, and when you see a demand for BONDs like 10 year, 30 year, MBS,  it pushes yields down, which tends to lead to lower rates and the assumption that people are fleeing to safety (also an economic indicator).  The whole purpose of QE was to bring down the rates of the 30 year rate.  

 

[johnnyredstorm]

QE will lead to the next crash.

 

[Los Angeles]

So my plan in the next year is to get my credit score up, to something respectful.

I qualify for an FHA loan with 1% down but credit needs to be 640 and up.

Anyone have thoughts on that 1% down and such?

 

[Teknoman]

Broke life ensues.

Crib is fire though.

 

[crcballer55]

So my plan in the next year is to get my credit score up, to something respectful.

I qualify for an FHA loan with 1% down but credit needs to be 640 and up.

Anyone have thoughts on that 1% down and such?

RUN!

The MI (mortgage insurance/ foreclosure insurance for the lender) is high compared to conventional loans and stays with you for the remainder of the loan. Work really hard to put down at least 5% and you'll be in much better shape with the MI and rate.

 
Hey guys, I know there's a lot of different factors that go into get pre-approved for a mortgage, but is 6 months generally how long you'd need to be working to even be considered?  I've been working for 3 months for the state of California and I want to buy a condo (< $100k) to rent out while interest rates are low, but I'm not sure how long I'll have to be working before I can realistically get pre-approved.  I'll have to look up my credit score, but I don't have much on my report aside from a credit card I've had since 2009 with Bank of America (never had a missed or late payment) and a personal loan I took out with Chase for school (just started paying it off).  Any help would be greatly appreciated as I'm new to the process.  Thanks in advance!

It would probably depend on whether you have a contract for a specified period of time with the state. Lenders look at risk, so a 3 month work history doesn't look too good. If they have some confirmation you will be there for at least a couple years, that would give them some more comfort. At this point though, It's probably better to stick with something lower maintenance and more liquid like stocks/mutual funds. Not to mention... assuming the rental is in CA, evicting tenants is a HUGE headache!

 

[degenerate423]

It would probably depend on whether you have a contract for a specified period of time with the state. Lenders look at risk, so a 3 month work history doesn't look too good. If they have some confirmation you will be there for at least a couple years, that would give them some more comfort. At this point though, It's probably better to stick with something lower maintenance and more liquid like stocks/mutual funds. Not to mention... assuming the rental is in CA, evicting tenants is a HUGE headache!

Yeah, I thought the work history would be a bit of a problem.  I was looking at rentals in NV and AZ as well, and I'd probably end up going through a property management company.  Though, I'm sure evicting in those places is probably a headache too

.  I need to get back into the stock market, but the volatility is keeping me away from long-term investments.  I'll have to do a bit of research on mutual funds since I'm not very familiar with them.  Thanks for the advice, really appreciate it!

 

[crcballer55]

 

It would probably depend on whether you have a contract for a specified period of time with the state. Lenders look at risk, so a 3 month work history doesn't look too good. If they have some confirmation you will be there for at least a couple years, that would give them some more comfort. At this point though, It's probably better to stick with something lower maintenance and more liquid like stocks/mutual funds. Not to mention... assuming the rental is in CA, evicting tenants is a HUGE headache!

Yeah, I thought the work history would be a bit of a problem.  I was looking at rentals in NV and AZ as well, and I'd probably end up going through a property management company.  Though, I'm sure evicting in those places is probably a headache too

.  I need to get back into the stock market, but the volatility is keeping me away from long-term investments.  I'll have to do a bit of research on mutual funds since I'm not very familiar with them.  Thanks for the advice, really appreciate it!

If you're investing for the long term and only putting in money you can afford to lose (which you won't if you keep it in there), then you're safe. Anyone who rode out the '08 crash is up and those that invested at the bottom have more than doubled their money. Don't worry about the volatility. You will have that in EVERY market, including housing.

Mutual Funds invest very similarly to stocks, except they're well diversified by nature so if one company in the portfolio goes under, you'll barely even notice. However, with a rental, if your tenant doesn't pay, or you get a bad property manager, your entire investment will go down the drain.

On a side note though, you can invest in rental properties in your retirement account, but it can be a bit messy if you're just starting out because you can't co-mingle funds for repairs, etc.

 

[zapatohead408]

If I were to buy a home in 2015, would I be able to refinance in 2020. IDK if there's like a time limit or certain restrictions.

Reason I ask is because I don't want interest rates to go up too high and for the next 5 years my pay is only going up every 1,000 hours.

 

[lazyj10]

Refinancing is generally based on your homes value. With appreciation you generally can refi without issue just depends on rates at the time time and closing costs to help determine if its worth it.

 

[bravelude]

If I were to buy a home in 2015, would I be able to refinance in 2020. IDK if there's like a time limit or certain restrictions.

Reason I ask is because I don't want interest rates to go up too high and for the next 5 years my pay is only going up every 1,000 hours.

go google. and understand your options.

rates are on the move up, makes no sense to refi later. that is all dependant on the type of loan.

 

[crcballer55]

If I were to buy a home in 2015, would I be able to refinance in 2020. IDK if there's like a time limit or certain restrictions.

Reason I ask is because I don't want interest rates to go up too high and for the next 5 years my pay is only going up every 1,000 hours.

The only reason you would refinance is if rates were to go down. As long as you got a fixed rate, you're good for the duration of the loan. IMO, anyone who gets an ARM at this point is dumb. We're still near historic lows. If we're still anywhere near these rates in 5 years, there's something seriously wrong with the economy since we've already been here since '08.

 

[zapatohead408]

If I were to buy a home in 2015, would I be able to refinance in 2020. IDK if there's like a time limit or certain restrictions.


Reason I ask is because I don't want interest rates to go up too high and for the next 5 years my pay is only going up every 1,000 hours.

The only reason you would refinance is if rates were to go down. As long as you got a fixed rate, you're good for the duration of the loan. IMO, anyone who gets an ARM at this point is dumb. We're still near historic lows. If we're still anywhere near these rates in 5 years, there's something seriously wrong with the economy since we've already been here since '08.

in my area it definitely isn't low. Certain areas haven't dropped, at all. It's on an upswing. Finding something decent in San Jose for 500 is difficult.

 

[crcballer55]

 

 

If I were to buy a home in 2015, would I be able to refinance in 2020. IDK if there's like a time limit or certain restrictions.


Reason I ask is because I don't want interest rates to go up too high and for the next 5 years my pay is only going up every 1,000 hours.

The only reason you would refinance is if rates were to go down. As long as you got a fixed rate, you're good for the duration of the loan. IMO, anyone who gets an ARM at this point is dumb. We're still near historic lows. If we're still anywhere near these rates in 5 years, there's something seriously wrong with the economy since we've already been here since '08.

in my area it definitely isn't low. Certain areas haven't dropped, at all. It's on an upswing. Finding something decent in San Jose for 500 is difficult.

Rates, not prices.

 

[zapatohead408]

 

 

If I were to buy a home in 2015, would I be able to refinance in 2020. IDK if there's like a time limit or certain restrictions.



Reason I ask is because I don't want interest rates to go up too high and for the next 5 years my pay is only going up every 1,000 hours.

The only reason you would refinance is if rates were to go down. As long as you got a fixed rate, you're good for the duration of the loan. IMO, anyone who gets an ARM at this point is dumb. We're still near historic lows. If we're still anywhere near these rates in 5 years, there's something seriously wrong with the economy since we've already been here since '08.

in my area it definitely isn't low. Certain areas haven't dropped, at all. It's on an upswing. Finding something decent in San Jose for 500 is difficult.

Rates, not prices.

I retract my statement.

 

[dam itz lou]

What's the best way to go about shopping around for a home loan ?

 

[crcballer55]

What's the best way to go about shopping around for a home loan ?

Depends on your area. Here, there are literally lenders everywhere, so you can ask a friend for a recommendation, and start interviewing people. Another option is Zillow. You should also decide if you want a direct lender (uses their own money), or a broker and whether you like the idea of them selling your loan to Fannie Mae/Freddie Mac (investors), or if you are more comfortable with them keeping the loan in house.

FYI... From personal experience, if a lender sells the loan to a large bank (Chase, BoA, Wells Fargo, etc.), I would be hesitant to work with them even if the rate is slightly lower. After working at an REO company for a large bank, you'll have to bend over backwards to get anything done if something goes sideways.

 

[utvol23]

Finally starting to think about getting a home. Trying to decide between getting a physician loan about 5% down and no pmi with slightly higher interest (would only get if it was fixed no way am i doing an arm) vs taking some more time to save up the 20% and get a coventional loan.

Looking at a home around $1,000,000. Have at least 6 months emergency fund but putting all extra money now towards student loans so no real down payment. So the decisoon is put about 10k a month for 20 months towards a down payment and less to student loans or get a low down payment physician loan in the very near future

 

[dam itz lou]

Depends on your area. Here, there are literally lenders everywhere, so you can ask a friend for a recommendation, and start interviewing people. Another option is Zillow. You should also decide if you want a direct lender (uses their own money), or a broker and whether you like the idea of them selling your loan to Fannie Mae/Freddie Mac (investors), or if you are more comfortable with them keeping the loan in house.

FYI... From personal experience, if a lender sells the loan to a large bank (Chase, BoA, Wells Fargo, etc.), I would be hesitant to work with them even if the rate is slightly lower. After working at an REO company for a large bank, you'll have to bend over backwards to get anything done if something goes sideways.

I honestly would rather deal with Chase since I bank with them but im all about saving money if im getting good value. I definitely don't want to deal with a bad company to save a few bucks.

I'm looking into buying a co-op in the Lindenwood area of Howarch beach in NYC. I really want a house but it's just too expensive right now and I don't want to be stressed about money. I'm tired of throwing away money on rent. I'm hoping to start looking at the beginning of spring.