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Author Topic: First House  (Read 20626 times)

MU82

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Re: First House
« Reply #50 on: March 01, 2018, 11:28:21 AM »
Im not planning for a long term house. What is ARM?


Going for my first look today!

If you are quite sure you won't be in a house for more than 5-7 years, a 5-year or 7-year ARM definitely would lower your payments and let you buy more house. Absolutely consider it.

I say this and I am a pretty conservative financial person who wouldn't recommend ARMs for those who are likely to stay in a house longer.

You also should get familiar with mortgages early in the process. Shop for rates and fees - it's the total cost that matters. Make sure you know exactly what you will be paying for so you can do apples-to-apples comparisons. And if you find a mortgage broker/bank you want to do business with, get them to pre-approve you for a purchase of X amount of $$$. A note from them can help your bargaining power, especially if there are multiple parties interested in a house.

Let's say you and another couple want a house listed for $150k. You offer $140K and show the owners the letter from a mortgage company stating you already have been pre-approved to buy a $140K house; the other couple offers $143K but has absolutely no proof that they can afford it. If you're the owner, you probably take the "sure thing."
“It’s not how white men fight.” - Tucker Carlson

ZiggysFryBoy

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Re: First House
« Reply #51 on: March 01, 2018, 11:46:37 AM »
If you are quite sure you won't be in a house for more than 5-7 years, a 5-year or 7-year ARM definitely would lower your payments and let you buy more house. Absolutely consider it.

I say this and I am a pretty conservative financial person who wouldn't recommend ARMs for those who are likely to stay in a house longer.

You also should get familiar with mortgages early in the process. Shop for rates and fees - it's the total cost that matters. Make sure you know exactly what you will be paying for so you can do apples-to-apples comparisons. And if you find a mortgage broker/bank you want to do business with, get them to pre-approve you for a purchase of X amount of $$$. A note from them can help your bargaining power, especially if there are multiple parties interested in a house.

Let's say you and another couple want a house listed for $150k. You offer $140K and show the owners the letter from a mortgage company stating you already have been pre-approved to buy a $140K house; the other couple offers $143K but has absolutely no proof that they can afford it. If you're the owner, you probably take the "sure thing."

Does anyone still go out writing offers without a pre-approval from the bank?

ZiggysFryBoy

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Re: First House
« Reply #52 on: March 01, 2018, 11:47:47 AM »



AIG wuz in da trailer park mortgage biz? Who new, hey?

Warren B knows what he's doing.

And it's called a "manufactured home" now.  Show some respect for the lifestyle.

Lighthouse 84

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Re: First House
« Reply #53 on: March 01, 2018, 11:51:45 AM »
Does anyone still go out writing offers without a pre-approval from the bank?
No.  And while a pre-approval is a necessity, it's not always a guaranty that the buyer will ultimately be approved.
HILLTOP SENIOR SURVEY from 1984 Yearbook: 
Favorite Drinking Establishment:

1. The Avalanche.              7. Major Goolsby's.
2. The Gym.                      8. Park Avenue.
3. The Ardmore.                 9. Mugrack.
4. O'Donohues.                 10. Lighthouse.
5. O'Pagets.
6. Hagerty's.

Jay Bee

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Re: First House
« Reply #54 on: March 01, 2018, 11:58:15 AM »
Stick with scouting reports and other basketball related advice. 

As someone who has practiced real estate law in the Chicago area and closed hundreds of transactions each year for 30+ years, I can tell you that too many things can go wrong.  Your realtor can't (and shouldn't because it's the practice of law) solve most of the problems that may arise.   Do yourself a favor Unleash.  Find a good local real estate lawyer.

Unleash, don’t throw away hundreds for nothing. Find a decent real estate agent and roll.
Thanks for ruining summer, Canada.

Lighthouse 84

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Re: First House
« Reply #55 on: March 01, 2018, 12:30:12 PM »
Unleash, don’t throw away hundreds for nothing. Find a decent real estate agent and roll.
Any "decent" real estate agent would tell you to get a good real estate lawyer.
HILLTOP SENIOR SURVEY from 1984 Yearbook: 
Favorite Drinking Establishment:

1. The Avalanche.              7. Major Goolsby's.
2. The Gym.                      8. Park Avenue.
3. The Ardmore.                 9. Mugrack.
4. O'Donohues.                 10. Lighthouse.
5. O'Pagets.
6. Hagerty's.

ZiggysFryBoy

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Re: First House
« Reply #56 on: March 01, 2018, 03:11:39 PM »
Unleash, don’t throw away hundreds for nothing. Find a decent real estate agent and roll.


In BeeJay's defense, most of the attorneys he knows are the criminal defense ones.

BrewCity83

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Re: First House
« Reply #57 on: March 01, 2018, 04:54:34 PM »
I bought a duplex (in Milwaukee near Tosa) for my first house when I was in my mid-20s and it worked out great.  I put about 30% down, lived in one half with a roommate who paid me rent and split the utilities, and was able to pay off the whole thing within 6 years.  I lived there for about 6 years and then got married and bought a regular house about 6 blocks away (in Tosa)... I still have the duplex (over 25 years later) and it's netted me almost 15% over the years.
The shaka sign, sometimes known as "hang loose", is a gesture of friendly intent often associated with Hawaii and surf culture.

#UnleashSean

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Re: First House
« Reply #58 on: March 01, 2018, 08:21:33 PM »
I bought a duplex (in Milwaukee near Tosa) for my first house when I was in my mid-20s and it worked out great.  I put about 30% down, lived in one half with a roommate who paid me rent and split the utilities, and was able to pay off the whole thing within 6 years.  I lived there for about 6 years and then got married and bought a regular house about 6 blocks away (in Tosa)... I still have the duplex (over 25 years later) and it's netted me almost 15% over the years.

Hey hey, just got done with my first day of looking and low and behold I love a duplex I saw. Either rent the upper or make it into a 4 bed 2 bath single family, I'm up in the air about it.

Its funny how closely we match. I'm in my mid 20's, hoping to put 30k down and will be living with a roommate (girlfriend) who will split the mortgage payment as her rent.

Lighthouse 84

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Re: First House
« Reply #59 on: March 01, 2018, 08:31:49 PM »
Hey hey, just got done with my first day of looking and low and behold I love a duplex I saw. Either rent the upper or make it into a 4 bed 2 bath single family, I'm up in the air about it.

Its funny how closely we match. I'm in my mid 20's, hoping to put 30k down and will be living with a roommate (girlfriend) who will split the mortgage payment as her rent.
If you plan on making it a SFR, rather than keeping it a duplex, check zoning and also permit costs and whether the municipality has any issues with your plan.  More than likely they won't since you're decreasing density, but check into things beforehand, unless you will buy either way.
HILLTOP SENIOR SURVEY from 1984 Yearbook: 
Favorite Drinking Establishment:

1. The Avalanche.              7. Major Goolsby's.
2. The Gym.                      8. Park Avenue.
3. The Ardmore.                 9. Mugrack.
4. O'Donohues.                 10. Lighthouse.
5. O'Pagets.
6. Hagerty's.

Jay Bee

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Re: First House
« Reply #60 on: March 01, 2018, 09:21:37 PM »
Hey hey, just got done with my first day of looking and low and behold I love a duplex I saw. Either rent the upper or make it into a 4 bed 2 bath single family, I'm up in the air about it.

Its funny how closely we match. I'm in my mid 20's, hoping to put 30k down and will be living with a roommate (girlfriend) who will split the mortgage payment as her rent.

You’re doomed. Biggest issues for you have Nathan to do with attorneys and such.

Buy an affordable single fam home, have wifey contribute. Simple as that.
Thanks for ruining summer, Canada.

ZiggysFryBoy

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Re: First House
« Reply #61 on: March 01, 2018, 09:27:06 PM »
Hey hey, just got done with my first day of looking and low and behold I love a duplex I saw. Either rent the upper or make it into a 4 bed 2 bath single family, I'm up in the air about it.

Its funny how closely we match. I'm in my mid 20's, hoping to put 30k down and will be living with a roommate (girlfriend) who will split the mortgage payment as her rent.

girlfriend or you just planning on bangin' the roommate, I'm really a badger fan?


drewm88

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Re: First House
« Reply #62 on: March 01, 2018, 09:55:04 PM »
Unleash, don’t throw away hundreds for nothing. Find a decent real estate agent and roll.

You probably won't need an attorney. I'd still do it as insurance, as someone mentioned earlier.

Jay Bee

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Re: First House
« Reply #63 on: March 01, 2018, 10:35:51 PM »
You probably won't need an attorney. I'd still do it as insurance, as someone mentioned earlier.

This guy is doubling down on it, but I’d be curious what % we’d see if Scoopers Houses bought... and attorneys used

Just stupid and unusual advice
Thanks for ruining summer, Canada.

Dr. Blackheart

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Re: First House
« Reply #64 on: March 02, 2018, 12:46:37 AM »
Any "decent" real estate agent would tell you to get a good real estate lawyer.

No lawyers allowed in some states on real estate.

🏀

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Re: First House
« Reply #65 on: March 02, 2018, 05:48:12 AM »
Used an attorney, but didn't use a real estate agent. That's the way to go.


YoungMUFan4

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Re: First House
« Reply #66 on: March 02, 2018, 06:24:30 AM »
Bought a small single family house in Bay View about a year and a half ago.  No attorney.

Frenns Liquor Depot

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Re: First House
« Reply #67 on: March 02, 2018, 07:35:00 AM »
This guy is doubling down on it, but I’d be curious what % we’d see if Scoopers Houses bought... and attorneys used

Just stupid and unusual advice

No attorney in a state that didn’t require it and used one in a state that required it.  I noticed no difference in service since most of these contracts and loan docs are boilerplate anyway. 

Lighthouse 84

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Re: First House
« Reply #68 on: March 02, 2018, 07:48:21 AM »
No lawyers allowed in some states on real estate.
And in the Chicago area, it's standard. 

A lawyer is needed to draft documents for the seller to convey the property to the buyer.  Most non-attorneys don''t know what and how to do that.  There are a number of other things that have to get done (title and survey clearance issues, inspection issues, possession issues, etc.). For a buyer, while not a "required", there are contract issues, inspection title, survey, lender, possession and closing issues, etc.  A realtor can't handle those, at least not in Illinois, as those are the practice of law.  Regarding drafting documents, the realtor's role is limited to filling in blanks on a standardized contract form.  A realtor can't explain the ramifications of certain provisions in a contract.  A realtor can't explain legal consequences of the contract or other issues as they arise in the contract process.  A realtor can't get a buyer or seller out of a contract if something goes wrong.  Your lender can explain loan documents to you, but neither the lender or realtor can advise you how to best take title or clear up a survey or title issue that arises at closing.

For most people, buying a house is the single largest investment a person will make in their lifetime.   Hiring a real estate lawyer for your closing is cheap insurance to make sure issues are properly resolved and that you end up in the house you want without a lot of problems post-closing. 

Can you do it without a lawyer?  Of course.  But you could also pull out your own tooth rather than going to see 4ever or Rocket Surgeon. 
HILLTOP SENIOR SURVEY from 1984 Yearbook: 
Favorite Drinking Establishment:

1. The Avalanche.              7. Major Goolsby's.
2. The Gym.                      8. Park Avenue.
3. The Ardmore.                 9. Mugrack.
4. O'Donohues.                 10. Lighthouse.
5. O'Pagets.
6. Hagerty's.

BrewCity83

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Re: First House
« Reply #69 on: March 02, 2018, 08:17:20 AM »
Hey hey, just got done with my first day of looking and low and behold I love a duplex I saw. Either rent the upper or make it into a 4 bed 2 bath single family, I'm up in the air about it.

Its funny how closely we match. I'm in my mid 20's, hoping to put 30k down and will be living with a roommate (girlfriend) who will split the mortgage payment as her rent.

I'd recommend renting the upper out for a few years, collect rent money (it adds up FAST), see how it goes.  You can always convert it later if you decide to but you'll love the income stream.
The shaka sign, sometimes known as "hang loose", is a gesture of friendly intent often associated with Hawaii and surf culture.

Spotcheck Billy

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Re: First House
« Reply #70 on: March 02, 2018, 08:43:51 AM »
nm
« Last Edit: March 02, 2018, 09:08:12 PM by Waldo Jeffers »

Badgerhater

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Re: First House
« Reply #71 on: March 02, 2018, 08:48:39 AM »
I bought a duplex that was originally built as a single family -- it was converted in the 1950s -- and rented out the upper for 15 years.   I provided wifi, cable and heat and then was able to claim half of those costs as business expenses.  Half of every exterior improvement and select interior ones were also business expenses.   Find a competent accountant who can manage all of the tax issues for you.

At the time I sold it, the neighborhood housing market favored single-family homes and I spent $5K returning it to its single-family configuration which resulted in a $30K gain over selling it as a duplex.

When you sell a duplex that you lived in, you pay capital gains on half of the profit because the rental half was income producing.  If you move out and then rent out the other half, you have three years to sell the home before the entire home is considered income producing, resulting in paying capital gains on all of the profits from the sale.

It is important to understand your duplex exit strategy.

Badgerhater

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Re: First House
« Reply #72 on: March 02, 2018, 08:59:34 AM »
While some here used their rental income to pay off the property.  I refinanced into a very low rate and while I did put some cash against my mortgage principle, I invested most of it into a Roth IRA and now it has reached the point where dividends within that equal the annual rent I received -- so even though I no longer have the house, in a sense that investment is still paying off.

MU82

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Re: First House
« Reply #73 on: March 02, 2018, 10:29:52 AM »
On the attorney issue ...

Different areas have different norms.

When we lived in Minny, just about nobody used RE attorneys. I bought and sold 2 houses there without using one. Everything went smoothly on all 4 transactions.

In Chicago area, most use RE attorneys. I wanted to save the few hundred bucks, but I was a little concerned with the other party having one and us not having one. So I caved and got one.

Here in NC, it seems about 50/50; we did not use one.

About 20 states actually have laws mandating the physical presence of an attorney at real estate closings. Wisconsin is not one of them.

So my advice to Rowsey would be to do what he feels most comfortable about.
“It’s not how white men fight.” - Tucker Carlson

#UnleashSean

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Re: First House
« Reply #74 on: March 04, 2018, 09:07:24 AM »
Long day of open houses today. I'm currently 1/5 on houses I liked at all. Hopefully some more good ones to come.

 

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