I'm ready to buy my first house - advice appreciated

[GoodOdor]

Okay, so here's the situation:

Live in the bay area
Gross income is 55k
50k available for a down payment
Debt - 7k student loan, leasing a car with around 5k payments left(total value is 15k, not sure how it's calculated into the debt to asset ratio)

Basically, how do I get started on the process? my parents hooked me up with their real estate agent, she wants me to be looking at condos around the 250k range.
What's my next step? should I be approaching banks for pre-approval, or should I have an idea of what I want first? tbh the area doesn't matter much, it will most likely be
shitty anyway.

Any home owners advice is appreciated!(special thanks to CC who already offered some great advice)

[CuckingFunt]

Pre-approval should always be the first step. It tells both listing agents and your agents that you're worth the time they'll be spending on the deal, and it makes your offer stand out over those that just have pre-qualification letters.

[GoodOdor]

Pre-approval should always be the first step. It tells both listing agents and your agents that you're worth the time they'll be spending on the deal, and it makes your offer stand out over those that just have pre-qualification letters.

Any idea how much I should be asking for? for example, if I get preapproved for 250k, they will let me take only 200k of that, right?

[CuckingFunt]

Any idea how much I should be asking for? for example, if I get preapproved for 250k, they will let me take only 200k of that, right?

That's something I'd talk over with your loan agent. Or maybe one of the financing people around here would have good advice for that. You certainly don't want to be looking at houses that are right at your approved amount, though. Even if the bank would give it to you, you're going to need wiggle room for all the extra fees and inspection costs and all of that.

One other thing that's important is to select good people to work with. If you can get recommendations from people you trust for loan and real estate agents they've had good experience with, start there. Too many people get fucked because they go with the first people they find.

[DPG21920]

Okay, so here's the situation:

Live in the bay area
Gross income is 55k
50k available for a down payment
Debt - 7k student loan, leasing a car with around 5k payments left(total value is 15k, not sure how it's calculated into the debt to asset ratio)

Basically, how do I get started on the process? my parents hooked me up with their real estate agent, she wants me to be looking at condos around the 250k range.
What's my next step? should I be approaching banks for pre-approval, or should I have an idea of what I want first? tbh the area doesn't matter much, it will most likely be
shitty anyway.

Any home owners advice is appreciated!(special thanks to CC who already offered some great advice)

Your agent is giving you terrible advice IMO. You are absolutely looking at too much home/condo based on the amount of money you make. Even with your 50K down, you need to figure out what is right for you and your mortgage shouldn't be more than 30-40% of you monthly income.

[GoodOdor]

That's something I'd talk over with your loan agent. Or maybe one of the financing people around here would have good advice for that. You certainly don't want to be looking at houses that are right at your approved amount, though. Even if the bank would give it to you, you're going to need wiggle room for all the extra fees and inspection costs and all of that.

One other thing that's important is to select good people to work with. If you can get recommendations from people you trust for loan and real estate agents they've had good experience with, start there. Too many people get fucked because they go with the first people they find.

Thanks for the info:toast

I think I have a good real estate agent, she was the one who helped my parents get their house, so I'm okay with her.

When you say "loan agent", do you just means the banks? do I just approach as many banks/credit unions as possible and see what rates/offers they give me?

[Trainwreck2100]

get preapproved then look at foreclosures

[DPG21920]

I'd say 50% of your income is top end I would go. Do you have savings after the 50k down payment? If not, I would strongly consider putting down only what you need (up to 20%) and buy something that leaves you with 20K of that 50K left over for savings (unless you already have 6 months of bills in your savings after all of this).

[GoodOdor]

Your agent is giving you terrible advice IMO. You are absolutely looking at too much home/condo based on the amount of money you make. Even with your 50K down, you need to figure out what is right for you and your mortgage shouldn't be more than 30-40% of you monthly income.

Yeah, I was a little uncomfortable when she said 250k, I wasn't considering higher than 150k at that point...

That being said, if the rule of thumb is $500 monthly payment per each 100k you borrow(assuming a good rate of course, which I should get with good credit) - even taking out 200k would be about 1k monthly, which I would be okay with since I woulden't have to pay the PMI if I put 20% down.

[GoodOdor]

I'd say 50% of your income is top end I would go. Do you have savings after the 50k down payment? If not, I would strongly consider putting down only what you need (up to 20%) and buy something that leaves you with 20K of that 50K left over for savings (unless you already have 6 months of bills in your savings after all of this).

Technically I have 49500 right now:lol, but once I factor the year end bonus+retro+bi weekly pay I will get on the 28th, I will be at around 52k.

So yeah, not much else other than those 50k - and you're right that I would definitely not want to put all that down since I would want some money for renovations/furniture/unexpected spending etc.

[GoodOdor]

get preapproved then look at foreclosures

Are foreclosures really good value when buying houses?

[DPG21920]

Trust me - PMI, while not great, only makes up about $175-$200 a month in a 250K home (depending on your interest rate + down payment to figure out your mortgage payment).

I would strongly advise against looking at homes that expensive. You don't have a lot of debt which is great, but with your annual salary (which I am not knocking at all - just trying to give you context/advice) I would not feel comfortable looking at anything over 175K. Then if you put down that 50K, you should have plenty of equity, a very manageable mortgage payment and be comfortable.

What you can get approved for and what you can afford are very different things. If you can keep your mortgage (in it's entirety meaning PITI) in that 30%-40% range of your monthly salary, you will be doing the right thing. Anything above it, while you can make it work, is not wise IMO. Especially if you don't have a healthy amount of savings after the down payment is gone.

There are plenty of other factors that go into it, but at 250K, even with no PMI and 20% down, you are looking at a monthly bill of probably $1400-1600 depending on the property taxes in your area (just an educated guess). Depending on your income tax, you are probably taking home between 2600 & 3000 a month. A 1400 mortgage payment would represent roughly 45-47% of your monthly income.

[pgardn]

55K gross in the Bay Area? 250k house...

I hope your salary goes up. Too steep imo.
You will be spending most of your money on a mortgage and will become a slave to your home.
Lotta people already got screwed on this kind of thing not that long ago. Godspeed...

[GoodOdor]

Trust me - PMI, while not great, only makes up about $175-$200 a month in a 250K home (depending on your interest rate + down payment to figure out your mortgage payment).

I would strongly advise against looking at homes that expensive. You don't have a lot of debt which is great, but with your annual salary (which I am not knocking at all - just trying to give you context/advice) I would not feel comfortable looking at anything over 175K. Then if you put down that 50K, you should have plenty of equity, a very manageable mortgage payment and be comfortable.

What you can get approved for and what you can afford are very different things. If you can keep your mortgage (in it's entirety meaning PITI) in that 30%-40% range of your monthly salary, you will be doing the right thing. Anything above it, while you can make it work, is not wise IMO. Especially if you don't have a healthy amount of savings after the down payment is gone.

There are plenty of other factors that go into it, but at 250K, even with no PMI and 20% down, you are looking at a monthly bill of probably $1400-1600 depending on the property taxes in your area (just an educated guess). Depending on your income tax, you are probably taking home between 2600 & 3000 a month. A 1400 mortgage payment would represent roughly 45-47% of your monthly income.

This is some great advice, thanks.

Didn't realize the monthly payment would be so high with a 200k loan.....will definitely do some more due diligence when I go to get the actual rates/monthly payments from the lenders.

[DJR210]

1. Get pre-approved
2. Search for homes that fit price range
3. Bid on the home / sign a contract
4. Start closing process

Make sure to pay for the active option so you can back out of the contract w/o liability if worst case you find something in the inspection that breaks the deal..and WHATEVER you do. STAY THE FUCK AWAY from buying ANY homes on short sales. If the MLS mentions short sale, you run the other way. I work with short sales for a large mortgage company, and I will tell you first hand they are a fucking nightmare for everyone involved.


Are foreclosures really good value when buying houses?

They can be if you have cash to get them at auction. If the foreclosure doesn't sell at auction and becomes an REO, most of the time you're gonna be paying fair market value just like any other home.


Pre-approval should always be the first step. It tells both listing agents and your agents that you're worth the time they'll be spending on the deal, and it makes your offer stand out over those that just have pre-qualification letters.

This. A lot of sellers won't even talk to you unless you have a pre-qual or bank statements showing your available balance to cover the purchase.

[GoodOdor]

1. Get pre-approved
2. Search for homes that fit price range
3. Bid on the home / sign a contract
4. Start closing process

Make sure to pay for the active option so you can back out of the contract w/o liability if worst case you find something in the inspection that breaks the deal.



They can be if you have cash to get them at auction. If the foreclosure doesn't sell at auction and becomes an REO, most of the time you're gonna be paying fair market value just like any other home.

What do I need for the preapproval process? just show up to a bank/credit union with W-2 and bank statements of my assets etc?

Also, how does the active option work? do I get the money back if something comes up?

[DJR210]

What do I need for the preapproval process? just show up to a bank/credit union with W-2 and bank statements of my assets etc?

Also, how does the active option work? do I get the money back if something comes up?

(I edited in a little more info to the OP)

Just go in and speak with a mortgage loan officer. Depending on the loan you select, the qualifications and requirements may differ. I'm currently in process of buying a home now (actually waiting to hear if our offer was accepted in the morning) and we had to provide the usuals.. paystubs, bank statements. We also had to justify any credit inquiries, have reserves in the bank at the required amount, etc.. Banks processes vary I'm sure.

As for the active option (you will see homes on the MLS listed as AO or active option) it allows you as the buyer to back out of the deal for any reason w/o being in violation of the contract. For example, you pay "x" amount of money per day for the option, then you will pay for the cost of the inspection. If the inspection finds, let's say.. foundation damages, you back out of the deal and all you're out would be the per day fee for the AO, and the cost of the inspection.

[GoodOdor]

(I edited in a little more info to the OP)

Just go in and speak with a mortgage loan officer. Depending on the loan you select, the qualifications and requirements may differ. I'm currently in process of buying a home now (actually waiting to hear if our offer was accepted in the morning) and we had to provide the usuals.. paystubs, bank statements. We also had to justify any credit inquiries, have reserves in the bank at the required amount, etc.. Banks processes vary I'm sure.

Got it, thanks.

[TDMVPDPOY]

50k gross income

250k house, thats about 5:1 debt ratio, i think u can handle it,.....or just rent it out or get married for another income helper...

why u looking at condos anyway....

[DJR210]

250k in California's market will get you a fucking shack tbh.

[Rogue]

I think that if you can afford a down payment as high as 50k you ought to pay off your student loan first, knowing that the money you pay back will end up in the hands of a parsimonious student who urgently needs it to complete his/her education and to make the first step to fulfilling his/her American dream.

[RD2191]

unless you plan on having a big fam just buy an airstream and save yourself a lifetime of being house poor and every other hassle that comes with owning a house. or build using cash like me, don't fall into a loan that you will never play off

[Trainwreck2100]

also if you're going the condo route check on how many rentors live in your complex cause they fuck up shit since it ain't theirs

[CuckingFunt]

250k in California's market will get you a fucking shack tbh.

Not all of California is San Francisco.

[Rogue]

I'd say 50% of your income is top end I would go. Do you have savings after the 50k down payment? If not, I would strongly consider putting down only what you need (up to 20%) and buy something that leaves you with 20K of that 50K left over for savings (unless you already have 6 months of bills in your savings after all of this).
if 50% is the top you would go, then for average people that figure should be 70%-80% imho (based upon the height ratio of you to them), which would turn out to be a financial catastrophe for them. And the maintenance fee of a house is nothing comparable to that of an apartment or whatever the OP currently lives in.

[DJR210]

Not all of California is San Francisco.

I view appraisals from all over California. It's ridiculously pricey all over.

[Biernutz]

Do you have good credit? The higher your credit rating the lower your interest rate will be on the home.
They don't want to loan money to a deadbeat.
Its important you pay your bills and on time..................

[FkLA]

lol 55k

[AaronY]

lol 55k

thats telling him

[benefactor]

thats telling him
It was a predictable response from him. I knew it was coming as soon as I saw what GoodOdor posted his income was. I'm surprised I had to scroll down as far as I did before reading it.

[pgardn]

lol 55k

lol...

Seriously?

[benefactor]

He's obsessed with peoples incomes/employment and what type of degree they got. Insecure, tbh.

[redzero's Baby Momma]

lol...

Seriously?

don't mind him....he's still at San Antonio High School getting a high school dimploma in engineering. The poor guy is still reading articles online about how engineers make 100k a year straight out of college. Once he graduates and goes unemployed for awhile, realizing nobody in their right mind will hire him for anything over 32k from that shit-stain of a college, reality will finally hit him

[redzero's Baby Momma]

:lol but seriously, if I was any halfway decent engineering firm (even if I was toward the bottom) and I saw UTS:lol on the resume, I'd immediately crumple it up and wipe my ass with it tbh.

:lol UTSA grad getting anything remotely serious in this economy

[TDMVPDPOY]

:lol but seriously, if I was any halfway decent engineering firm (even if I was toward the bottom) and I saw UTS:lol on the resume, I'd immediately crumple it up and wipe my ass with it tbh.

:lol UTSA grad getting anything remotely serious in this economy
nobody gets 100k straight out of college, you must be at leasts HD honors or someehit to that sort of shit, actually u dont need to go apply for jobs, they be knocking on your door offering a job...

[Rogue]

Agree, even DMC worked at random shitty jobs back in the day. A college degree doesn't guarantee shit but your efforts will finally pay off one day or another imho.

[GoodOdor]

lol 55k

How's the telemarketing business, tbh?

[GoodOdor]

Do you have good credit? The higher your credit rating the lower your interest rate will be on the home.
They don't want to loan money to a deadbeat.
Its important you pay your bills and on time..................

Credit is good, 757 last time I checked, but I just opened a new credit card so that might have cost me 5 or so points.

[GoodOdor]

250k in California's market will get you a fucking shack tbh.

So, I been browsing listings within an hour drive from the city.....you weren't kidding:lol

Even ghetto places like Oakland are pricey as hell......still, I'm not looking to be picky about my first home so just gotta accept the fact it's most likely gonna be a shithole.

[Fabbs]

Can you have mouse, Chumpmvp and Kori over for cocktails once you land your pad?

[Fabbs]

Credit is good, 757 last time I checked, but I just opened a new credit card so that might have cost me 5 or so points.
You sound like you wanna close this house deal soon?
I know a credit guy that will shoot you into the 800s much easier then you'd expect.

[AntiChrist]

55k in the Bay area?

My advice: Oakland


Or, move where you get more bang for your buck, e.g. Texas.

[pgardn]

55k in the Bay area?

My advice: Oakland


Or, move where you get more bang for your buck, e.g. Texas.

Seriously true.
A salary like that in San Antonio could go a long way.
The problem would be moving that salary to affordable relatively nice places.

[TheSanityAnnex]

55k in the Bay area?

My advice: Oakland


Or, move where you get more bang for your buck, e.g. Texas.

:lol Oakland

wDQQPr6tRJg

[FkLA]

He's obsessed with peoples incomes/employment and what type of degree they got. Insecure, tbh.

lol scarred

For someone that tries really hard to not respond to me you sure do love to comment about FkLA. :lol


:lol but seriously, if I was any halfway decent engineering firm (even if I was toward the bottom) and I saw UTS:lol on the resume, I'd immediately crumple it up and wipe my ass with i

Well good thing you ain't shit, huh?

[pawe]

Credit is good, 757 last time I checked, but I just opened a new credit card so that might have cost me 5 or so points.

Just for reference, I have a 771 credit with 0 debt and got a 4.22% 30 yr conventional with 5% down just recently.

Also, the Dodd Frank something bullshit changed the guidelines this year on qualifying for a home loan. They increased debt to income ratio and other things to make it a little harder to get a loan.

[Wild Cobra]

$55k in the bay area?

Good luck...

Car lease? Ouch...

[Wild Cobra]

Not all of California is San Francisco.

But what do the commuting costs become?

[GoodOdor]

Just for reference, I have a 771 credit with 0 debt and got a 4.22% 30 yr conventional with 5% down just recently.

Also, the Dodd Frank something bullshit changed the guidelines this year on qualifying for a home loan. They increased debt to income ratio and other things to make it a little harder to get a loan.

Damn, looks like we missed the boat on the all time low rates:depressed

Since you put 5% down, how much is your PMI? I'm thinking it's almost worth paying that every month just to have some cash reserve available for any emergencies.

[DarrinS]

Live below your means and you'll make life easier on yourself.


I have a couple of rules-of-thumb:

1. Your house shouldn't be more than twice your annual income.
2. Your car shouldn't be more than 10% of your annual income.


People will laugh at (2), but cars are not an investment (unless you are fixing up a classic car, etc.)

[GoodOdor]

Live below your means and you'll make life easier on yourself.


I have a couple of rules-of-thumb:

1. Your house shouldn't be more than twice your annual income.
2. Your car shouldn't be more than 10% of your annual income.


People will laugh at (2), but cars are not an investment (unless you are fixing up a classic car, etc.)

Can't say I disagree, I generally live very well within my means, which is a big reason I was able to save up the down payment.

Still, rule 1 is impossible for where I live.....unless I don't mind living in a house built in the 1800 in a ghetto area in Oakland........

[Spanklin]

Don't buy or rent? Move to that uberlib boutons_deux's neighborhood where they let you squat for a few years until you can reach a buyout agreement where the owner pays you to leave and moves your shit to your next squattin' spot.

[GoodOdor]

Don't buy or rent? Move to that uberlib boutons_deux's neighborhood where they let you squat for a few years until you can reach a buyout agreement where the owner pays you to leave and moves your shit to your next squattin' spot.

Keep your hard on for boutons in the politics forum, faggot.

[DarrinS]

Can't say I disagree, I generally live very well within my means, which is a big reason I was able to save up the down payment.

Still, rule 1 is impossible for where I live.....unless I don't mind living in a house built in the 1800 in a ghetto area in Oakland........


Maybe you can rent out a room to a friend?

[Spanklin]

In all seriousness, with interest rates this low I recommend leveraging up as high as you qualify while still having enough down payment to avoid the costly PMI. Buy through a credit union if possible. That's what I did for 3.125% on 30 years and closing fees were about $2k. Market rates were closer to 3.5% and $5k at that time.

Also, never ever buy down the rate. In fact, it's much better to give an 1/8th % in exchange for $1000 or so in lower closing fees. The breakeven period on the cost of that 1/8th % is something like a dozen plus years without even calculating in the cost of capital.

In my state, RE agents take 6% combined between the buyer and the seller. Another benefit of using a credit union is some of them will act as an agent but only take the standard 20% (of 3%) broker fee while giving you the remaining 2.4% as a discount on the house. We're talking $6000 on a $250K house.

[GoodOdor]

Maybe you can rent out a room to a friend?

If I get a 2 bedroom house/condo I'm definitely not opposed to that - but I would prefer not to count on that unless I have to - everyone I know have some horror

stories about roommates that cost them 10's of thousands......

[Wild Cobra]

If you can buy, then all the power too you. The payments will be high, but as time goes on, they will remain the same as your income increases. A few years of living would may be worth it.

I just have a hard time imagining $55k annual, buying a house in that area.

[Wild Cobra]

A car lease. Is it your first? I hear horror stories where they rack up mileage, damages, etc. on a car when you go to return it. Hope that's not applicable to your case.

Will the insurance premiums be included in your lease?

Annual taxes, building codes, city costs for street improvement...

Condominium? What are their monthly fees?

Student loan rates vs. APR on the house. Might be best to pay it off with some of that money first.

[DJR210]

So, I been browsing listings within an hour drive from the city.....you weren't kidding:lol

Even ghetto places like Oakland are pricey as hell......still, I'm not looking to be picky about my first home so just gotta accept the fact it's most likely gonna be a shithole.

I'm telling you.


Or, move where you get more bang for your buck, e.g. Texas.

This is easier said than done, but he's right. The cost of a typical single family detached in California would net you a god damn palace in San Antonio. I have family that sold their homes in California, and turned around and had money for a new home, the land, and considerable cushion left over here in Texas.


Just for reference, I have a 771 credit with 0 debt and got a 4.22% 30 yr conventional with 5% down just recently.

Also, the Dodd Frank something bullshit changed the guidelines this year on qualifying for a home loan. They increased debt to income ratio and other things to make it a little harder to get a loan.

Nice! Fucking rates are creeping back up, lowest I was offered was 4.875 on a 30, same 5% down.

[FkLA]

55k aint shit in SF tbh

lol 55k

[Wild Cobra]

55k aint shit in SF tbh

lol 55k
Isn't that close to minimum wage over there?

[GoodOdor]

55k aint shit in SF tbh

lol 55k

I can't believe a be@ner going to UTSA making minimum wage working as a telemarketer is giving me shit for making 55k:lol

[leemajors]

He can save and make car payments, sounds fine to me tbh

[GoodOdor]

A car lease. Is it your first? I hear horror stories where they rack up mileage, damages, etc. on a car when you go to return it. Hope that's not applicable to your case.

Will the insurance premiums be included in your lease?

Annual taxes, building codes, city costs for street improvement...

Condominium? What are their monthly fees?

Student loan rates vs. APR on the house. Might be best to pay it off with some of that money first.

Yeah, the car lease was definitely a mistake - still, even including the insurance it totals 400 a month, so not too bad overall, especially since I have little other debts.

The HOA fees would suck since they are around 200-300 from the properties I've seen.

[FkLA]

I can't believe a be@ner going to UTSA making minimum wage working as a telemarketer is giving me shit for making 55k:lol

Dude, dont be mad cause you dont make shit. Not my fault. :lol

The funny thing is when you factor in cost of living for both cities you probably are making close to what a telemarketer in SA would. :lmao

[GoodOdor]

Dude, dont be mad cause you dont make shit. Not my fault. :lol

The funny thing is when you factor in cost of living for both cities you probably are making close to what a telemarketer in SA would. :lmao

But then I would have to live where all the be@ners are:lol

[RD2191]

I can't believe a be@ner going to UTSA making minimum wage working as a telemarketer is giving me shit for making 55k:lol
what does ****** have anything to do with it? why are you such a faggot that you have to bring race into it? I know "beaners' who make 55k in a month. slow your roll homie

[Bito Corleone]

If you want a jump start on the pre-approval you can look yourself at what you can afford. Dodd Frank set the ceiling on DTI for mortgage qualifications at 43%. So at $55k/yr, you'll be qualified on an amount that would keep you monthly debt obligation under ~$1950/mo. Use that as your starting point, and take off your current debts to see how far you can stretch yourself - though make sure to leave some buffer.

Try avoid places with an HOA if possible. They are far more costly than warranted. Also be sure to take taxes and HOI into consideration, in most cases they are going be roughly 40% of what your mortgage payment will be. If you want to avoid PMI, look into getting a 2nd lien. If your credit score is in the mid 700s you won't have any problem getting approved for one, and the rates in some shops are as low as 5.00%, and most will go up to a 95% CLTV.

[ColinB]

The 43% rule that went into affect last month won't matter much for a good majority of home buyers.

Obviously, on a conventional loan, you are looking at a lower DTI compared to say an FHA. But I ran a conventional loan today on a borrower with a DTI a little under 46%. FHA is typically up to 57%.

Not sure what your credit history is like, but if the student loan and the lease are your only lines of credit, I suggest maybe opening up a credit card.

[GoodOdor]

what does ****** have anything to do with it? why are you such a faggot that you have to bring race into it? I know "beaners' who make 55k in a month. slow your roll homie

Calm down scrah, I'm sorry I insulted your tribe member:lol

[GoodOdor]

The 43% rule that went into affect last month won't matter much for a good majority of home buyers.

Obviously, on a conventional loan, you are looking at a lower DTI compared to say an FHA. But I ran a conventional loan today on a borrower with a DTI a little under 46%. FHA is typically up to 57%.

Not sure what your credit history is like, but if the student loan and the lease are your only lines of credit, I suggest maybe opening up a credit card.


I've opened 3 new credit cards in the past 6 months, which is why my credit took a slight hit - but once the age of accounts goes up a bit it should improve again.

[RD2191]

Calm down scrah, I'm sorry I insulted your tribe member:lol
:lolits all good, just thought it was a low blow. hope your house hunting goes well

[GoodOdor]

:lolits all good, just thought it was a low blow. hope your house hunting goes well

Just getting started, thanks though:lol

[ColinB]

I've opened 3 new credit cards in the past 6 months, which is why my credit took a slight hit - but once the age of accounts goes up a bit it should improve again.

Nice. Obvious advice, but now just make sure to keep your balances 10 to 30 percent of your limits. I've seen credit scores drop 50-70 points because people max out a card or two.

[GoodOdor]

Nice. Obvious advice, but now just make sure to keep your balances 10 to 30 percent of your limits. I've seen credit scores drop 50-70 points because people max out a card or two.

Hell, I hardly have any balances - I pay off everything in full at the end of every month.

[ColinB]

Yeah, that's the right way to use a credit card. Sadly, a lot of people don't understand that. :lol

[lil'mo]

I just buy whatever house I want and don't worry about the price.

[lil'mo]

lol loans and debt

[GoodOdor]

I just buy whatever house I want and don't worry about the price.

:lol:lol:lol

[Drachen]

This is some great advice, thanks.

Didn't realize the monthly payment would be so high with a 200k loan.....will definitely do some more due diligence when I go to get the actual rates/monthly payments from the lenders.

Just to give you a real world example my loan on my house was originally for 131k and my payment is 1128 with a 4.3 percent rate

[FkLA]

But then I would have to live where all the be@ners are:lol

Yeah, as if living with all fags of all races is any better. :lol

[The Reckoning]

welcome to the real world fkla. news flash: people in their 20s make less than six figures but live within their own means because they don't have to worry about kids.

[GoodOdor]

welcome to the real world fkla. news flash: people in their 20s make less than six figures but live within their own means because they don't have to worry about kids.

You fool, once he graduates from UTSA with his degree in engineering and telemarketing experience, firms will be lining up to offer him a 6 figure salary!!!!

[GoodOdor]

Just to give you a real world example my loan on my house was originally for 131k and my payment is 1128 with a 4.3 percent rate

Man, that is brutal......the price of my supposed place just keeps getting lower:lol

[TDMVPDPOY]

Man, that is brutal......the price of my supposed place just keeps getting lower:lol

either buy it and cant keep up with mortgage payments, rent it out

use that as capital to go buy another place....

[GoodOdor]

either buy it and cant keep up with mortgage payments, rent it out

use that as capital to go buy another place....

I need a swanky place to bring bitches to! bitches love houses!

[TDMVPDPOY]

I need a swanky place to bring bitches to! bitches love houses!

if that place is decreasing in value, might as well throw in a offer 10-20% below sales price

[FkLA]

:lol Who said you need 6 figures to live good? 55k would actually be fine for a young nigga in Texas but in Cali its's just sad for a college graduate who racked up nearly 10k in debt from student loans.

[TDMVPDPOY]

:lol Who said you need 6 figures to live good? 55k would actually be fine for a young nigga in Texas but in Cali its's just sad for a college graduate who racked up nearly 10k in debt from student loans.

live within ur means, and u can look like ur living it up

[GoodOdor]

:lol Who said you need 6 figures to live good? 55k would actually be fine for a young nigga in Texas but in Cali its's just sad for a college graduate who racked up nearly 10k in debt from student loans.

Holy shit, you think 10k in loans is a lot?:lol I know you come from a poor be@ner family, so you probably got some finincial aid, but most people who

go to a decent college(any UC in california, really) have to take quite a bit more than 10k. Luckily, my parents paid for most of my schooling:hat

[FkLA]

Why you making up shit to make yourself feel better? I never said 10k is alot. Never said you need a 6 figure salary.

55k ain't much in the Gay Area and you know that. Going through college and racking up any up any sort of debt for that would be pretty depressing for me. Must be some kind of B.A. tbh.

[GoodOdor]

Why you making up shit to make yourself feel better? I never said 10k is alot. Never said you need a 6 figure salary.

55k ain't much in the Gay Area and you know that. Going through college and racking up any up any sort of debt for that would be pretty depressing for me. Must be some kind of B.A. tbh.

If only I was smart enough to get accepted into UTSA, my future would be so much better:cry:cry:cry:cry:cry:cry

[FkLA]

A real degree from any school, including UTSA, would've helped tbh.

[Rogue]

UTSA doesn't even rank as high as the local 3rd world university I go to, tbh.

[TDMVPDPOY]

UTSA doesn't even rank as high as the local 3rd world university I go to, tbh.

most unis today are just churning out alot useless degrees to the highest bidders, they dont care the standard what they are providing as long there is buyers, they will continue sell degrees

[Two10Whitey]

what does ****** have anything to do with it? why are you such a faggot that you have to bring race into it? I know "beaners' who make 55k in a month. slow your roll homie

[GoodOdor]

Got my pre-approval letter - for 260k, which sounds about right.

There are some condos around from 200-250k, the only problem HOA dues are 200-300 a month which kinda sucks.

[pawe]

Why condos?

[DisAsTerBot]

hoa itself sucks

[DPG21920]

So basically not taking anyone's advice :lol

[DPG21920]

Jail sounds awesome.

[CosmicCowboy]

You need to stick with your original 150K budget. With taxes and insurance that is gonna hit you right in the 28% of gross income sweet spot that is generally considered to be the most you want to spend on housing.

[GoodOdor]

So basically not taking anyone's advice :lol

I totally am:lol, I don't think I'm gonna take more than 150k. However, the sad reality is that prices around here are crazy - even

500 sqf condos in shitty area are around 200k......if it comes down to it, I'm willing to pay a little higher monthly payment, still better than rent, tbh....

[GoodOdor]

You need to stick with your original 150K budget. With taxes and insurance that is gonna hit you right in the 28% of gross income sweet spot that is generally considered to be the most you want to spend on housing.

What's your opinion on putting 10% down instead of 20%? If PMI is only 100 a month, I think it's worth having a little emergency fund....putting 20% down on a 200k condo

Will basically wipe me out, and that's not even counting in the closing costs/etc.

[DPG21920]

Absolutely only put down 10% (especially with interest rates low) and keep the liquid money. There are many reasons for this (both financially speaking (you can likely earn more money investing that money) & logically speaking (you can never have enough savings) ).

[DPG21920]

Then as you get more $, you can make extra payments (only when it's comfortable) and get the same result. Keep in mind, if you pay extra, you will save yourself interest too and if you don't plan on living there forever, the interest becomes less of a concern.

[CosmicCowboy]

What's your opinion on putting 10% down instead of 20%? If PMI is only 100 a month, I think it's worth having a little emergency fund....putting 20% down on a 200k condo

Will basically wipe me out, and that's not even counting in the closing costs/etc.

If you are a first time home buyer I'd do a FHA 3.5% down at less than 4%. pay the PMI at closing in cash and keep the $36,000 remaining as safety net and investment money.

Hell, take advantage of these historic low interest rates. I'd be willing to bet you will never see them this low again in your lifetime. You will look like a genius in 20 years when everyone is paying 10%+ on their new mortgages.

Also remember starting out, virtually all of your house payment will be tax deductible so it's really like getting 15% cash back every year on your house payments.

If you only make 5% return on the $36,000 you have left you will have $59,000 in 10 years and your 200K house should have appreciated at 2% a year conservatively and then be worth about $240,000 and you will have about $65,000 of equity in it.

[DJR210]

If you are a first time home buyer I'd do a FHA 3.5% down at less than 4%. pay the PMI at closing in cash and keep the $36,000 remaining as safety net and investment money.

Hell, take advantage of these historic low interest rates. I'd be willing to bet you will never see them this low again in your lifetime. You will look like a genius in 20 years when everyone is paying 10%+ on their new mortgages.

Also remember starting out, virtually all of your house payment will be tax deductible so it's really like getting 15% cash back every year on your house payments.

If you only make 5% return on the $36,000 you have left you will have $59,000 in 10 years and your 200K house should have appreciated at 2% a year conservatively and then be worth about $240,000 and you will have about $65,000 of equity in it.

Have you seen the rates lately? No longer historically low, they've gone up some. Still better than 08' and previous though. Lowest I've ever seen was 3.8 on a 30 / at least a 720 FICO.

[CosmicCowboy]

Then as you get more $, you can make extra payments (only when it's comfortable) and get the same result. Keep in mind, if you pay extra, you will save yourself interest too and if you don't plan on living there forever, the interest becomes less of a concern.

Paying down low interest student loans and mortgages is the last thing i would do with the money. I am very much the anti Dave Ramsey in this economic environment. Let that be your only debt and have at least a 12 month padding of cash and put it to work for you. If you can't beat the interest rate of the loans with returns on your investments you aren't trying.

[DPG21920]

Agreed - that's what I told him NOT to do. I said keep the money, only put down minimal down payment. I advised that if paying off the debt faster was important, he could do it on his own terms as he makes more money or feels comfortable. Not at the expense of his savings.

[CosmicCowboy]

Have you seen the rates lately? No longer historically low, they've gone up some. Still better than 08' and previous though. Lowest I've ever seen was 3.8 on a 30 / at least a 720 FICO.

a 30/3.8 is fine.

[DJR210]

a 30/3.8 is fine.

That's ridiculously low for a 30, that was a couple years back though.

[CosmicCowboy]

That's ridiculously low for a 30, that was a couple years back though.

I did a 30/3.5 for my daughter in 2013 in a neighborhood that is appreciating at 6% a year. FHA today is 30 / 4.1

Still not bad but the window is closing rapidly.

[DarrinS]

Got my pre-approval letter - for 260k, which sounds about right.

There are some condos around from 200-250k, the only problem HOA dues are 200-300 a month which kinda sucks.





I have a couple of rules-of-thumb:

1. Your house shouldn't be more than twice your annual income.

...




Well, you're going to violate my first rule. Oh well.

[CosmicCowboy]

That's ridiculously low for a 30, that was a couple years back though.

Hell, I did a half mil this last fall on commercial property at 30 /4.5 fixed with 20% down. That one I'm knocking down principal an additional 5K a month till I get to 50% equity just for economic cycle padding, plus keeping my banks butt cheeks loose in case I find another good deal.

[GoodOdor]

Okay, thanks for the advice guys - some great stuff to know.

Here's the situation though - when I applied with the mortgage broker, I mentioned I wanted to put 50k down - can I change my mind at any time, or did this figure influence
the pre-approval that I got?

Also, when she ran my credit, it was 737 - to get the best rates I needed 740. I paid off a few tiny balances on my credit cards so the score should go up next time it updates - I haven't actually gotten
any rates so that's what I'm waiting for. I think in a week I will also apply with another mortgage broker - because why not?

[GoodOdor]

Well, you're going to violate my first rule. Oh well.

There's no way I can get a place for 110k in the bay area, a wooden shack in someone's backyard would cost more:lol

[CosmicCowboy]

There's no way I can get a place for 110k in the bay area, a wooden shack in someone's backyard would cost more:lol

I don't know the market there. Are there any areas that are still near inner city rough but almost guaranteed to get gentrified in the next ten years as people like you move back to town and bring the neighborhoods back? almost every city has those areas. If you are willing to take a risk in an area like that there are big rewards to be made if you ride out the first and second wave. Sounds like you are single and could take the chance.

[GoodOdor]

I don't know the market there. Are there any areas that are still near inner city rough but almost guaranteed to get gentrified in the next ten years as people like you move back to town and bring the neighborhoods back? almost every city has those areas. If you are willing to take a risk in an area like that there are big rewards to be made if you ride out the first and second wave. Sounds like you are single and could take the chance.

Honestly, my plan was for the next 3-5 years, 10 seems a little long - I'm not even sure I wanna stay in the bay that long. That being said, as long as the house isn't too old, I don't care too much about the neighborhood.

My realtor is not coming back 2 weeks from now, that's when I'll start concentrating on what areas I can afford.

[leemajors]

I don't know the market there. Are there any areas that are still near inner city rough but almost guaranteed to get gentrified in the next ten years as people like you move back to town and bring the neighborhoods back? almost every city has those areas. If you are willing to take a risk in an area like that there are big rewards to be made if you ride out the first and second wave. Sounds like you are single and could take the chance.

I think that's exactly what is happening in Oakland.

[CosmicCowboy]

Honestly, my plan was for the next 3-5 years, 10 seems a little long - I'm not even sure I wanna stay in the bay that long. That being said, as long as the house isn't too old, I don't care too much about the neighborhood.

My realtor is not coming back 2 weeks from now, that's when I'll start concentrating on what areas I can afford.

If your window is really 3-5 years you just need to rent. You will never recover your closing costs in that time frame and you would be making the mistake of your lifetime if you put all your savings into a house you plan to try to move from in 5 years.

[GoodOdor]

If your window is really 3-5 years you just need to rent. You will never recover your closing costs in that time frame and you would be making the mistake of your lifetime if you put all your savings into a house you plan to try to move from in 5 years.

I was counting on the bubble to keep steady for at least a few years, tech companies are still hiring like crazy around here. I could always rent it instead of selling if I see that

I can't recover the costs though, no? then sell once I have enough equity in it to turn a little profit.

[resistanze]

If your window is really 3-5 years you just need to rent. You will never recover your closing costs in that time frame and you would be making the mistake of your lifetime if you put all your savings into a house you plan to try to move from in 5 years.

Have to agree with this.

[Leetonidas]

Move to Texas. 150K will get you a pretty nice middle class two-story house here in San Antonio in a decent area of town whereas that much will get you shit in California. :lol I'm glad my parents divorced when I was a kid so I wouldn't have to live in the shit hole known as Oakland :lol

[GoodOdor]

Just put in my offer! should hear back by tomorrow.

She was asking for 225000, I put in my offer at 217000, as long as she doesn't counter for more than 220000 I'm okay with it.

Not too thrilled with the HOA, but beggers can't be choosers - just gotta make sure I read the 200 pages carefully....:lol

[FkLA]

lol 55k

[GoodOdor]

lol 55k

lol telemarketer

[pawe]

55k is not too bad. It can qualify you for a 230k house. No shopping for the wife for the rest of her life though so that means his life will be miserable from now.
At least he has a house. lol

[Blake]

I was counting on the bubble to keep steady for at least a few years, tech companies are still hiring like crazy around here. I could always rent it instead of selling if I see that

I can't recover the costs though, no? then sell once I have enough equity in it to turn a little profit.

No, because that first three to five years you're pretty much paying interest up front with practically nothing towards the principal.

[GoodOdor]

No, because that first three to five years you're pretty much paying interest up front with practically nothing towards the principal.

At least that shit is tax deductible though - and I qualified for a program that gives me 15% back as a tax credit.

Still better than paying rent any way you look at it, no?

[tlongII]

Fixed rate loan.

[Blake]

At least that shit is tax deductible though - and I qualified for a program that gives me 15% back as a tax credit.

Still better than paying rent any way you look at it, no?

If you're only there 3-5 years, I don't think so, but that's my opinion.

[Spurs9]

You are trying to get a place for less than 250k in SF???...where
I would go out there every 3 months for work and it's ridiculously expensive. You also have income tax and other retarded taxes in SF. Try to live below your means and completely ignore the constant pull of so item to keep up with the jones. I don't understand the people in here trying to judge someone based on salary or job. After you pass a certain amount salary wise your life doesn't exponentially get that much better. People will get a 6 figure salary and then think they are making it and then end up with a house that pushes the budget to give off the image they made it or "buy" a new luxury car that makes them slaves to debt and paycheck to paycheck. I've worked my way up to 6 figure salary at 25 with no college degree but I live like I make 30k and keep a 10 year old car. If you make enough to live happily, save some and not be in mountains of debt who cares what these clowns think?