[PETRA]

Originally Posted by el ess X

To go on a tangent a bit, the thing about the gubment and banks wanting to cut out brokers and alternative lenders makes me a bit ill. I did a research paper on this in college. You'd be surprised, but probably not, at what they're up to. The banks are behind it all, wanting a monopoly on lending but won't, or can't, do it by offering better goods/services. They want it to be legislated in their favor. Getting rid of a broker who basically gets paid by "kickbacks" of sorts, means the banks get a bit less to get the business. So if they can get rid of that middleman...

Also, the banks want to act as if it's in YOUR best interest to get rid of alternative financing, aka payday loans, stuff like that, but it's really not. The need for alternative financing is there because banks won't lend to those who use other means. And this cuts out YOUR freedom of choices as a consumer. Big banks suck. Plain and simple. Whichever you choose, make sure you know the terms of the agreement before you sign. As long as you know the score, you have control.

If you can get something done through your Credit Union or other means, do so. If you can avoid dealing with the bank initially, you'll likely be further ahead. I've used a lending broker both of the last two times and they've got me a better deal than my own friggin' bank would do. Sure, some major bank usually buys your contract later as you have no control over that, but they have to do it at existing terms. So ours ended up with Chase, but when I asked Chase to begin with, their rates sucked. Unless you got someone working on the inside at a bank to help you out in getting the best the bank has to offer, that'd be the last place I would go for a loan.

But it pays to shop around. FICO knows if you're grouping inquiries to mortgage companies. So don't worry too much about the FICO score hit you take if you research loan rates for a couple of weeks, it won't be much of one as they count it as one.

What you are failing to realize is that the "gubment and big banks" are not trying to eliminate LEGITIMATE brokers but rather the fly by night ones that "trick" a buyer into hidden fees so as to pad their own pocket, such as on points, higher rates than necessary, and bogus junk fees. The "gubment" (not big banks but rather government entities such as fannie mae and freddie mac and the like) are the rule makers and the big banks and little banks and credit unions etc all have to follow the rules.

Not more than 5 years ago it was not uncommon for someone who did not need a mortgage cuz - lets face it, they didn't have two pennies to rub together and no windows to throw them out of and they owed money to everyone and their brothers and wonderful 540 credit scores because then never pay anything on time if at all - were getting approved for loans cuz hey! everyone should be able to own a home. Now look what that mindset and lending practice has done to our housing market and economy. Not to mention the many masses that were gouged with 8-13% interest rates charged by those wonderful brokers and correspondent lenders......

I myself as a homeowner have a wonderful $45000 reduction of value in my home because of all the foreclosures in my surrounding area because of the prior lenient lending laws, so I have no comps to substantiate my real value. So I, as someone who can afford my mortgage and actually pays it instead of defaults on it, gets to suffer as a result....

Sorry; I will get off my soapbox. I just hate when someone defends what has contributed so much to the downward spiral of our economy.

[Decibel JJ]

I just bought a house .. What does it take?




Patience





And Beer

[getarz4u15ster]

If your a new home buyer, there are some things that work for you in terms of buying at least here in MD, No transfer tax in certain counties which is paid at closing.. and some other little closing items you can skip and make the seller pay...

The 20% down rule is all fine and dandy if you've got that kinda money, (i don't know your price range) but the average price for a single family here in Md (Baltimore, DC metro area w/ 2700sqft or over on 1/4 acre is gonna run you 450K at the low end and 700K at the upper end. That's out in the country where I'm at too. So 20% of that is 90K -140K ... if you got that kinda cash laying around that's great... however that kinda of money in my experience is made either on the sale of your existing home which is in turn equity applied to the purchase of your next home or a cash disbursement on your 401k (which you can do by the way without fear of penalty on the purchase of your first home =O) although you have to way the consequences of that action... are you going to make more in long run on your investment of the house or your 401k.., I say real estate will always return a greater value than stocks (that's proven to be tough in the current market but still holds true on the correct deals made). I'd say if you can afford 3.5% down, and another possible 3% towards closing costs, do an FHA loan (NOT FANNIE OR FREDDIE). Your PMI falls off after 20% invested in the loan, or 12 years after owning the house, Minumum credit score of i think 580 or so with a DTI of 40/36 (google debt-to-income ration to figure yours out... yes yes there is PMI... but take into consideration the the current interest rate... the market value of homes, and the time frame your looking to keep the home.. and i GUARANTEE you buying low like it is right now, you'll make money. Be smart do a fixed loan.. DO NOT let a lender sell you a load horse crap about Balloons or Arms.. they are a trap!

[PETRA]

Originally Posted by gml1998

All the above info is pretty much dead on.
But lets not forget the other aspects of home ownership.
I own my home and also own a home repair business.I have seen and repaired
many things over the years.
I'll pass along a few thoughts.
1. I've cursed myself hundreds of times For planting all those trees in my yard 25 years ago as I rake all the leaves,clean the plugged gutters and clean the sewer pipes of roots.
2. You can never have a big enough garage or make sure your property is big enough to add on to or build an additional garage/workshop.
3. Basements are nice till the sump pump fails. Always keep a spare pump of the same type on hand (it's easier to switch out identical pumps).And usually when your pump quits the local stores are out of replacements.
4. Steep roofs are a pain to work on.I've been on some roofs that a mountain goat wouldn't go on.A 4/12-6/12 pitch is ok .
5. Don't go the cheap way on repairs. Do it once with good quality materials.
I had a customer that bought 7.99 a gallon paint and paid me to paint her living room with it.It took 5 coats to get it nice.She ended up paying me double in labor costs to use that paint. Penny wise and dollar poor!!!
6. 2 story homes are usually cheaper per square foot to buy but stairs are a pain in the rear.A master bedroom and laundry on the main floor would be my suggestion in case you can't use the stairs due to injury or old age.

A home is a long term commitment .Think long and hard about what you want in a home . Also ask friends and family what they have liked and disliked about homes they have owned.Use that info to help you .

This should give you a little to think about.

A little late for responding to this post, but all of these are DEAD ON! My steep billboard in the sky roof resulted in $6300 replacement cost due to the pitch. Out "lets do the cheap fix" resulted in us having to pay for the repair more than once; the "we'll cut down those trees and it will be less leaves and pine to rake" just opened the door to other "landscaping issues" that need to be resolved....

GAWD I long for a condo again..... or at least a one level home....