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What should I know about buying a house and when should I start looking?

 
Old 06-12-2019, 05:11 AM
  #51  
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Default Re: What should I know about buying a house and when should I start looking?

Quickly browsed the thread, and I don't think anyone touched on your other question of "when should I start looking"

Start now. See as many houses as you have time for. It'll really help you understand your wants and needs and what things (should) cost in your area.

When I bought my first place, my starting window was HUGE until I saw enough properties to narrow down more specifically, both in terms of exact area as well as features of the house.
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Old 06-12-2019, 05:16 AM
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Default Re: What should I know about buying a house and when should I start looking?

I bought the second house I looked at
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Old 06-12-2019, 05:35 AM
  #53  
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Default Re: What should I know about buying a house and when should I start looking?

Originally Posted by 5SpdH22 View Post
I bought the second house I looked at
Same, lol. For my townhouse at least.

Around here it's cutthroat, most properties that are priced appropriately go within 7 days max...so you really don't have much time to make a decision.

I agree with Reborn's advice though, go to a bunch of open houses to see what you like and don't like...and then once you're ready to seriously start looking make sure you have a pre approval letter and a good realtor who knows how to submit winning offers.
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Old 06-12-2019, 05:37 AM
  #54  
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Default Re: What should I know about buying a house and when should I start looking?

Originally Posted by BauleyCivic View Post
Same, lol. For my townhouse at least.

Around here it's cutthroat, most properties that are priced appropriately go within 7 days max...so you really don't have much time to make a decision.

I agree with Reborn's advice though, go to a bunch of open houses to see what you like and don't like...and then once you're ready to seriously start looking make sure you have a pre approval letter and a good realtor who knows how to submit winning offers.
Yea, it's the same here. Good properties go fast. There should be a period of deciding exactly what you want and understanding prices so that you can move quickly without second guessing yourself for the right property. Usually I do this 1-2 years before I'm actually "in the market" to buy.
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Old 06-12-2019, 05:38 AM
  #55  
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Default Re: What should I know about buying a house and when should I start looking?

Originally Posted by BauleyCivic View Post
Same, lol. For my townhouse at least.

Around here it's cutthroat, most properties that are priced appropriately go within 7 days max...so you really don't have much time to make a decision.

I agree with Reborn's advice though, go to a bunch of open houses to see what you like and don't like...and then once you're ready to seriously start looking make sure you have a pre approval letter and a good realtor who knows how to submit winning offers.

Yea good advice, didn't even think of that.

Looking this go around was hell because I liked the polar opposite of what the wife liked, it was annoying as hell.

I found this perfect house, in the woods pretty much with a huge 4 car, wife hated it!

We went to 4-5 houses each weekend day for a month. ooooooffffff
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Old 06-12-2019, 05:42 AM
  #56  
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Default Re: What should I know about buying a house and when should I start looking?

It was an easy choice going for a new build. Don't have to deal with being pressured to buy immediately if you like something. Only thing you have to worry about is making sure you get a lot that you want.
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Old 06-12-2019, 05:43 AM
  #57  
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Default Re: What should I know about buying a house and when should I start looking?

Going to open houses, even if you aren't going to be buying soon, is good advice.
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Old 06-13-2019, 12:51 PM
  #58  
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Default Re: What should I know about buying a house and when should I start looking?

For people who are spending less than 3x their annual income on a house. How much are you making and what do houses cost in your area?

My individual income is $20-$30k above the household median for my zip code and there's no way in hell I could find a house in a good neighborhood for 3x my annual.
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Old 06-13-2019, 01:04 PM
  #59  
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Default Re: What should I know about buying a house and when should I start looking?

Originally Posted by BauleyCivic View Post
I think it depends on the area. Greenville, SC sounds like a low cost-of-living area. In my zipcode, you cannot get into a single family home for less than $600k. So people naturally stretch their buying power as much as they can to get into the home that they want. I'm sure in your area SFH's for $200k are plentiful and that makes your decision to stick with a lower priced house easier.
I have a 5 bedroom, 2.5 bath, 2 car garage, HUGE back yard, fenced in with a very large deck, formal and eat in dining room. Good offer price on my house would be about $195k-$200k.



Originally Posted by shamoo View Post
It is higher here only because that's the price of entry in many areas....or you just don't get a home.

It isn't that high though. Otherwise making $100K means you get a $1M home? I don't think so. That being said, a lot of folks in my area have a lot of family wealth from a generation or more back. So while they might be making $100K household, they are in a $1M house because their family put in $600K for a down payment. Then you're left with a $400K loan at $1800/month.
I can't even imagine this. I'm literally struggling to wrap my head around spending more than 1.5x our annual income. Like how do you save for retirement? Where's your vacation money? How do peoplel live like that?

Originally Posted by Rguy View Post
Pretty much. 177k salary qualifies you for an 800k home.

Actually i was wrong. In LA its 11.7x your salary.

https://www.jchs.harvard.edu/blog/pr...istoric-highs/
That doesn't even seem realistic.
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Old 06-13-2019, 01:07 PM
  #60  
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Default Re: What should I know about buying a house and when should I start looking?

Originally Posted by austinkli View Post
I can't even imagine this. I'm literally struggling to wrap my head around spending more than 1.5x our annual income. Like how do you save for retirement? Where's your vacation money? How do peoplel live like that?
You should be easily fine spending 3x your gross annual on a home. You may have to look at your other spending (per month) to see what're you're spending on each month.

If a mortgage (based on a home 3x your annual gross) is too much to you, I suspect you might be spending too much on other things (fun, etc) during that month. It shouldn't really affect your current lifestyle.

In the California example, you just adjust your other spending and go out less, etc and you can make it work.

Also, you have to remember that your (and your wife's) income will always go up over time. So you can sort of account for that a little.
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Old 06-13-2019, 01:35 PM
  #61  
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Default Re: What should I know about buying a house and when should I start looking?

Originally Posted by shamoo View Post
You should be easily fine spending 3x your gross annual on a home. You may have to look at your other spending (per month) to see what're you're spending on each month.

If a mortgage (based on a home 3x your annual gross) is too much to you, I suspect you might be spending too much on other things (fun, etc) during that month. It shouldn't really affect your current lifestyle.

In the California example, you just adjust your other spending and go out less, etc and you can make it work.

Also, you have to remember that your (and your wife's) income will always go up over time. So you can sort of account for that a little.
No freakin way man! Our combined income is roughly $150 - $170k. Hard to estimate as we both receive a decent portion of our income from bonuses.

That said, while I don't know what to expect for an interest rate a quick calculation with 2.99% estimates a monthly payment of $1900. I can't even imagine spending that much on my mortgage. Then again, I'm a cheap ***. I save money a lot and I like having money to play with. That's why we were able to put 25% down on the new mustang, or go downtown for food and drinks every weekend. I don't know, maybe I just need to be less stingy.
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Old 06-13-2019, 01:38 PM
  #62  
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Default Re: What should I know about buying a house and when should I start looking?

Your credit is fine, you have a decent amount to put down or use for improvements, you'll just need to find out how much you can qualify for and how much you can realistically afford.
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Old 06-13-2019, 01:40 PM
  #63  
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Default Re: What should I know about buying a house and when should I start looking?

Lolol you ain't getting a 2.9% interest rate.

Look more at low to mid 4s.
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Old 06-13-2019, 01:41 PM
  #64  
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Default Re: What should I know about buying a house and when should I start looking?

Also, what I was told is your max D:I is like 45% for traditional and 51% FHA iirc.
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Old 06-13-2019, 01:50 PM
  #65  
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Default Re: What should I know about buying a house and when should I start looking?

Originally Posted by Caoboy View Post
Also, what I was told is your max D:I is like 45% for traditional and 51% FHA iirc.
Thats way to ***** fuggin high! My DTI got almost to double digits and I was like **** that. Paid it off instantly.

I just really hate debt.

Also thanks for the interest rate info. I had/have no clue.
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Old 06-13-2019, 02:24 PM
  #66  
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Default Re: What should I know about buying a house and when should I start looking?

You're buying a house bro. Your D:I is gonna be high because of it.
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Old 06-13-2019, 02:26 PM
  #67  
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Default Re: What should I know about buying a house and when should I start looking?

I bought my house in 2016 and my int is 3.375. I was told that was the best you could get at the time without doing something stupid like am ARM (don't do it)

If you get into a 15 year you can get a lower interest rate, but 2.xx is by the wayside.
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Old 06-13-2019, 02:28 PM
  #68  
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Default Re: What should I know about buying a house and when should I start looking?

Originally Posted by Caoboy View Post
I bought my house in 2016 and my int is 3.375. I was told that was the best you could get at the time without doing something stupid like am ARM (don't do it)

If you get into a 15 year you can get a lower interest rate, but 2.xx is by the wayside.
3.375 crew checking in
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Old 06-14-2019, 03:00 AM
  #69  
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Default Re: What should I know about buying a house and when should I start looking?

At the beginning of next month, I will be closing on my current house and a new one, same day.

3.5% down, 30yr fixed rate (3.625% IR) and the seller/builder is putting in $5K towards closing costs. Basically, I will only have to pay roughly $1200 at closing. Good thing is....the amount (plus my actually down payment) will be deducted from the money I will be receiving from the sale of my current house. I don't even have to bring my checkbook.

Austin, if I were you, I would just put down the bare minimum required. Mess around with those mortgage payment calculators and you will see that for every $1000 down, the price will vary on the monthly payment. Up to you man.
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Old 06-14-2019, 04:46 AM
  #70  
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Default Re: What should I know about buying a house and when should I start looking?

A side tip of advice since you're buying in the Carolinas (or at least that's what I gathered), do not for any reason what so ever buy a house that sits on a slab. Learn from my mistake.

Also, as others have noted, keep a decent slush fund... The mortgage underwriters are going to want to see cash on hand anyway. If you can't put the full 20% down, it sounds like for the range that you're shopping that you should be pretty close to and PMI will not last entirely too long. I wouldn't entirely drain your cash reserves to avoid it, once you're at 78% of loan-to-value then it's automatically removed anyway.

It sounds like your head is screwed on straight and you're not looking to buy something out of your means, keep on doing the right things in the mean time.
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Old 06-14-2019, 04:55 AM
  #71  
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Default Re: What should I know about buying a house and when should I start looking?

Originally Posted by austinkli View Post
I can't even imagine this. I'm literally struggling to wrap my head around spending more than 1.5x our annual income. Like how do you save for retirement? Where's your vacation money? How do peoplel live like that?

Our combined income is roughly $150 - $170k.
Here, i'll do the math for you.

$170k combined income. Take home is typically ~65% after taxes, insurance, retirement contribution. $170,000x0.65/12 = $9,208 per month

$170,000 x 3 = $510,000 for house. First scenario is with 5% down, so this will include PMI.



$9,208 income
($3,328) mortgage
($500) utilities
($1,000) 2 car payments/insurance/gas
($1,500) food
$2,880

Still leaves $2,800+ left over for spending money. Kids can eat up that leftover spending money real quick though. Daycare for my two kids alone is over $2,800 per month.

Here's another scenario...same income $170k. Lets say you have some equity in your current house and can put down 20% on a bigger, more expensive house that's 4x annual income ($680k).



Look at that, the payment is barely more on a $680k house w/ 20% down than it is on a $510k house with 5% down and having to pay PMI.
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Old 06-14-2019, 05:04 AM
  #72  
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Default Re: What should I know about buying a house and when should I start looking?

don't buy a $500k house OP. If you or your wife ever lost a job or wanted to take extended time off for something, you're fucked.
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Old 06-14-2019, 05:13 AM
  #73  
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Default Re: What should I know about buying a house and when should I start looking?

Originally Posted by Tim2179 View Post
don't buy a $500k house OP. If you or your wife ever lost a job or wanted to take extended time off for something, you're fucked.
I don't think he's going to, he lives in a LCOL area.

I just posted that because he's like "I can't get my head around spending 3x income on a house" when literally everyone in America does it.
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Old 06-14-2019, 05:24 AM
  #74  
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Default Re: What should I know about buying a house and when should I start looking?

Originally Posted by austinkli View Post
No freakin way man! Our combined income is roughly $150 - $170k. Hard to estimate as we both receive a decent portion of our income from bonuses.

That said, while I don't know what to expect for an interest rate a quick calculation with 2.99% estimates a monthly payment of $1900. I can't even imagine spending that much on my mortgage. Then again, I'm a cheap ***. I save money a lot and I like having money to play with. That's why we were able to put 25% down on the new mustang, or go downtown for food and drinks every weekend. I don't know, maybe I just need to be less stingy.
What are the taxes and other assumptions in that mortgage calculation? Monthly payment seems high but I don't know your area well. Our mortgage is less than that with a higher amount of principal, higher rate, and our taxes aren't that low.
Originally Posted by BauleyCivic View Post
I don't think he's going to, he lives in a LCOL area.

I just posted that because he's like "I can't get my head around spending 3x income on a house" when literally everyone in America does it.
Well, like 70% of Americans have less than 1k in savings too so maybe that's not a good thing.
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Old 06-14-2019, 05:25 AM
  #75  
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Default Re: What should I know about buying a house and when should I start looking?

Originally Posted by njn63 View Post
Well, like 70% of Americans have less than 1k in savings too so maybe that's not a good thing.
I have $1,300 in savings so I'm in the top 30%

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