It is currently Thu Dec 12, 2024 9:23 pm

All times are UTC - 6 hours [ DST ]




Post new topic Reply to topic  [ 65 posts ]  Go to page 1, 2, 3  Next
Author Message
 Post subject: First Time Home Buyer
PostPosted: Wed Apr 18, 2012 11:17 am 
Offline
100000 CLUB
User avatar

Joined: Wed Feb 08, 2006 6:17 pm
Posts: 102657
pizza_Place: Vito & Nick's
I know there are a few real estate/ lawer/ mortgage type guys in this board...

I'm looking to get a house soon. Don't have a timetable to be "in" a place, but want to start looking soon, probably in the Oak Lawn/ Palos area. So question is, where to start? Obviously I've never done this before so I'm just looking for pointers as far as where to start, maybe what to expect, what a ballpark mortgage might be for like $150-180K house, property values might be in those areas, etc etc.

Any help would be much appreciated. Thanks in advance!

_________________
Joe Orr Road Rod wrote:
It's more fun to be a victim
Caller Bob wrote:
There will never be an effective vaccine. I'll never get one anyway.


Last edited by Frank Coztansa on Wed Apr 18, 2012 11:22 am, edited 1 time in total.

Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:18 am 
Offline
User avatar

Joined: Wed Jun 21, 2006 6:57 pm
Posts: 92395
Location: To the left of my post
http://www.redfin.com

Not available in all areas but probably for where you are looking.

_________________
You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:19 am 
Offline
User avatar

Joined: Tue Aug 24, 2010 10:16 am
Posts: 20082
pizza_Place: Aurelios
www.lastpass.com

_________________
drinky wrote:
If you hate Laurence, then don't listen - don't comment. When he co-hosts the B&B show, take that day off ... listen to an old podcast of a Bernstein solo show and jerk off all day.


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:26 am 
Offline
User avatar

Joined: Wed Jun 21, 2006 6:57 pm
Posts: 92395
Location: To the left of my post
Also, get a realtor. Ask around. If it's anything like around here, it won't cost you anything to have a realtor do all the work as the seller pays them at the end. Pick 3 or 4 things that are really important to you such as 2 car garage, not on a busy road, basement and provide that to your realtor.

Check your credit scores for free now to make sure there are no errors. Getting things corrected can take a while.

In general, target a house that is no more than 3 times your salary or expected salary. You can afford, and will likely be offered 4 or 5 times as much by a bank, but 3 times is normally a pretty solid way to pay your mortgage and be able to save some money. It used to be 2 times your salary, but even with the drop in housing prices that normally isn't realistic.

Get your money together now. You'll need at least 5% of your down payment to come from your own bank account and not by "gifts" from parents. You'll need 20% to avoid PMI, but paying PMI is not the end of the world. I don't know your family situation, but your parents can "gift" you some money to get you up higher and then you can pay them back over a few years. The gift per year is something like up to 16,000 per parent per year so you can squeeze out enough if they are stable enough to help you.

Don't buy a place with your girlfriend. :wink:

_________________
You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:30 am 
Offline
User avatar

Joined: Wed Dec 31, 1969 7:00 pm
Posts: 40983
Location: Chicago
pizza_Place: Lou Malanati's
Buy a 2 Flat! With a rental unit!

Need 30% down from CHASE for under 4 units.

One day, you will move out and buy your own house and will be thanking me that you bought this 2 flat, especially when it is kicking off $1200-$1500 a month extra income for you one day.

But what do I know, I am just a radio producer!

_________________
"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:32 am 
Offline
User avatar

Joined: Wed Dec 31, 1969 7:00 pm
Posts: 40983
Location: Chicago
pizza_Place: Lou Malanati's
Use Realtor.com or Refin or Zillow, you will not only see properties, but ads from Brokers in the area you are looking.

Get your PRE APPROVAL from a Mortgage group, know who your attorney will be, ask your broker who to use for a home inspection.

_________________
"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:34 am 
Offline
User avatar

Joined: Wed Dec 31, 1969 7:00 pm
Posts: 40983
Location: Chicago
pizza_Place: Lou Malanati's
$100,000 house

Seller is paying their Broker 5 or 6%

If you buy the house and have a broker, the 5 or 6% is split with your broker, paid by the seller at closing.

If you buy without a broker, the other broker keeps the 5 or 6%.

Yes, maybe the seller will take a little less, but not most of the time.

_________________
"That's what the internet is for. Slandering others anonymously." Banky
“Been that way since one monkey looked at the sun and told the other monkey ‘He said for you to give me your fuckin’ share.’”


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:34 am 
Offline
User avatar

Joined: Wed Jan 28, 2009 11:46 am
Posts: 26636
Location: NW SUBURBS OF CHICAGO
pizza_Place: any from anywhere
bigfan wrote:
Buy a 2 Flat! With a rental unit!

Need 30% down from CHASE for under 4 units.

One day, you will move out and buy your own house and will be thanking me that you bought this 2 flat, especially when it is kicking off $1200-$1500 a month extra income for you one day.

But what do I know, I am just a radio producer!


Great advice! My friend at work bought a house when he was young. He rented it out besides living there to 4 other guys. It ended up setting him up for life,with a nice amount of profit.

_________________
favrefan said:"Chris Coghlan isn't gonna pay your rent, Jimmy."


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:41 am 
Offline
1000 CLUB
User avatar

Joined: Fri May 13, 2005 4:47 pm
Posts: 28634
Location: computer
pizza_Place: Salerno's
Taxes in that area vary between $4,500-$5,200 a year based on that $150-$180k price range.
I would expect a mortgage, with escrow for taxes, and PMI insurance to put you right around $1300 a month on a 30 year fixed. Just a guess, but I would bet it's pretty close.

Evergreen Park!

_________________
@audioidkid
spaulding wrote:
Also if you fuck someone like they are a millionaire they might go try to be one.


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:42 am 
Offline
User avatar

Joined: Wed Jun 21, 2006 6:57 pm
Posts: 92395
Location: To the left of my post
Frank Coztansa wrote:
what a ballpark mortgage might be for like $150-180K house, property values might be in those areas, etc etc.
Expect about $8k for closing costs. You'll also need some money left over in your account for the bank to approve. They won't let you clear out your whole account to pay the down payment. That means you need about $13k to start.

Then, you have to decide how much of a down payment you want. 5% = $7500-$9000. You don't want that though and many banks may even require more of one. $15000-$18000 is more realistic and better for you in the long run. Obviously, $30000-$36000 gets you to 20%, which will save you significant money in terms of PMI(Personal Mortgage Insurance) and obviously save you money as you are taking out a smaller loan.

Therefore, you'd probably want about $30k in available funds to start, with about $25k of that going away when you buy the house.

_________________
You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:43 am 
Offline
User avatar

Joined: Tue Jan 15, 2008 2:28 pm
Posts: 29948
Location: SW Burbs
Do everything you can to have enough for the down payment and avoid a PMI. It's a waste of $$.

_________________
FavreFan wrote:
Im pretty hammered right now.


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:49 am 
Offline
User avatar

Joined: Wed Jun 21, 2006 6:57 pm
Posts: 92395
Location: To the left of my post
spanky wrote:
Do everything you can to have enough for the down payment and avoid a PMI. It's a waste of $$.
It's a waste of money if you can afford to put down enough not to pay it. It can be worthwhile if you are saving enough money over what you would renting.

It's money you never get back, but so is your full rent.

_________________
You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:51 am 
Offline
1000 CLUB
User avatar

Joined: Fri May 13, 2005 4:47 pm
Posts: 28634
Location: computer
pizza_Place: Salerno's
PMI isn't a bad thing when the market is soaring. I had PMI on the house in E.P. for a year. After that we refinanced and the value of the home rose 22% so, the PMI went away.

_________________
@audioidkid
spaulding wrote:
Also if you fuck someone like they are a millionaire they might go try to be one.


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:52 am 
Offline
100000 CLUB
User avatar

Joined: Wed Feb 08, 2006 6:17 pm
Posts: 102657
pizza_Place: Vito & Nick's
Good info so far...thanks a lot everybody. I'm definitely "not terribly bright" when it comes to this sort of thing.

_________________
Joe Orr Road Rod wrote:
It's more fun to be a victim
Caller Bob wrote:
There will never be an effective vaccine. I'll never get one anyway.


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:56 am 
Offline
User avatar

Joined: Fri Mar 31, 2006 3:29 pm
Posts: 34795
pizza_Place: Al's Pizza
Boilermaker Rick wrote:
Also, get a realtor. Ask around. If it's anything like around here, it won't cost you anything to have a realtor do all the work as the seller pays them at the end. Pick 3 or 4 things that are really important to you such as 2 car garage, not on a busy road, basement and provide that to your realtor.

When you find a realtor, go over everything that is important. Location, cost, garage, basement, near highways/train, etc. If the realtor ignores your requests, and shows you houses that he/she wants to sell, not houses you want to buy, get rid of him/her immediately. You owe him/her nothing. He/she works for you. He/she will get his/her cut from the selling realtor.

Check your credit scores for free now to make sure there are no errors. Getting things corrected can take a while.

Absolutely. Make sure everything is correct, to eliminate issues later. The higher your score, the better your rates. Pay off credit card balances. I haven't had unsecured debt for many years, and it feels great.

In general, target a house that is no more than 3 times your salary or expected salary. You can afford, and will likely be offered 4 or 5 times as much by a bank, but 3 times is normally a pretty solid way to pay your mortgage and be able to save some money. It used to be 2 times your salary, but even with the drop in housing prices that normally isn't realistic.

Do not buy a house beyond your means. This seems like common sense, but I know many people who had pie in the sky dreams, and are now paying for it. When we were looking to buy our house, we were approved for $244,000, but we bought a house that cost $155,000. It was important to us to buy a smaller house, and build equity for the long haul. If you are like me, you are going to want to pay extra every month, to stay ahead of the game. If you pay half of your mortgage every two weeks (applying any extra to the principal), you are basically making thirteen mortgage payments per year, rather than twelve. You can pay off a thirty year loan in approximately twenty two years. This also helps if you have a decrease in your work hours, or even worse, a job loss. These things happen.

Get your money together now. You'll need at least 5% of your down payment to come from your own bank account and not by "gifts" from parents. You'll need 20% to avoid PMI, but paying PMI is not the end of the world. I don't know your family situation, but your parents can "gift" you some money to get you up higher and then you can pay them back over a few years. The gift per year is something like up to 16,000 per parent per year so you can squeeze out enough if they are stable enough to help you.

Agreed. Obviously, the more you put down, the better, but you are going to need to have some money in the bank for repairs/maintenance. Before you own a house, you never realize how much money goes into a house. If something needs repair, and you are not 100% sure you can fix it, and fix it properly, hire somebody who can. You will save money in the long run. But, don't hire Elmhurst Steve. You can train a monkey to paint. Well, maybe YOU can't train a monkey, but you get the point.

Don't buy a place with your girlfriend. :wink:

I will leave that up to you, and how strong your relationship is. Obviously, only the two of you know that. Things can get very messy in a breakup where both own the house. My wife and I bought our house in August of 2004, and we didn't get married until September of 2007. It worked out for us.

_________________
Good people drink good beer - Hunter S. Thompson

<º)))><

Waiting for the time when I can finally say
That this has all been wonderful, but now I'm on my way


Last edited by Chus on Wed Apr 18, 2012 2:32 pm, edited 2 times in total.

Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 11:58 am 
Offline
User avatar

Joined: Mon Jun 19, 2006 2:47 pm
Posts: 13380
Location: The far western part of south east North Dakota
pizza_Place: Boboli
Realtor.com has an awesome phone app for searching. I don't know how people searched for houses before this wonderful app.

_________________
Juice's Lecture Notes wrote:
I smell a bit....


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 12:08 pm 
Offline
User avatar

Joined: Wed Jun 21, 2006 6:57 pm
Posts: 92395
Location: To the left of my post
Good responses Chus.

Let me add too that you can cancel PMI by paying early too. The bank can make it more difficult. I think I have to reach 22% to stop PMI, whereas if I had put down 20% at the start I wouldn't have it. If you can afford it, paying extra to your principal is great. The one thing to keep in mind is that your monthly payments may still be due every month even if you overpay by a significant amount early. If I paid 10,000 to them today, they'd still expect my normal mortgage payment next month or at least they would question why I'm not paying any more.

As for buying with a person you aren't married to, the biggest risk is not only financial but also it can be a strain on the relationship. The last thing you want is to have to negotiate with a girlfriend on how much of the mortgage she is paying and then question her when she doesn't get you your check.

_________________
You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 12:22 pm 
Offline
User avatar

Joined: Fri Nov 17, 2006 9:07 pm
Posts: 3705
All good advice. I think what BF said is probably the first step I would recommend in that you go and PRE APPROVED from your mrtgage group / lender / bank. Doing this will give you a clear idea of what you can afford, and also make you more appealing to a seller.

Again...good advice is to not go the limit of what the bank /lender might be willing to go. Play it safe and be comfortable with your investment.

- Check the flood plain
- Check home owner insurance rates
- Have a professional home inspection done prior to purchasing
- Make sure there are mostly Cubs fans in the neighborhood!! :P

_________________
Proud to be UNVERIFIED.


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 12:27 pm 
Offline
User avatar

Joined: Tue Jan 15, 2008 2:28 pm
Posts: 29948
Location: SW Burbs
Frank Coztansa wrote:
Good info so far...thanks a lot everybody. I'm definitely "not terribly bright" when it comes to this sort of thing.

Just write it off.

_________________
FavreFan wrote:
Im pretty hammered right now.


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 12:32 pm 
Offline
User avatar

Joined: Tue Jan 15, 2008 2:28 pm
Posts: 29948
Location: SW Burbs
As for PMI - like I said before, if you have to do it you have to do it. I had it on my first house for a while.
But it benefits you in the long run to put the extra couple hundo toward the house every month or into savings than to just give to the bank for......nothing. So if there is anything you can do to avoid it, I'd recommend avoiding it.

Like Chus, we also bought our first house together a couple years before marriage. I know other that have too. It can work, but like he said it's a personal decision.

_________________
FavreFan wrote:
Im pretty hammered right now.


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 1:10 pm 
Offline
User avatar

Joined: Fri Mar 31, 2006 3:29 pm
Posts: 34795
pizza_Place: Al's Pizza
Also, if you find a house that interests you, hire your own home inspector, not one that the realtor recommends.

_________________
Good people drink good beer - Hunter S. Thompson

<º)))><

Waiting for the time when I can finally say
That this has all been wonderful, but now I'm on my way


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 1:12 pm 
Offline
User avatar

Joined: Thu Aug 21, 2008 12:13 pm
Posts: 15062
pizza_Place: Four hours away....and on fire :-(
If you can't train a monkey to paint, you can definitely find a painter that refers to people as monkeys.

_________________
-- source


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 1:17 pm 
Offline
User avatar

Joined: Fri Mar 31, 2006 3:29 pm
Posts: 34795
pizza_Place: Al's Pizza
Don't be afraid to put in a low offer, even if your realtor suggests otherwise (lower sale price = lower commission). You don't know who is close to foreclosure and who isn't. If somebody is getting close, they may take fifty cents on the dollar.

_________________
Good people drink good beer - Hunter S. Thompson

<º)))><

Waiting for the time when I can finally say
That this has all been wonderful, but now I'm on my way


Last edited by Chus on Thu Apr 19, 2012 6:24 am, edited 1 time in total.

Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 2:09 pm 
Offline
User avatar

Joined: Wed Jun 21, 2006 6:57 pm
Posts: 92395
Location: To the left of my post
Chus wrote:
Don't be afraid to put in a low offer, even if your realtor suggests otherwise (lower sale price = lower commission). You don't know who is close to foreclosure and who isn't. If somebody is getting close, they make take fifty cents on the dollar.
That's a good point too especially in this economy. There are only a few reasons someone would be choosing to sell in this market. They either have to, they want to buy something bigger and take advantage of lower prices on more expensive houses, or they are doing well enough that they really don't care. All of these types will be enthusiastic about selling. They also know that there are other people out there who are enthusiastic about selling.

The financial incentive for a realtor is somewhat counterproductive to you. A 5% difference in price is massive for you, but that is probably only a few hundred dollars difference for them when they get 5% of it less or more.

When we made our first offer, our realtor, who did a good job and I was happy with, suggested a price based on comparables that is actually higher than what we actually bought it for. I went lower(and wish I had gone even lower) and they countered with the initial price the realtor suggested. We then split the difference and it was decided.

You don't want to be insulting to them, but unless you must have the house the worst thing that happens is they say no, and you can offer a higher starting point or you move on.

_________________
You do not talk to me like that! I work too hard to deal with this stuff! I work too hard! I'm an important member of the CSFMB! I drive a Dodge Stratus!


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 3:23 pm 
Offline
1000 CLUB
User avatar

Joined: Fri May 13, 2005 4:47 pm
Posts: 28634
Location: computer
pizza_Place: Salerno's
Frank,
If you need to check the floodplain for an address, let me know and I will do it for you.
However, there pretty much zero floodplain in Oak Lawn. Probably be some in Palos as you get further south.

_________________
@audioidkid
spaulding wrote:
Also if you fuck someone like they are a millionaire they might go try to be one.


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 3:30 pm 
Offline
100000 CLUB
User avatar

Joined: Wed Feb 08, 2006 6:17 pm
Posts: 102657
pizza_Place: Vito & Nick's
Thanks Doug. Basements call still flood in OL, but I will send you address(es) as we look.

_________________
Joe Orr Road Rod wrote:
It's more fun to be a victim
Caller Bob wrote:
There will never be an effective vaccine. I'll never get one anyway.


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 3:42 pm 
Offline
User avatar

Joined: Fri Mar 31, 2006 3:29 pm
Posts: 34795
pizza_Place: Al's Pizza
Elmhurst "The Fraud" Steve wrote:
Don't buy in Maywood.

_________________
Good people drink good beer - Hunter S. Thompson

<º)))><

Waiting for the time when I can finally say
That this has all been wonderful, but now I'm on my way


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 3:43 pm 
Offline
User avatar

Joined: Sun May 11, 2008 4:11 pm
Posts: 57321
immessedup17 wrote:
Forget a home and buy a hatchback bro, you will thank me later!

_________________
"He is a loathsome, offensive brute
--yet I can't look away."


Frank Coztansa wrote:
I have MANY years of experience in trying to appreciate steaming piles of dogshit.


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 5:03 pm 
Offline
User avatar

Joined: Tue Aug 19, 2008 3:03 pm
Posts: 43621
Whatever you do, don't lease a home.

_________________
Juice's Lecture Notes wrote:
I am not a legal expert, how many times do I have to say it?


Top
 Profile  
 
PostPosted: Wed Apr 18, 2012 6:02 pm 
Offline
User avatar

Joined: Thu May 08, 2008 3:49 pm
Posts: 9340
Location: UM?
pizza_Place: Aurelios
PMI sucks balls. Had to do it with this house and finally after almost 5 years it will be coming off the loan here soon. It really does blow but I wasn't able to put extra money down to take the PMI out of the loan.

_________________
Hank Scorpio wrote:
What the hell, I would. Post op is OK right? Right?!?!?!


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 65 posts ]  Go to page 1, 2, 3  Next

All times are UTC - 6 hours [ DST ]


Who is online

Users browsing this forum: No registered users and 5 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Search for:
Jump to:  
Powered by phpBB® Forum Software © phpBB Group