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  #491  
Old 09-17-2021, 02:37 AM
unsunghero unsunghero is offline
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Originally Posted by Tunabros [You must be logged in to view images. Log in or Register.]
I have no clue how buying houses work

No one taught me this stuff
It’s confusing for me too

A mortgage is just like a really large loan, is the way to look at that. I’m order to qualify for a big one, one needs to have decent-good credit. The way to get good credit is to borrow money via loans or credit cards and be Johnny-on-the-spot with making payments, or else the serious people just put a large sum on a card and then immediately pay it off

You normally need to put down 20% of the home price as a down payment, which is out of reach of juuuust about everyone. Luckily the government offers a one time First Home Buyer (FHA) loan where you only have to put down 3.5% of the price. These are basically the only way most people could ever get their first house

But it’ll cost you in the long run, it’s not free money. If you put down less than 20% down payment, you will have to pay an additional interest payment each month until you get to above 20% down (technically you need to still re-finance which is essentially selling the mortgage to a different lender at a lower insurance rate and payment, ignore this though if this is sounding too complicated)

You need to get a real estate agent to make an offer on a home, and if it’s accepted, it goes to an inspection period where an appraiser makes sure it’s actually close to the value of its price. You and your real estate agent get the inspection report, and decide based on it if you still want to buy, and what repairs you want to see done before you buy. The repairs don’t have to be actually done, if not, then the cost of the repair would be taken out of the price. If you accept then it goes to a closing date where the title is transferred via a title company

The handy thing is, things like home insurance and property taxes are bundled right into the mortgage. So it’s just one thing you have to pay each month

The TLDR: Do an FHA loan to only have to put 3.5% down, then re-finance once you get to having paid 20% down (will take a number of years unless you come into extra money), to get the monthly payment hundreds of dollars lower (usually)
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  #492  
Old 09-17-2021, 08:21 AM
Homesteaded Homesteaded is offline
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A home is an investment. It’s not a purchase like a car.

Home ownership is not out of reach, it’s out of reach for people who make poor choices.
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  #493  
Old 09-17-2021, 08:29 AM
Mesocyclone Mesocyclone is offline
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How did Phil Collins know the Son of Man would learn to not care anymore.



I dont care which way the wind blows. If its a still blue sky or an F5 tornado. I don't care. If it's an F5 i'll chase it and send the video to every major outlet for cash. More destruction the better.

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Last edited by Mesocyclone; 09-17-2021 at 08:40 AM..
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  #494  
Old 09-17-2021, 09:38 AM
Jibartik Jibartik is offline
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Originally Posted by Tunabros [You must be logged in to view images. Log in or Register.]
I have no clue how buying houses work

No one taught me this stuff
Save 2-5 times your yearly salary, take out a loan for 10 to 15 times you’re at yearly salary.

Tell everyone it’s great!
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  #495  
Old 09-17-2021, 09:46 AM
starkind starkind is offline
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Earn money in an inflated economy. Move to a smaller one and defend everything with a private army you pay pennies for while manipulating the smaller economy.
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shutup
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why are you posting
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don't listen to them!
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Jibartik. You don't need to do anything or prove anything.
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or change anything
Thanks for telling us tho!
Last edited by starkind; 09-17-2021 at 10:14 AM..
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  #496  
Old 09-17-2021, 11:08 AM
unsunghero unsunghero is offline
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Originally Posted by Homesteaded [You must be logged in to view images. Log in or Register.]
A home is an investment. It’s not a purchase like a car.

Home ownership is not out of reach, it’s out of reach for people who make poor choices.
Wasn’t meaning home buying was out of reach, I was saying having 20% of a home’s price in saved cash is out of reach for the typical American. I was working a 50k/yr job and didn’t have nearly close to that when I bought my home

Most Americans are only going to be able to do the FHA 3.5% down. For me to have put 20% down that means for my home I would have needed to have $70,000 in savings. Not gonna happen

I did an FHA with $1.2k/mo mortgage which initially I had a co-worker as roommate to help with affording the mortgage (charged him only $500/mo rent). After the roommate moved in with his gf after they bought a home, I had my cousin, his gf, and their 3yr old daughter move in and changed them $700-mo. Then after I had paid 20% of the value I re-financed to 900/mo payments and now live alone because I can afford to

This is a fairly typical expectation for a middle class home buyer experience. It really helps to have a roommate (or 2) already lined up to help with the payments before getting saddled with a mortgage, especially when needing to pay mortgage insurance initially
Last edited by unsunghero; 09-17-2021 at 11:15 AM..
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  #497  
Old 09-17-2021, 11:12 AM
booter booter is offline
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Most people I know who have purchased recently have only done 5% down payments, not 20%.

We saved for ~4-5 years to make our 5% down payment in a very HCOL area.

It's a standard mortgage, not FHA, but yes we do pay ~$55 a month in PMI (mortgage insurance) until we reach the 20% loan-to-value threshold.
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  #498  
Old 09-17-2021, 11:34 AM
unsunghero unsunghero is offline
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Also, when it comes to roommate selection before buying a home, it’s best to look to either co-workers, friends, or family that you already know and trust to be reliable, rather than randoms from the internet

My friend/co-worker only had randoms from the internet as roommates in his condo. Multiple ones started to be late with payments, then miss payments “sorry man it’s been a hard month, can I just pay you next month?”, and then that same excuse came next month. So he had to evict them because you can’t just legally say get the F out

Then he described what he thought was the dream scenario, finding an attractive (his standards are pretty low tho) single girl his age who moved in. They eventually started hooking up. Shortly thereafter she said to him “ok since we’re a couple now I don’t think I should have to keep paying full rent, or any rent really”. To which he replied “we’re not a couple and I need the money or can’t pay the mortgage”. So she replied “oh ok we’re not a couple”, then stopped hooking up with him and started (loudly) hooking up with other guys in his condo when he was there

So based on his horror stories, I only went after co-workers, friends, or family for roommates with all good experiences [You must be logged in to view images. Log in or Register.]
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  #499  
Old 09-17-2021, 11:52 AM
Gatordash Gatordash is offline
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Quote:
Originally Posted by unsunghero [You must be logged in to view images. Log in or Register.]
Also, when it comes to roommate selection before buying a home, it’s best to look to either co-workers, friends, or family that you already know and trust to be reliable, rather than randoms from the internet

My friend/co-worker only had randoms from the internet as roommates in his condo. Multiple ones started to be late with payments, then miss payments “sorry man it’s been a hard month, can I just pay you next month?”, and then that same excuse came next month. So he had to evict them because you can’t just legally say get the F out

Then he described what he thought was the dream scenario, finding an attractive (his standards are pretty low tho) single girl his age who moved in. They eventually started hooking up. Shortly thereafter she said to him “ok since we’re a couple now I don’t think I should have to keep paying full rent, or any rent really”. To which he replied “we’re not a couple and I need the money or can’t pay the mortgage”. So she replied “oh ok we’re not a couple”, then stopped hooking up with him and started (loudly) hooking up with other guys in his condo when he was there

So based on his horror stories, I only went after co-workers, friends, or family for roommates with all good experiences [You must be logged in to view images. Log in or Register.]
I hooked up with my wife and had two kids so now I gotta spend a bunch of money on a bigger house.
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  #500  
Old 09-17-2021, 11:53 AM
Jibartik Jibartik is offline
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When a home becomes everything that a family owns it's kind of like saying the american dream is to work off your debt.

Ouch?
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