SRS Is now the time to buy a home or should I wait a couple years?

Discussion in 'On Topic' started by jayC, May 27, 2009.

  1. jayC

    jayC n/a

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    The bad:
    - Recent data shows that home prices are still dropping at a rapid pace and a bottom doesn't seem to be near: http://www.nytimes.com/2009/05/27/business/economy/27home.html
    - Alt-A and option ARM mortgages are due to reset within the next couple years and it's expected to be worse than subprime causing more foreclosures and suppressing home prices further: http://www.cbsnews.com/stories/2008/12/12/60minutes/main4666112.shtml

    The good:
    - Just got pre-approved for a 30-yr fixed @ 4.25%. If I wait, rates will likely be much higher as they are expected to dramatically increase over the next couple years.
    - The coming inflation (hyperinflation) should wipe out any debt that I accumulate rather quickly.
    - First-time Homey Buyer so I'll get the $8k tax credit if I buy before Nov. 1.


    :hsd:
     
  2. GuiltySparc

    GuiltySparc OT Supporter

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    we bought now, got a stupid good deal on the house. I'd say shop around and snag something if you can get a deal on it. I dont see interest rates droping any lower than they are right now (we also got 4.25%).
     
  3. Keiphus

    Keiphus my dog eats bears

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    Anyone know a lot about preforclosures. I've been doing a lot of research into them lately and it seems like it might be worth the trouble. :naughty:
     
  4. horus

    horus H.R. Paper Stacks OT Supporter

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    We just went through this same debate and we decided to buy now because home prices haven't dropped drastically in our area plus the low interest rates and first time buyer tax credit.
     
  5. The Great Deceiver

    The Great Deceiver 21st Century Schizoid Man

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    I believe now is a good time
     
  6. GregFarz78

    GregFarz78 New Member

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    Buy now rates are at all time lows and they'll only go up, if you are renting right now you're in the perfect position b/c nothing is holding you down put a fair offer on a house and go for 30 day settlement.

    Short sales? They're worth the time if you have 6+ months to wait around to see if it actually goes into foreclosure and you get the house. Personally I would pass on them. Most foreclosed houses are trashed and they still want market value for the house even though it would cost a lot of money to just bring it back to market value. We looked at a few just not worth it unless you have the money and resources to fix it up.

    and please stay far far away from ARM mortgages they're a big reason so many people are in this mess right now buying shit beyond their means.
     
  7. saabguy

    saabguy Active Member

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    who is pre-approving you at 4.25%? i'd check the fine print and see how many "discount points" that includes...
     
  8. Ford4Life

    Ford4Life Guest

    If you can afford the monthly payments, I'd buy now. 4.25% is a great rate, and there are some really good deals on nice houses out there right now.
     
  9. Sgt. Friday

    Sgt. Friday Guest

    if you keep waiting for the bottom to hit, which is not easy to predict, then you may end up missing the boat. Get it while its hot.
     
  10. iwishyouwerebeer

    iwishyouwerebeer you shut your cunt Moderator

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    Buying a house right now that we could never afford if it was 3 years ago even.

    However, we (fiance and I) have saved up a ton of money and both make a good living :dunno:
     
  11. GregFarz78

    GregFarz78 New Member

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    :werd: you aren't getting that 4.25% rate w/o points I have 800 credit and the best rate I get right now is 4.875 with 0 points you never want to pay points
     
  12. trom

    trom New Member

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  13. Sgt. Friday

    Sgt. Friday Guest

    what? What does that even mean?
     
  14. GuiltySparc

    GuiltySparc OT Supporter

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    The way it worked for us is we got a 4.75% rate but we had around $19,000 in seller cash back. After paying closing costs and the max we could be reimbursed for there was still quite a bit of that $19k left over so we used it to buy down the rate to 4.25% (since we couldnt just pocket the cash after settlement).
     
  15. GregFarz78

    GregFarz78 New Member

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    Why can't you pocket the left over cash as far as I know you can or put it into fixing up the house. I'll have left over cash from settlement that I plan to put into remodeling the place, I did that last time too.

    you can buy a hell of a lot more house today at 4.75% than you could 1-2 years ago at 6%
     
  16. iwishyouwerebeer

    iwishyouwerebeer you shut your cunt Moderator

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    .
     
  17. GuiltySparc

    GuiltySparc OT Supporter

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    As far as i know, its illegal to pocket any remaining seller contribution cash after settlement. I think its an FHA thing since the seller contribution can only be used towards certain things.

     
  18. Sgt. Friday

    Sgt. Friday Guest

    I know that.
     
  19. GregFarz78

    GregFarz78 New Member

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    oh I gotcha you were talking about seller assist
     
  20. GuiltySparc

    GuiltySparc OT Supporter

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    Ya, we were kinda bummed because we thought we could pocket that moolah. But overall we got a sick deal on the house. Tax assessed and originally listed at $407k, sat on the market for 200+ days and was reduced to $335 by the time we looked at it. We ended up getting it for $318 plus the full 6% seller contribution.

    3 bed, 2.5 bath, 2 car garage, 0.3 acre lot, 2800 sqft...not bad for a first house and, like you were saying, waaaaay more house than we could have bought a couple years ago.
     
  21. saabguy

    saabguy Active Member

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    who is offering 6% seller concessions? 3% is usually the max, some FHA type loans will allow for higher, but I think they have limits on loan amounts. instead of getting so much back from them at closing, why not just reduce the purchase price? :dunno:
     
  22. GuiltySparc

    GuiltySparc OT Supporter

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    6% is the FHA max.

    Our offer was already accepted by the time we found out we couldnt pocket the cash.

    Its not that big a deal for us since reducing the purchase price and buying down the interst worked out to be pretty similar in terms of mortgage payments.
     

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