Real Estate: Buying a home during the pandemic |
- Buying a home during the pandemic
- Is this the worst time to buy a house?
- Lender believes rates we’ll keep dropping, suggested not locking (33 days to close)
- Selling a house that has been smoked in for a decade?
- Beware of TD Bank and Service Link
- Home we really want to buy has asbestos
- In unit laundry or bathtub?
- My realtor will not share my home inspection with the selling agent because “then they’d have to disclose everything”. Is this normal practice?
- Interested in your NACA experience
- Can I ask neighbours to put this barking dog inside during showings?
- Rhode Island Landlords - Looking for Advice
- What is concrete ribbon foundation?
- How does the security deposited work for renting an apartment through a real estate agent?
- How to buy an apartment complex?
- How does one get a second mortgage for a primary home? Are these even possible/lenient right now or strict as investment grade loans?
- What type of professional am I looking for to inspect potential wood rot on exterior?
- Mortgage rate lock expired before closing, bank automatically locked me in at same rate without telling me.
- How to calculate DTI with two people on mortgage?
- Rate this refi deal
- Buying anonymously [FL]
- As a seller (in WI), how long should I expect to wait to see the results from the buyers inspection?
- Why do I care if my house “sells fast?”
- Refinance Question - Nonconforming
- What is the cost to take the NY state licensing exam?
| Buying a home during the pandemic Posted: 07 Aug 2020 09:25 PM PDT It's been a nerve-wracking 3+ weeks, but my husband & I just received the all-clear to close from our loan officer, and we're going to be signing off on our loan & escrow documents next Tuesday! 🎉🎉🎉 I wanted to make a post because I've seen so many "Is this a bad time to buy?" posts on /r/realestate and I wanted to share our perspective. Hope this helps other first-time homebuyers :) 1. Deciding to buy My husband and I decided to buy a house in October 2019 shortly after we got married, and spent a good part of the year looking on and off in various different neighborhoods around Los Angeles, CA. It took us 6 months, 100+ listings and probably a dozen open houses to figure out what we wanted. I recommend all first-time homebuyers to take your time and figure out your must-haves. For us, that ended up looking like this:
2. Figuring out how much to spend We got pre-qualified with 2 banks (Chase and Wells Fargo) to figure out how much house we can qualify for, and then we used this calculator to figure out how much house we can comfortably afford based on how much we were willing to pay monthly. We live in a HCOL area, so we opted to keep our mortgage under 40% of our take-home income. Based on our criteria and affordability, we narrowed the areas we were looking to just 2 zip codes. We spent May through July going to open houses, made 2 offers and got 1 accepted on July 15. Our offer price was 8% higher than asking. Under normal circumstances, we definitely would've gotten away with asking price or maybe 1-2% higher, but everyone's trying to buy a house during the pandemic, so we went above and beyond to make sure we could secure the house. (We did ask for appraisal, inspection and loan contingencies though.) P.S. Our real estate agent ended up referring a loan officer to us who got us a 2.875% rate. 3. Why we "overpaid" I was on /r/realestate and /r/homeowners a lot during this time, and read all the differing opinions on why we should or should not "overpay" for a house during the pandemic. My husband and I really struggled over this, so I wanted to offer some visibility into our decision-making process to help others in our position. First, we evaluated why we wanted to buy a house:
Then, we looked at our finances:
4. We bought a house during the pandemic In the end, market value wasn't a determining factor for us because we're planning on living in this house for the next 10-20 years (at least), and even if our house value dropped 20%, we'd still have paid less than if we were renting (even taking into consideration house upgrades and upkeep). The area we're buying into is a historically desirable neighborhood, and has been able to bounce back from a crash. For example, the value of the house dipped 14% in 2010-11, but recovered fully by 2013 and has since appreciated a further 56%. Our reasons for buying a house would've been the same regardless of the pandemic, and we would be okay financially even if we both lost our jobs. So we made peace with paying 8% over asking, and we're getting ready to close next week :) Hope our perspective during this wild, wild time helps someone out there struggling on whether they should go ahead with their home purchase! [link] [comments] |
| Is this the worst time to buy a house? Posted: 07 Aug 2020 10:40 AM PDT People (my agent, some family members, media, etc) keep saying that now is a great time to buy a house because rates are low. But I feel like now is the worst time to buy a house because there isn't much to choose from and prices have remained at all-time highs or have even increased. I feel like this can't last forever...like the market is basically being artificially held up by programs like the mortgage forbearance which I've read will likely be extended again. We have record unemployment coupled with record numbers of people simply not making their payments...how is the real estate market sustainable at its current level? I don't wish ill on anyone else but these are just the economic realities right now. I feel like if I buy a house today, I'm going to lose my shirt on it in 2021. "But you'll make that equity up if you live in the house for a long time, you can ride it out." I hear that a lot. That's not a strong argument IMO because if I buy that same house next year at 30% off, I can live in it for nearly the same amount of time and be hundreds of thousands of dollars ahead over the life of the loan. If you're currently in a rental, I see no good reason to buy into the housing bubble right now. But then the question is...when does it pop? Curious what other think about this. Thanks! [link] [comments] |
| Lender believes rates we’ll keep dropping, suggested not locking (33 days to close) Posted: 08 Aug 2020 07:02 AM PDT Hi all - so my lender has been great so far. Very helpful as a first time homebuyer. I'm seeing a lot of posts here about people locking in their rate. I was given a rate of 2.625% with an APR of 2.67%. Really happy with that. I called my loan officer to ask about locking rates. She said it's free to lock but suggested I wait because she sees rates dropping even more as I get closer to my closing date (9/11). She says it's possible to see a 2.5% rate. She also said she would keep an eye on rates and reach out whenever she thought it would be a good time to lock. Right now I'm trusting her but I wanted to get this sub's thoughts on the pros/cons of waiting to lock right now. According to this page 64% of experts believe rates will keep going down: https://www.google.com/amp/s/www.bankrate.com/mortgages/rate-trends/amp/ [link] [comments] |
| Selling a house that has been smoked in for a decade? Posted: 07 Aug 2020 07:57 PM PDT Backstory: I'm a 23(M) who doesn't live at home anymore and just started my career after grad school. My twin brother is in another state and my mom wants to sell our 5 bedroom home. From the outside it looks like an amazing home but it's smells absolutely horrible. I was a kid who smelled like smoke every day in middle school and high school. My grandma (now deceased) and my mom would chain smoke downstairs and this still hasn't stopped over a decade later now that my mom just lives there. This is a smell that hits you walking up the door to give y'all some clarification. This would be the first thing a future home buyer would notice. She wants to sell it but I know she's going to have to sell SOOO much lower then what she wants because of the smell. Are there any tips or tricks of de smoking a house that anyone on this thread has seen? It's obviously all her fault, but I want to try and provide her some input on fixing the situation so please don't degrade her or try to give me advice on helping her quit or smoking outside. I've been trying my entire life. [link] [comments] |
| Beware of TD Bank and Service Link Posted: 07 Aug 2020 03:21 PM PDT For the love of god never use TD Bank! Despite requesting a title agent of my own choice they assigned me Servicelink and I have now missed the closing date a second time. TD bank waited until a week and a half before closing to tell me this, as the loan processor seems to have completely forgotten to order a title search. Servicelink tells me that it will take 7-10 business days to complete, so right off the bat I miss the 30 day closing. We extend the closing date a week to today (8-7-2020) thinking it will be plenty of time, but we were dead wrong. Myself, the seller and my buyers agent constantly tried to make contact with my closing agent at servicelink via email and call and got zero responses. Wednesday evening of this week I call my loan processor (LP) at TD, who is damn near impossible to get ahold of, and ask if she has the title search yet. The LP tells me no, the closing agent has yet to provide the tax information. So Thursday after repeated calls the closing agent picks up and says she is still waiting on the tax information, but she thinks she'll get it today. At this point its understood closing date two is missed, but hey, at least we'll be set for next Friday. So this morning I get ahold of servicelink to get an update on the tax information. The closing agent then fucking informs me that for 2 goddamn weeks they have been calling city hall but have gotten no response and at no time could they bother to have told us any of this. Immediately I call the treasury office and get a voicemail that says all mortgage, title and closing companies need to email them at this address for tax info. So for two fucking weeks those idiots sat there and most likely called the wrong number or clearly ignored the cities instructions. I get the email address and send it to the closing agent. She responds for once saying that she has now sent the form and that she'll keep me posted. No update this afternoon, so I get ahold of her supervisor and ask for an update as this is the only item holding up the clear to close. I tell him that for two weeks she sat there calling the wrong number and never bothered to update any of us. He then tells me that she had put in her two weeks last week, so pretty much she has said fuck it, I'm done doing my job. So now here I am at day 40, a second closing date missed and god only knows how long till I can actually close. Fuck TD Bank and especially Fuck servicelink. They have insured that buying a home has become a goddamn nightmare. TLDR: Never fucking use TD bank for your home loan, and sure as shit stay the hell away from servicelink. You'll find nothing but pain, frustration and numerous missed closing dates if you work with them. [link] [comments] |
| Home we really want to buy has asbestos Posted: 08 Aug 2020 10:29 AM PDT That should be a red flag. We've been monitoring the area for a long time and found a house that checks all of our boxes. We were hoping they'd come down on price, but when we did an inspection with a family member why knows more about construction, found asbestos in the ceiling of the upper floor. How much would it cost to remove about 1200 square footage of ceiling that contains asbestos? Would we negotiate this as part of our offer and having them pay for it or just put in a lower bid with providing this as a reason? [link] [comments] |
| Posted: 08 Aug 2020 10:06 AM PDT I recently purchased a one bedroom on bathroom condo in downtown Seattle. It came with a large claw foot tub, which is charming but not too practical. There is shared laundry in the building but I would prefer to have laundry in unit which is allowed by the HOA. I am considering removing the bathtub to install a walk in shower with a stacked laundry unit next to it. I am wondering what this would do to the home value. I imagine in unit laundry would add value but removing the tub would make is a 3/4 bathroom so maybe that would hurt. Any thoughts? Also, anyone have a rough ballpark of what the renovation might cost? [link] [comments] |
| Posted: 07 Aug 2020 05:18 PM PDT In my personal case - the property disclosure was extremely limited, but some of the information that WAS provided was misrepresented. Examples:
Turns out they were INSTALLED 7 years ago, but all parts were bought used and installed by current owner. Selling agent claims the discrepancy was just a "misunderstanding" but not to worry about it, because it's a Lennox and they last forever! I understand it's a sellers market and they're going to want to push deals through, but this seems like sales people (both my realtor and the selling agent) engaging in illegal/unethical activity. Am I wrong? [link] [comments] |
| Interested in your NACA experience Posted: 08 Aug 2020 10:04 AM PDT Hello, I am a Connecticut resident who has signed up to take part in the NACA (Neighborhood Assistance Corporation of America). I had first heard of this program from my sister who is currently enrolled but she has yet to progress in the program due to Covid along with other issues. I would like to know about peoples experiences when they went through NACA. The good, the bad, the pretty, the ugly and what you did and did not like. What were the limits placed on you for picking a house or were you able to pick anything you wanted? [link] [comments] |
| Can I ask neighbours to put this barking dog inside during showings? Posted: 08 Aug 2020 09:53 AM PDT Super frustrating. Our neighbours have visitors that have been here for a few days and their dog barks nonstop. Whatever, we all have dogs and we know that it happens. However, are market crashed during Covid and we're finally getting some showings this weekend. Is it okay to ask people (strangers) to keep the barking dog inside during showings?? Or is that rude/Karen? It's so loud, especially in our master bedroom :/ I would hate to think that this dog will turn off buyers, when it's just visiting from out of town anyways. [link] [comments] |
| Rhode Island Landlords - Looking for Advice Posted: 08 Aug 2020 09:47 AM PDT Currently in my 20's in the RI area and looking to start getting into real estate within the next year or two. My goal is to own a multi-family property (preferably a duplex) and rent out one side to help cover the mortgage. I currently in more of a research phase and looking to talk to some locals who have some experience to get some insight on the real estate market in RI and just general advice on being a landlord in general. Some questions I have: [link] [comments] |
| What is concrete ribbon foundation? Posted: 08 Aug 2020 09:34 AM PDT And is it good or bad (in Seattle, so possible seismic concerns)? I can find very little on this, surprisingly. [link] [comments] |
| How does the security deposited work for renting an apartment through a real estate agent? Posted: 08 Aug 2020 09:22 AM PDT Normally I'd have to give a certified cheque to the landlord, but I'm using a real estate agent because I'm moving across the country. What happens with the damage deposit? [link] [comments] |
| How to buy an apartment complex? Posted: 08 Aug 2020 09:22 AM PDT I'm currently in college, and is thinking about eventually buying an apartment complex someday in the future, because that pays for itself pretty much. How do I even start? Where do I look for commercial real estate listing? How much money should I have and how much loan should I take out? How does the whole process work? Does it ACTUALLY pays for itself? Any advice would be helpful! Thank you. [link] [comments] |
| Posted: 08 Aug 2020 09:08 AM PDT I understand loans for investment properties require a higher down payment, higher interest rate, etc. But what if I already have a mortgage on a rental, currently live in a different rental, but want to get a mortgage for a new primary home? Just apply as such and deal with the DTI/rental income factors and whatnot? Or is there an entirely different type of lender and loan I need to seek? Thanks! [link] [comments] |
| What type of professional am I looking for to inspect potential wood rot on exterior? Posted: 07 Aug 2020 08:53 PM PDT My inspection report says " Wood deterioration noted in several areas around the home, recommend a licensed professional evaluate and repair the home's exterior. " Question is: who am I looking for? What search term do I type into yelp? thx! [link] [comments] |
| Posted: 08 Aug 2020 08:43 AM PDT Ive been in the process of refinancing since May. I locked in at 3.38% and the rate lock agreement expired the other day. The closing was pushed to September. I inquired about getting a new rate, since the lock agreement expired. Instead I was forwarded a new closing disclosure with the same original rate lock agreement with new dates put in place. I only viewed the document, and did not sign it. I asked about this and I was told the rate was locked in again the same date the original agreement expired with the original rate. Is this legal? I was not asked, no email was sent. I did not agree to a new agreement. [link] [comments] |
| How to calculate DTI with two people on mortgage? Posted: 08 Aug 2020 04:57 AM PDT I'm in the process of purchasing a second home and was having a hard time trying to figure out how much to include on my DTI for current monthly mortgage payment. I own a home jointly with my fiancé and we have separate finances, which we split evenly for the house. Does the bank want to see the entirety of the mortgage as part of your debt obligations or just what you pay? [link] [comments] |
| Posted: 08 Aug 2020 08:41 AM PDT 2.87% no cash out of pocket cost to refi my mortgage with the same lender. Original rate was 3.62% which I refi'd to just a few months ago, sept 2019. Should I keep shopping around? [link] [comments] |
| Posted: 08 Aug 2020 08:03 AM PDT Hi all, I am currently waiting for a domestic violence restraining order to go through in the next two weeks and then I will be fleeing an extremely violent abuser. I will only buy a house in a gated community because of this. I will need anonymity and protection from this man as he is very dangerous and can kill me. Is it possible to buy a house anonymously or hidden somehow? Maybe some kind of law I can't find that allows this for domestic abuse survivors and our name can be hidden from the mortgage? I don't want him to be able to look up my address like he did my parents. Thank you. [link] [comments] |
| As a seller (in WI), how long should I expect to wait to see the results from the buyers inspection? Posted: 08 Aug 2020 07:26 AM PDT |
| Why do I care if my house “sells fast?” Posted: 07 Aug 2020 07:25 PM PDT My wife and I are in the process of "getting our house ready to sell" over the course of the next 6 to 9 months. Just a little background here first: We're planning on buying some land with some other friends and we need to sell our house in order to have the equity to purchase it and then build. We're not really in a hurry from this perspective because they kind of need to get their ducks in a row as well. In the last year, we just replaced all the hardie plank on the outside, put in a new driveway, and put on a new $35k porch. Since we moved in, we have been updating a lot but some of it has just been cosmetic upgrades. It looks very nice though. It's not ridiculous but it's done nicely and my wife has a good decorating style. Here are a few pictures of the master (which in did a wood ceiling on) the porch and the kitchen eating area (which I also did a wood ceiling on): https://imgur.com/gallery/Re20E9y It was built in 1988 and still has the original kitchen cabinets, the gold shower, jacuzzi tub etc. All have been "redone" with new paint, hardware, hinges etc but it's still original. I'm extremely handy and I am a woodworker and can do most of the upgrades myself. Ultimately the four projects it really "need" to get done are the kitchen needs to be updated, the master bath needs to be updated, the second bath needs to be updated, and the laundry room needs to be tiled. I can do tile work, electrical work, pretty much everything. If we ended up putting in new kitchen cabinets and basically giving the kitchen a facelift, I can do all that as well. Being that I can do it all myself, it's not very expensive work. I live in the safest city in Georgia and the schools are all 9 or 10/10. It's a great little suburb of Atlanta and it's a nice neighborhood. The houses in our neighborhood go for somewhere between $400k and $470k. Houses that have nothing done might go for $390k but overall those are the ranges. As I said, the upgrades would be somewhat cheap. I can probably give the kitchen a really nice facelift with new cabinets, quartz countertops, new range/oven etc. for about $15,000. The master bath I would retile the whole floor, new tub, tile the shower and put in a new vanity. I figure around $10-$12k for that. $6k for the kids bath and $500 for the laundry room. But won't my house still sell without all this? My wife is an amazing decorator and the house looks great. Why bother putting $40k into these projects just for it to sell for $40k more? The answer I see online is that it will "sell faster" but if we don't care about that, is there a downside to just listing and waiting? TLDR: if my house will sell for $410k without updating the kitchen, master bath, etc, why should I put $40k into it and do all the work just to have it sell for $450k? Why not list now? What am I missing? Side note, we bought in 2012 at the absolute bottom and got a steal of a deal at $212k. We've dumped a lot of money into it but we've paid off a bunch since then so we have a lot of equity to put it mildly. [link] [comments] |
| Refinance Question - Nonconforming Posted: 08 Aug 2020 07:13 AM PDT My current bank, Wells, does not provide refinancing for my NYC apartment because it has commercial space over 40% and does not meet the Fannie Mae guidelines. However, when I reached out to Chase and Better mortgage, they all claim the same. They all told me that the major lenders only deal with mortgages within the guidelines, otherwise it would have to be a jumbo loan, which I wouldn't qualify for (under $510K). Is there any mortgage lenders out there that provide nonconforming loans? I am currently reaching out to Quicken to see if they are any different. [link] [comments] |
| What is the cost to take the NY state licensing exam? Posted: 08 Aug 2020 07:12 AM PDT I'm looking into online courses and it's unclear what the process is after you go through the course. Any insight would be greatly appreciated! [link] [comments] |
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