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    Monday, September 14, 2020

    Real Estate: First time home buyer with offer finally accepted after months of looking, but now panicking

    Real Estate: First time home buyer with offer finally accepted after months of looking, but now panicking


    First time home buyer with offer finally accepted after months of looking, but now panicking

    Posted: 14 Sep 2020 04:35 AM PDT

    I'm a first time home buyer in a very strong sellers market. I've been outbid on so many properties by way over asking price. But I've finally had my offer on a house that "checked all the boxes" accepted, but which was at my max budget. The first day was pure joy. Now I've been laying in bed since 3am freaking out. Can I really afford it, am I making the right choice, are the neighbors/neighborhood nice, will property hold its value....

    I'm wondering from experienced buyers, how were you able to cope with the first time home buying stress?

    Edit: I guess I should clarify, I'm not going to be struggling to come up with monthly mortgage, it's just more than I've ever paid for rent, and Ive been fortunate enough to have gotten comfortable saving a certain amount every month. Spending money is just a huge anxiety factor for me

    submitted by /u/Podoviridae
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    Tips for Tough Market?

    Posted: 14 Sep 2020 08:33 AM PDT

    My fiancé and I are feeling a little deflated after 2 failed offers on homes we really loved. We are pre-approved for $200k and we live in the Finger Lakes Region in NY. It's a super tough market. Most homes are put up for sale and sold in the same day.

    The first home we put an offer on was listed for $150 and we offered $165. We were outbid with an all-cash offer. The next home was listed for $140 and we offered $160. Again we were outbid by an all-cash offer.

    We are waiving the inspection and asking for $0 seller concessions. Since we are using an FHA loan, we are also agreeing to pay for any necessary repairs the FHA inspector says the home needs. We are also offering to pay the difference in cash if the homes appraise low.

    I feel like we are doing everything we can but we can't compete with an all-cash offer. Is there anything else we can do to make our offers even stronger?

    I feel like we have a great realtor. He's super responsive and gets things done quickly for us.

    submitted by /u/kyrstiebee
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    Purchasing Multi-Unit (2-4) Buildings

    Posted: 14 Sep 2020 06:39 AM PDT

    There are multiple old, cheap apartment buildings in my area that have 2-4 units for rent. Some of which even have renters already occupied. By the numbers....

    - Price of the building: $200K

    - Mortgage, Insurance, Taxes: $900 per month

    - 4 units, 1B1B units rented at $600 per month for the next year

    By my calculations, that's potentially $1,500*12 = $18,000 in cash flow (before property management fees and maintenance) during the first year alone which seems way too good to be true.

    What would be the risk in buying one of these, and immediately hiring a property management company to do everything? I'm sure the big piece is going to be maintenance of the 4 units, but if I go through inspection and have the foundation and roof cleared, what would be the biggest "oh sh*t" moment? Anything else to consider?

    submitted by /u/rwcg2d
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    I just locked 2.65% on a 30 year

    Posted: 13 Sep 2020 10:48 AM PDT

    Credit in low 800s, no debt. It's a high balance and 5% down, so there are probably even better rates out there. Still an incredible rate and I am very happy about it. Closing costs were $4,350. No points. Western WA state.

    Edit: I don't want to post the lender because it might be considered "advertising" - if you want to know feel free to PM me

    submitted by /u/hisfatness
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    Are rent-to-own programs actually a good option to consider?

    Posted: 14 Sep 2020 08:48 AM PDT

    Background info: -21 years old -FICO is 702, other scores 665-670 -College student working full time as insurance sales agent. Next month I am getting my real estate license and am working on another part time job so I can leave insurance altogether

    I live at home with my parents but am moving out to the Atlanta area (from Augusta) to get my career started. I may have a roommate right when I move out, but because he's coming from out of state I don't want to plan entirely around him just in case something comes up. I have been looking at apartments in Duluth which is about 30 min from Atlanta. I haven't really been impressed with the pricing or the reviews on those with decent prices. Anything cheap seems to have only "ya get what ya pay for" reviews. I don't see the point in paying for an expensive apartment unless it's like a condo with a view of the city. I looked at renting a house and those prices look higher than mortgage payments.

    I am wondering if I should just buy a house altogether (in my name and have roommate split whatever bills he agrees to). I can't afford a down payment on a conventional loan but I've seen a lot of rent-to-own ads. I just can't seem to get any information without inputting all of my personal information first. Any advice? I am also open to other living suggestions if anyone is familiar with this area. Thanks!

    submitted by /u/amazingtess
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    Can someone please explain how to get an <3% mortgage?

    Posted: 14 Sep 2020 08:29 AM PDT

    the best i've found without ridiculous points/closing costs is 3.25%. this was after checking rates at Better.com, Alliant Credit Union and Citi. how are you some of you guys getting under 3%, especially with less than 20% down?

    wife and i make ~$250K combined and are looking at putting 10-20% down on a $750K house in the NYC suburbs.

    thank you!

    submitted by /u/Heavy_Cheddar
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    Can I afford a second mortgage?

    Posted: 14 Sep 2020 06:16 AM PDT

    Looking for general advice or suggestions for my plan.

    27 year old looking to buy a second home out of city center due to working from home. I plan on using my first home, a high rise condo, as Airbnb. I would like to qualify without using rental income. I've had 10 Airbnb booking in the past year averaging $150 per night. But like I said I don't want to rely on it and over leverage. It's very easy to at least get all weekends booked with little effort.

    STATS:

    Salary: $84k

    Loans: $132k left on $215k condo.

    Monthly mortgage+HOA+Tax = $1,100

    Second home price: Around $200k

    Down payment: Up to $50k

    Credit Score: Over 800

    No other loans besides CC paid off every month.

    What is the lowest % down lenders will be willing to let me borrow for a second home?

    submitted by /u/bimmerboy7
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    Seattle smoke + Listing

    Posted: 14 Sep 2020 08:25 AM PDT

    Hey friends. We are set to list our home Wednesday in the quite hot 25 minutes North of Seattle market. We have our pictures/video tomorrow.

    Guys. Our air quality is AWFUL (currently sitting in the hazardous category) because of the wildfire smoke that has blown in and settled. We have no forecast of wind, rain, or pressure change to get this crap moving. It is dim, hazy, stinky and your throat hurts nonstop.

    Our house is one of those 'light and bright' kind of homes that shows, and photographs?, best with actual DAYLIGHT. However, I don't think it's prudent to put off listing just for this consideration.

    Any thoughts from the crowd? Regarding photographs, smoke concerns in general, listing timeframe. My brain won't shut up about this.

    submitted by /u/threeeyedmaven
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    Question regarding buying a home that has finished basement with bathroom (possible no permits) in Massachusetts

    Posted: 14 Sep 2020 09:05 AM PDT

    My wife and I are first time home buyers and I have no idea about any of this stuff We found a home we love It's listed as a 3 bedroom but only has 2 upstairs and a finished basement they turned into a bedroom. The listing said 3 bedroom But on the MLS it says 2 bedroom family room b (basement)

    My question is if permits were never gained to finish the basement and put in the half bath with it what does that mean to us the buyers?

    Can we be fined? Will there be issues with selling the home? Can the town fuck me later?

    I'm fine with it being a 2 bedroom officially with. Basement finished and used as a bedroom for us...

    But what does it all mean in the future and now if I find out no permits were obtained for them to do this work

    We had offer accepted today But our realtor is looking into permits obtained for our ref and info...

    Help please!!

    submitted by /u/SilenceOfDaPwnd
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    Frustrated: Two weeks from closing and haven’t got the appraisal report or heard from the underwriter

    Posted: 14 Sep 2020 08:45 AM PDT

    First time home buyer using VA loan at fixed 30 years with interest rate of 2.25% and 45 days guarantee closing. Our offer on the house we wanted got accepted on August 8th and thus, began our journey. Our LO was very responsive and efficient from the beginning, one of the main reasons we went with the lender. But as soon as the rates were locked in and she handed us over to the underwriter, she kind of disappeared. No further guidance. Is that normal?

    We waived home inspection (house is very well maintained, in great shape and recently updated so we weren't concerned, plus we want to ensure we get the house). We were credited the appraisal fee (using Homes for Heroes) by the lender so they were responsible for paying and getting the appraisal out. We heard nothing from our LO until we had to email her and ask for an update on it. Which we were told that it was scheduled for that same day 08/24. Now it's been two weeks and we haven't heard crickets from our LO again. I had to email her again on 9/3 for an update and was told they already got the appraisal report in and it looks good but that the underwriter will review it first then they will send the report to us in email and through mail. Also was told we are still on track to closing. Today is 9/14 and still nothing. Is this normal? Should I be nervous? I'm sure the sellers are nervous too because our realtor can't give them any updates. Should I bug my LO again? I don't want to annoy them but we are two weeks from closing on 9/25 and so far the underwriter has not ask for any thing. It's frustrating and nerve racking.

    Also is it normal to wait til the underwriter review the appraisal report before we get to see it or is our lender doing it this way because they paid for it? Can I ask them to email it to us while the underwriter continues to review it? Would deeply appreciate any comments or advice. Thanks!

    submitted by /u/ABowlOfChickenCurry
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    I think this house is way over priced

    Posted: 14 Sep 2020 08:28 AM PDT

    So the address of the house my wife and I were looking at is 2623 Linda drive, Murrysville, pa 15668. It's about 1200sq ft, 3 bedroom 2 bath. It still needs a little work, garage doors need replaced, driveway needs paved.

    It's a flip, the guy is way too deep into it. We offered 250k+asking to for new garage doors. He countered at 255k+no doors. So we walked. But thinking about it for awhile, I am glad he didn't accept, I think as the market is starting to come back to preCOVID-19 times (still a seller's market), some of these houses are dropping in price.

    The 150-200k market in the Greater Pittsburgh Area is hot right now, but I've been seeing many houses that are sitting with price drops. Asking 30k over normal market value for a dated ranch isn't flying anymore.

    Anywho, we are redoing our townhome in the winter to sell and I am confident that house will be available by spring unless he drops the price. What would be a good number to throw at it? I'm thinking no higher than 235k at this point.

    submitted by /u/Snaebakabeans
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    Mortgage offers and credit reports – When is a good time? (First-time homebuyers)

    Posted: 14 Sep 2020 08:24 AM PDT

    Hey everyone! First time posting to this channel :)

    My wife and I are ready to become homeowners, but we can technically look around until August next year; we have flexibility.

    Once we start mortgage shopping, we'll get hit with one hard inquiry on our credit reports, and obviously we'll do all our mortgage shopping within that 45-day window which keeps our hard inquiries down to just one.

    These mortgage offers, from what I understand, will only last 90-180 days. Assuming I'm right, if we get mortgage offers now, we're looking at offer expirations between mid-December through mid-March.

    On one hand, we want to mortgage shop now while the interest rates are still as low as they are. Furthermore, one of our prospective realtors advised us to mortgage shop no later than the election, because interest rates historically go up after that, no matter who wins (btw, is that true?).

    I wouldn't have minded renewing the mortgage offers if we don't get a home in that 90- to 180-day window, except I don't want us to get hit with a second hard inquiry (and I don't want to lose the great interest rates).

    Am I overthinking this? Do we just take the plunge now or should we wait a little closer to wintertime?

    FWIW, my wife has excellent credit, and I have very good (almost excellent) credit. We live in a strong sellers market, and it looks like it'll stay a sellers market for a very long time.

    Any guidance is appreciated. Thanks!

    submitted by /u/richmlw
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    Will property taxes jump with the inflated market? Or do they stay where they are? What if the economy crashes, do property taxes fall with the falling house prices?

    Posted: 14 Sep 2020 08:22 AM PDT

    Looking at houses and all the assements in New Hampshire are 30k-60k lower than current list prices, NH has a mandate where all assements are supposed to be as close to market value as possible. Does that mean it will jump to 350k(current list price) assement from the 285k assesment currently listed if i buy the house?

    What if the economy crashes, will tax assements fall with the prices of homes?

    Thank you.

    submitted by /u/Trevorjrt6
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    Prepping house for sale

    Posted: 14 Sep 2020 10:30 AM PDT

    We plan on selling our house in six months to a year or so to upgrade. Possibly sooner if the pandemic ends early or if the market stops being nuts.

    I'm adding some small upgrades to my house (irrigation system, etc) to increase our quality of life that have reasonable resale values.

    - Is there a good list of low effort high reward items I can take care of while I prep my house for resale?

    - One specific question: We have an OTR microwave in a small kitchen and the fan that doesn't meet our cooking needs. I was thinking of replacing the OTR microwave with a top-end ductless range hood but am mildly concerned that the lack of microwave may negatively impact property value (since counter space is limited). Is this a legitimate concern?

    submitted by /u/diadem
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    [USA- IL] Do you need to disclose all residents of condo when buying?

    Posted: 14 Sep 2020 10:13 AM PDT

    I'm thinking of buying a condo, but wonder if HOAs typically requires that all residents be screened, like rental management companies do. Does anyone know? I can have whoever I want living with me, right? (I'm not doing anything shady, I just don't like the idea of being subject to that level of scruitny as a "homeowner".)

    submitted by /u/picklerick1984
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    Adverse possession advice (Texas)

    Posted: 14 Sep 2020 08:28 AM PDT

    So I have a question and I'm hoping someone here can help me with some advice.

    My family purchased a property 11 years ago. No changes have been made to the fencing. There is a vacant land plot next door that got purchased by a big home renting company around 7-8 months ago. They claim that we have our fence, part of our patio, and driving port 2-3 feet into their land and they want us to remove everything, prior to this we had never received any other complaint regarding the land that we live on. Is it possible for me to file for Adverse Possession, and having them leave us alone ? Or is it just a waste of time and money ?

    submitted by /u/____rin
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    Right choice?

    Posted: 14 Sep 2020 08:02 AM PDT

    Currently a homeowner for almost 15 years. Paid almost 55k, the house was build pre 1910 we have not done mayor repairs done on the house, updates included kitchen all the downstairs and upstairs redone around 6 years ago. Got a cash offer for almost 60k. Looking to buy in the suburbs that offer a better school system for kids. Right now it seems there are not many options with the options (size, amenities) that we are looking. Should I fix my current property and sell or sell now and start looking for a property? Any advice would be greatly appreciated.

    submitted by /u/newmeuc
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    First time buyer, property under contract. Lock-in or float our rate?

    Posted: 14 Sep 2020 07:41 AM PDT

    We have a house under contract for $330k, closing on 10/30 (~45 days from now)

    Should I wait until we are 30 days out from closing, and lock something in, or just float the rate right up until the day of closing? Rates in my area have been steadily dropping over the past 6 months, and I don't see any reason why that trend would change over the next ~45 days. For 30 year conventional loans, local banks are currently advertising 2.38% - 2.52% APR on 30 day locks, no points paid. My credit is good, approximately FICO 765.

    Any thoughts would be very helpful. If we do decide to float the rate right up until closing, would you just go with the lender that is currently advertising the lowest rate?

    Thanks in advance!!

    submitted by /u/redoran
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    Loan officer/underwriter constantly calling me

    Posted: 14 Sep 2020 10:29 AM PDT

    Is this normal? I went through several banks during the pre-approval process to compare rates. I got conditionally approved with one huge bank (all paperwork done) but one of the loan officers or underwriters keeps constantly calling me or emailing me every few weeks to check-in on how I'm doing. All I say is I'm still searching for a place. She calls so often to the point that I am now ignoring her calls. She doesn't need additional paperwork so why keep asking how the home search is going?

    submitted by /u/wfybrn
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    Selling Home to Renters - Questions on Deal

    Posted: 14 Sep 2020 10:22 AM PDT

    Hi all - I've got a situation which I'm hoping others have had experience with. I currently own a rental property out of state and just randomly reached out to my tenants to see if they were interested in buying the home. Surprisingly, they are interested in buying before the lease ends. So, my questions:

    1. Since they are current tenants, I'm planning to sell without an agent. From what it looks like, they still want to use a buyer's agent. I explained I can offer the house for a better price if done without agents (i.e. real estate lawyer) but they seem intent on using an agent. Since this is pretty straight forward sale, what's a reasonable commission to offer the buying agent? I was thinking 1.5 to 2%.
    2. Are there pitfalls to selling to tenants that I haven't thought of?
    3. Any strategies you've used for negotiations?

    Thanks!

    submitted by /u/roostereagle
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    Have you ever negotiated a new build contract?

    Posted: 14 Sep 2020 06:32 AM PDT

    Hi all, I'm looking at a new build community by Toll Brothers in Arizona. My wife and I have never bought from a builder but I googled that there are some items that can be negotiated like lot premiums, upgrades etc. I'm just hoping to hear peoples experiences in doing this and if any negotiation took place.

    I want to aggressively negotiate the lot premium and just not sure if anyone has had success doing that. Thanks all for any responses I might get.

    submitted by /u/JibblesnBits7
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    Buying a second home on a short timeline, need financing advice

    Posted: 14 Sep 2020 10:02 AM PDT

    Recently took a government job that requires I live within 45 minutes of where I'll be working. I live an hour away right now. I have a little under six months to be relocated. My spouse and I own a home that we're five years in on an FHA loan at 3.825% I owe $106,000. We love this house and see ourselves moving back eventually. Rough estimate is it's worth somewhere between 150-180k. It's also appreciating at a much higher rate than the area we're moving to. Our monthly payment after taxes and insurance has been fluctuating between $800 and $900/month over the life of the loan.

    Combined Annual Income: $148,000

    Monthly take-home after taxes, retirement, and insurance: $9,000/month

    Current house payment: $866

    Credit cards, personal, student loans, medical payment plans: $1332/month

    Utilities, phone, car insurance, food, gas & other expenses: $1500-2000/month

    Cash Savings: $4000

    We'd like to spend between $200,000 and $300,000. The rub is, from what I gather, most lenders require at least 10% down on a second home, and we'll be hard pressed to come up with that much cash in the allowable time frame. We might get close, but then finding a home after being pre-approved and closing would probably push us out of the window. 401k loan isn't an option. I'm reading that FHA won't allow us a second loan based off of the required relocation alone because we're not moving far enough. We've thought about renting until we can save more, but we have farm animals that would have to be re-homed in order to do so.

    Edit: Discover is reporting my FICO as a 782, my spouse's credit score will be higher.

    Questions:

    Is it possible to find a lender who will finance a second home with less than 10% down? Or am I wasting my time searching for one?

    If we refinance our current home into a conventional loan with 0% down, will FHA then allow us to apply for a loan for a second home at 3.5% down? Does that change if we have renters occupying the house? We have an elderly family member who is talking about renting it, but it would be below market rate.

    We've had two children since we closed on this home, and it's getting a little small. What kind of evidence would we need to get an exception for a second FHA loan based off of increase in family size?

    submitted by /u/MedDev
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    Getting a mortgage after a cash purchase

    Posted: 14 Sep 2020 06:11 AM PDT

    Dear /r/RealEstate folks,

    Due to a failed startup, We had to sell our house. We were very lucky that our cash out is letting us buy a house 17 miles house further out of the city for cash and pay off all outstanding debt while having enough for about 1 year to live off of even after taxes. However, because for over two years I had no income (busy throwing away my savings in the failed startup), I could not get a mortgage. I have an offer for a long-term contract that should be sent over today or tomorrow for more than enough to get a mortgage if it were as an employee, but it's as a "contractor", not an employee. I did not anticipate getting an offer so quickly and it's a "try before you buy" at a (well funded) growing company. So I have a few questions:

    1. Assuming we close on the new place in a few days as per the P&S, how can I go about getting a mortgage on an already purchased house?
    2. Assuming I get the contract signed on or before tomorrow, should I try to get a Mortgage (is it even likely) for a closing in a few days (Friday)?
    3. Assuming I don't get the above contract, is there anything that I can or should do or consider?
    4. Do you all have other recommendations?

    Thanks in advance. Just discovered this sub and it's been enlightening reading so far.

    submitted by /u/NoClaim
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    How to ask seller to pay for repairs

    Posted: 14 Sep 2020 09:36 AM PDT

    I'm in the process of buying a home. Unfortunately the inspectors found some issues with the roof and the foundation that are likely to be costly repairs. Neither the seller nor myself have the funds to pay for these things out of pocket. I would like to pay the initial price agreed upon, but ask the seller to pay for the repairs with funds from the sale price. Is this possible? How do I go about this? Thank you.

    submitted by /u/luker_5874
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    Question about available credit at closing?

    Posted: 14 Sep 2020 09:34 AM PDT

    Hi there! I'm 22 and purchasing my first home. I'm nearing the end of the process and plan to close on Wednesday. I have 2 credit cards with very low limits (under $2300 total) that I use occasionally for big purchases.

    My question: The seller offered a $500 home warranty credit. I had to pay for the warranty out of pocket and will be reimbursed at closing. This maxed out my credit card and I have very little remaining credit available. I'm very worried that this will cause an issue if my credit score is pulled again prior to closing. I have been pre-approved for the loan, I'm not sure if that makes a difference in this case. I'm very anxious and would love some insight on this. Thanks!!

    submitted by /u/Cmpetty
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