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  Semper Fi
    
Location: North Texas | 1DSoon - 2016-02-11 11:02 AM
foundation horse - 2016-02-11 11:59 AM 1DSoon - 2016-02-11 10:47 AM Whiteboy - 2016-02-11 11:26 AM 1DSoon - 2016-02-11 9:32 AM Whiteboy - 2016-02-11 10:26 AM My advice is put the entire 20% down. If you cant afford the down payment you cant afford the house. People who dont follow that rule spend the rest of their life trying to dig out.  If you spend the rest of your life trying to dig out of a realestate investment you are doing it wrong. The only benefit of a larger DP is not having to escrow. Money is cheap and anytime I can use someone else's money I'm going to do that.
they are doing it wrong.Â
 Do you do everything 'right'?
Typically eh? I find 'that' very difficult to believe. However, you dang act and believe You and Only You do everything 'right'. Which is the definition of arrogance. And You Darn Sure pull off the arrogant attitude on this board extremely well. Especially to be such a Socialist Leaning Individual. Scratch Arrogant, Elitist is more suited to Your Attitude! | |
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 Cute Little Imp
Posts: 2747
Location: N Texas | foundation horse - 2016-02-11 11:09 AM 1DSoon - 2016-02-11 11:02 AM foundation horse - 2016-02-11 11:59 AM 1DSoon - 2016-02-11 10:47 AM Whiteboy - 2016-02-11 11:26 AM 1DSoon - 2016-02-11 9:32 AM Whiteboy - 2016-02-11 10:26 AM My advice is put the entire 20% down. If you cant afford the down payment you cant afford the house. People who dont follow that rule spend the rest of their life trying to dig out.  If you spend the rest of your life trying to dig out of a realestate investment you are doing it wrong. The only benefit of a larger DP is not having to escrow. Money is cheap and anytime I can use someone else's money I'm going to do that.
they are doing it wrong.Â
 Do you do everything 'right'? Typically eh? I find 'that' very difficult to believe. However, you dang act and believe You and Only You do everything 'right'. Which is the definition of arrogance. And You Darn Sure pull off the arrogant attitude on this board extremely well. Especially to be such a Socialist Leaning Individual. Scratch Arrogant, Elitist is more suited to Your Attitude!
I think you spelled "troll" wrong 
To the OP, the best advice I can give you is to not fall in love with the first house you look at, because it will tend to make you overlook and/or downplay its problems. You have to take the emotion out of it and be prepared to walk away.
Edited by Gunner11 2016-02-11 11:19 AM
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Semper Fi
Location: North Texas | Gunner11 - 2016-02-11 11:16 AM
foundation horse - 2016-02-11 11:09 AM 1DSoon - 2016-02-11 11:02 AM foundation horse - 2016-02-11 11:59 AM 1DSoon - 2016-02-11 10:47 AM Whiteboy - 2016-02-11 11:26 AM 1DSoon - 2016-02-11 9:32 AM Whiteboy - 2016-02-11 10:26 AM My advice is put the entire 20% down. If you cant afford the down payment you cant afford the house. People who dont follow that rule spend the rest of their life trying to dig out.  If you spend the rest of your life trying to dig out of a realestate investment you are doing it wrong. The only benefit of a larger DP is not having to escrow. Money is cheap and anytime I can use someone else's money I'm going to do that.
they are doing it wrong.Â
 Do you do everything 'right'? Typically eh? I find 'that' very difficult to believe. However, you dang act and believe You and Only You do everything 'right'. Which is the definition of arrogance. And You Darn Sure pull off the arrogant attitude on this board extremely well. Especially to be such a Socialist Leaning Individual. Scratch Arrogant, Elitist is more suited to Your Attitude!
I think you spelled "troll" wrongÂ
Literally LMAO  | |
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Miracle in the Making
Posts: 4013
| home warranity is a must too | |
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 That's White "Man" to You
Posts: 5515
| 1DSoon - 2016-02-11 10:47 AM Whiteboy - 2016-02-11 11:26 AM 1DSoon - 2016-02-11 9:32 AM Whiteboy - 2016-02-11 10:26 AM My advice is put the entire 20% down. If you cant afford the down payment you cant afford the house. People who dont follow that rule spend the rest of their life trying to dig out. If you spend the rest of your life trying to dig out of a realestate investment you are doing it wrong. The only benefit of a larger DP is not having to escrow. Money is cheap and anytime I can use someone else's money I'm going to do that.
they are doing it wrong.
Yeah it was everything else you said that was stupid. | |
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Location: Not Where I Want to Be | Whiteboy - 2016-02-11 12:24 PM 1DSoon - 2016-02-11 10:47 AM Whiteboy - 2016-02-11 11:26 AM 1DSoon - 2016-02-11 9:32 AM Whiteboy - 2016-02-11 10:26 AM My advice is put the entire 20% down. If you cant afford the down payment you cant afford the house. People who dont follow that rule spend the rest of their life trying to dig out. If you spend the rest of your life trying to dig out of a realestate investment you are doing it wrong. The only benefit of a larger DP is not having to escrow. Money is cheap and anytime I can use someone else's money I'm going to do that.
they are doing it wrong.
that's cute,,,,,,,,,you are going to advise people to use up all or a vast majority of their liquidity and tell me that I'm saying stupid things.
I hope you don't make your living the in the financial world. | |
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Semper Fi
Location: North Texas | Also, from personal experience: It is wise when having a mortgage payment to maintain approximately six months of mortgage payments separately from everything financially speaking due to unexpected circumstances to include job loss. | |
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That's White "Man" to You
Posts: 5515
| 1DSoon - 2016-02-11 11:26 AM Whiteboy - 2016-02-11 12:24 PM 1DSoon - 2016-02-11 10:47 AM Whiteboy - 2016-02-11 11:26 AM 1DSoon - 2016-02-11 9:32 AM Whiteboy - 2016-02-11 10:26 AM My advice is put the entire 20% down. If you cant afford the down payment you cant afford the house. People who dont follow that rule spend the rest of their life trying to dig out. If you spend the rest of your life trying to dig out of a realestate investment you are doing it wrong. The only benefit of a larger DP is not having to escrow. Money is cheap and anytime I can use someone else's money I'm going to do that.
they are doing it wrong.
I hope you don't make your living the in the financial world.
I recommend buying a house that is commensurate with their ability to save. | |
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Location: Not Where I Want to Be | Whiteboy - 2016-02-11 12:32 PM 1DSoon - 2016-02-11 11:26 AM Whiteboy - 2016-02-11 12:24 PM 1DSoon - 2016-02-11 10:47 AM Whiteboy - 2016-02-11 11:26 AM 1DSoon - 2016-02-11 9:32 AM Whiteboy - 2016-02-11 10:26 AM My advice is put the entire 20% down. If you cant afford the down payment you cant afford the house. People who dont follow that rule spend the rest of their life trying to dig out. If you spend the rest of your life trying to dig out of a realestate investment you are doing it wrong. The only benefit of a larger DP is not having to escrow. Money is cheap and anytime I can use someone else's money I'm going to do that.
they are doing it wrong.
I hope you don't make your living the in the financial world.
now that is sound financial advice.
But that was not what you said in the original post
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That's White "Man" to You
Posts: 5515
| 1DSoon - 2016-02-11 11:33 AM Whiteboy - 2016-02-11 12:32 PM 1DSoon - 2016-02-11 11:26 AM Whiteboy - 2016-02-11 12:24 PM 1DSoon - 2016-02-11 10:47 AM Whiteboy - 2016-02-11 11:26 AM 1DSoon - 2016-02-11 9:32 AM Whiteboy - 2016-02-11 10:26 AM My advice is put the entire 20% down. If you cant afford the down payment you cant afford the house. People who dont follow that rule spend the rest of their life trying to dig out. If you spend the rest of your life trying to dig out of a realestate investment you are doing it wrong. The only benefit of a larger DP is not having to escrow. Money is cheap and anytime I can use someone else's money I'm going to do that.
they are doing it wrong.
I hope you don't make your living the in the financial world.
But that was not what you said in the original post
Glad we got that clarified. | |
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 Hugs to You
Posts: 7550
Location: In The Land of Cotton | I didn't have nor have a problem putting down just 3% for my first house. I was a single mother. I just figured in the PMI, insurance , and taxes as one whole payment. I also was brave and got an adjustable rate with a 2% cap. However, I have a financial background. I then paid extra to equal one principal payment.
I was able then to keep my extra cash for emergencies. After reaching the 20% mark I wrote a letter and was able to get the PMI removed and then added that to the extra principal. I paid that mortgage down quite quickly. So 20% down is not always the way to go | |
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 Extreme Veteran
Posts: 494
Location: La Frontera | If the property has a well make sure to get a well inspection. The inspector, who is different than your home inspector, will tell you the age of the well, it's condition, where the static water level is, pumped water level and gallons per hour pumped. It can be very expensive to put in a new well or repair an old one. It's worth the couple hundred dollars to get a well inspected before you purchase. Also put the well inspection clause in your contract to purchase. | |
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 Elite Veteran
Posts: 936
| Thank you all for the information!
Lots to think about definitely. I appreciate it | |
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 Elite Veteran
Posts: 695
Location: Missouri | when you look at the house - DO NOT look how they have it decorated or painted! those things change, look at the structure make sure you like the lay out/floor plan of the house.
When the inspector goes to the house - YOU be there as well, so you can ask questions and they can explain if something is cosmetic or structural. Make sure they are working for you!
As for the mortgage, shop around, there are several different types of loan programs. find the best for you. Make sure you buy within your price range, if you can only afford to spend $700 a month on your mortgage then don't let them sell you on a product that will cost you $900 a month. you are the only one that knows how much you want to spend a month and still be able to eat, go to a barrel race or whatever! Always remember when a lender figures what you can afford it is before taxes not what you bring home!
Good luck | |
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 Half-Eaten Cookies
Posts: 2075
Location: Fort Worth / Springtown | We saved $11,000 which wasn't easy to do, but still had to do FHA with mortgage insurance. We love our house - it took 6 months to get - it was a short-sale that wasn't revealed in the beginning and it was a very frustrating, scary 6 months, because we didn't know if it would all fall through in the end, and all the while, the owners were stripping the house and the neighbors were telling us, but if the banks found out, they said they would just foreclose. We got it and are soooooo happy where we are at.
Get a good mortgage broker --- their fees vary, so compare! PrimeWest was ours and they were the best out of dealing with many.
Prepare for varying costs - I got a quote for homeowners insurance at the time we put the offer on the house and by the time we closed on the house, it had increased 50%.
We have a good FIXED interest rate.
Stay on top of everything and be organized/thorough when you send everything in to your finance company.
Stop your spending right now until AFTER you close on your house -- in the meantime, only take actions that will impact your credit positively.
You will have ups and downs in your search - learn from all of them and keep your chin up!
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 My Heart Be Happy
Posts: 9159
Location: Arkansas | countrygirl2006 - 2016-02-11 10:30 AM
1DSoon - 2016-02-11 9:32 AM Whiteboy - 2016-02-11 10:26 AM My advice is put the entire 20% down. If you cant afford the down payment you cant afford the house. People who dont follow that rule spend the rest of their life trying to dig out.  If you spend the rest of your life trying to dig out of a realestate investment you are doing it wrong. The only benefit of a larger DP is not having to escrow. Money is cheap and anytime I can use someone else's money I'm going to do that.
Wasn't sure about anyone else but I can't seem to find any "cheap" money | |
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Half-Eaten Cookies
Posts: 2075
Location: Fort Worth / Springtown | 3canstorun - 2016-02-11 12:10 PM I didn't have nor have a problem putting down just 3% for my first house. I was a single mother. I just figured in the PMI, insurance , and taxes as one whole payment. I also was brave and got an adjustable rate with a 2% cap. However, I have a financial background. I then paid extra to equal one principal payment. I was able then to keep my extra cash for emergencies. After reaching the 20% mark I wrote a letter and was able to get the PMI removed and then added that to the extra principal. I paid that mortgage down quite quickly. So 20% down is not always the way to go
That's great - what year did you write the letter to get PMI removed -- was it recent?
I've been researching for a while and all I could find was that they don't do that anymore.
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Extreme Veteran
Posts: 477
Location: IA | They will remove your PMI--I just got a letter that said I could ask them to review and remove.
My bank said that if you had paid at least 20% of the original loan amount, you could ask for a review to have the PMI removed.
Also if you had paid off 75% of the original loan amount, they would review and remove it themselves.
Just contact your lender to see what actions they want. We didn't have 20% down on our place, but budgeted in for all the payments and haven't had any trouble. At least owning it, we weren't throwing money down the hole on rent. But I do agree, ownership does come up with some pricey, not fun surprises once in a while.
Good luck, and know your own limits before you sign all those papers! | |
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Half-Eaten Cookies
Posts: 2075
Location: Fort Worth / Springtown | I wonder how all those who suggest saving 20% down were first-time homebuyers when they did this?
If you have a house with equity already built and sell it first, that'd be easy to have 20%. Or sell a house up North and move South.
You still must pay closing costs on top of that or probably pay more for the house, unless Seller thinks you offered enough for the house and will pay closing, and that is a LOT of money to save if you are living alone, renting. Or an adult living with your parents.
I could see where it might be easier if you live with a b/f or fiance and you are saviing together, but there are those who don't want to live together before they are married for years saving for a house. And even if you ARE married, what good is it to pay high rent for years while saving for the 20% down?
I would look at all the options and consider every situation inidividually and what works best for you. I'm not at all saying the 20% is impossible.
As I posted, earlier, we only saved $11,000/$12,000 which paid 3% + closing. We have over $50,000 equity in the house, now after 2 1/2 years (due to the good deal we got and then property value rise). And I don't have to drive twice a day to my parents to take care of my horses, anymore.
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Half-Eaten Cookies
Posts: 2075
Location: Fort Worth / Springtown | Turninfly - 2016-02-12 8:54 AM They will remove your PMI--I just got a letter that said I could ask them to review and remove.
My bank said that if you had paid at least 20% of the original loan amount, you could ask for a review to have the PMI removed.
Also if you had paid off 75% of the original loan amount, they would review and remove it themselves.
Just contact your lender to see what actions they want. We didn't have 20% down on our place, but budgeted in for all the payments and haven't had any trouble. At least owning it, we weren't throwing money down the hole on rent. But I do agree, ownership does come up with some pricey, not fun surprises once in a while.
Good luck, and know your own limits before you sign all those papers!
There you go - that is great! 
And you know, if you DID put all your savings in to allow for 20% down, you used all your emergency fund - hopefully it all works out if someone does that, as well. | |
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