Just found out our home purchase is going to fall through! [bang] The lender is asking for an additional 5% down because the home is in a declining market. Don't have the extra cash. We recently sold our home in Chicago and had to pay up quiet a bit, was under about 40 grand. Figured we would pay up before it declined even more and be done with it so we can purchase in San Diego. Was able to come up with 3 % down and using a FHA loan, but now they are asking for 5 % more. They should of told us this shit before we even made an offer! >:( So pissed! :(
No offense, but if you can't come up with even 8% of the asking price, you probably shouldn't be buying the home just yet. I, personally, have made a deal with myself that I won't go in with any less than 10% down. If I can't come up with 10%, then I'll keep saving 'til I can.
Quote from: darylbowden on October 01, 2008, 11:34:04 AM
No offense, but if you can't come up with even 8% of the asking price, you probably shouldn't be buying the home just yet. I, personally, have made a deal with myself that I won't go in with any less than 10% down. If I can't come up with 10%, then I'll keep saving 'til I can.
good advice
Quote from: darylbowden on October 01, 2008, 11:34:04 AM
No offense, but if you can't come up with even 8% of the asking price, you probably shouldn't be buying the home just yet. I, personally, have made a deal with myself that I won't go in with any less than 10% down. If I can't come up with 10%, then I'll keep saving 'til I can.
+1 - this is the practice that got the markets into the current mess in the first place. Not long ago, 20% down was the standard.
mitt
Quote from: mitt on October 01, 2008, 11:35:32 AM
+1 - this is the practice that got the markets into the current mess in the first place. Not long ago, 20% down was the standard.
mitt
Yeah, and if I didn't live in LA where prices are astronomical, I would adjust that figure to 20%. If I lived in Texas or somewhere else where housing is cheap, 20% would definitely be my minimum.
My house is worth less than when I bought it in 2001 :-\
we did save up for the down payment here in san diego, but as I said we had to use that when our house in chicago was sold.
now our relocation benefits are expiring soon and will not be able to have our purchase expenses paid after. so that is the hurry.
Quote from: darylbowden on October 01, 2008, 11:36:45 AM
Yeah, and if I didn't live in LA where prices are astronomical, I would adjust that figure to 20%. If I lived in Texas or somewhere else where housing is cheap, 20% would definitely be my minimum.
yeah, i could of bought a few acres there. but texas is not so desirable to me.
Quote from: mitt on October 01, 2008, 11:35:32 AM
+1 - this is the practice that got the markets into the current mess in the first place. Not long ago, 20% down was the standard.
mitt
We bought our first house in 89.
Is it just me or have lenders gotten really lax. The first time they wanted 3 years of tax returns, the last "you got a job" 'yup' "good enough"
The first time 15 or 20 % down, the last the earnst money ($ 1,000) was good enough.
I put 4% down for FHA 10 years ago when i bought my house. 30 year fixed 6.5% 3/4 point in 1998. Houses were not overvalued then. Now my house is worth 2.5x what I paid even in this crummy market. I've kinda make the beast with two backsed myself a bit for using my home as an ATM machine with refis. Every extra dime I make goes to paying off debt. I got 4 years to go and I'm debt free. The only thing that im glad for was insisting on fixed rate mortgages on my refi's.
I thought only 1st time buyers qualified for an FHA backed loan?
Quote from: sno_duc on October 01, 2008, 11:46:01 AM
We bought our first house in 89.
Is it just me or have lenders gotten really lax. The first time they wanted 3 years of tax returns, the last "you got a job" 'yup' "good enough"
The first time 15 or 20 % down, the last the earnst money ($ 1,000) was good enough.
Yes lenders got lax (or predatory). Thats why there is this whole Subprime Mortgage/Foreclosure Crisis thats been everywhere on the news for the past two years.
Quote from: JBubble on October 01, 2008, 11:47:54 AM
Yes lenders got lax (or predatory). Thats why there is this whole Subprime Mortgage/Foreclosure Crisis thats been everywhere on the news for the past two years.
Maybe this link from the DMF politics forum 'subprime primer' needs to posted here too:
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1
mitt
Welcome to California. At least the weather is better. San Diego has some of the country's best weather. Enjoy the ride. [moto]
Quote from: r_ciao on October 01, 2008, 11:59:42 AM
Welcome to California. At least the weather is better. San Diego has some of the country's best weather. Enjoy the ride. [moto]
was there last weekend....weeeeeeeeeeeeeeeeeeeeee [moto]
Quote from: ROBsS4R on October 01, 2008, 11:39:30 AM
My house is worth less than when I bought it in 2001 :-\
where are you located?
mitt
We recently applied for our first home. We were qualified based on the assumption that I would be getting a raise and the assumption that my wife would be making 2x her current income by the time we closed. Also, based on the assumption that we would have x amount of debt payed off by closing. This of course was all based on income before taxes, insurance, etc., and not take home dollars. Lax? I should say so.
We said no thanks by the way. We'll just keep renting till we can save enough cash. Than we'll walk in there and say "We'll pay THIS much pregnant doges!"
Quote from: mitt on October 01, 2008, 12:03:34 PM
where are you located?
mitt
our house droped a 100,000.00 in value from the time lm first bought it, till the time we refinanced. about 2 years time.
Quote from: FatguyRacer on October 01, 2008, 11:47:36 AM
I thought only 1st time buyers qualified for an FHA backed loan?
not sure how that works. the first house was bought with 20% down and conventional loan. since this time we were limited, our lender/relocation company said this was an option for us.
Quote from: mitt on October 01, 2008, 11:53:25 AM
Maybe this link from the DMF politics forum 'subprime primer' needs to posted here too:
http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1
mitt
[laugh] [laugh] thanks! I really needed that today.
Quote from: mitt on October 01, 2008, 12:03:34 PM
where are you located?
mitt
Less than 2001 value is hard to believe. I don't think it's gotten that bad just yet.
Tell me about it, we've been house shopping for the past two months, only to be mixed up in this whole credit crisis. Guess we'll do that same and just wait until we can plop down 20%.
Damn I can't wait to get out of this apartment though.
this market is great for buying.
I don't have a lot of sympathy for people who overextended on houses. it's nobody's business but your own to buy what you can afford.
everyone is blaming the lenders, but what about blaming the people who didn't bother to.....
blah blah blah....edited to stop the blathering.
(I will be buying at least two more properties before the end of the year)
Quote from: Statler on October 01, 2008, 01:45:21 PM
this market is great for buying.
I don't have a lot of sympathy for people who overextended on houses. it's nobody's business but your own to buy what you can afford.
everyone is blaming the lenders, but what about blaming the people who didn't bother to.....
blah blah blah....edited to stop the blathering.
(I will be buying at least two more properties before the end of the year)
is one a race track?
It's a shame so many people got duped into the "hey, this'll be worth 25% more in a year. C'mon, you can do this adjustable thing and not even pay that much until you sell it and make a KILLING" scheme. Home ownership is a carrot held up to people that's so good that even smart people get all caught up in the emotions of it.
Anyway, back to the point. My advice is to move into a smaller apartment than you'd like with a lower rent and save a lot for a down payment. Prices will likely continue to fall for 12 to even 24 months, and interest rates are only going to go up or stay even at the best, so you don't want to borrow a lot anyway. Good luck.
Quote from: Statler on October 01, 2008, 01:45:21 PM
this market is great for buying.
I don't have a lot of sympathy for people who overextended on houses. it's nobody's business but your own to buy what you can afford.
everyone is blaming the lenders, but what about blaming the people who didn't bother to.....
blah blah blah....edited to stop the blathering.
(I will be buying at least two more properties before the end of the year)
This is why we're looking to buy now, and ditto on the no pity for people who hung themselves out to dry.
You should see the housing market in Boston..... :o
When I bought my home... 20% down was the norm back in 93. Five more years of payments and it's all mine.
Quote from: bobspapa on October 01, 2008, 01:47:07 PM
is one a race track?
not without a lottery win. :(
But I'm young, so I'm working on it.
Quote from: bobspapa on October 01, 2008, 04:25:52 PM
like a ktm toaster draft
ouch.
lawyer down.
help...
actually, that got finished, but then the DML sold to VS so it got put away.
perhaps it should be resurected for the DMF and give KTM a good talking to. (but I want a X-bow).
nice memory though. good to keep the DMF admins humble.
bastid. ;D
[laugh]
Quote from: turd-bobspapa on October 01, 2008, 12:00:40 PM
was there last weekend....weeeeeeeeeeeeeeeeeeeeee [moto]
how was the weather ;)
Quote from: superjohn on October 01, 2008, 03:01:11 PM
Anyway, back to the point. My advice is to move into a smaller apartment than you'd like with a lower rent and save a lot for a down payment. Prices will likely continue to fall for 12 to even 24 months, and interest rates are only going to go up or stay even at the best, so you don't want to borrow a lot anyway. Good luck.
yeah, we were thinking that. but it would have to be a house to rent, we have too many things/toys and a dog that needs a big yard. the thing is the relocation company will be paying all the closing costs/realtor/inspections and everything else associated. those benefits expire in late December, and the paid storage time just ran out. we'll find out soon if the deal goes through. oh well, things happen for a reason. hell, the way things keep dropping by next year we might be able to buy in cash!
Mine dropped about $90K from the peak. I'm still up about 170% from buying it in 2003. I really doubt it's going to get anywhere close to what I bought it at.
Down about 10% ($40k) from just under 3 years ago. I thought we were buying at a low point... That's what I get for thinkin'!
I was thinking how nice it would be to buy a condo in Waikiki. We can afford it, assuming even occasional rental. Until you look at the RIDICULOUS maintenance fees. $600 for a studio with no pool, no parking, etc. I think we'll keep searching for an investment property.
Here in NYC, rents got so out of hand some people over extended themselves buying condos to reduce monthly expense. This also pushed up husing costs in the boroughs. People simply ran out of options, kind of a big catch 22.