buying real estate

[daryn]

need some info on buying a house/condo

can you just walk into a real estate office and start asking questions? i am kind of a bum, i don't see myself fitting in. also nobody in their right mind would give me a loan due to having no job but what if parents co-sign? should it be no problem after that or could i still run into trouble?

let's put it this way, what is step #1?

[peachy]

making urself not look like a bum so u CAN go into an office

[zephed]

Walk in and light fire to 100K, and let them know you still have the bankroll for 30/60.

EDIT: Yes I'm being a tool, but you'll get tons of other helpful replies I'm sure.

[nyc999]

Get your finances together and shop around for a mortgage pre-approval. You can't start looking until you know what you can afford.

Once you have done that, approach a few real estate agents and let them know what you are looking for. Doesn't matter what you look like, etc. - if you have a pre-approval for a certain amount, they will certainly start looking.

[SomethingClever]

Get a mortgage broker that you trust (recommendation from family or friends) and start looking into getting pre-approved.

You'll easily be able to get a loan, because you have tons of cash, no? You may have to get a stated income loan, which is like half a point higher than standard, but no biggie.

Then, once you're pre-approved, you'll probably want to get a good realtor, who can start scouting properties for you.

***I can't emphasize this enough***

Make sure your mortgage broker and realtor are trustworthy.

[Xelent]

Assuming your parents make a good living and have good credit, and I am guessing they with such marvelous offspring (lol), if they were to co-sign, you would most likely have zero trouble and it would be as if it was their credit.

[samjjones]

Yep. Before that, I'd probably ask around to see if any of my friends know a good/trustworthy real estate agent. If you are referred from a past client, the odds are you will be treated better. If you don't have a job, how are you going to afford a place? Do you have liquid savings? They are definitely going to judge your ability to pay.

[daryn]

</font><blockquote><font class="small">In risposta di:</font><hr />
Walk in and light fire to 100K, and let them know you still have the bankroll for 30/60.

[/ QUOTE ]

why not just use that as down payment?

[Xelent]

[ QUOTE ]
[ QUOTE ]
Walk in and light fire to 100K, and let them know you still have the bankroll for 30/60.

[/ QUOTE ]

why not just use that as down payment?

[/ QUOTE ]

Because that would be plain stupid. Just light the money on fire idiot.

[daryn]

</font><blockquote><font class="small">In risposta di:</font><hr />
making urself not look like a bum so u CAN go into an office

[/ QUOTE ]

any way to make this a peachy-less thread? ty

[daryn]

</font><blockquote><font class="small">In risposta di:</font><hr />
If you don't have a job, how are you going to afford a place? Do you have liquid savings? They are definitely going to judge your ability to pay.

[/ QUOTE ]

i don't have a job, but i do have income. i also have liquid savings.

[zephed]

[ QUOTE ]
[ QUOTE ]
Walk in and light fire to 100K, and let them know you still have the bankroll for 30/60.

[/ QUOTE ]

why not just use that as down payment?

[/ QUOTE ]
It doesn't matter because your reputation as a hit and run artist will prevent you from getting a loan.

[daryn]

ok, everyone is talking up this "pre-approved" business, and i'm digging it. problem is i know nothing about any of this stuff. what does that even mean? sounds like a good first step though

[nyc999]

[ QUOTE ]
ok, everyone is talking up this "pre-approved" business, and i'm digging it. problem is i know nothing about any of this stuff. what does that even mean? sounds like a good first step though

[/ QUOTE ]

Do something like Lending Tree, or call a local bank. The mortgage officers will take you through a 10 - 15 minute interview. You'll need all your financial info, but it's relatively painless.

[vulturesrow]

The main thing is to hope they havent seen the hot tub pic or the parasailing pic.

Seriously, there are a lot of different options for financing right now. Make sure you do some research on the different options so you dont get snowballed. Also, what is your aim with this purchase? Investment, long term home, combination thereof?

[daryn]

</font><blockquote><font class="small">In risposta di:</font><hr />
</font><blockquote><font class="small">In risposta di:</font><hr />
ok, everyone is talking up this "pre-approved" business, and i'm digging it. problem is i know nothing about any of this stuff. what does that even mean? sounds like a good first step though

[/ QUOTE ]

Do something like Lending Tree, or call a local bank. The mortgage officers will take you through a 10 - 15 minute interview. You'll need all your financial info, but it's relatively painless.

[/ QUOTE ]

i just don't want to look silly when they ask "where do you work?"

[mslif]

A mortgage broker will tell you how much money a bank will be willing to lend you or "pre-approved for".

[daryn]

</font><blockquote><font class="small">In risposta di:</font><hr />
The main thing is to hope they havent seen the hot tub pic or the parasailing pic.

Seriously, there are a lot of different options for financing right now. Make sure you do some research on the different options so you dont get snowballed. Also, what is your aim with this purchase? Investment, long term home, combination thereof?

[/ QUOTE ]

just looking to live somewhere other than home w/ parents

[peachy]

[ QUOTE ]
[ QUOTE ]
making urself not look like a bum so u CAN go into an office

[/ QUOTE ]

any way to make this a peachy-less thread? ty

[/ QUOTE ]

i am being very serious...before u even go looking for a mor. or a house change the fact that u look like a bum (as said by u). Your appearence will be very important...unless u have CASH to pay for this house all at once - this is not an option that im kidding about.

[daryn]

</font><blockquote><font class="small">In risposta di:</font><hr />
A mortgage broker will tell you how much money a bank will be willing to lend you or "pre-approved for".

[/ QUOTE ]

do you have to pay for this service?

[samjjones]

If you can show that you've earned a reliable income for the past couple of years, that should be enough (combined with a sizeable down payment) to secure a pre-approval. You have filed tax returns, right?

[peachy]

[ QUOTE ]
[ QUOTE ]
A mortgage broker will tell you how much money a bank will be willing to lend you or "pre-approved for".

[/ QUOTE ]

do you have to pay for this service?

[/ QUOTE ]

unless u have a friend that does this...in most cases yes



like i said in ur post some time ago about this...if u run into problems get a whatever type job for a few months to show income and retry for the loan

ur parents cosigning will all matter on how good thier credit is, net worth, and if they still have income

[daryn]

</font><blockquote><font class="small">In risposta di:</font><hr />
</font><blockquote><font class="small">In risposta di:</font><hr />
</font><blockquote><font class="small">In risposta di:</font><hr />
A mortgage broker will tell you how much money a bank will be willing to lend you or "pre-approved for".

[/ QUOTE ]

do you have to pay for this service?

[/ QUOTE ]

unless u have a friend that does this...in most cases yes

[/ QUOTE ]

what kind of cheddar are we looking at here?

[mslif]

[ QUOTE ]
[ QUOTE ]
A mortgage broker will tell you how much money a bank will be willing to lend you or "pre-approved for".

[/ QUOTE ]

do you have to pay for this service?

[/ QUOTE ]

No you do not. The mortgage broker will make his money when he gets you the loan.
The fact that you do not have a job will be your main problem. Your parents co-signature will be a must I imagine. Also, it can work in your favor if your parents have good credit, you can get a better interest rate

[daryn]

</font><blockquote><font class="small">In risposta di:</font><hr />
If you can show that you've earned a reliable income for the past couple of years, that should be enough (combined with a sizeable down payment) to secure a pre-approval. You have filed tax returns, right?

[/ QUOTE ]

only filed tax returns last year, and not for a lot of money

[vulturesrow]

Well like I said, get familiar with the various financing options. The reason I asked the question that I did is that it may drive the type of house you want to buy. Given what you answered, Id be inclined to look for a house that you can tolerate living in that has good resalue value. As with any major purchase, have a good idea of what you want or you will get railroaded by the agent. Dont ever forget they work off commission and you will have the proper suspicion of their motives. /images/graemlins/smile.gif

[mslif]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
A mortgage broker will tell you how much money a bank will be willing to lend you or "pre-approved for".

[/ QUOTE ]

do you have to pay for this service?

[/ QUOTE ]

unless u have a friend that does this...in most cases yes

[/ QUOTE ]

I bought 2 houses and never had to pay for pre-approval. Mortgage brokers make their money at closing

[peachy]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
A mortgage broker will tell you how much money a bank will be willing to lend you or "pre-approved for".

[/ QUOTE ]

do you have to pay for this service?

[/ QUOTE ]

unless u have a friend that does this...in most cases yes

[/ QUOTE ]

I bought 2 houses and never had to pay for pre-approval. Mortgage brokers make their money at closing

[/ QUOTE ]

i assumed he meant for the whole deal...didnt know he was just checking on "approval" - my bad

[SomethingClever]

[ QUOTE ]
[ QUOTE ]
A mortgage broker will tell you how much money a bank will be willing to lend you or "pre-approved for".

[/ QUOTE ]

do you have to pay for this service?

[/ QUOTE ]

You shouldn't.

I used a B&amp;M company out here that does this sort of stuff... and like you, I was looking to get pre-approved before I had a job.

I didn't have to pay for this service.

I'd recommend using a flesh and blood person that you can talk to rather than using something online like lending tree.

When it comes time to close, you pay for the service in terms of closing costs. Not sure what's standard... you will need to find out from someone reputable.

[SomethingClever]

[ QUOTE ]
The fact that you do not have a job will be your main problem.

[/ QUOTE ]

Guys, daryn is literally swimming in money. He has one of those scrooge mcduck-esque vaults filled with gold coins.

He won't have a problem getting a loan.

[mslif]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
A mortgage broker will tell you how much money a bank will be willing to lend you or "pre-approved for".

[/ QUOTE ]

do you have to pay for this service?

[/ QUOTE ]

unless u have a friend that does this...in most cases yes

[/ QUOTE ]

I bought 2 houses and never had to pay for pre-approval. Mortgage brokers make their money at closing

[/ QUOTE ]

i assumed he meant for the whole deal...didnt know he was just checking on "approval" - my bad

[/ QUOTE ]

No problem /images/graemlins/grin.gif

[daryn]

[ QUOTE ]
[ QUOTE ]
The fact that you do not have a job will be your main problem.

[/ QUOTE ]

Guys, daryn is literally swimming in money. He has one of those scrooge mcduck-esque vaults filled with gold coins.

He won't have a problem getting a loan.

[/ QUOTE ]

whoa let's not go crazy

if i could buy the place outright, cash, i would

[samjjones]

I'm thinking there's pretty much no way you'll be able to get a mortgage by yourself, then, if you cannot prove a reliable source of income in the future. Which is fine...just jointly purchase with your parents, and then buy them out at some juncture in the future. Then you'll have a tangible asset (the real estate) for any future loan needs.

[mslif]

[ QUOTE ]
[ QUOTE ]
The fact that you do not have a job will be your main problem.

[/ QUOTE ]

Guys, daryn is literally swimming in money. He has one of those scrooge mcduck-esque vaults filled with gold coins.

He won't have a problem getting a loan.

[/ QUOTE ]

I was not aware he was wealthy. It really depends on how much money you put down then. The bank will probably require you to put a certain amount down to secure the loan.

[daryn]

i'm not wealthy! lies!

[rory]

ray zee should really respond to this thread.

[SomethingClever]

[ QUOTE ]
if i could buy the place outright, cash, i would

[/ QUOTE ]

You wouldn't want to do that for lots of reasons.

But c'mon, don't be shy. I know you have a gold mansion and a rocket-car already.

[mslif]

[ QUOTE ]
i'm not wealthy! lies!

[/ QUOTE ]

Does not really matter, go to a mortgage broker and tell him you situation, how much money you have, that your parents will co-sign if mecessary... He will be able to tell you exactly where you stand.
Good luck.

[SomethingClever]

[ QUOTE ]
I was not aware he was wealthy. It really depends on how much money you put down then. The bank will probably require you to put a certain amount down to secure the loan.


[/ QUOTE ]

Yeah, if you have even like 10% down, you can get a stated income loan. You'll pay a slightly higher interest rate, but you don't have to "prove" you have income.

You do have to have a good credit score, though.

daryn?

[daryn]

[ QUOTE ]
[ QUOTE ]
I was not aware he was wealthy. It really depends on how much money you put down then. The bank will probably require you to put a certain amount down to secure the loan.


[/ QUOTE ]

Yeah, if you have even like 10% down, you can get a stated income loan. You'll pay a slightly higher interest rate, but you don't have to "prove" you have income.

You do have to have a good credit score, though.

daryn?

[/ QUOTE ]

yeah my credit score is pretty good. i think i posted it in a thread a while back.. maybe it was something like 745?

i definitely can and plan on putting at least 20% down too.

[daryn]

[ QUOTE ]
[ QUOTE ]
i'm not wealthy! lies!

[/ QUOTE ]

Does not really matter, go to a mortgage broker and tell him you situation, how much money you have, that your parents will co-sign if mecessary... He will be able to tell you exactly where you stand.
Good luck.

[/ QUOTE ]

ty for the good advice

[john smith]

Like everyone here has told you, I recommend you go talk to a mortgage broker to get preapproved. It's best to talk to friends and family and get recommendations, but you can always look online or in the papers. I don't think you'll have too much trouble getting a loan, a credit score over 680 and a good downpayment should help you out a lot. You can also try PMing snowbank if you want, he's a loan officer for a mortgage company and can probably answer any questions you might have.

[sleepyjoeyt]

First time home buyer = a local bank. Most of them have special rates for first time home buyers.

If you are not planning on staying there forever (condo) u may want to consider an ARM. This means your interest rate is fixed for a certain amount of time (1 year, 3 years, 5 years), then adjusts based on an index. This is typically a way to get a lower interest rate to start, especially if you think you may sell within X years.

Find a realtor you trust. Tell them where you want to live, how much your willing to pay, what kind of home you want (house, condo).

Find an attorney you know / trust. You'll want someone involved when you have to work on the P+S, etc.

The process (from the outside) seems a lot more complicated than it really is.

PM me if you want to discuss. I am a real estate atty in MA.

Joe

[rohjoh]

[ QUOTE ]
[ QUOTE ]
If you can show that you've earned a reliable income for the past couple of years, that should be enough (combined with a sizeable down payment) to secure a pre-approval. You have filed tax returns, right?

[/ QUOTE ]

only filed tax returns last year, and not for a lot of money

[/ QUOTE ]

And an FYI, the bank will not take a screen shot of your Party account balance as proof of liquid assets.

[daryn]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
If you can show that you've earned a reliable income for the past couple of years, that should be enough (combined with a sizeable down payment) to secure a pre-approval. You have filed tax returns, right?

[/ QUOTE ]

only filed tax returns last year, and not for a lot of money

[/ QUOTE ]

And an FYI, the bank will not take a screen shot of your Party account balance as proof of liquid assets.

[/ QUOTE ]

unlike most on this site i keep 80% of my bankroll in the bank

[ddollevoet]

The answer to your question is basically, yes, you can go into an office and start asking questions.

Personally, I would try to find a referral from a family member or friend who had a good experience with a buyer's agent.

If you can't find anyone, find a few real estate offices in your area, call them up and tell them you are ready to buy your first house and you'd like to talk to a buyer's agent. I recommend that you call a couple of offices. I'd consider sticking to the big names (Century 21, Prudential, Remax, etc.), but that is up to you. Meet with them. Interview them. They will be working for you.

Be very candid about your situation. How much you would use for a down payment, ball park what you've been making playing poker, what range you want to spend for a house (or have them tell you what you can afford on your income). You'll find out if someone is interested in helping you out or not pretty quick. If they are not interested, thank them for your time and move on.

Most agents have a "team" of other professionals that work in the business (attorneys, mortgages brokers, insurance agents, inspectors, etc.). A good agent will turn you onto a mortgage broker who can help you with your "special situation." Ideally, you will want an independent mortgage broker that can provide a full range of products. I will tell you that YOU CAN GET A MORTGAGE WITHOUT PROVING INCOME. There may be special stipulations like the perecntage down payment that needs to be made or more than likely a slightly higher interest rate, but the bottom line is that it can be done. (PM me if you want to know what mortgage company I use. It is a national company.)

Stipulations: I do not derived the majority of my income from the P word. I am not a real estate agent. I am not a mortage broker. I do, however, buy houses, fix them up and resell them for a profit. I do know quite a bit about the industry. There ARE OPTIONS available for you.

Last resort: If you can't find an agent or a mortagage broker. Call a local real estate investment group. They'll be helpful. (I am lucky. The largest one in the country is here in Atlanta.) They'll have mortgage brokers that would love to have your business. You may also find an investor that would offer owner financing on a house they alrady own (negating the need for a mortgage). That situation is a little harder to find, but does exist.

I think that should get you started. Don't hesitate to PM me if you have any specific questions.

[[censored]]

I didn't read past the first few replies but I assume someone finally got around to sending you to a bank or mortage broker. I would start by talking with your parents and or friends who have purchased about the best place to go in your area.

I think you are putting a little too much emphasis on not having a typical job. I recall during on of the credit threads you have a really good score, that along with a sizeable down payment will do just fine.

And another thing, what's this talk about not wanting to look stupid? You are the customer and this is what they do. You will not be the first, first-time homebuyer nor the last. As long you as your not acting like a jerkoff and asking sincere questions (regardless of how basic) they should be more than happy to help.

Good luck and have fun this is a big step, make sure you enloy it.

[Ray Zee]

okay --

first you need to figure out what you can afford to pay in payments. ins. taxes repairs etc per month. that figure is about 30% of your income-- max.
triple or quad your income and that is about the house you can afford-- max.

read about buying real estate first so you know something, as you dont as of yet. then look for owner financed properties. either by an ad or calling some real estate agencies and asking what they know of in your range. this way you dont have to qualify at all. and dont pay closing costs and points or fees or mortagage insurance.
then learn to judge what each place you look at is worth. you can not believe anyone else-- period. good luck.

if you must fall for the loan route, you can usually get a no approval needed loan if you put at least 25% down. you have to go to more than one place. its called work.

[Benal]

[ QUOTE ]
there's pretty much no way you'll be able to get a mortgage by yourself if you cannot prove a reliable source of income in the future.

[/ QUOTE ]

This is correct. The key words here are "a reliable source of income in the future". Any lender will want proof of this, and this usually means income from having a real job with a real company for a minimum of 2 years.

[SomethingClever]

[ QUOTE ]
[ QUOTE ]
there's pretty much no way you'll be able to get a mortgage by yourself if you cannot prove a reliable source of income in the future.

[/ QUOTE ]

This is correct. The key words here are "a reliable source of income in the future". Any lender will want proof of this, and this usually means income from having a real job with a real company for a minimum of 2 years.

[/ QUOTE ]

Dude you're totally wrong.

Stated Income Loan

It's amazing what you can do with a large chunk of cash and a good credit score.

[Notorious G.O.B.]

My tips:
1) Find an MLS search engine in your area, and check out houses in your price range. For example, edinarealty.com in MN.
2) As everybody else said, get a broker. A broker will get you a better deal than a bank.
3) You most likely know a realtor personally, a friend or a family member. You can work with them if you want.
4) You don't necessarily need a cash down payment, there are ways to borrow that money. It appears this is not a problem for you, however.
I don't particularly want to advertise myself, but I work for a broker in Minneapolis, he can help you out if necessary, if you're in that area.

[Benal]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
there's pretty much no way you'll be able to get a mortgage by yourself if you cannot prove a reliable source of income in the future.

[/ QUOTE ]

This is correct. The key words here are "a reliable source of income in the future". Any lender will want proof of this, and this usually means income from having a real job with a real company for a minimum of 2 years.

[/ QUOTE ]

Dude you're totally wrong.

Stated Income Loan

It's amazing what you can do with a large chunk of cash and a good credit score.

[/ QUOTE ]

I just did a quick search of Stated Income Loans and came up with this:

General Requirements:

Lenders usually look for a minimum of 2 years of self-employment history or employment history in the same field. Proof for minimum of 2 years employment history for self-employed borrowers may be accomplished by obtaining a typed letter from a accountant/CPA on their company letterhead to get verification of the borrowers self employment. If an accountant is not available, two years of business license or confirmation from 3 disinterested business associates may be required. Your ability to qualify for the loan is based on the income stated on the application. The income must be in line with your occupation.

I somehow doubt "Poker Player" will be in line with these requirements.

[SomethingClever]

Interesting.

Well, you want to make a side bet on whether or not daryn will qualify for a loan?

I'll put up $20.

[partygirluk]

I have about $140,000 in liquid assets. I am hoping to start my PhD in America in 9 months. How expensive a property would I be able to afford given that my only sources of income will be phd funding (scant), potential tutoring $, and potential poker $ (uncertain)?

[[censored]]

[ QUOTE ]
Interesting.

Well, you want to make a side bet on whether or not daryn will qualify for a loan?

I'll put up $20.

[/ QUOTE ]

I'll put up $50, betting that Daryn qualifies.

[swede123]

Depends on your location. You can buy a nice house in certain parts of the South or Midwest for 80K, while a crappy condo might cost you several hundred thousand in parts of California and so on.

Swede

[SomethingClever]

[ QUOTE ]
[ QUOTE ]
Interesting.

Well, you want to make a side bet on whether or not daryn will qualify for a loan?

I'll put up $20.

[/ QUOTE ]

I'll put up $50, betting that Daryn qualifies.

[/ QUOTE ]

You mean against Benal, right? 'Cos I am betting that he qualifies as well. Without having his parents cosign.

[swede123]

I'd also put my money on Daryn, assuming he has some decent liquid assets to back him up.

Swede

[partygirluk]

Thanks. I wasn't so much looking for how much I could get for $x, just how many $ loan could I get (without paying a usurious rate of interest)

Ty,

Dean

[[censored]]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
Interesting.

Well, you want to make a side bet on whether or not daryn will qualify for a loan?

I'll put up $20.

[/ QUOTE ]

I'll put up $50, betting that Daryn qualifies.

[/ QUOTE ]

You mean against Benal, right? 'Cos I am betting that he qualifies as well. Without having his parents cosign.

[/ QUOTE ]

yes i want to win the bet as well. and I agree I am willing to bet that he qualifies on his own merit. btw my knowledge of Daryn is limited to the following, he plays something like 15/30, he has lived at home partly to save money, and he posted his credit score once, he is close or has graduated from college, and from his posts he seems smart. I have never communitcated with him outside of 2+2 nor have we ever exchanged PM's.

[SomethingClever]

[ QUOTE ]
I have about $140,000 in liquid assets. I am hoping to start my PhD in America in 9 months. How expensive a property would I be able to afford given that my only sources of income will be phd funding (scant), potential tutoring $, and potential poker $ (uncertain)?

[/ QUOTE ]

What city are you moving to?

And how much of that 140k do you want to use as a down payment?

I think you'd have no problem getting something in the 200-300k range. Depending on the city, that's either totally sweet or really lame.

[partygirluk]

OK,

say I put down $100K as a down payment. $40K seems fine for everyday living + an emergency fund for car crashes etc.

[SomethingClever]

[ QUOTE ]
OK,

say I put down $100K as a down payment. $40K seems fine for everyday living + an emergency fund for car crashes etc.

[/ QUOTE ]

I don't think you need to use NEARLY that much almost no matter where you go.

Example: I bought a house last year for approximately $200,000. I put $10,000 down. I pay roughly $1,400 a month on my mortgage.

You can deduct the interest that you pay on your loan from your taxes.

Edit: The $1,400 includes property taxes, insurance and all that other misc. stuff.

[GrooveNougat]

Dude, 20% down, no job, no problem.

My cousin is a full-time poker player and 2+2'er and had no problem. No co-signer. Usually the co-signer has to live in the property anyway for them to co-sign.

Good luck.

[Benal]

I'm not taking any bets, lol. I just think he'll have a harder time getting financing without employment.

[partygirluk]

I'd prefer to put $100K down as I have little need for more than $40K and it means I pay less mortgage+ psyhcologically I would prefer to owe less to the bank.

Say I put down $100K, bought a place for $300K, how much would my mortgage be? I dont have a steady job to prove my income .

[mslif]

[ QUOTE ]
I'd prefer to put $100K down as I have little need for more than $40K and it means I pay less mortgage+ psyhcologically I would prefer to owe less to the bank.

Say I put down $100K, bought a place for $300K, how much would my mortgage be? I dont have a steady job to prove my income .

[/ QUOTE ]

You cannot determine how much your mortgage payments will be. It depends on the type of loan, duration of loan and your interest rate.

[partygirluk]

Well loan would be a house loan, 25 yrs is a pretty standard duration right? And interest rate would be the best I can get my hands on.

[slickpoppa]

http://pokerdb.thehendonmob.com/player.php?a=r&amp;n=29364

[swede123]

Somehow I doubt that would actually strengthen his case.

Swede

[mslif]

[ QUOTE ]
Well loan would be a house loan, 25 yrs is a pretty standard duration right? And interest rate would be the best I can get my hands on.

[/ QUOTE ]

Actually most loans are 30 years or 15 years.
If you mortgage $200K at 6% fixed rate (which not that great) for 30 years, your payments will be about $1200.00/month. (that's without counting insurance)

[SomethingClever]

Well, I don't think it will help your mortgage that much to put such a large % down, because you'll still have a 200k loan.

I think it makes a lot more sense to just put the typical 10 to 20 percent down, then invest what you don't need to live on.

Don't worry about owing the bank a lot. You will have insurance on your home, so your investment is pretty darn safe. The only thing to worry about is if the real estate market collapses in your area.

Some people are predicting the worst; others think the growth will just slow.

Personally, I believe that if you own a solid home in a desireable area close-in to a city, the laws of supply and demand will keep your property value as safe as possible from a possible "burst" of the real estate "bubble."

[partygirluk]

OK,

and at the end of that I have to repay the $200K right?

[mslif]

[ QUOTE ]
OK,

and at the end of that I have to repay the $200K right?

[/ QUOTE ]

Repay?

[partygirluk]

OK.

Another question.

Say I have a loan for $200K. Have a good year of poker and decide to pay back $100K of the loan. How does this effect my mortgage payments? Would they just get halved?

[partygirluk]

[ QUOTE ]
[ QUOTE ]
OK,

and at the end of that I have to repay the $200K right?

[/ QUOTE ]

Repay?

[/ QUOTE ]

I borrow $200K, pay $1200 per month for 30 years, then I have to pay the bank $200K, right?

[touchfaith]

[ QUOTE ]
OK.

Another question.

Say I have a loan for $200K. Have a good year of poker and decide to pay back $100K of the loan. How does this effect my mortgage payments? Would they just get halved?

[/ QUOTE ]

I think this came up when KungFu dood wanted to pay off his parents mortgage.

The general feeling if I am correct is that he should just invest the cash and pay off the mortgage at it's normal pace.

[mslif]

[ QUOTE ]
OK.

Another question.

Say I have a loan for $200K. Have a good year of poker and decide to pay back $100K of the loan. How does this effect my mortgage payments? Would they just get halved?

[/ QUOTE ]

No, they would not, It just means that you will payoff your mortgage in a shorter amount of time.
If you want to reduce your payments you will have to refinance.

[bosoxfan]

[ QUOTE ]
I borrow $200K, pay $1200 per month for 30 years, then I have to pay the bank $200K, right?

[/ QUOTE ]

no, at 1200 a month after 30 years you would owe the bank nothing

[mslif]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
OK,

and at the end of that I have to repay the $200K right?

[/ QUOTE ]

Repay?

[/ QUOTE ]

I borrow $200K, pay $1200 per month for 30 years, then I have to pay the bank $200K, right?

[/ QUOTE ]

No, after the 30 years you are done. You get a satisfaction of mortgage and that's it.

[SomethingClever]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
OK,

and at the end of that I have to repay the $200K right?

[/ QUOTE ]

Repay?

[/ QUOTE ]

I borrow $200K, pay $1200 per month for 30 years, then I have to pay the bank $200K, right?

[/ QUOTE ]

lmfao!

No, you're paying off the $200k with your $1,200 monthly payments!

At the end of 30 years, you will have paid like $500k including all the interest, and you will own the house outright.

Of course, this isn't how it really works. You'll live there for 5 years or so and usually sell at a profit. You pay off the rest of the loan with the sale, and keep the appreciation as profit.

As long as you live there more than 2 years, you don't have to pay taxes on this appreciation.

[WDC]

nothing up front to the broker; they are going to get paid a percentage of the loan once it is closed. You will have some upfront costs such as credit check real estate appriasal (once you find a property) and some other stuff like that. A lot of times you can work all these fees into the loan.

Do like the others say. Go find a reputable and trustworthy mortgage broker and realtor. They will walk you through it.

If you can't find a broker find a realtor they will know brokers.

Goodluck.

[swede123]

Mortgage companies usually front load their loans, so the first payment will be 95% interest, 5% principal. After the halfway point this usually reverses. Of course, you always have the option to pay a higher amount at any one time, and you can usually tell the mortgage company what you want the extra to apply towards. If you paid 100K extra on your first payment of a 200K mortgage you would essentially turn your 30 year mortgage into a 15 year deal. Often times people with access to extra cash will refinance their loan, turning it into a 15 year mortgage for example, which results in a higher monthly payment but (obviously) less interest paid at the end of the loan.

Swede

[partygirluk]

So does it really matter what % I put as a down payment? i.e in terms of getting the best rate of interest

[jcx]

[ QUOTE ]

let's put it this way, what is step #1?

[/ QUOTE ]

Wait for a market correction. You'll be paying top dollar right now, esp in major cities. If you don't want to live w/ your parents rent.

Also, you implied that you are not reporting your poker winnings to the IRS. Good for you (I don't blame you), but if you choose to evade (presumed significant) taxes it is best to avoid tying too much money up in non-liquid assets on the chance you get audited. While the risk of this is admittedly small, that will be small consolation if you get a Notice of Federal Tax Lien slapped on your ass. Also, a big reason to buy a house in the first place is the tax benefit, which will be of little use to you.

If you do decide to buy, the best loan type is a no income verification loan, as previously stated. As long as you have a good down payment should be no problem.

[SomethingClever]

[ QUOTE ]
So does it really matter what % I put as a down payment? i.e in terms of getting the best rate of interest

[/ QUOTE ]

Well, if you wanted to put zero down, you won't get as good a rate as if you put 20% down. If you have less than a certain amount of equity in your home (20% down equals 20% equity right off the bat) you have to pay mortgage insurnace. You will want to make sure you put enough down to avoid this.

And you can do all kinds of weird zero or little down loans that are structured in all kinds of crazy ways to allow just about anyone to buy a home. But you pay more for these in one way or another.

So in conclusion, yeah, as long as you put the usual amount down, you're going to get the same rate as putting much more down.

[Indiana]

Owning = bad.

Renting = Good.

Take it from a very wealthy guy who just wants u to have
a happy, carefree life.

Indy

[swede123]

The effect is lessened when you're not signed in as BadAdviceGuy.

Swede

[SomethingClever]

[ QUOTE ]
Owning = bad.

Renting = Good.

Take it from a very wealthy guy who just wants u to have
a happy, carefree life.

Indy

[/ QUOTE ]

In certain areas right now, this may be true, but in general it is awful advice.

[Notorious G.O.B.]

I virtually guarantee that he could get a loan. He might not be able to go to a bank and get one, but a private broker could get it done.

[daryn]

[ QUOTE ]
http://pokerdb.thehendonmob.com/player.php?a=r&amp;n=29364

[/ QUOTE ]

oh man, that 1k event at turning stone was sick. got it all in w/ TT vs AK when there were 15 left, i had a pretty good sized stack, as did the AK. he busted me, anyway the guy ended up finishing first. IT COULD HAVE BEEN ME!!!

the guy flipped his cards face up when contemplating calling my preflop all in too. how bush-league.

sorry for poker content

[BeerMoney]

Haven't u discussed this on here before?

[ddollevoet]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
there's pretty much no way you'll be able to get a mortgage by yourself if you cannot prove a reliable source of income in the future.

[/ QUOTE ]

This is correct. The key words here are "a reliable source of income in the future". Any lender will want proof of this, and this usually means income from having a real job with a real company for a minimum of 2 years.

[/ QUOTE ]

Dude you're totally wrong.

Stated Income Loan

It's amazing what you can do with a large chunk of cash and a good credit score.

[/ QUOTE ]

I just did a quick search of Stated Income Loans and came up with this:

General Requirements:

Lenders usually look for a minimum of 2 years of self-employment history or employment history in the same field. Proof for minimum of 2 years employment history for self-employed borrowers may be accomplished by obtaining a typed letter from a accountant/CPA on their company letterhead to get verification of the borrowers self employment. If an accountant is not available, two years of business license or confirmation from 3 disinterested business associates may be required. Your ability to qualify for the loan is based on the income stated on the application. The income must be in line with your occupation.

I somehow doubt "Poker Player" will be in line with these requirements.

[/ QUOTE ]

Daryn would most likely want a No Income loan where income is not disclosed, but assets are disclosed and verified and must meet an adequacy standard.

The bank account where Daryn keeps his roll would most likely be adequate.

See here (http://loan.yahoo.com/m/cq_doc.html) for definitions of mortgage requirements.

[GrooveNougat]

[ QUOTE ]
need some info on buying a house/condo

can you just walk into a real estate office and start asking questions? i am kind of a bum, i don't see myself fitting in. also nobody in their right mind would give me a loan due to having no job but what if parents co-sign? should it be no problem after that or could i still run into trouble?

let's put it this way, what is step #1?

[/ QUOTE ]

Daryn,
The advice on here so far has been a mishmash of incoherent blabbering. Step 1, put on your good sweatpants and go talk to a real estate broker. Step 2, they'll put you in touch with a mortgage broker who will tell you anything you need to know about getting a loan.

As long as you've got the cash, they'll be tailoring to you. www.realtor.com (http://www.realtor.com) or www.themls.com (http://www.themls.com) might help you get started too.

Good luck house/condo hunting.
Cheers

[daryn]

[ QUOTE ]
Also, you implied that you are not reporting your poker winnings to the IRS.

[/ QUOTE ]

i made no such implication

[daryn]

ok so my primary plan right now is to go to the bank tomorrow (where all my money is) and ask them what's up.

[Sponger15SB]

[ QUOTE ]
If you don't have a job, how are you going to afford a place?

[/ QUOTE ]

hmmmm hmmmm hmmm, lets see, what kind of message board are we on? damn, what could daryn do to make money and yet not have a "job"...... I'm just at a loss here.

[KaneKungFu123]

[ QUOTE ]
ok, everyone is talking up this "pre-approved" business, and i'm digging it. problem is i know nothing about any of this stuff. what does that even mean? sounds like a good first step though

[/ QUOTE ]

how is daryn going to get preapporved when he doesn't have a job. from what ive read he is either gonna have to make a big down payment, like 1/3, or have someone co-sign with him.

[bugstud]

daryn, just follow this advice. It is more than spot-on.

[ QUOTE ]
okay --

first you need to figure out what you can afford to pay in payments. ins. taxes repairs etc per month. that figure is about 30% of your income-- max.
triple or quad your income and that is about the house you can afford-- max.

read about buying real estate first so you know something, as you dont as of yet. then look for owner financed properties. either by an ad or calling some real estate agencies and asking what they know of in your range. this way you dont have to qualify at all. and dont pay closing costs and points or fees or mortagage insurance.
then learn to judge what each place you look at is worth. you can not believe anyone else-- period. good luck.

if you must fall for the loan route, you can usually get a no approval needed loan if you put at least 25% down. you have to go to more than one place. its called work.

[/ QUOTE ]

[chucksim]

[ QUOTE ]
daryn, just follow this advice. It is more than spot-on.


[/ QUOTE ]

Yep. I'm a big proponent of buying rather than renting, but you really need to honestly and accurately consider how much you can afford. Owning a home means a lot of "hidden costs" each month you may not have thought about.

Utilities, food, incidentals, furnishings, etc can all eat into your monthly nut. Ray's comment about 3x annual income sounds about right to me. You can do more, but to be comfortable, I think that's about what you want to look at. If you can't get the place you want for that price, you can't afford it.

[daryn]

[ QUOTE ]
daryn, just follow this advice. It is more than spot-on.

[ QUOTE ]
okay --

first you need to figure out what you can afford to pay in payments. ins. taxes repairs etc per month. that figure is about 30% of your income-- max.
triple or quad your income and that is about the house you can afford-- max.

read about buying real estate first so you know something, as you dont as of yet. then look for owner financed properties. either by an ad or calling some real estate agencies and asking what they know of in your range. this way you dont have to qualify at all. and dont pay closing costs and points or fees or mortagage insurance.
then learn to judge what each place you look at is worth. you can not believe anyone else-- period. good luck.

if you must fall for the loan route, you can usually get a no approval needed loan if you put at least 25% down. you have to go to more than one place. its called work.

[/ QUOTE ]

[/ QUOTE ]

i'd like to, as i believe whatever ray zee says, the man has credibility. i just don't know what some of these things mean. owner financed properties?

[[censored]]

[ QUOTE ]
[ QUOTE ]
daryn, just follow this advice. It is more than spot-on.

[ QUOTE ]
okay --

first you need to figure out what you can afford to pay in payments. ins. taxes repairs etc per month. that figure is about 30% of your income-- max.
triple or quad your income and that is about the house you can afford-- max.

read about buying real estate first so you know something, as you dont as of yet. then look for owner financed properties. either by an ad or calling some real estate agencies and asking what they know of in your range. this way you dont have to qualify at all. and dont pay closing costs and points or fees or mortagage insurance.
then learn to judge what each place you look at is worth. you can not believe anyone else-- period. good luck.

if you must fall for the loan route, you can usually get a no approval needed loan if you put at least 25% down. you have to go to more than one place. its called work.

[/ QUOTE ]

[/ QUOTE ]

i'd like to, as i believe whatever ray zee says, the man has credibility. i just don't know what some of these things mean. owner financed properties?

[/ QUOTE ]

It means the person selling the house carries the loan him/herself.

[Notorious G.O.B.]

I recommend against going to a bank. Go to a broker, you'll get a better rate. Also, it will be much easier to get financing with a broker.

[bugstud]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
daryn, just follow this advice. It is more than spot-on.

[ QUOTE ]
okay --

first you need to figure out what you can afford to pay in payments. ins. taxes repairs etc per month. that figure is about 30% of your income-- max.
triple or quad your income and that is about the house you can afford-- max.

read about buying real estate first so you know something, as you dont as of yet. then look for owner financed properties. either by an ad or calling some real estate agencies and asking what they know of in your range. this way you dont have to qualify at all. and dont pay closing costs and points or fees or mortagage insurance.
then learn to judge what each place you look at is worth. you can not believe anyone else-- period. good luck.

if you must fall for the loan route, you can usually get a no approval needed loan if you put at least 25% down. you have to go to more than one place. its called work.

[/ QUOTE ]

[/ QUOTE ]

i'd like to, as i believe whatever ray zee says, the man has credibility. i just don't know what some of these things mean. owner financed properties?

[/ QUOTE ]

It means the person selling the house carries the loan him/herself.

[/ QUOTE ]

essentially you assume the current mortgage and pay them the value of the mortgage that has been paid, if I remember right.

[Shajen]

Daryn,

If you have any specific questions once you get going in your search PM me and I'll talk to the wife if it's something I can't answer for you.

She's a mortgage processor/closer and won't feed you any BS.

(And yes, as usual, Ray is absolutely spot on, being "house poor" is a bad thing.)

Couple of things:

From what I've gathered by reading your posts on here, you like to travel, so sounds like a condo would be better for you than a home, since you wouldn't have to mess with crap like cutting the grass, maintaining the yard and all that while you are gone. Obviously, if you enjoy yard work and maintaining a home, then disregard. It's also a great way to get your feet wet in the real estate world.

[daryn]

another idea is buying something like a 3-bedroom house and renting 2 rooms out. i have some friends who are reliable (with, you know.. jobs and stuff /images/graemlins/smile.gif) who are interested. i figure that rent could pay off a huge % of the mortgage payment. i do like to travel but i wouldn't mind sticking around for a while and taking care of business. anyway, do banks or whoever is giving me the loan take that into consideration (the fact that i will likely have rent coming in)?

also, about mortgage brokers.. i asked my friend for some advice. he just recently bought his 2nd home, and he told me he usually just goes to the bank and doesn't even know what a mortgage broker is. his father is in real estate though and maybe he knows something i don't.

[Sifmole]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
A mortgage broker will tell you how much money a bank will be willing to lend you or "pre-approved for".

[/ QUOTE ]

do you have to pay for this service?

[/ QUOTE ]

unless u have a friend that does this...in most cases yes

[/ QUOTE ]

what kind of cheddar are we looking at here?

[/ QUOTE ]

If you are paying a mortgage broker, you are getting screwed. They get paid for selling the mortgage, and not by you.

[Sifmole]

[ QUOTE ]
[ QUOTE ]
If you can show that you've earned a reliable income for the past couple of years, that should be enough (combined with a sizeable down payment) to secure a pre-approval. You have filed tax returns, right?

[/ QUOTE ]

only filed tax returns last year, and not for a lot of money

[/ QUOTE ]

This is another way that avoiding paying your taxes screws you. You will have significant difficulty showing earned income reliability without tax returns to support it.

[Sifmole]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
I was not aware he was wealthy. It really depends on how much money you put down then. The bank will probably require you to put a certain amount down to secure the loan.


[/ QUOTE ]

Yeah, if you have even like 10% down, you can get a stated income loan. You'll pay a slightly higher interest rate, but you don't have to "prove" you have income.

You do have to have a good credit score, though.

daryn?

[/ QUOTE ]

yeah my credit score is pretty good. i think i posted it in a thread a while back.. maybe it was something like 745?

i definitely can and plan on putting at least 20% down too.

[/ QUOTE ]

Make sure you put down enough to avoid PMI; no reason to pay PMI if you don't have to.

Also, from the sound of it you are not "buying real estate" but "purchasing a home" -- these are two very very different things with very very different sets of needs.

[daryn]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
If you can show that you've earned a reliable income for the past couple of years, that should be enough (combined with a sizeable down payment) to secure a pre-approval. You have filed tax returns, right?

[/ QUOTE ]

only filed tax returns last year, and not for a lot of money

[/ QUOTE ]

This is another way that avoiding paying your taxes screws you. You will have significant difficulty showing earned income reliability without tax returns to support it.

[/ QUOTE ]

why does everyone think i avoided paying taxes???

[Sifmole]

[ QUOTE ]
Interesting.

Well, you want to make a side bet on whether or not daryn will qualify for a loan?

I'll put up $20.

[/ QUOTE ]

Nothing like a 100% unloseable bet! Of course he will qualify, there is a loan for every type -- jebus you can be a bum in a cardboard box and there is a loan waiting for you ( nearly ). The bet should really be whether he can qualify for a 20% down loan at a standard market rate w/ zero points on the basis of "Stated Income" w/in 3 months. Fill in the rate and I will take this $20 bet.

[chucksim]

[ QUOTE ]
another idea is buying something like a 3-bedroom house and renting 2 rooms out.

[/ QUOTE ]

If you're looking at something like that, why not buy a small apt bldg/double block/etc, and rent the other unit(s) to the friends at first. That way you have everything you want...out of the house, help paying the mortgage, an investment property where you live in one unit to start, and freedom of not having your buddies living in YOUR house. They WILL get on your nerves, trust me....

[daryn]

[ QUOTE ]
why not buy a small apt bldg/double block/etc, and rent the other unit(s) to the friends at first.

[/ QUOTE ]

what is this exactly? i'm just not getting the explanation

[Shajen]

[ QUOTE ]
another idea is buying something like a 3-bedroom house and renting 2 rooms out. i have some friends who are reliable (with, you know.. jobs and stuff /images/graemlins/smile.gif) who are interested. i figure that rent could pay off a huge % of the mortgage payment. i do like to travel but i wouldn't mind sticking around for a while and taking care of business. anyway, do banks or whoever is giving me the loan take that into consideration (the fact that i will likely have rent coming in)?

also, about mortgage brokers.. i asked my friend for some advice. he just recently bought his 2nd home, and he told me he usually just goes to the bank and doesn't even know what a mortgage broker is. his father is in real estate though and maybe he knows something i don't.

[/ QUOTE ]

A mortgage broker is just more specific. Their business is home loans, so they typically know the market and business better than a bank.

Regarding your first point, I don't know about MA, but in GA, if they are not on the loan, then it doesn't matter if they will be paying rent or not. Having two roommates pay you rent is a great idea though. I'd definitely look into this if I were you.

There might be something for what you are looking for in MA, regarding roommates. I would imagine you'd need a contract signed and all that spelling out the amount of rent they'll be paying and all that though. I understand it varies from state to state.

[Indiana]

Why would you want to buy? The money that you will spend on upkeep and paying a realtor to sell will deplete any real earnings unless you live there for like 15 years. In Indiana, houses only appreciate 3.5%/yr .

Discuss,

Indy

[BoogerFace]

[ QUOTE ]
another idea is buying something like a 3-bedroom house and renting 2 rooms out. i have some friends who are reliable (with, you know.. jobs and stuff /images/graemlins/smile.gif) who are interested. i figure that rent could pay off a huge % of the mortgage payment. i do like to travel but i wouldn't mind sticking around for a while and taking care of business. anyway, do banks or whoever is giving me the loan take that into consideration (the fact that i will likely have rent coming in)?

[/ QUOTE ]

I wouldn't count on rent from roommates too much. Roommates get laid off occasionally and sometimes move out.

I think it would be fine in terms of raising spare cash, but I wouldn't rely on it as 100% steady income.

[Shajen]

[ QUOTE ]
Why would you want to buy? The money that you will spend on upkeep and paying a realtor to sell will deplete any real earnings unless you live there for like 15 years. In Indiana, houses only appreciate 3.5%/yr .

Discuss,

Indy

[/ QUOTE ]

Two things:

1) saying "discuss" just pisses me off. Nothing personal, but if we are going to talk about it, we don't need someone telling us to. Either it gets responded to or it doesn't.

2) in the majority of situations, renting is a negative sum game. For example, I moved to Atlanta in 1998. I rented for 5 years. Average rent was $1100 a month. 5 * 12 = 60. 60 * 1100 = $66,000 with nothing to show for it. I've lived in my house for 2 years now, and in that time I've received tax breaks and my home has appreciated a decent bit. That means if I were to sell it tomorrow, I'd get a decent chunk of cash back. You can't do that renting. Owning a home gives you several advantages over renting, first and foremost is appreciation in your home. Second, there are the tax considerations. Also, you can sell your home. Finally, owning a home means you don't have to put up with a bunch of other idiots like you would if you were renting.

Renting is right in some areas (like San Fran, NYC, or SoCal), but for the majority of the country, owning is the way to go. It all depends on where you live.

Oh, Daryn, if you read this, something to consider is the Homestead Act. Google it. It's pretty awesome.

[daryn]

[ QUOTE ]
Why would you want to buy? The money that you will spend on upkeep and paying a realtor to sell will deplete any real earnings unless you live there for like 15 years. In Indiana, houses only appreciate 3.5%/yr .

Discuss,

Indy

[/ QUOTE ]

i just want to live in the place

[Indiana]

[ QUOTE ]

Two things:

1) saying "discuss" just pisses me off. Nothing personal, but if we are going to talk about it, we don't need someone telling us to. Either it gets responded to or it doesn't.

2) in the majority of situations, renting is a negative sum game. For example, I moved to Atlanta in 1998. I rented for 5 years. Average rent was $1100 a month. 5 * 12 = 60. 60 * 1100 = $66,000 with nothing to show for it. I've lived in my house for 2 years now, and in that time I've received tax breaks and my home has appreciated a decent bit. That means if I were to sell it tomorrow, I'd get a decent chunk of cash back. You can't do that renting. Owning a home gives you several advantages over renting, first and foremost is appreciation in your home. Second, there are the tax considerations. Also, you can sell your home. Finally, owning a home means you don't have to put up with a bunch of other idiots like you would if you were renting.

Renting is right in some areas (like San Fran, NYC, or SoCal), but for the majority of the country, owning is the way to go. It all depends on where you live.

Oh, Daryn, if you read this, something to consider is the Homestead Act. Google it. It's pretty awesome.

[/ QUOTE ]

1) I'm sorry.

2) Still not convinced. I must reveal that I run real estate deals on the side so you don't need to verse me in any homstead act stuff. Now, why do you think that the feds changed the tax on a sale situation in 1997? It because people needed incentives to buy. Tax breaks are a bullshit deal but without them the housing market would be much weaker. Whenever you are getting a tax "break" it is a "break" on the interest only. Paying interest means that you are paying somebody else's bills. Its like a rakeback. So its not really a golden break in anyway.

Let me give you an example. Ok, in Indianapolis you can get a good place to rent for $800 (californians are salivating now) per month. Now to own a decent condo its gonna be around $190K. That's going to be like, i dunno, $1200/month with 10% down with $1000 going to interest. So the tax break is like 300-400 per month. But guess what? You will spend 300/month on upkeep and condo fees. So say goodbye to Mr. Tax break. Now what does this leave? It leaves the bank with a nice payday and about $250 in equity payments. If your house only appreciates 3.5% per year then its no great deal to buy over rent. Plus as a renter you have basically no worries. Dont forget that you will pay 7% when you sell and perhaps you will pay rent for 6months in two separate places.

Indy

[Shajen]

I have a hard time reconciling an $800 a month apartment with a $190k condo.

Those are comparable in Indianapolis? Really? The housing market there must really suck.

[astroglide]

[ QUOTE ]
You will spend 300/month on upkeep and condo fees

[/ QUOTE ]

i'm not checking the other figures, but i think that is a really high estimate. i live in a 200,000 condominium and my condo fees are 140/month. that includes insurance which covers anything on the walls or floors and all of the structure (paint, flooring, shower walls, etc), the only insurance needed is for personal items like televisions and computers.

[Indiana]

140/month is very cheap for condo fees. Downtown indy the minimum for anything reasonable is $285. Depends on where you live and the age of your place.

Indy

[Sifmole]

[ QUOTE ]

only filed tax returns last year, and not for a lot of money

[/ QUOTE ]

[ QUOTE ]
why does everyone think i avoided paying taxes???

[/ QUOTE ]

Beacause you are supposedly swimming in money but file "not for a lot of money" -- the disconnect leads to assumptions.

[daryn]

[ QUOTE ]
[ QUOTE ]

only filed tax returns last year, and not for a lot of money

[/ QUOTE ]

[ QUOTE ]
why does everyone think i avoided paying taxes???

[/ QUOTE ]

Beacause you are supposedly swimming in money but file "not for a lot of money" -- the disconnect leads to assumptions.

[/ QUOTE ]

last year i didn't file for a lot of money because i didn't make a lot of money. i filed for what i made.

i have made significantly more money this year already.

do you understand?

[Subfallen]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]

only filed tax returns last year, and not for a lot of money

[/ QUOTE ]

[ QUOTE ]
why does everyone think i avoided paying taxes???

[/ QUOTE ]

Beacause you are supposedly swimming in money but file "not for a lot of money" -- the disconnect leads to assumptions.

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last year i didn't file for a lot of money because i didn't make a lot of money. i filed for what i made.

i have made significantly more money this year already.

do you understand?

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Haha awesome.

[haakee]

Don't forget property taxes.

[ptmusic]

Buy Home Buying For Dummies (http://shopping.msn.com/specs/shp/?itemId=1918559,amp;fullDesc=1)

Really! My wife and I learned a lot from it. We gave up on our first choice house when we were out bid, and that was a learning experience too.

We had learned so much that when we went after another house, we were negotiating masters. Or at least we did an adequate job. Plus we got a great loan deal.

Learn, don't just jump in. It is the biggest, riskiest investment you probably will have made up to this point, by far.

-ptmusic