Buying a house - Page 2

astroglide · #11 04-21-2005, 11:51 AM

baught?

TStoneMBD · #12 04-21-2005, 02:55 PM

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baught?

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is this necessary? no i do not believe it is.

Freakin · #13 04-21-2005, 04:37 PM

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[ QUOTE ]
baught?

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is this necessary? no i do not believe it is.

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It is. It provides necessary information about OP that will better allow us to gauge his ability to understand and apply various pieces of advice given in this thread.

Freakin

Siegmund · #14 04-21-2005, 04:48 PM

Welllll.... I can tell you that when I bought a house (WITH a regular day job), the process included me presenting a current pay stub and three years of tax returns. Yes, they phoned my employer's HR department, and verified how long I had worked there and that my employment was expected to continue.

In general, the more you put down and the higher your interest rate, the easier it is to get a loan. I would not be surprised if you get turned down a time or three.

Also in general - DO put down at least 20% even if you can get a loan without doing so. Mortgage insurace is a huge unnecessary dent in your paycheck, and paying off the first 20% of your mortgage to avoid it is right behind paying your credit cards off as far as +EV financial decisions go.

There are upsides to mortgaging the remaining 80% of the house and investing your spare money elsewhere especially if you are very rich or it's a very expensive house. But if you're buying a house worth under 200k like us mere mortals, there is no gain from the interest deduction, and if you have any trouble with the bank, I would seriously consider saving up another year's worth of winnings and buying a small house outright.

TobDog · #15 04-21-2005, 05:33 PM

This is poor advice imho, I have many friends that are older than I and have more funds(way more), when I "baught" my first house(2nd property), they all told me the same thing, buy the biggest you can afford. The cheapass that Iam went down a little in price so that I could safely make extra payments every month(i'm anal like that), which I do. If I had spent a little more on the house I would have a bigger house worth more and 3 years later now, Id have more equity and the difference in the payment was minimal(I'm making about the same payment anyway).

In a few years youll be glad you got sommething worth a little more, its not like a car wheer it is worth less every year, as the real estate market grows, and it does everywhere, your value will too.

BTW, where are you looking to buy?

tobdog

*These are my opinions, not those expressed by 2+2 or any of their affiliates, sponsors, etc. Tobdog inc. investments carry market risk and you should connsult with your finantial advisor as well as your tax advisor before making any investment that may be at risk of lisong value due to market volitality.

sublime · #16 04-21-2005, 05:43 PM

if you are thinking of putting anywhere close to 40-50% of a downpayment on a house, you need to do some reading on the subject before you worry about what a bank is goign to think.

Acesover8s · #17 04-21-2005, 05:59 PM

I recently bought my first home 7 months ago, I have had nothing but poker income for the past 30 months, and my credit score was not all that good. I feared the worst.

I had absolutely no trouble purchasing a 200k home with 10% down and a sub 700 credit report on a No Doc loan. The only thing I had to do was get a CPA to verify that I am self-employed. I did not disguise what I do for a living in any way, and it went smooth as silk.

SomethingClever · #18 04-21-2005, 06:04 PM

[ QUOTE ]
I recently bought my first home 7 months ago, I have had nothing but poker income for the past 30 months, and my credit score was not all that good. I feared the worst.

I had absolutely no trouble purchasing a 200k home with 10% down and a sub 700 credit report on a No Doc loan. The only thing I had to do was get a CPA to verify that I am self-employed. I did not disguise what I do for a living in any way, and it went smooth as silk.

[/ QUOTE ]

Agreed. If you've got 10% down and a good credit score, you could be an assistant crack whore and they'd give you a loan.

I was "approved" for my first home loan while I was still unemployed. But I did hold off on buying until I got a job and was able to get a better rate and a bigger house.

ScottTheFish · #19 04-21-2005, 06:16 PM

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This is poor advice imho, I have many friends that are older than I and have more funds(way more), when I "baught" my first house(2nd property), they all told me the same thing, buy the biggest you can afford.

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That's what mortgage brokers and realtors tell everyone, shouldn't be hard to figure out why.

Better advice, IMO, is to buy a more resonable house that suits your needs, and pay it off way early. Then you take your former mortgage payment and invest it in whatever.

And don't give me tax deductible interest blah blah, why would I want to pay 10K in interest to save 3K in taxes?

Debt = risk.

sublime · #20 04-21-2005, 06:22 PM

Better advice, IMO, is to buy a more resonable house that suits your needs, and pay it off way early. Then you take your former mortgage payment and invest it in whatever.

think about what you typed. then think about it some more. then think about what the stock market generally returns if you are long term investor. then think about what a typical mortgage interest rate is. then tell me again why paying your mortgage off early is smart?