buying real estate - Page 11

daryn · #**101** 10-12-2005, 09:20 PM

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

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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.

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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] · #**102** 10-12-2005, 09:23 PM

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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.

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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?

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

Notorious G.O.B. · #**103** 10-12-2005, 11:50 PM

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 · #**104** 10-13-2005, 12:31 AM

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[ 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?

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

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

Shajen · #**105** 10-13-2005, 09:31 AM

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 · #**106** 10-13-2005, 09:38 AM

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 [img]/images/graemlins/smile.gif[/img]) 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 · #**107** 10-13-2005, 09:46 AM

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

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do you have to pay for this service?

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

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what kind of cheddar are we looking at here?

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

Sifmole · #**108** 10-13-2005, 09:47 AM

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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?

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

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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 · #**109** 10-13-2005, 09:50 AM

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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.

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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?

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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.

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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 · #**110** 10-13-2005, 09:54 AM

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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?

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

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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.

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why does everyone think i avoided paying taxes???