07-28-2009, 11:18 AM
If you remember I used to work in new home sales, so if you have any really specific questions that come up just PM me or call me.
Now is still a pretty good time to buy, interest rates are relatively low, you get that ridiculous tax advantage of I think $8,000? You can also apparently apply for it in advance to use it as part of your downpayment. I don't know all of the details on that though because that's relatively new. When I bought my home, I had to put at least 5% down. The guidelines may be even stricter now so make sure you're prepared to put down a good lump sum and don't forget to account for your closing costs... or have those taken care of by the lender like I did if you can find a good mortgage deal.
DON'T necessarily be turned off from IO loans. I always laugh when people say that ARMs / IOs are the reason why the housing bubble burst. This is not true, it was the no doc, NINA and balloon loans that really allowed people to fuck themselves. If you're not planning on living in the home for a long time or are purchasing it as a mid-range investment, an IO is not a bad way to go as it allows you to keep your payment lower so that you can either reinvest that money elsewhere or put more into your principle. In reality, with a 30 year fixed you hardly pay any principle at all for at least the first seven years anyway.
You can definitely still negotiate pretty heavily like I was able to, but be realistic. My buddy Trevor is a really well-known realtor down here and he has said that a lot of people are unrealistic about what kinds of deals they think they can negotiate. He's seen a lot of people turn down ridiculous deals because they think they can get more out of the sellers, when in fact they lose out and end up having to look at higher price points.
You don't necessarily need to use a realtor, if you don't it will give you roughly ~3% more negotiating room. They can be helpful though if you a really a n00b to the market and have no idea even where to begin. A really good realtor (there aren't many of them out there, let me know if you want the number to a good one) can get you involved with short sale properties and foreclosures which are your absolute best deals by far... so if you're looking to go that route you'll definitely want to consult one.
Hope that helps. Oh, and make sure that whoever you use for the mortgage process sets up an escrow for your yearly property taxes and make sure you constantly follow up with them. Mortgage people can be total retards, srsly.
Now is still a pretty good time to buy, interest rates are relatively low, you get that ridiculous tax advantage of I think $8,000? You can also apparently apply for it in advance to use it as part of your downpayment. I don't know all of the details on that though because that's relatively new. When I bought my home, I had to put at least 5% down. The guidelines may be even stricter now so make sure you're prepared to put down a good lump sum and don't forget to account for your closing costs... or have those taken care of by the lender like I did if you can find a good mortgage deal.
DON'T necessarily be turned off from IO loans. I always laugh when people say that ARMs / IOs are the reason why the housing bubble burst. This is not true, it was the no doc, NINA and balloon loans that really allowed people to fuck themselves. If you're not planning on living in the home for a long time or are purchasing it as a mid-range investment, an IO is not a bad way to go as it allows you to keep your payment lower so that you can either reinvest that money elsewhere or put more into your principle. In reality, with a 30 year fixed you hardly pay any principle at all for at least the first seven years anyway.
You can definitely still negotiate pretty heavily like I was able to, but be realistic. My buddy Trevor is a really well-known realtor down here and he has said that a lot of people are unrealistic about what kinds of deals they think they can negotiate. He's seen a lot of people turn down ridiculous deals because they think they can get more out of the sellers, when in fact they lose out and end up having to look at higher price points.
You don't necessarily need to use a realtor, if you don't it will give you roughly ~3% more negotiating room. They can be helpful though if you a really a n00b to the market and have no idea even where to begin. A really good realtor (there aren't many of them out there, let me know if you want the number to a good one) can get you involved with short sale properties and foreclosures which are your absolute best deals by far... so if you're looking to go that route you'll definitely want to consult one.
Hope that helps. Oh, and make sure that whoever you use for the mortgage process sets up an escrow for your yearly property taxes and make sure you constantly follow up with them. Mortgage people can be total retards, srsly.
Posting in the banalist of threads since 2004
2017 Mazda CX-5 GT AWD Premium
Past: 2016 GMC Canyon All Terrain Crew Cab / 2010 Jaguar XFR / 2012 Acura RDX AWD Tech / 2008 Cadillac CTS / 2007 Acura TL-S / 1966 5.0 HO Mustang Coupe
2001 Lexus IS300 / 2004 2.8L big turbo WRX STI / 2004 Subaru WRX / A couple of old trucks
2017 Mazda CX-5 GT AWD Premium
Past: 2016 GMC Canyon All Terrain Crew Cab / 2010 Jaguar XFR / 2012 Acura RDX AWD Tech / 2008 Cadillac CTS / 2007 Acura TL-S / 1966 5.0 HO Mustang Coupe
2001 Lexus IS300 / 2004 2.8L big turbo WRX STI / 2004 Subaru WRX / A couple of old trucks