karenmeal 0 #1 March 6, 2007 To all you home-owners out there, After you bought your first home, what were some of the unexpected costs that cropped up? My boyfriend and I would like to buy a house as soon as we are able to. If I decide to go to one graduate school, we might be able to swing it before I gradute because the area has a much lower cost of living. So many things to think about though.. costs of insurance, dealing with home repairs as they come up.. We're just not sure if it makes good financial sense to do this. We have a large chunk of change to put into the down payment.. but how many years do you need to live in a house (or what percent of the mortgage do you need to pay down ) before you're not losing tons of money on all the extra fees and what not? Am I better off keeping the money in a CD and bonds? We don't need to make money off of owning the home and selling it after a few years, but as long as we're not going to be losing as much money as paying $950 each month for rent, it would be an improvement. Any advice from you home-owners and financially savvy people? Do I need to go talk to a financial advisor and plan this out? (and how much do they normally cost?) "Life is a temporary victory over the causes which induce death." - Sylvester Graham Quote Share this post Link to post Share on other sites
StreetScooby 5 #2 March 6, 2007 So far, in my house: 1) Roof (6K) 2) Redo bathroom because of bad prior work (7K) 3) Multiple rounds of tree work (3K) A new heating system is also needed, but so far, it's still working (8K). We also need to get new energy efficient windows (6K). Don't forget about property taxes. Every time I turn around, my property taxes are going up. Right now, there equal to 50% of my mortgage.We are all engines of karma Quote Share this post Link to post Share on other sites
karenmeal 0 #3 March 6, 2007 daaaaamn. Is that typical, or just unlucky? "Life is a temporary victory over the causes which induce death." - Sylvester Graham Quote Share this post Link to post Share on other sites
chaoskitty 0 #4 March 6, 2007 QuoteTo all you home-owners out there, After you bought your first home, what were some of the unexpected costs that cropped up? Initially.. your mortgage broker can show you on paper what your mortgage, taxes, and escrow will be and that shouldnt change. If you have association fees, be sure to add those in to your mortgage budget. And then open your wallet and turn it upside down for... Inspection and appraisal (~$300 each before closing) Up front taxes at closing. Insurance.. find out how much the association covers and how much is your responsibility. Hook up fees and deposits for electricity, cable, gas, etc. "Stuff" for the house that you didnt think you needed.. but that depends on how much "stuff" you already have or can live without. I found myself spending more than I had planned on things like trash bins, soap dispensers, lamps, a little rug here and there, floor mats, cleaning supplies.. etc. My recommendation is that if you have JUST enough money to make your mortgage payment and bills, you're going to find the first couple of months pretty difficult. But after the first couple of months, things even out pretty nicely and its TOTALLY worth it to own your own place. Good luck! Quote Share this post Link to post Share on other sites BillyVance 34 #5 March 6, 2007 Before you buy the house, definitely have a house inspector look it over thoroughly. When I bought mine, and not long after, an inspector from the insurance company came by to check the house out. They told me to replace the garage door (wooden and sagging in the middle) if I wanted to keep the insurance going. Also plan on buying a refrigerator, washer and dryer at the very least, especially if this is your first home. You will also find that regular maintenance costs do crop up, such as your HVAC system. You will be totally responsible as a home-owner for anything that needs replacing or repairing. I would say you should have at least a 3 to 6 month's salary's worth in savings for emergencies and 1 to 2 months for regular maintenance for the year. Just ball-park figures. Edited to add: forgot property taxes. Depending on where you live, this could be a significant portion of your budget (but it can be included in the mortgage so you don't have to pay it all at once)."Mediocre people don't like high achievers, and high achievers don't like mediocre people." - SIX TIME National Champion coach Nick Saban Quote Share this post Link to post Share on other sites skytash 0 #6 March 6, 2007 two quite different experiences: when I bought my flat, everything was sort of predictable or a matter of choice, so insurance, ground rent and paint to decorate. It could have done with a new kitchen when I moved in, but I didn't get that fixed up until 8 years later (to be able to sell it!). I then sold it for 3 times what I paid for it, so all in all a good deal. When I bought my house, I knew there was work needed, so new plumbing for one of the bathrooms and the hot water system, insulation for the loft, double glazing, so I took that into account when I bought. It's still working out at a bit more than I expected though. In terms of hidden costs etc, if you look closely they aren't that hidden and a lot will depend on what type of property you buy in what area etc. So you may want to take into account the local politics as that could influence property related taxes and how they may rise! tashDon't ever save anything for a special occasion. Being alive is a special occasion. Avril Sloe Quote Share this post Link to post Share on other sites chaoskitty 0 #7 March 6, 2007 Quotedaaaaamn. Is that typical, or just unlucky? Thats why you get a *GOOD* inspection. Dont buy a place that is going to need a new furnace, roof, windows, etc. in the next few years. Quote Share this post Link to post Share on other sites Thanatos340 1 #8 March 6, 2007 Quotecosts of insurance, dealing with home repairs as they come up.. Insurance and Taxes are usually rolled into your monthly mortgage payment and held in escrow by your lender and they pay these for you as they come due. Unexpected repairs?? A good Home inspection by a professional Home inspector (Something you should absolutely do before buying any home) should help reduce and "Unexpected" repairs for a while. Not saying you will not need repairs, But you should atleast have an idea of what to expect. You really need to put about 20% down on a House to avoid PMI (Principal Mortgage Insurance). Sometimes you can avoid PMI by getting your house reappraised shortly after you move in. As long as you owe less than 80% of the appraisal value, You can avoid PMI. Far CD`s and Bonds go... You can get almost as much interest with High yield savings right now with ING direct or Citibank on a standard Savings account and still have full access to your money without penalties for early withdrawal. Buying a house also has huge TAX benefits. Quote Share this post Link to post Share on other sites chaoskitty 0 #9 March 6, 2007 Ahh.. forgot to mention.. a home warrranty is worth the money! Its not uncommon for the seller to include a one year home warranty in the sale. Ask for it if they havent included it, if you have the wiggle room in the offer. That'll cover all of your major appliances if they blow or go. I keep asking hippie to come over and break my dishwasher so I can get a new one. hehehe.. jk. Quote Share this post Link to post Share on other sites karenmeal 0 #10 March 6, 2007 What is PMI? I really know very little about the process at this point. Depending on the house.. I can probably afford about 10-15% "Life is a temporary victory over the causes which induce death." - Sylvester Graham Quote Share this post Link to post Share on other sites chaoskitty 0 #11 March 6, 2007 Private Mortgage Insurance. You will be charged this if you finance more than 80% of the price of the house. Thats why some people take out 2 loans (80/20).. but doing that incurrs 2 sets of closing costs.. so you have to find out which is cheaper for you... paying the PMI, or paying 2 sets of closing costs. If you have 15% to put down, you may only have to pay PMI for a year or less. As J said, when you "own" 20% of the home's appraised value, you dont have to take out PMI. Quote Share this post Link to post Share on other sites airtwardo 6 #12 March 6, 2007 We're just not sure if it makes good financial sense to do this. We have a large chunk of change to put into the down payment.. but how many years do you need to live in a house (or what percent of the mortgage do you need to pay down ) before you're not losing tons of money on all the extra fees and what not? Am I better off keeping the money in a CD and bonds? We don't need to make money off of owning the home and selling it after a few years, but as long as we're not going to be losing as much money as paying $950 each month for rent, it would be an improvement. Quote The best part about owning a home is NOT paying that 950.00 to someone else, if you selected wisely etc. you are paying yourself...'investing the rent money' so to speak. Choosing wisely... Is the home in an area that has shown consistent growth in regard to property values? Is it in good shape, roof, plumbing, electrical, structural...the things that could cost you money to fix up. What are the average monthly utilities? Do you live in an area that gives you a homestead tax break. One more on 'choosing wisely'....the "we" buying it, is not married. That can at times in some circumstances be a less than wise decision...there is a 'break even' point that (again depending on where you are) could be a year or 5 down the road....selling out early could prove to be a less than prudent financial investing decision...if you get my point. As far as 'hidden' costs, just remember it's YOURS so you 'tend to spend' fixing it up to your tastes...something you weren't doing as a renter. Those improvements do add up, and it's likely bigger than your rental....more water, heat, gas etc. But in the long run, if you do your homework and DO NOT BUY on emotion...you can't lose! Good luck! ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites skycat 0 #13 March 6, 2007 April 14th I will have had my house a year, so I know all about unexpected costs. 1st - Make sure you have an excellent inspector, and find out exactly what he will and will not inspect. Mine didn't inspect furnaces so in my contract I asked for the sellers to have the furnace inspected. If things are found wrong you can negotiate in the contract to have the seller either fix the issue or put money in escrow to get it fixed after the sale. 2nd - Find a good mortgage person, they will insure you know the costs of insurance and tax that will be added to your monthly payments. For example my loan payment is about $950 per month but with Tax and insurance I'm paying about $1150 per month. Set you monthly limit off the total payment not your loan payment. 3rd - Plan to want to do improvements. My house was great but after moving in and painting I noticed little things like electric plugs and covers painted over (one of my pet peeves) and light fixtures that were yellowed, so those all needed to be replaced. Costs after buying the house: -New Roof (found during inspection) -New Furnace (found during inspection) -New Water Heater (found during inspection) -Replace light fixtures -Replace switches, plugs, and covers -Paint -New Fridge -New Kitchen sink faucet (leaked, not found during inspection) -Misc other upgrades -Drapes (this is a big one since I didn't have any for a week ) I was also lucky in that the previous home owners had left a ton of outdoor tools, like push mower, shovels, rake, brooms, and other stuff like that which helped since I didn't have to buy that stuff. But with so many major components of the house to replace even with the escrow money there was still quite a bit out of pocket. Luckily I low balled the sellers and got a good deal on the house, plus they payed 100% of my closing costs. It's surprising though how when in the new house the furniture doesn't seem to work any more, the artwork just isn't right, ect., ect. Fly it like you stole it! Quote Share this post Link to post Share on other sites airtwardo 6 #14 March 6, 2007 QuoteQuotedaaaaamn. Is that typical, or just unlucky? Thats why you get a *GOOD* inspection. Dont buy a place that is going to need a new furnace, roof, windows, etc. in the next few years. EXACTLY! those things should be good for 10 or more yeras, of get an adjustment on the purchase price. ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites Thanatos340 1 #15 March 6, 2007 PMI is Principal Mortgage Insurance. Most lender require you to have this if you owe more than 80% of the Value of the Home. Basically it is an Insurance Policy that protect the Lender if you default on the loan and they have to forclose. The Insurer will then pay the Lender any money they loose on the transaction. Some lenders will offer NO-PMI loans but you will pay a Higher interest rate. If you plan on being in the house only a couple years, This may be a Good option. Talk to a Good mortgage broker and they can offer you lots of advise on which Mortgage is right for you.. But also make sure you talk to more than one. Never forget that a Mortgage broker is making a commission off whatever loan they sell you and may not always have your best interest in mind. Be wary of Interest Only Loans and ARMs, They can really bite you if you are not careful. Quote Share this post Link to post Share on other sites airtwardo 6 #16 March 6, 2007 Yup...an ARM will cost ya a Leg, down the road! But it sounds like they have a good initial investment which should make plenty of good loan options available to them....in any case you give very good advice! ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites karenmeal 0 #17 March 6, 2007 QuoteBut in the long run, if you do your homework and DO NOT BUY on emotion...you can't lose! We've been living together for four years.. I think we're steady enough to break even. "Life is a temporary victory over the causes which induce death." - Sylvester Graham Quote Share this post Link to post Share on other sites peregrinerose 0 #18 March 6, 2007 Take a good look at forclosure homes. I bought my house 6 years ago for $82500. It was appraised at the time at $126,000. Probably would sell today for $135000. Other than being hideously ugly and unsanitary for human life when I bought it, the home inspection revealed nothing wrong but a leaking pipe (which I made the bank fix prior to purchase... it cost them $50). I did all the rehab work myself, except windows. Windows were $5000 for the whole house. I did the siding myself for $1500. Lots of paint. I replaced carpet for $1000 in 1/2 the house. The rest of the house is hardwood floors which I refinished myself by renting a sander. I've had no major repairs to do. I pay $800/month to mortgage. My rent before buying the house was $750, so this is a great deal! Do or do not, there is no try -Yoda Quote Share this post Link to post Share on other sites skytash 0 #19 March 6, 2007 I always think that a joint mortgage is a bigger committment than marriage. In the UK you can get a divorce practically over the internet for £40. You download the forms and both sign them and send them to a court with a cheque. Getting out of a joint mortgage is a lot more hassle and expense! tashDon't ever save anything for a special occasion. Being alive is a special occasion. Avril Sloe Quote Share this post Link to post Share on other sites SkydiveStMarys 0 #20 March 6, 2007 Hot water heater, fernace, air conditioner.....the last two can be big bucks!! Ca Ching!! BobbiA miracle is not defined by an event. A miracle is defined by gratitude. Quote Share this post Link to post Share on other sites jimmytavino 16 #21 March 6, 2007 well good for you.you buy at a good ( for YOU ) price. you shop carefully. and you can AFFORD the mtge payment AND the small things which go into home ownership. For example,,,, i bet you don't own a lawn mower,,,,hahahaha.. you'll also need some furniture and maybe appliances, window treatments, paint, carpeting etc..... still, owning your own place is a nice accomplishment... One thing that people sometimes fail to think about, are Neighbors...... Not neighborhood... but "neighbors"....... WHO will be living immediately next door to you?????..or behind you, It may not be an issue if you buy in a very rural area, where houses can be some distance apart.. But If you buy a house on a traditional street, or let's say on a cul de sac....... you could wind up with "who knows what"... for next door neighbors...... Often people fail to consider this,,, til AFTER thay have moved in and then find any numbers of Bad results....hell a couple of barking dogs, living within 25 feet of your home, could drive you nuts, or people with multiple cars and other sundry vehicles, taking up spaces on the street, or just parked and left as an eyesore.... or really NOISY.. or worst yet NOSEY (Knowsey) people...... many folks fail to think about just WHOM they will be living so nearby to .....and often the real estate people won't even consider that point... ( they just wanna SELL the place ) ... So , you shouldn't rely on luck, when it comes to having decent next door neighbors... Sometimes, that is out of our control, especially if somebody MOVES In, next door...after you have bought.... but it can't hurt to explore just WHO does occupy the places near to your prospective home,, since THEY will be the ones, looking in your windows and peeking over your fences.. hahahahaha. good luck...enjoy. jimmyT Quote Share this post Link to post Share on other sites StreetScooby 5 #22 March 6, 2007 Quote Often people fail to consider this,,, til AFTER thay have moved in and then find any numbers of Bad results....hell a couple of barking dogs, living within 25 feet of your home, could drive you nuts, or people with multiple cars and other sundry vehicles, taking up spaces on the street, or just parked and left as an eyesore.... or really NOISY.. or worst yet NOSEY (Knowsey) people...... many folks fail to think about just WHOM they will be living so nearby to .....and often the real estate people won't even consider that point... ( they just wanna SELL the place ) ... So , you shouldn't rely on luck, when it comes to having decent next door neighbors... Sometimes, that is out of our control, especially if somebody MOVES In, next door...after you have bought.... but it can't hurt to explore just WHO does occupy the places near to your prospective home,, since THEY will be the ones, looking in your windows and peeking over your fences.. SO TRUE!!! Do not underestimate this...We are all engines of karma Quote Share this post Link to post Share on other sites karenmeal 0 #23 March 6, 2007 Ha! We have a lawn-mower and a weed-whacker and a shovel thank you very much. As far as neighbors go... It seriously cannot be worse than the people who live above us in the duplex we are renting. The first time I mowed the lawn after they moved in, she came down to meet me at about 10 am with a big gulp slurpee cup halfway filled with whiskey. She told me she had already drank the other half, insisted I finished mowing the lawn and walked with me as I mowed, PETTING ME ON THE BACK THE ENTIRE TIME. It don't get much more crazy than that. Edited to add: And then she made me hug her. "Life is a temporary victory over the causes which induce death." - Sylvester Graham Quote Share this post Link to post Share on other sites upndownshop 0 #24 March 6, 2007 If you are in an area that is high humidity, get a mold inspection. Very important. I know from experience, this was not my house but she was talked out of the mold inspection from the agent. Turns out he was frineds with the sellers and the roof was covered with a blue tarp for 1 year. After she moved in I found black mold. To this day I do not know if I got it all out. And now I will never know due to the situation in our relationship, which is something else I will pm you about. But she will find out when she goes to sell it.If it does not pass, she could be stuck with a condemned house. A house can be a great investment, keep learning about it and take your time. good luck Quote Share this post Link to post Share on other sites lawrocket 3 #25 March 6, 2007 QuoteAfter you bought your first home, what were some of the unexpected costs that cropped up? Most of the "unexpected costs" that crop up are right there in the mortgage loan. Too often, people get themselves in over their heads due to loans that start off good, but are heavily loaded on the back end. They'll find out that their loans are resulting in negative amortization because they aren't making payments on time, or, because they ARE making the minimum payment under the agreement, but that doesn't even pay the interest. I would advise ANYONE who buys a home to have their loan documents, etc., reviewed by either a lawyer or an accountant who can explain them. And NEVER, EVER, EVER just sign what is in front of you. And if anybody ever says, "Sign it and I'll change it later." then back out and cancel the deal IMMEDIATELY - that person is screwing you and absolutely cannot be trusted. As far as other expenses go, most of them are not exactly "necessary." Decorating, etc., are expenses that can be put off, but it is always difficult. Sometimes, though, other things pop up like electrical, water, etc. A water heater can go out, and you gotta pay for it. Or a pipe may burst, and that's up to you. Think of all the things you complained about to the super that needed to be fixed, repaired, etc - those are all your job now, right down to spraying for bugs. Home ownership ain't cheap. I compare it to a car - it can go downhill fast unless it is properly maintained. My wife is hotter than your wife. Quote Share this post Link to post Share on other sites Prev 1 2 3 4 Next Page 1 of 4 Join the conversation You can post now and register later. 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BillyVance 34 #5 March 6, 2007 Before you buy the house, definitely have a house inspector look it over thoroughly. When I bought mine, and not long after, an inspector from the insurance company came by to check the house out. They told me to replace the garage door (wooden and sagging in the middle) if I wanted to keep the insurance going. Also plan on buying a refrigerator, washer and dryer at the very least, especially if this is your first home. You will also find that regular maintenance costs do crop up, such as your HVAC system. You will be totally responsible as a home-owner for anything that needs replacing or repairing. I would say you should have at least a 3 to 6 month's salary's worth in savings for emergencies and 1 to 2 months for regular maintenance for the year. Just ball-park figures. Edited to add: forgot property taxes. Depending on where you live, this could be a significant portion of your budget (but it can be included in the mortgage so you don't have to pay it all at once)."Mediocre people don't like high achievers, and high achievers don't like mediocre people." - SIX TIME National Champion coach Nick Saban Quote Share this post Link to post Share on other sites
skytash 0 #6 March 6, 2007 two quite different experiences: when I bought my flat, everything was sort of predictable or a matter of choice, so insurance, ground rent and paint to decorate. It could have done with a new kitchen when I moved in, but I didn't get that fixed up until 8 years later (to be able to sell it!). I then sold it for 3 times what I paid for it, so all in all a good deal. When I bought my house, I knew there was work needed, so new plumbing for one of the bathrooms and the hot water system, insulation for the loft, double glazing, so I took that into account when I bought. It's still working out at a bit more than I expected though. In terms of hidden costs etc, if you look closely they aren't that hidden and a lot will depend on what type of property you buy in what area etc. So you may want to take into account the local politics as that could influence property related taxes and how they may rise! tashDon't ever save anything for a special occasion. Being alive is a special occasion. Avril Sloe Quote Share this post Link to post Share on other sites
chaoskitty 0 #7 March 6, 2007 Quotedaaaaamn. Is that typical, or just unlucky? Thats why you get a *GOOD* inspection. Dont buy a place that is going to need a new furnace, roof, windows, etc. in the next few years. Quote Share this post Link to post Share on other sites
Thanatos340 1 #8 March 6, 2007 Quotecosts of insurance, dealing with home repairs as they come up.. Insurance and Taxes are usually rolled into your monthly mortgage payment and held in escrow by your lender and they pay these for you as they come due. Unexpected repairs?? A good Home inspection by a professional Home inspector (Something you should absolutely do before buying any home) should help reduce and "Unexpected" repairs for a while. Not saying you will not need repairs, But you should atleast have an idea of what to expect. You really need to put about 20% down on a House to avoid PMI (Principal Mortgage Insurance). Sometimes you can avoid PMI by getting your house reappraised shortly after you move in. As long as you owe less than 80% of the appraisal value, You can avoid PMI. Far CD`s and Bonds go... You can get almost as much interest with High yield savings right now with ING direct or Citibank on a standard Savings account and still have full access to your money without penalties for early withdrawal. Buying a house also has huge TAX benefits. Quote Share this post Link to post Share on other sites
chaoskitty 0 #9 March 6, 2007 Ahh.. forgot to mention.. a home warrranty is worth the money! Its not uncommon for the seller to include a one year home warranty in the sale. Ask for it if they havent included it, if you have the wiggle room in the offer. That'll cover all of your major appliances if they blow or go. I keep asking hippie to come over and break my dishwasher so I can get a new one. hehehe.. jk. Quote Share this post Link to post Share on other sites
karenmeal 0 #10 March 6, 2007 What is PMI? I really know very little about the process at this point. Depending on the house.. I can probably afford about 10-15% "Life is a temporary victory over the causes which induce death." - Sylvester Graham Quote Share this post Link to post Share on other sites
chaoskitty 0 #11 March 6, 2007 Private Mortgage Insurance. You will be charged this if you finance more than 80% of the price of the house. Thats why some people take out 2 loans (80/20).. but doing that incurrs 2 sets of closing costs.. so you have to find out which is cheaper for you... paying the PMI, or paying 2 sets of closing costs. If you have 15% to put down, you may only have to pay PMI for a year or less. As J said, when you "own" 20% of the home's appraised value, you dont have to take out PMI. Quote Share this post Link to post Share on other sites
airtwardo 6 #12 March 6, 2007 We're just not sure if it makes good financial sense to do this. We have a large chunk of change to put into the down payment.. but how many years do you need to live in a house (or what percent of the mortgage do you need to pay down ) before you're not losing tons of money on all the extra fees and what not? Am I better off keeping the money in a CD and bonds? We don't need to make money off of owning the home and selling it after a few years, but as long as we're not going to be losing as much money as paying $950 each month for rent, it would be an improvement. Quote The best part about owning a home is NOT paying that 950.00 to someone else, if you selected wisely etc. you are paying yourself...'investing the rent money' so to speak. Choosing wisely... Is the home in an area that has shown consistent growth in regard to property values? Is it in good shape, roof, plumbing, electrical, structural...the things that could cost you money to fix up. What are the average monthly utilities? Do you live in an area that gives you a homestead tax break. One more on 'choosing wisely'....the "we" buying it, is not married. That can at times in some circumstances be a less than wise decision...there is a 'break even' point that (again depending on where you are) could be a year or 5 down the road....selling out early could prove to be a less than prudent financial investing decision...if you get my point. As far as 'hidden' costs, just remember it's YOURS so you 'tend to spend' fixing it up to your tastes...something you weren't doing as a renter. Those improvements do add up, and it's likely bigger than your rental....more water, heat, gas etc. But in the long run, if you do your homework and DO NOT BUY on emotion...you can't lose! Good luck! ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites skycat 0 #13 March 6, 2007 April 14th I will have had my house a year, so I know all about unexpected costs. 1st - Make sure you have an excellent inspector, and find out exactly what he will and will not inspect. Mine didn't inspect furnaces so in my contract I asked for the sellers to have the furnace inspected. If things are found wrong you can negotiate in the contract to have the seller either fix the issue or put money in escrow to get it fixed after the sale. 2nd - Find a good mortgage person, they will insure you know the costs of insurance and tax that will be added to your monthly payments. For example my loan payment is about $950 per month but with Tax and insurance I'm paying about $1150 per month. Set you monthly limit off the total payment not your loan payment. 3rd - Plan to want to do improvements. My house was great but after moving in and painting I noticed little things like electric plugs and covers painted over (one of my pet peeves) and light fixtures that were yellowed, so those all needed to be replaced. Costs after buying the house: -New Roof (found during inspection) -New Furnace (found during inspection) -New Water Heater (found during inspection) -Replace light fixtures -Replace switches, plugs, and covers -Paint -New Fridge -New Kitchen sink faucet (leaked, not found during inspection) -Misc other upgrades -Drapes (this is a big one since I didn't have any for a week ) I was also lucky in that the previous home owners had left a ton of outdoor tools, like push mower, shovels, rake, brooms, and other stuff like that which helped since I didn't have to buy that stuff. But with so many major components of the house to replace even with the escrow money there was still quite a bit out of pocket. Luckily I low balled the sellers and got a good deal on the house, plus they payed 100% of my closing costs. It's surprising though how when in the new house the furniture doesn't seem to work any more, the artwork just isn't right, ect., ect. Fly it like you stole it! Quote Share this post Link to post Share on other sites airtwardo 6 #14 March 6, 2007 QuoteQuotedaaaaamn. Is that typical, or just unlucky? Thats why you get a *GOOD* inspection. Dont buy a place that is going to need a new furnace, roof, windows, etc. in the next few years. EXACTLY! those things should be good for 10 or more yeras, of get an adjustment on the purchase price. ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites Thanatos340 1 #15 March 6, 2007 PMI is Principal Mortgage Insurance. Most lender require you to have this if you owe more than 80% of the Value of the Home. Basically it is an Insurance Policy that protect the Lender if you default on the loan and they have to forclose. The Insurer will then pay the Lender any money they loose on the transaction. Some lenders will offer NO-PMI loans but you will pay a Higher interest rate. If you plan on being in the house only a couple years, This may be a Good option. Talk to a Good mortgage broker and they can offer you lots of advise on which Mortgage is right for you.. But also make sure you talk to more than one. Never forget that a Mortgage broker is making a commission off whatever loan they sell you and may not always have your best interest in mind. Be wary of Interest Only Loans and ARMs, They can really bite you if you are not careful. Quote Share this post Link to post Share on other sites airtwardo 6 #16 March 6, 2007 Yup...an ARM will cost ya a Leg, down the road! But it sounds like they have a good initial investment which should make plenty of good loan options available to them....in any case you give very good advice! ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites karenmeal 0 #17 March 6, 2007 QuoteBut in the long run, if you do your homework and DO NOT BUY on emotion...you can't lose! We've been living together for four years.. I think we're steady enough to break even. "Life is a temporary victory over the causes which induce death." - Sylvester Graham Quote Share this post Link to post Share on other sites peregrinerose 0 #18 March 6, 2007 Take a good look at forclosure homes. I bought my house 6 years ago for $82500. It was appraised at the time at $126,000. Probably would sell today for $135000. Other than being hideously ugly and unsanitary for human life when I bought it, the home inspection revealed nothing wrong but a leaking pipe (which I made the bank fix prior to purchase... it cost them $50). I did all the rehab work myself, except windows. Windows were $5000 for the whole house. I did the siding myself for $1500. Lots of paint. I replaced carpet for $1000 in 1/2 the house. The rest of the house is hardwood floors which I refinished myself by renting a sander. I've had no major repairs to do. I pay $800/month to mortgage. My rent before buying the house was $750, so this is a great deal! Do or do not, there is no try -Yoda Quote Share this post Link to post Share on other sites skytash 0 #19 March 6, 2007 I always think that a joint mortgage is a bigger committment than marriage. In the UK you can get a divorce practically over the internet for £40. You download the forms and both sign them and send them to a court with a cheque. Getting out of a joint mortgage is a lot more hassle and expense! tashDon't ever save anything for a special occasion. Being alive is a special occasion. Avril Sloe Quote Share this post Link to post Share on other sites SkydiveStMarys 0 #20 March 6, 2007 Hot water heater, fernace, air conditioner.....the last two can be big bucks!! Ca Ching!! BobbiA miracle is not defined by an event. A miracle is defined by gratitude. Quote Share this post Link to post Share on other sites jimmytavino 16 #21 March 6, 2007 well good for you.you buy at a good ( for YOU ) price. you shop carefully. and you can AFFORD the mtge payment AND the small things which go into home ownership. For example,,,, i bet you don't own a lawn mower,,,,hahahaha.. you'll also need some furniture and maybe appliances, window treatments, paint, carpeting etc..... still, owning your own place is a nice accomplishment... One thing that people sometimes fail to think about, are Neighbors...... Not neighborhood... but "neighbors"....... WHO will be living immediately next door to you?????..or behind you, It may not be an issue if you buy in a very rural area, where houses can be some distance apart.. But If you buy a house on a traditional street, or let's say on a cul de sac....... you could wind up with "who knows what"... for next door neighbors...... Often people fail to consider this,,, til AFTER thay have moved in and then find any numbers of Bad results....hell a couple of barking dogs, living within 25 feet of your home, could drive you nuts, or people with multiple cars and other sundry vehicles, taking up spaces on the street, or just parked and left as an eyesore.... or really NOISY.. or worst yet NOSEY (Knowsey) people...... many folks fail to think about just WHOM they will be living so nearby to .....and often the real estate people won't even consider that point... ( they just wanna SELL the place ) ... So , you shouldn't rely on luck, when it comes to having decent next door neighbors... Sometimes, that is out of our control, especially if somebody MOVES In, next door...after you have bought.... but it can't hurt to explore just WHO does occupy the places near to your prospective home,, since THEY will be the ones, looking in your windows and peeking over your fences.. hahahahaha. good luck...enjoy. jimmyT Quote Share this post Link to post Share on other sites StreetScooby 5 #22 March 6, 2007 Quote Often people fail to consider this,,, til AFTER thay have moved in and then find any numbers of Bad results....hell a couple of barking dogs, living within 25 feet of your home, could drive you nuts, or people with multiple cars and other sundry vehicles, taking up spaces on the street, or just parked and left as an eyesore.... or really NOISY.. or worst yet NOSEY (Knowsey) people...... many folks fail to think about just WHOM they will be living so nearby to .....and often the real estate people won't even consider that point... ( they just wanna SELL the place ) ... So , you shouldn't rely on luck, when it comes to having decent next door neighbors... Sometimes, that is out of our control, especially if somebody MOVES In, next door...after you have bought.... but it can't hurt to explore just WHO does occupy the places near to your prospective home,, since THEY will be the ones, looking in your windows and peeking over your fences.. SO TRUE!!! Do not underestimate this...We are all engines of karma Quote Share this post Link to post Share on other sites karenmeal 0 #23 March 6, 2007 Ha! We have a lawn-mower and a weed-whacker and a shovel thank you very much. As far as neighbors go... It seriously cannot be worse than the people who live above us in the duplex we are renting. The first time I mowed the lawn after they moved in, she came down to meet me at about 10 am with a big gulp slurpee cup halfway filled with whiskey. She told me she had already drank the other half, insisted I finished mowing the lawn and walked with me as I mowed, PETTING ME ON THE BACK THE ENTIRE TIME. It don't get much more crazy than that. Edited to add: And then she made me hug her. "Life is a temporary victory over the causes which induce death." - Sylvester Graham Quote Share this post Link to post Share on other sites upndownshop 0 #24 March 6, 2007 If you are in an area that is high humidity, get a mold inspection. Very important. I know from experience, this was not my house but she was talked out of the mold inspection from the agent. Turns out he was frineds with the sellers and the roof was covered with a blue tarp for 1 year. After she moved in I found black mold. To this day I do not know if I got it all out. And now I will never know due to the situation in our relationship, which is something else I will pm you about. But she will find out when she goes to sell it.If it does not pass, she could be stuck with a condemned house. A house can be a great investment, keep learning about it and take your time. good luck Quote Share this post Link to post Share on other sites lawrocket 3 #25 March 6, 2007 QuoteAfter you bought your first home, what were some of the unexpected costs that cropped up? Most of the "unexpected costs" that crop up are right there in the mortgage loan. Too often, people get themselves in over their heads due to loans that start off good, but are heavily loaded on the back end. They'll find out that their loans are resulting in negative amortization because they aren't making payments on time, or, because they ARE making the minimum payment under the agreement, but that doesn't even pay the interest. I would advise ANYONE who buys a home to have their loan documents, etc., reviewed by either a lawyer or an accountant who can explain them. And NEVER, EVER, EVER just sign what is in front of you. And if anybody ever says, "Sign it and I'll change it later." then back out and cancel the deal IMMEDIATELY - that person is screwing you and absolutely cannot be trusted. As far as other expenses go, most of them are not exactly "necessary." Decorating, etc., are expenses that can be put off, but it is always difficult. Sometimes, though, other things pop up like electrical, water, etc. A water heater can go out, and you gotta pay for it. Or a pipe may burst, and that's up to you. Think of all the things you complained about to the super that needed to be fixed, repaired, etc - those are all your job now, right down to spraying for bugs. Home ownership ain't cheap. I compare it to a car - it can go downhill fast unless it is properly maintained. My wife is hotter than your wife. Quote Share this post Link to post Share on other sites Prev 1 2 3 4 Next Page 1 of 4 Join the conversation You can post now and register later. 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skycat 0 #13 March 6, 2007 April 14th I will have had my house a year, so I know all about unexpected costs. 1st - Make sure you have an excellent inspector, and find out exactly what he will and will not inspect. Mine didn't inspect furnaces so in my contract I asked for the sellers to have the furnace inspected. If things are found wrong you can negotiate in the contract to have the seller either fix the issue or put money in escrow to get it fixed after the sale. 2nd - Find a good mortgage person, they will insure you know the costs of insurance and tax that will be added to your monthly payments. For example my loan payment is about $950 per month but with Tax and insurance I'm paying about $1150 per month. Set you monthly limit off the total payment not your loan payment. 3rd - Plan to want to do improvements. My house was great but after moving in and painting I noticed little things like electric plugs and covers painted over (one of my pet peeves) and light fixtures that were yellowed, so those all needed to be replaced. Costs after buying the house: -New Roof (found during inspection) -New Furnace (found during inspection) -New Water Heater (found during inspection) -Replace light fixtures -Replace switches, plugs, and covers -Paint -New Fridge -New Kitchen sink faucet (leaked, not found during inspection) -Misc other upgrades -Drapes (this is a big one since I didn't have any for a week ) I was also lucky in that the previous home owners had left a ton of outdoor tools, like push mower, shovels, rake, brooms, and other stuff like that which helped since I didn't have to buy that stuff. But with so many major components of the house to replace even with the escrow money there was still quite a bit out of pocket. Luckily I low balled the sellers and got a good deal on the house, plus they payed 100% of my closing costs. It's surprising though how when in the new house the furniture doesn't seem to work any more, the artwork just isn't right, ect., ect. Fly it like you stole it! Quote Share this post Link to post Share on other sites
airtwardo 6 #14 March 6, 2007 QuoteQuotedaaaaamn. Is that typical, or just unlucky? Thats why you get a *GOOD* inspection. Dont buy a place that is going to need a new furnace, roof, windows, etc. in the next few years. EXACTLY! those things should be good for 10 or more yeras, of get an adjustment on the purchase price. ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
Thanatos340 1 #15 March 6, 2007 PMI is Principal Mortgage Insurance. Most lender require you to have this if you owe more than 80% of the Value of the Home. Basically it is an Insurance Policy that protect the Lender if you default on the loan and they have to forclose. The Insurer will then pay the Lender any money they loose on the transaction. Some lenders will offer NO-PMI loans but you will pay a Higher interest rate. If you plan on being in the house only a couple years, This may be a Good option. Talk to a Good mortgage broker and they can offer you lots of advise on which Mortgage is right for you.. But also make sure you talk to more than one. Never forget that a Mortgage broker is making a commission off whatever loan they sell you and may not always have your best interest in mind. Be wary of Interest Only Loans and ARMs, They can really bite you if you are not careful. Quote Share this post Link to post Share on other sites
airtwardo 6 #16 March 6, 2007 Yup...an ARM will cost ya a Leg, down the road! But it sounds like they have a good initial investment which should make plenty of good loan options available to them....in any case you give very good advice! ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
karenmeal 0 #17 March 6, 2007 QuoteBut in the long run, if you do your homework and DO NOT BUY on emotion...you can't lose! We've been living together for four years.. I think we're steady enough to break even. "Life is a temporary victory over the causes which induce death." - Sylvester Graham Quote Share this post Link to post Share on other sites
peregrinerose 0 #18 March 6, 2007 Take a good look at forclosure homes. I bought my house 6 years ago for $82500. It was appraised at the time at $126,000. Probably would sell today for $135000. Other than being hideously ugly and unsanitary for human life when I bought it, the home inspection revealed nothing wrong but a leaking pipe (which I made the bank fix prior to purchase... it cost them $50). I did all the rehab work myself, except windows. Windows were $5000 for the whole house. I did the siding myself for $1500. Lots of paint. I replaced carpet for $1000 in 1/2 the house. The rest of the house is hardwood floors which I refinished myself by renting a sander. I've had no major repairs to do. I pay $800/month to mortgage. My rent before buying the house was $750, so this is a great deal! Do or do not, there is no try -Yoda Quote Share this post Link to post Share on other sites
skytash 0 #19 March 6, 2007 I always think that a joint mortgage is a bigger committment than marriage. In the UK you can get a divorce practically over the internet for £40. You download the forms and both sign them and send them to a court with a cheque. Getting out of a joint mortgage is a lot more hassle and expense! tashDon't ever save anything for a special occasion. Being alive is a special occasion. Avril Sloe Quote Share this post Link to post Share on other sites
SkydiveStMarys 0 #20 March 6, 2007 Hot water heater, fernace, air conditioner.....the last two can be big bucks!! Ca Ching!! BobbiA miracle is not defined by an event. A miracle is defined by gratitude. Quote Share this post Link to post Share on other sites
jimmytavino 16 #21 March 6, 2007 well good for you.you buy at a good ( for YOU ) price. you shop carefully. and you can AFFORD the mtge payment AND the small things which go into home ownership. For example,,,, i bet you don't own a lawn mower,,,,hahahaha.. you'll also need some furniture and maybe appliances, window treatments, paint, carpeting etc..... still, owning your own place is a nice accomplishment... One thing that people sometimes fail to think about, are Neighbors...... Not neighborhood... but "neighbors"....... WHO will be living immediately next door to you?????..or behind you, It may not be an issue if you buy in a very rural area, where houses can be some distance apart.. But If you buy a house on a traditional street, or let's say on a cul de sac....... you could wind up with "who knows what"... for next door neighbors...... Often people fail to consider this,,, til AFTER thay have moved in and then find any numbers of Bad results....hell a couple of barking dogs, living within 25 feet of your home, could drive you nuts, or people with multiple cars and other sundry vehicles, taking up spaces on the street, or just parked and left as an eyesore.... or really NOISY.. or worst yet NOSEY (Knowsey) people...... many folks fail to think about just WHOM they will be living so nearby to .....and often the real estate people won't even consider that point... ( they just wanna SELL the place ) ... So , you shouldn't rely on luck, when it comes to having decent next door neighbors... Sometimes, that is out of our control, especially if somebody MOVES In, next door...after you have bought.... but it can't hurt to explore just WHO does occupy the places near to your prospective home,, since THEY will be the ones, looking in your windows and peeking over your fences.. hahahahaha. good luck...enjoy. jimmyT Quote Share this post Link to post Share on other sites
StreetScooby 5 #22 March 6, 2007 Quote Often people fail to consider this,,, til AFTER thay have moved in and then find any numbers of Bad results....hell a couple of barking dogs, living within 25 feet of your home, could drive you nuts, or people with multiple cars and other sundry vehicles, taking up spaces on the street, or just parked and left as an eyesore.... or really NOISY.. or worst yet NOSEY (Knowsey) people...... many folks fail to think about just WHOM they will be living so nearby to .....and often the real estate people won't even consider that point... ( they just wanna SELL the place ) ... So , you shouldn't rely on luck, when it comes to having decent next door neighbors... Sometimes, that is out of our control, especially if somebody MOVES In, next door...after you have bought.... but it can't hurt to explore just WHO does occupy the places near to your prospective home,, since THEY will be the ones, looking in your windows and peeking over your fences.. SO TRUE!!! Do not underestimate this...We are all engines of karma Quote Share this post Link to post Share on other sites
karenmeal 0 #23 March 6, 2007 Ha! We have a lawn-mower and a weed-whacker and a shovel thank you very much. As far as neighbors go... It seriously cannot be worse than the people who live above us in the duplex we are renting. The first time I mowed the lawn after they moved in, she came down to meet me at about 10 am with a big gulp slurpee cup halfway filled with whiskey. She told me she had already drank the other half, insisted I finished mowing the lawn and walked with me as I mowed, PETTING ME ON THE BACK THE ENTIRE TIME. It don't get much more crazy than that. Edited to add: And then she made me hug her. "Life is a temporary victory over the causes which induce death." - Sylvester Graham Quote Share this post Link to post Share on other sites
upndownshop 0 #24 March 6, 2007 If you are in an area that is high humidity, get a mold inspection. Very important. I know from experience, this was not my house but she was talked out of the mold inspection from the agent. Turns out he was frineds with the sellers and the roof was covered with a blue tarp for 1 year. After she moved in I found black mold. To this day I do not know if I got it all out. And now I will never know due to the situation in our relationship, which is something else I will pm you about. But she will find out when she goes to sell it.If it does not pass, she could be stuck with a condemned house. A house can be a great investment, keep learning about it and take your time. good luck Quote Share this post Link to post Share on other sites
lawrocket 3 #25 March 6, 2007 QuoteAfter you bought your first home, what were some of the unexpected costs that cropped up? Most of the "unexpected costs" that crop up are right there in the mortgage loan. Too often, people get themselves in over their heads due to loans that start off good, but are heavily loaded on the back end. They'll find out that their loans are resulting in negative amortization because they aren't making payments on time, or, because they ARE making the minimum payment under the agreement, but that doesn't even pay the interest. I would advise ANYONE who buys a home to have their loan documents, etc., reviewed by either a lawyer or an accountant who can explain them. And NEVER, EVER, EVER just sign what is in front of you. And if anybody ever says, "Sign it and I'll change it later." then back out and cancel the deal IMMEDIATELY - that person is screwing you and absolutely cannot be trusted. As far as other expenses go, most of them are not exactly "necessary." Decorating, etc., are expenses that can be put off, but it is always difficult. Sometimes, though, other things pop up like electrical, water, etc. A water heater can go out, and you gotta pay for it. Or a pipe may burst, and that's up to you. Think of all the things you complained about to the super that needed to be fixed, repaired, etc - those are all your job now, right down to spraying for bugs. Home ownership ain't cheap. I compare it to a car - it can go downhill fast unless it is properly maintained. My wife is hotter than your wife. Quote Share this post Link to post Share on other sites
