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About to make the biggest decision of my life

BrokenVisage

BrokenVisage

Lifer
Going to my realtor's office in an hour to write up an offer on a house I want. My nerves and stress level have never been like this, from my aversion to change, the thought of making such a huge financial decision, the threat of uncertainty involved with living somewhere completely different than where I am now and perhaps not liking it once I'm actually moved in.. going over everything in my head makes me more nervous then 100 dentist office trips combined. That's all I really got for now, but think I did all my homework and the right people in my life are supporting me in the decision, so hopefully this works out in the end whether the offer is accepted or not. Wish me luck?
 
Umm are you overextending? Because that about the only reason i can see why someone would be nervous about that...
 
Finding the house is half the battle. Sure it's daunting thinking of a 15 or 30 year mortgage but as long as you have the budget for it and your earning potential will increase over time it'll be just fine. If it's a resale, make sure you choose an inspector who comes recommended, not someone the realtor or selling selects.
 
atotnine said:
Selling them is more stressful than buying them I find.
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More difficult, but not more stressful. Unless some outside factor is forcing a quick sale, that would be a real bitch.


Buying a house is a huge, life-changing event with major consequences for a poor decision. If you're not worried when doing it you're either uber-rich or uber-stupid. If you do your due diligence and make smart decisions based on facts rather than emotion it's safer, but it's still not worry-free.
 
It's a big deal, and I understand why it's stressful the first time, but you'll be alright.
 
Embrace it boldly, my friend! If you're confident you can afford it and weather the hard parts, then you'll be fine.
 
GagHalfrunt said:
More difficult, but not more stressful. Unless some outside factor is forcing a quick sale, that would be a real bitch.


Buying a house is a huge, life-changing event with major consequences for a poor decision. If you're not worried when doing it you're either uber-rich or uber-stupid. If you do your due diligence and make smart decisions based on facts rather than emotion it's safer, but it's still not worry-free.
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If you know what you're buying, and you know the local market, there really isn't anything to worry about, other than a major crash in the housing market.
 
Greenman said:
If you know what you're buying, and you know the local market, there really isn't anything to worry about, other than a major crash in the housing market.
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Not to spoil the OP's post but in my opinion, I see a mini crash in 2014. By mini, I mean the prices will drop by 5-10% in 2014 compared to 2013. The Fed's taper, lower than projected corporate profits, record unemployment, record foodstamps, student loans, etc.
 
halik said:
Umm are you overextending? Because that about the only reason i can see why someone would be nervous about that...
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shit. i wasn't overextended and i still got nervous about signing onto a house loan. i also usually feel sick about for a week or so.

I do the same with car loans.
 
boomerang said:
Good luck! It may be helpful to know that you're not going where no man has gone before.
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This isn't about his girlfriend...😛

OP, just remember...you're gonna be on the hook for those payments for LONG time...15 years? 20 years? 30 years? The house MAY increase in market value over time...or it MIGHT drop severely...no way to know. 😎
 
BoomerD said:
This isn't about his girlfriend...😛

OP, just remember...you're gonna be on the hook for those payments for LONG time...15 years? 20 years? 30 years? The house MAY increase in market value over time...or it MIGHT drop severely...no way to know. 😎
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LOL!!
 
Pft. Offers are nothing. Call us back when you are seated at the table with the mound of paperwork. Up until that you can walk away whenever.
 
I remember when I bought my house, I was a bit nervous given it was such a big life changing decision, but I was also excited, since I had been eager to be on my own for a while now and finally had enough money saved up.

Crazy that it will already be 5 years this summer. Time goes by too fast.

Wait, this is just an offer? Don't consider this too official, till you get to the point of actually closing on it.

I put many offers before I actually bought. Sometimes there's a house you kinda like but don't like enough to pay the full price, so you make an offer to see where it goes. I did that a few times before I got my current house. I went quite low and they countered with the max amount I had in my head, so went with it. Knocked off like 20 grand!
 
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BrokenVisage said:
I don't think so. I can afford it, doesn't seem like too much/too little house for me.
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Congratulations! Will this be the first home you own?

What percentage of your net take home will the mortgage, taxes and insurance be? I think the range to shoot for is 25%-33%.
 
waggy said:
shit. i wasn't overextended and i still got nervous about signing onto a house loan. i also usually feel sick about for a week or so.

I do the same with car loans.
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I feel nervous or anxious spending on anything over maybe $500.
The process of buying a car, new, took a few months of research, agonizing, reading, and then settling on a car, then reading the owner's manual, then more agonizing and worrying, and then finally going to buy it.
It still is best that I not think about what it cost, for a fancy box on wheels that gets me around town. A comfortable, warm, all-wheel-drive box.


Purchasing a house might be fatal.😵
It's a very illiquid expense that has a highly volatile market value, coupled with a loan that'll keep sucking up interest payments all its life. Barf.
(And of course the selling price isn't all of it. Then there are all the closing costs, much of which may fall in the "because we can" class of fees.)
 
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Jeff7 said:
It's a very illiquid expense that has a highly volatile market value, coupled with a loan that'll keep sucking up interest payments all its life. Barf.
(And of course the selling price isn't all of it. Then there are all the closing costs, much of which may fall in the "because we can" class of fees.)
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Think of the loan as maintaining your liquidity, while still allowing you to use the asset. You're basically renting from the bank, but when the lease is over you get to keep the house as a "free" parting gift. Even if its value has declined, you still come out ahead.
 
Jeff7 said:
I feel nervous or anxious spending on anything over maybe $500.
The process of buying a car, new, took a few months of research, agonizing, reading, and then settling on a car, then reading the owner's manual, then more agonizing and worrying, and then finally going to buy it.
It still is best that I not think about what it cost, for a fancy box on wheels that gets me around town. A comfortable, warm, all-wheel-drive box.


Purchasing a house might be fatal.😵
It's a very illiquid expense that has a highly volatile market value, coupled with a loan that'll keep sucking up interest payments all its life. Barf.
(And of course the selling price isn't all of it. Then there are all the closing costs, much of which may fall in the "because we can" class of fees.)
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Personally I can't justify the cost of a new car. I rather put that money into my house, or other things. To me a car is a tool, and a used one is 1/30th of the price and will do the same function. It might last a tad less long but still win in the end.

Though, I do admit, I sometimes like to look at the pickup trucks, and figure out if I can afford it. 😛
 
Making the offer is easy, you still have outs.

We close the deal on Thursday for our house 🙂

2nd house for us... first house sold in 2 days.
 
jagec said:
Think of the loan as maintaining your liquidity, while still allowing you to use the asset. You're basically renting from the bank, but when the lease is over you get to keep the house as a "free" parting gift. Even if its value has declined, you still come out ahead.
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Though I also have to pay for upkeep, repairs, insurance, and improvements. :\


Or then you find out about hidden surprises.

The house my parents bought had a little problem: The basement would flood whenever it rained for several days. The sump pump only had any effect in in one corner; water forced its way in through every other tiny crack in the floor or foundation walls, until it was about 1" deep, at which point it would simply flow out the back door. The builders' landscapers had decided that it'd be a grand idea to have the ground sloping toward the house on three out of four sides.
The previous owners didn't report that problem, and they may not have lied about it: There was a long-running drought in the area, which completely encompassed the time that they had lived in the house.

Several years and at least $5000 later, the problem was finally solved with a French drain in the front yard.



(I do occasionally look around for a house, though not with a whole lot of enthusiasm. Just scraping together enough money for a decent down payment is tough while I'm jamming 40% of income into retirement accounts. Woe is me. 😛)
 
Thanks guys, it's insane how much goes into just submitting an offer. This will indeed be my first property purchase under my name, I think about 30% of my net income will go to the house each paycheck. I can also afford to put down 20% so that's what I offered, next battle (assuming it's accepted) will be to mortgage shop and get it inspected, I'm motivated to close this thing fast if I can get it.
 
jagec said:
Think of the loan as maintaining your liquidity, while still allowing you to use the asset. You're basically renting from the bank, but when the lease is over you get to keep the house as a "free" parting gift. Even if its value has declined, you still come out ahead.
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It's funny because I came down that line of thinking the other day trying to calm my nerves. Probably dangerous to think like this but I imagined buying a house like buying a big bucket with a hole in the middle of it to put money in, yeah lots of it falls down the hole but the sides will still fill, and since I own the bucket that money is still mine, just gotta hope there's no earthquakes (crashes) to shake some of that money down the hole though, but with inflation the bucket can get bigger and better too. (queue someone to let me know how off-base all analogy is)
 
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