Realtors - when is the time to buy?

[BlahBlahYouToo]

i thoguht the stimulus package was only $8k

 

[alkemyst]

Originally posted by: apac
So with the real-estate market down quite a bit, and talks of a stimulus package offering $15K to new home buyers, my thoughts are that it's a great time to go condo hunting. I've been renting for a couple years out of school now and could probably scrounge enough resources to afford a place.

My question to the professionals is - am I completely off base here? Is this a buyers market, or should I be waiting?

That stimulus pack is about half that...welcome your agent to 2009 please.

 

[alkemyst]

Originally posted by: Ocguy31

Originally posted by: apac

Originally posted by: Ocguy31
Great time to buy. FHA 3.5% down is a great program.....

On a side note, it will still be a great time to buy in 6 months, so you dont have to rush. Values are not going up any time soon. The financing is just not there to support it.

Oh oops, I edited out the part where I said I'd be looking in the next 6 months to 1 year time frame.

With regards to why a condo, looking for a 2BR in the city. Houses are still more than I can afford right now. No reason not to pick up a condo and keep it as an investment property later.

The only thing with Condo V House is the association dues. I am doing a 3.5% down loan for a friend right now. He is qualified for about $180K if he gets a condo, and ~190K if he gets a house. All of the association dues around here are $225+ per month, so that really eats into the amount of condo he can afford.

But condos are not a bad option.

Except many right now are unwarrantable and therefore you cannot get a loan.

With condos vacancy is very critical.

I don't know how you can foresee 6 months into the future either. Rates are trickling up and rumor has it if this mortgage modification bill passes they will skyrocket.

I work for a direct lender, not a broker.

 

[alkemyst]

Originally posted by: spidey07

Originally posted by: Fmr12B

Originally posted by: spidey07
There has probably never been such a great time to buy than right now.

But that is what every realtor told me in 2006........


$15K tax break - I thought it was $8K from the Feds now and no longer a 0% loan but a true credit.

I am not a Realtor just to make that clear. It's a true credit of 7500. Of course being the best time ever will depend on the market. But to say it's a buyers market would be a supreme understatement.

$8000.

 

[JulesMaximus]

Originally posted by: dirtboy
A Realtor dosen't know anything about market cycles. If they did, they wouldn't have been pumping property at the peak and all the way to now.

You stupid?

Seriously, you might as well say that car dealers shouldn't have been selling SUVs for the past 15 years because they were too profitable.

 

[BlahBlahYouToo]

Originally posted by: Ocguy31
The only thing with Condo V House is the association dues. I am doing a 3.5% down loan for a friend right now. He is qualified for about $180K if he gets a condo, and ~190K if he gets a house. All of the association dues around here are $225+ per month, so that really eats into the amount of condo he can afford.

But condos are not a bad option.

what are the interest rates you're dishing out these days?

 

[alkemyst]

Originally posted by: JulesMaximus

Originally posted by: dirtboy
A Realtor dosen't know anything about market cycles. If they did, they wouldn't have been pumping property at the peak and all the way to now.

You stupid?

Seriously, you might as well say that car dealers shouldn't have been selling SUVs for the past 15 years because they were too profitable.

In reality a realtor doesn't care, they also don't really want you to get the lowest price as a buyer either....

There are a lot of realtors and brokers that have no clue to the market and more than likely have only been in it a few years.

 

[alkemyst]

Originally posted by: BlahBlahYouToo

Originally posted by: Ocguy31
The only thing with Condo V House is the association dues. I am doing a 3.5% down loan for a friend right now. He is qualified for about $180K if he gets a condo, and ~190K if he gets a house. All of the association dues around here are $225+ per month, so that really eats into the amount of condo he can afford.

But condos are not a bad option.

what are the interest rates you're dishing out these days?

Mortgage Rate Rises to 5.15 Percent
Tulsa World (OK) (03/06/09)
Freddie Mac reports that interest on 30-year, fixed home loans rose to an average of 5.15 percent this week, up from 5.07 percent a week ago. Mortgage rates rose along with the increase in bond yields following reports of a decline in economic growth in the fourth quarter and rising jobless claims, according to Freddie Mac chief economist Frank Nothaft. He also cites the slowing housing market as a factor.

Be a bit leary of those promising much better on rate.

 

[mugs]

Originally posted by: JulesMaximus

Originally posted by: dirtboy
A Realtor dosen't know anything about market cycles. If they did, they wouldn't have been pumping property at the peak and all the way to now.

You stupid?

Seriously, you might as well say that car dealers shouldn't have been selling SUVs for the past 15 years because they were too profitable.

I think his first sentence is pretty accurate for most realtors. They know which direction their local market is moving, but don't expect them to be able to predict where it will go in the future.

His second sentence illustrates why you shouldn't trust a realtor to tell you when to buy. They work on commission, they get paid when you buy. It's in the realtor's best interest for you to buy.

 

[Insomniator]

I know I for one go to ATOT for all my advice regarding large investments.

 

[DeadByDawn]

Originally posted by: mugs

Originally posted by: JulesMaximus

Originally posted by: dirtboy
A Realtor dosen't know anything about market cycles. If they did, they wouldn't have been pumping property at the peak and all the way to now.

You stupid?

Seriously, you might as well say that car dealers shouldn't have been selling SUVs for the past 15 years because they were too profitable.

I think his first sentence is pretty accurate for most realtors. They know which direction their local market is moving, but don't expect them to be able to predict where it will go in the future.

His second sentence illustrates why you shouldn't trust a realtor to tell you when to buy. They work on commission, they get paid when you buy. It's in the realtor's best interest for you to buy.

It's like asking a car dealer when is a good time to buy. They will all say "Right Now!"

 

[mugs]

Originally posted by: Insomniator
I know I for one go to ATOT for all my advice regarding large investments.

Pick a topic, and I guarantee there's someone on ATOT who knows more about it than anyone I personally know. If you're able to filter out the bad information, you can get good advice here.

 

[DAGTA]

I just signed the final documents on my first house yesterday. It has been quite the ordeal.

There are good deals out there now but be ready to be extremely patient. As someone already mentioned in this thread, banks do not want to loan out the money they are getting right now. I have the cash in the bank for the downpayment plus extra, a stable and good paying job, and a 796 credit score. Despite all of that, it still took a month to get funding approved for the loan even on a rush process. Some people now are getting estimates of 45 to 75 days before a loan will go through.

After the frustration of the process, I do not intend to buy another house until I can pay cash for it.

Good luck!

 

[ViRaLRuSh]

My fiance and I are considering buying a new house, after selling her current home. Would this 8k credit work if the house was bought by me still, even though she has her own home? (This is happening after we're married in a few months)

 

[oiprocs]

Don't buy a house unless you're rich. I mean filthy rich. I mean, if the house value goes to shit, you don't care type of rich.

 

[BoberFett]

Originally posted by: zinfamous
Excellent time to buy. Too bad you have 0.5% chance to find a bank willing to loan ANYONE money right now. They won't even loan to each other.

:roll:

I just closed on a home last Thursday.

 

[ViviTheMage]

Originally posted by: apac

Originally posted by: Ocguy31
Great time to buy. FHA 3.5% down is a great program.....

On a side note, it will still be a great time to buy in 6 months, so you dont have to rush. Values are not going up any time soon. The financing is just not there to support it.

Oh oops, I edited out the part where I said I'd be looking in the next 6 months to 1 year time frame.

With regards to why a condo, looking for a 2BR in the city. Houses are still more than I can afford right now. No reason not to pick up a condo and keep it as an investment property later.

Be careful with that...some associations do not let you lease our the condo, unless the owner is living in it.

 

[BoberFett]

Originally posted by: ViRaLRuSh
My fiance and I are considering buying a new house, after selling her current home. Would this 8k credit work if the house was bought by me still, even though she has her own home? (This is happening after we're married in a few months)

As soon as you get married you have an interest in her property and are no longer a first time buyer.

 

[ViRaLRuSh]

Originally posted by: BoberFett

Originally posted by: ViRaLRuSh
My fiance and I are considering buying a new house, after selling her current home. Would this 8k credit work if the house was bought by me still, even though she has her own home? (This is happening after we're married in a few months)

As soon as you get married you have an interest in her property and are no longer a first time buyer.

Even though my name isn't on it?

 

[HardcoreRobot]

IMO, you should buy when your income + down payment can very comfortably afford a house that you want to live in

 

[mugs]

Originally posted by: obscenethistle
Don't buy a house unless you're rich. I mean filthy rich. I mean, if the house value goes to shit, you don't care type of rich.

I don't care what my house is worth, and I'm not rich. Primarily it's my home, not an investment. How much my house is worth really matters most when I'm selling it and not buying another. If I'm buying another house, that house is likely to be affected by the same market fluctuations as my house.

 

[Eli]

Originally posted by: ultimatebob

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: Jeff7
$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

There are no loans out there that let you buy more than you can afford. You have to prove all of your income/debt.

Anyone getting house right now can afford it.

So, stupid question. Odds of me getting a 180K loan right now? I am...
23
No debt of any kind, pay off credit cards every month
Decent credit - no bad credit, but haven't built too much good credit. Had a 20K car loan approved last summer at 3.9%
Income $68K/yr
Could probably afford a 20K down payment

Umm... if you're only making $68K a year, I'm not sure if you can really afford a $180,000 mortgage AND a $20,000 car loan. Don't forget add the property tax, PMI (since you're not putting down 20%), condo insurance, and condo fees to your budget! Sure, you'll get approved for the mortgage... but you'll find yourself eating Ramen noodles with your leftover spending money for food.

Depending on the tax rates and condo fees in your area, you might be forking over somewhere in between $1,300 to $1,500 a month on house payments alone.

"only" 68k/year?

My god, what I couldn't do with that kind of money.

 

[ultimatebob]

Originally posted by: spidey07
There has probably never been such a great time to buy than right now.

Funny... I remember being told that about buying stocks as well when the Dow was around 13,000

 

[OCGuy]

Originally posted by: BlahBlahYouToo

Originally posted by: Ocguy31
The only thing with Condo V House is the association dues. I am doing a 3.5% down loan for a friend right now. He is qualified for about $180K if he gets a condo, and ~190K if he gets a house. All of the association dues around here are $225+ per month, so that really eats into the amount of condo he can afford.

But condos are not a bad option.

what are the interest rates you're dishing out these days?

My rates wont update for today for about another 30 min, but yesterday I was 4.875 base for Fannie, and 5% base for FHA.


As long as you take impounds, have a 700+ FICO, and are 80% LTV or less, those would be your rates.


Edit: Same rates today.

 

[apac]

Originally posted by: ultimatebob

Originally posted by: apac

Originally posted by: Ocguy31

Originally posted by: Jeff7
$15k to new home buyers?
Dandy, more people who can't afford the home they're looking at are going to spring for it now.

There are no loans out there that let you buy more than you can afford. You have to prove all of your income/debt.

Anyone getting house right now can afford it.

So, stupid question. Odds of me getting a 180K loan right now? I am...
23
No debt of any kind, pay off credit cards every month
Decent credit - no bad credit, but haven't built too much good credit. Had a 20K car loan approved last summer at 3.9%
Income $68K/yr
Could probably afford a 20K down payment

Umm... if you're only making $68K a year, I'm not sure if you can really afford a $180,000 mortgage AND a $20,000 car loan. Don't forget add the property tax, PMI (since you're not putting down 20%), condo insurance, and condo fees to your budget! Sure, you'll get approved for the mortgage... but you'll find yourself eating Ramen noodles with your leftover spending money for food.

Depending on the tax rates and condo fees in your area, you might be forking over somewhere in between $1,300 to $1,500 a month on house payments alone.

I didn't discuss my financial situation at all, only whether I'd be qualified for the loan. I'd be looking at 2 BR places with either my gf or a roommate contributing to the mortgage payments. When I do the hard math instead of using theoretical numbers I'm looking to fork over < $800 a month in house payments.