*Update 3* So I made an offer on a house today

[mrrman]

Originally posted by: Aimster
When you put an offer on a house do you need to already be approved for a loan by the bank?

Not really but it sure helps....why put in an offer if you cant buy it or have intentions of buying it

 

[Bateluer]

Bump for upgrade in original post.

 

[Red Squirrel]

I went to see a house today, was not as good as I hoped. Older house (1940) but the location was great. Was in the country, which I never really considered but it would be awesome. There's mine tailings in the back yard which makes for an interesting view. Was a total fixer upper though, which is expected for a house that old. Decide to keep looking.

And yeah a mortgage preapproval is usually a good idea so you know what the bank will give you. I usually try to go lower. I'm approved for 200k, so I'm aiming for 170ish.

 

[Bateluer]

Originally posted by: RedSquirrel
I went to see a house today, was not as good as I hoped. Older house (1940) but the location was great. Was in the country, which I never really considered but it would be awesome. There's mine tailings in the back yard which makes for an interesting view. Was a total fixer upper though, which is expected for a house that old. Decide to keep looking.

And yeah a mortgage preapproval is usually a good idea so you know what the bank will give you. I usually try to go lower. I'm approved for 200k, so I'm aiming for 170ish.

I'm in a different situation, going through a VA loan. The VA won't approve a 'fixer upper' house. And I don't have the time or skills right now to fix up a house, so I want it to be in decent condition from the get go. I'm okay doing cosmetic repairs, but I don't really want to have redo wiring/plumbing or repave a drive way or something along those lines.

 

[Cuda1447]

My wife and I made an offer on a house about a month ago. We actually offered only $1900 less than their asking price, so we figured they'd accept it. We have yet to hear anything back 🙁

 

[MartyMcFly3]

Originally posted by: MartyMcFly3
Good luck. I just put an offer on a SF, 1650 sq. ft., 3 BR, 2.5 Bath, all appliances... Being foreclosed so the asking was 180k. Put in for 160k. Put that offer in last thursday, but still haven't heard about it. Like you, I am also a first time home buyer.

Didn't get this one. 🙁

Guess I just gotta keep looking!

 

[Red Squirrel]

Originally posted by: Bateluer

Originally posted by: RedSquirrel
I went to see a house today, was not as good as I hoped. Older house (1940) but the location was great. Was in the country, which I never really considered but it would be awesome. There's mine tailings in the back yard which makes for an interesting view. Was a total fixer upper though, which is expected for a house that old. Decide to keep looking.

And yeah a mortgage preapproval is usually a good idea so you know what the bank will give you. I usually try to go lower. I'm approved for 200k, so I'm aiming for 170ish.

I'm in a different situation, going through a VA loan. The VA won't approve a 'fixer upper' house. And I don't have the time or skills right now to fix up a house, so I want it to be in decent condition from the get go. I'm okay doing cosmetic repairs, but I don't really want to have redo wiring/plumbing or repave a drive way or something along those lines.

Wow, so they actually have to approve the condition of the house? That kind of sucks. From my understanding my bank does not really care, as long as I can do the payments. I could even buy a lot then build from scratch or buy a really crappy house and put it to the ground and start over.

I've been considering getting a house built, though it's more expensive, but at least I'd get exactly what I want.

My fear is getting fully established then later on when I get a GF and get married she'll want to move. So I kind of have to consider family when getting a house, so I can make it a keeper. I ain't rewiring all my server equipment more times then I have to. I plan to have a decent setup with patch panel and all.

 

[Bateluer]

Originally posted by: RedSquirrel

Originally posted by: Bateluer

Originally posted by: RedSquirrel
I went to see a house today, was not as good as I hoped. Older house (1940) but the location was great. Was in the country, which I never really considered but it would be awesome. There's mine tailings in the back yard which makes for an interesting view. Was a total fixer upper though, which is expected for a house that old. Decide to keep looking.

And yeah a mortgage preapproval is usually a good idea so you know what the bank will give you. I usually try to go lower. I'm approved for 200k, so I'm aiming for 170ish.

I'm in a different situation, going through a VA loan. The VA won't approve a 'fixer upper' house. And I don't have the time or skills right now to fix up a house, so I want it to be in decent condition from the get go. I'm okay doing cosmetic repairs, but I don't really want to have redo wiring/plumbing or repave a drive way or something along those lines.

Wow, so they actually have to approve the condition of the house? That kind of sucks. From my understanding my bank does not really care, as long as I can do the payments. I could even buy a lot then build from scratch or buy a really crappy house and put it to the ground and start over.

I've been considering getting a house built, though it's more expensive, but at least I'd get exactly what I want.

My fear is getting fully established then later on when I get a GF and get married she'll want to move. So I kind of have to consider family when getting a house, so I can make it a keeper. I ain't rewiring all my server equipment more times then I have to. I plan to have a decent setup with patch panel and all.

Aye, the bank only cares that you can cover the payments and won't go into foreclosure costing them more money again. The VA wants the house in livable condition and you to actually live in it. They won't approve a VA loan for an investment property at all.

I do plan on wiring up some cat6 through the walls with actual wall plates with a decent gigabit switch in a closet. Nothing fancy, just a solid switch connected to my router with at least one port in every bedroom and a few in the great room. Probably several in there, in case I want to host a LAN party. 🙂

 

[Rio Rebel]

I've bought 4 houses, and the one thing I've learned is to treat your realtor as a person providing a service with a vested interest in the deal going through, not as your representative.

There are some exceptions, particularly if the realtor is a close friend or relative. But in most cases, they are much more interested in the deal closing than in seeing that you are protected. If you see a problem with the house or if they offer advice on the negotiation, consider that they only make money if you buy a house. They be called "agents", but they usually represent the deal, not the buyer or seller.

Also, if you have solid credit, shop for your mortgage broker. Educate yourself on home mortgages as much as you have time to do - may people pay PMI without realizing they could get a "piggyback loan" ( a first and a second mortgage at the same time) to avoid those charges. And make sure you're comparing apples to apples on interest rates - some people publish rates with the expectation that you pay "points" to get the loan at that rate.

Good luck!

 

[alkemyst]

Originally posted by: Rio Rebel

Also, if you have solid credit, shop for your mortgage broker. Educate yourself on home mortgages as much as you have time to do - may people pay PMI without realizing they could get a "piggyback loan" ( a first and a second mortgage at the same time) to avoid those charges. And make sure you're comparing apples to apples on interest rates - some people publish rates with the expectation that you pay "points" to get the loan at that rate.

Good luck!

It's pretty hard to do some of the stuff one did even last year.

Published rates are worthless unless you have the best possible credit (score esp. one you got from something like MyFico...is not what a lender uses)...also what you are buying and even where it is located can make a HUGE difference in rate/type of loan.

Shopping lender is definitely smart and why many brokers require a buttload up front to get started.

 

[Saga]

There are a couple houses here we're looking at making offers on. Some have been on the market 111-250 days, so obviously they're priced extremely high. Very few short sales though and most are being sold including all appliances, etc. It's slightly depressing that we never had a housing bubble or I'd be getting expensive houses for pennies on the dollar. Around here a 1400 square foot 3 bedroom 2 bath 2 car garage made in 2005 is priced at $130k.

 

[MiniDoom]

I just purchased a foreclosed townhouse. The previous owner paid $420,000 in 07 for it, I payed $235,000. The whole process was very quick and painless. We closed in less than a month. Everything was really done after about two weeks. good luck.

 

[Pantoot]

Originally posted by: Aimster
When you put an offer on a house do you need to already be approved for a loan by the bank?

I have four offers in on different foreclosure properties in the PHX area. Each one required an LSR (Loan Status Report) or a proof of funds in the offer package.

An LSR isn't quite an approval, but it is pretty close, they still list some contingencies (like providing proof of employment), but it is more than a simple pre-approval you get online from a bank.

[Edit: and each bank required that I get an LSR through them, so a Wells Fargo owned property didn't care that I already had an LSR though Chase, I had to get one from them also.]

 

[rudder]

Originally posted by: mrrman

Originally posted by: Aimster
When you put an offer on a house do you need to already be approved for a loan by the bank?

Not really but it sure helps....why put in an offer if you cant buy it or have intentions of buying it

Generally you put down earnest money as well. In some cases you can lose that. To make every thing smoother, get preapproved. Then at least you know for sure what price range you can look at.

 

[wiredspider]

I'm waiting to hear back on my offer on a foreclosure, started under list, but with 11 other offers, I went slightly above list. (to popular of a property, I went to check it out on my own and nearly got caught trespassing by my own agent, lol , he brought 3 other people to look at it)

 

[alkemyst]

Originally posted by: wiredspider
I'm waiting to hear back on my offer on a foreclosure, started under list, but with 11 other offers, I went slightly above list. (to popular of a property, I went to check it out on my own and nearly got caught trespassing by my own agent, lol , he brought 3 other people to look at it)

That's not really your agent then...they are working for the seller and themselves at that point.

 

[Rio Rebel]

Originally posted by: alkemyst

Originally posted by: wiredspider
I'm waiting to hear back on my offer on a foreclosure, started under list, but with 11 other offers, I went slightly above list. (to popular of a property, I went to check it out on my own and nearly got caught trespassing by my own agent, lol , he brought 3 other people to look at it)

That's not really your agent then...they are working for the seller and themselves at that point.

I don't know of any real estate agents who would be exclusive to a buyer if they had other clients interested in a specific house.

In other words, you're absolutely right - they are working for themselves. But that's standard practice from what I've seen.

 

[Bateluer]

I should hear back today on whether my offer was accepted, countered, or rejected.

 

[alkemyst]

Originally posted by: Rio Rebel

I don't know of any real estate agents who would be exclusive to a buyer if they had other clients interested in a specific house.

In other words, you're absolutely right - they are working for themselves. But that's standard practice from what I've seen.

I agree too. As consumers we should push to change that.

The 6% commission has grown substantially with inflation. It's a problem with a lot of sales positions. I'd be less pushing if the service was there. Serving a customer is a lost art.

 

[Bateluer]

Woot! Just heard back this afternoon, the lender has accepted my offer, so I'll be signing paperwork tomorrow relating to the offer and loan paperwork later this week. Still waiting on some other paperwork before the VA can begin their appraisal though.

 

[hanoverphist]

Originally posted by: Bateluer

Originally posted by: newb111
What's the location?

Avondale, AZ.

is it near that murder that just happened? 😛


just kidding, theres no way you could figure out which one i was talking about. i dont much like avondale (ive built half their water systems) but the newer houses arent too bad. lots of empties out that way now. i just found a 9 br in mesa for 300k, i may actually make an offer on.

 

[Bateluer]

Originally posted by: hanoverphist

Originally posted by: Bateluer

Originally posted by: newb111
What's the location?

Avondale, AZ.

is it near that murder that just happened? 😛


just kidding, theres no way you could figure out which one i was talking about. i dont much like avondale (ive built half their water systems) but the newer houses arent too bad. lots of empties out that way now. i just found a 9 br in mesa for 300k, i may actually make an offer on.

You'll find murders in any city.