Need opinions on possible house I am getting

[Maikeru-sama]

I am just trying to get as much feedback as possible when going through the entire house buying/building process.

I talked to a Mortgage Lender to be pre-approved and she said the credit was great and that the worst case scenario of what my Interest Rate would be is 7%, which if it turns out to be 7%, I will continue to rent. I qualify for alot more money, but I am willing to buy a house in the 100K - 150K range at this point.

I just talked to a Realtor and he said he found a house. I want to relay some of the key points and ask you all if you think it is a good deal.

-There are two houses available that cost 175K and 180K to build

-I could get one house for 155K and the other for 165K

-The builder is DL Horton

-For those who are familiar with Texas, it is the Avalon Community in Wiley, TX

-He would give me $1800 to help pay for buying out my Apartment lease or whatever I choose to do with it

-The builder would give me 5K and pay for the title the title policy. I believe it would total $6500

The only problem is that they would probably want to close by the end of November and that wouldn't give me enough time to save like I would want.

Also, I am paying about $810 in rent, the Realtor said I would be look at almost $1400 to move into this house. That in itself kind of scares me about as I don't know if that can be justified.

Thoughts?

 

[WoodysGirl]

I'm not a true expert or anything. Can only go by my own personal experience.

7% looks like a solid interest rate. Not sure you could get any better unless you do one of those adjustable rate mortgages.

$1400 estimate seems like alot, but it depends on what your principal/interest is

You need to look into the taxes for the area. The school district bill is the big dog of your taxes and it varies from district to district. You can check out your school tax rate by going to the district website. See if they have any info or go to a real estate website, pull up an addy for the area and see what taxes cost for a similar home. As for your county tax, you can do that by going onto your county website and pull up an address in the area.

I don't know if the county has the same home exemption as Harris County does here, but after a year of being in the home, you get a 20% reduction on your tax bill. If you do, then your mortgage pymt should go down.

If it's in a homeowner's association, there will probably be a small fee due at the end of the year, as well. Mine is $550. That includes the $100 HOA fee and the $450 MUD bill. You may or may not get that fee.

Also, you have to consider what your homeowners insurance my cost you. It's ridiculous expensive for me in Houston. But with your credit, you should get a solid rate.

If it's 100% financing which is what this looks like, you'll be carrying PMI in your payment, which I guess is around $20/mo.

I know a home isn't for everyone, but I think for those who don't have dependants and have high salaries, a home is a good tax deduction.

As for time needed to save money. If you're still figuring out what to do with your 401k, you can deduct some of what you might need to set up your house from your 401k. I'd have to confirm, but there's no penalty if you're using the funds on a home. And you can still rollover the rest into an IRA without further penalty.

 

[poke]

i am no expert in real estate or anything else for that matter.

if i was looking at buying a house i would just wait right now.

i think house prices in the dfw area are gonna get cheaper.

lots of houses for sale and i think there will be even more as people realize they cant afford what they have and need to sell.

seems to be a lot of uncertainty in everything right now, i would wait and see
how things are going and continue saving money and be ready to buy
when i was ready.

just my opinion.

 

[Maikeru-sama]

Good opinions, I am definately leaning towards continuing to rent. I just hate the idea of moving to another apartment because I have to move now because I live in Irving but I work in Plano and even though it takes me about 30 minutes to get there, I am going through 6 Tollbooths a day, and even with a tolltag, that is expensive.

I agree WG, $1400 sounds a bit high. My mother's mortgage is close to 200K and I think she pays around 1500 or so a month, with a 6.5% interest rate or something like that.

He wants me to go take a look at the house as soon as possible, I think I may go have a look see, but I am definately leaning towards continuing to rent.

 

[Hostile]

PM sent so I don't offend anyone by accident.

 

[Maikeru-sama]

Got the PM Hostile.

I can't believe I said "DL Horton" :laugh2:

 

[Yeagermeister]

Good opinions, I am definately leaning towards continuing to rent. I just hate the idea of moving to another apartment because I have to move now because I live in Irving but I work in Plano and even though it takes me about 30 minutes to get there, I am going through 6 Tollbooths a day, and even with a tolltag, that is expensive.

I agree WG, $1400 sounds a bit high. My mother's mortgage is close to 200K and I think she pays around 1500 or so a month, with a 6.5% interest rate or something like that.

He wants me to go take a look at the house as soon as possible, I think I may go have a look see, but I am definately leaning towards continuing to rent.

I can give you name of a good apartment community in Plano

 

[WoodysGirl]

I can give you name of a good apartment community in Plano

Shameful, Yeager. Just shameful.

 

[Maikeru-sama]

More info.

My property taxes would be 2.3%

1800, brick, cul-de-sac, 3 bed, 2 bath, 2 car garage, backs up to a private ranch, no houses behind it, garden tub, cermamic tiles, glass top, cook top

 

[Maikeru-sama]

I can give you name of a good apartment community in Plano

Actually, if you are serious, I may need that. If I don't move to a house, I am either going to move into an apartment in Plano or maybe Allen.

 

[xWraithx]

you should move to a Chipotle so you can take a picture of Terence Newman.

Or, if you'd like, you should move to a Whole Foods so you can take a picture of Demarcus Ware.

 

[Garland powerplay]

6.5 % is high ,there are 5% rates ,not sure but would definitely restructure or refinance after the 1st year to drop interest rate if its as high as 7 or more. 8 % is not good. A prior poster said holdout for cheaper prices (good idea)
Ask about rolling in closing costs in the loan (helps to pay moving costs). As far as buying out rental agreement realtors don't care if your breaking your lease because you are about to sign a 30 yr deal. They will do everything they can to get you to sign (or say). Have someone w/ you preferably w/ experience at closing or you may be taken for a ride.