Tips to buying first piece of property vol. American dream

[MakeNTGreatAgain]

For yall homeowners what advice do yall give to a first time buyer?

And how was your experience getting a fha?

Anybody used an fha for an investment property?

 

[flaminhotcheeto]

Get fully underwritten.

Can’t use a FHA loan for an investment property lol.

 

[MakeNTGreatAgain]

What does underwritten mean.

Actually if you buy a multi family property and live there you can use fha, wanted to know if anyone here has gone that route before

 

[flaminhotcheeto]

What does underwritten mean.

Actually if you buy a multi family property and live there you can use fha, wanted to know if anyone here has gone that route before

That’s actually correct. Was thinking single family home. Anyways it’s basically getting a pre approval on roids. Also cuts out a lot of the possible hiccups that happen during escrow.

 

[isco]

every loan is underwritten

 

[Chiron]

I Agree, don't get FHA loan, suck it up and put the 5% for a standard.
Make sure your mortgage broker qualifies for all available tax incentives for first timers. Some don't.
If you really like the home don't give the seller a whole grip of time to accept the offer. In hot markets you just get outbid while waiting.

 

[eracism]

We don't own ****.

 

[888sneakerst]

Put as much money down as you can. 20% at least. Try to avoid properties with high HOA and mello roos. Those kind of fees don't get you anything in return. Be patient and wait until you can really afford it, but buy as soon as you can. If you have to put off buying your sneakers until after you buy a home, then do it. Today's interest rates are higher than last year's but they are still historically very low and they are getting higher. As interest rates go up, your buying power goes down because more money will be paying interest.

These are all statements that everyone has heard before, but take them seriously. Your home should be the first priority over cars and shoes, and later on, you will be able to buy all the releases you want. No reason to have 100 boxes of shoes if you can't even fit them in your house.

 

[joeoh29]

Hate to be that guy but I’ve rethought my definition of “the American Dream” it’s not buying a home. It’s saving enough to retire early. Far too many people overextend themselves to buy the biggest house they can afford, thinking it’s the end all. The wife and I are socking money away and living comfortably now so we can afford to stop working one day. That to us is the real American dream.

But yah like others have said, try to not go FHA if you can. Even if it means saving for 5more years. Just look at what a 3k FHA payment buys you ca putting 20% down. It’s substantial.

 

[888sneakerst]

Hate to be that guy but I’ve rethought my definition of “the American Dream” it’s not buying a home. It’s saving enough to retire early. Far too many people overextend themselves to buy the biggest house they can afford, thinking it’s the end all. The wife and I are socking money away and living comfortably now so we can afford to stop working one day. That to us is the real American dream.

But yah like others have said, try to not go FHA if you can. Even if it means saving for 5more years. Just look at what a 3k FHA payment buys you ca putting 20% down. It’s substantial.

Purchasing a home and saving money are not exclusive activities. Paying yourself through an appreciating asset is as good, and in some conditions, even better than leaving money in a savings account or investing in equity markets. You need to look into how that works. If you are serious about saving money, paying rent over the long term is not always the best option. Paying down principal as a part of a mortgage puts money back into your pocket and you also get the benefit of appreciation of the home.

There are definite benefits to renting, like flexibility and having liquidity to be able to invest quickly. So if those kind of factors are important to you, then renting might be the way to go.

 

[888sneakerst]

It all sounds like theoretical garbage, especially if you think you aren't making enough to even come close to owning a home, but 100 pairs of jordan retros is 20k guys. Keep in mind that your income will grow if you are working hard too. That 20k is 100k of buying power if you think of it as a 20% down payment. Buy a house to keep your shoes in.

 

[joeoh29]

Purchasing a home and saving money are not exclusive activities. Paying yourself through an appreciating asset is as good, and in some conditions, even better than leaving money in a savings account or investing in equity markets. You need to look into how that works. If you are serious about saving money, paying rent over the long term is not always the best option. Paying down principal as a part of a mortgage puts money back into your pocket and you also get the benefit of appreciation of the home.

There are definite benefits to renting, like flexibility and having liquidity to be able to invest quickly. So if those kind of factors are important to you, then renting might be the way to go.

Good points and sorry if my post made the decision sound binary (either/or) . Ideally the right home is one that allows you to continue to save and invest ( I do know quite a bit about capital markets) and not put everything into your home.

I see so many people who are house rich and cash poor. I don’t really think a home is an asset until you can sell it and use the proceeds to move into another home (cause you’ll always need somewhere to live) until then, it’s kind of a liability in my eyes.

Said differently, I don’t think homes don’t start off as assets, but rather liabilities until you pay them off or build up enough equity to sell and replace it at breakeven or for a profit. Yes I know the definitions of these terms and my approach is mor philosophical in nature I suppose. LoL

 

[kvsm23vs24]

I’m looking to purchase a condo. Good or bad?

 

[onthenephs]

Other than all the technical mortgage advice in here,

Make sure like 100% sure, that location of where you buy is a good neighbourhood. That’s pretty much the biggest and only key to home buying. Location is unbelievably important.

 

[joeoh29]

Other than all the technical mortgage advice in here,

Make sure like 100% sure, that location of where you buy is a good neighbourhood. That’s pretty much the biggest and only key to home buying. Location is unbelievably important.

So true. I was telling my wife, you can change your house but you can’t change your neighbors or neighborhood.

 

[da hen]

Pick a good inspector

 

[dtb00201]

Anyone used the USDA loan?

 

[rbk93]

Maintain a solid foundation.

 

[MakeNTGreatAgain]

Pick a good inspector

How do you find an inspector?

Or do it myself?

 

[888sneakerst]

How do you find an inspector?

Or do it myself?

Better yet, pick a great agent and a great agent will have great inspectors ready for you to use.

 

[888sneakerst]

Good points and sorry if my post made the decision sound binary (either/or) . Ideally the right home is one that allows you to continue to save and invest ( I do know quite a bit about capital markets) and not put everything into your home.

I see so many people who are house rich and cash poor. I don’t really think a home is an asset until you can sell it and use the proceeds to move into another home (cause you’ll always need somewhere to live) until then, it’s kind of a liability in my eyes.

Said differently, I don’t think homes don’t start off as assets, but rather liabilities until you pay them off or build up enough equity to sell and replace it at breakeven or for a profit. Yes I know the definitions of these terms and my approach is mor philosophical in nature I suppose. LoL

"I see so many people who are house rich and cash poor. I don’t really think a home is an asset until you can sell it and use the proceeds to move into another home (cause you’ll always need somewhere to live) until then, it’s kind of a liability in my eyes."

I can see how someone could see it this way, but I can try to help you see it differently. Someone who you think is house rich and cash poor probably just bought a house they can't afford. They should have waited until they were able to put more money down so that their payment is lower and they wouldn't be so tight on cash every month. Also, a home doesn't become an asset when you can sell it later to move into another home. When a home appreciates, all the other homes around it that you want to buy have also appreciated, unless you are moving to a completely different area where home prices are way lower than where you are coming from. Your primary residence is not a vehicle to allow you to get a bigger house later on. You pay it down over time and you save so you can afford a bigger home later. No one gets a windfall 100k in appreciation that allows them to buy that bigger house that's 100k more down the street because if your house went up 100k, the price of that bigger house down the street also went up 100k. But, you probably also paid down your loan by a significant amount over the last 5 years, let's say another 100k for example. So, you basically gained 100k in equity by paying down your mortgage, plus your house appreciated by 100k. So you have 200k more buying power. But, if you didn't own a home and you saved 100k in cash but missed out on the 100k appreciation in your current home, you have 100k less buying power than if you owned a home. See what I mean? Don't look at it like a pure liability or else you will miss out on the benefit. I agree with you that real estate is not for everyone and is not the only way to go, but my point is that it has its upsides.

A pure liability is a debt that has no upside. If you can see the difference between good debt and bad debt, you will be able to take advantage of the opportunities that this system is designed to provide. Utilize the right opportunities to get you into a house with a shoe room! I have an office in my house where I kinda display shoes under a glass coffee table, but definitely not a shoe room yet.

 

[townbidness]

I bought a home i could afford by myself, didnt include my wife income.

Could have bought a way bigger home, but you never know what might happen later on.

 

[2163O1baller90]

has anyone purchased a tax lien sale before?