Making an offer on a house tomorrow

[GaryC 7]

Ohhhh. Gotcha. Good luck

Thanks! Luz is really looking forward to owning a home. In the Philippines home ownership is not common. She really likes the big back yard. I think I will plow up half of it and make a garden. I love doing the veggy thing and Luz loves the flowers. Ahh... To own my own house again! The last 3 years of renting has really sucked.

[Ban Hammer 14,271]

Also, aren't rates well below 6 right now?

VA loans are at 6%. They said it may go lower by the time they write the loan.

Why are VA loan rates higher?

VA loans are 100% and do not require mortgage insurance.

My credit has a few dings in it. In reality I am thrilled to get a 6% one.

pmi adds about $100 a month to the note until you have something like 20% paid off. gary, see if you can pay down some points to get a lower rate too.

[Fandango 1,440]

Gary, don't get too hepped up just yet until you have a signed contract! I don't mean this in a negative way, mind you.....

I really really really am plugging for you, though.

[Lansbury 19]

Great house it would cost double that out here. Fingers crossed and hope all goes well.

[GaryC 7]

Gary, don't get too hepped up just yet until you have a signed contract! I don't mean this in a negative way, mind you.....

I really really really am plugging for you, though.

Oh yeah. We have been looking for months now so we have been here before. But it all seems to be gelling right now. The bank said it was sending a pre-approval notice to the realtor so that is a giant step in the right direction. This house is what we have been looking for. The only thing I wish it had was a fireplace. I guess I could add one downstairs when I start remodeling.

[w¡n9Nµ7 §£@¥€r 123]

Great house it would cost double that out here. Fingers crossed and hope all goes well.

Yeah I just looked homes like that up in my area.. 260-300K asking prices.

[eau_xplain 2]

Happy to hear that you've found the house that you are ready to make your home!

Wishing you the best of luck in your negotiations!

[Sylvia_n_Joseph 3]

Out here in sunny southern California about 40 miles east of LA somehting that age with that size lot and no basement would be about 450k . Get closer to the ocean and you are looking a million plus.

[rebeccajo 14]

Hey Gary -

Here's a description of how a buydown works:

http://www.mortgage101.com/Articles/LoanPr...?ArticleID=1021

What Lisa is suggesting is to ask the seller to put up the buydown points for you. Your lender may or may not have an investor who will buy a VA loan with a buydown, so that's your first issue. Your realtor can help answer that question for you. At the end of the day, your loan would end up eventually being 6% for the term after the buydown. This is NOT an adjustable rate mortgage, or a sub-prime type program. Buydowns have been around for ages.

Even though there is no private mortgage insurance on a VA loan, there is the VA Funding Fee. The guy who bought our house in August paid $123000.00 for it. I just looked at the settlement statement and his Funding Fee was $4120.50. It was added to his loan amount for a total loan of $127120.00. You'll have this Funding Fee to deal with - buydown or no.

How's the roof on the house? My old house was a ranch - my house took about 35 square of shingles and roofers usually charge buy the square. Just a 'future maintenance' issue for you to consider before you haggle the price. Great find on the other mechanicals and windows being new. How about the bathrooms? That's a really expensive reno too - if they are in 'less than perfect' condition that could be another bargaining chip for you.

I wouldn't let myself get all excited about the house being furnished insofar as the negotiations are concerned. Your dude left the furniture behind because he couldn't use it, and 'used' furniture is worth practically nothing in the real world. You might need the furniture, but I wouldn't let that stand in my way of a better deal on the sales price. I'd tell his agent to haul the stuff out of there first and let me have rock-bottom on the property. That's my 2 cents opinion, anyway.

Edited February 11, 2008 by rebeccajo

[Mags 112]

Good luck, Gary & Luz!

[awaterlily 0]

Congrats! The house looks nice. GL to the both of you

Luz and I just got home from another morning of house hunting. I think we found the one! This is a really nice stone and brick home. It was built in 1965 and is in great condition. The guy that owns it was transfered to another city and was given a furnished home as part of his deal. So this house is fully furnished! It has a great kitchen with a gas stove, dish washer and refrigerator. It has a brand new washing machine and dryer. The furnace and A/C are only 4 years old. It has BRAND NEW windows! All furniture stays! It has a really nice leather living room set with a TV and entertainment center. There is another living room set downstairs. It has a new queen size bed in the MBR and a single bedroom set in the other room. It even has a computer in the third BR! It has a really large back yard that is 100% fenced in. The electric/gas bill last year never went above $180!!! I just talked to the bank and have been approved for a 6% VA loan. So, tomorrow we will go to the Realtor and make an offer. It's listed at $124,000 but my Realtor thinks I should offer $115,000 and hopefully settle for $120,000.

Here is the listing. The pictures do not do it justice. It's much better than they show!

http://www.adammerrick.com/idxfeatured.php...mp;proptype=res

[Fandango 1,440]

Gary, don't get too hepped up just yet until you have a signed contract! I don't mean this in a negative way, mind you.....

I really really really am plugging for you, though.

Oh yeah. We have been looking for months now so we have been here before. But it all seems to be gelling right now. The bank said it was sending a pre-approval notice to the realtor so that is a giant step in the right direction. This house is what we have been looking for. The only thing I wish it had was a fireplace. I guess I could add one downstairs when I start remodeling.

Gary, you can always install one of those gas jobbers that you can buy at Costco....a real fp is cool, don't get me wrong, but after living with D and having a gas one where all ya do is flip a switch, I'm a convert.

[rebeccajo 14]

Gary, don't get too hepped up just yet until you have a signed contract! I don't mean this in a negative way, mind you.....

I really really really am plugging for you, though.

Oh yeah. We have been looking for months now so we have been here before. But it all seems to be gelling right now. The bank said it was sending a pre-approval notice to the realtor so that is a giant step in the right direction. This house is what we have been looking for. The only thing I wish it had was a fireplace. I guess I could add one downstairs when I start remodeling.

Gary, you can always install one of those gas jobbers that you can buy at Costco....a real fp is cool, don't get me wrong, but after living with D and having a gas one where all ya do is flip a switch, I'm a convert.

I agree with that! Our old house had a vented gas fireplace with a switch - it was fabulous. Our present house has electric logs (yuck) in the fireplace. Ventfree gas logs on a switch are on my wishlist of renos in the near future.

Edited February 11, 2008 by rebeccajo

[Mary Lou 682]

Good Luck Gary and Luz.

The house looks to be well maintained . All the best in making your home owning dreams come true.

[kaydee457 13]

Peoria.....Not too far from where I am (Cary).........Not too much around here for that price, though. I guess the closer to the Chicago, the more you're going to pay.

Looks like a good price, though!