Want to Purchase A Home? Tips for Couples or Singles

[abaici]

Originally Posted by SummerChild

Accordingly, in Cali, it *might* be helpful to get married, just to try to buy a place to live in. lol.
SC

When I say this to my friends in other states, they think I'm insane. But, it's so true. My thing is I want to live in the city. I'm a city girl.

I'm going to look at NACA again. There are condos in areas that are tolerable for me very close to the range.

[SummerChild]

I know Soror!! How have you been doing? We need to get together. I was targeting the downtown market due to its great potential for appreciation but I'm not feeling those mortgage payments - not with it just being me as I don't want to carry the stress of a 4800 mortgage payment alone. It's nuts.

Girl, I am now looking in the area that I currently live in. It's still on the pricey side but it's more tolerable. There are supposed to be some new condos coming in the city of LA but adjacent to your city. Let me know if you want me to PM you with details.

PM or call me and let me know how your search is going. We can share info!

Originally Posted by abaici

When I say this to my friends in other states, they think I'm insane. But, it's so true. My thing is I want to live in the city. I'm a city girl.

I'm going to look at NACA again. There are condos in areas that are tolerable for me very close to the range.

[SummerChild]

Soror, I just looked at the site and there is a workshop coming up on the 24th.
SC

Originally Posted by abaici

When I say this to my friends in other states, they think I'm insane. But, it's so true. My thing is I want to live in the city. I'm a city girl.

I'm going to look at NACA again. There are condos in areas that are tolerable for me very close to the range.

[SummerChild]

Here's the email response that I got when I sent an email to NACA asking particular questions about my Priority Area, etc. Don't expect to get any detailed info by email. I also called our local rep so maybe she will respond.




Thank you for your interest in NACA, AMERICA' S BEST HOME MORTGAGE PROGRAM. Your first step is to dial the TOLL FREE HOUSING LINE @ 1-888-302-6222 follow the prompter's instructions, entering your area or zip code when asked to do so.

At this point , IF NACA services your area you will hear a listing of HOME BUYER WORKSHOPS AVAILABLE TO YOU. select the one that fits your personal schedule. ( if none are mentioned that will indicate NACA does not service the area requested at this time but try us again as we are always adding to the NACA listings ) ONCE YOU HAVE ATTENDED THE WORKSHOP SELECTED, a member of the workshop team will direct you as to policy and procedures for attending your first meeting at the office with your counselor.

Good luck. NACA looks forward to welcoming you to our NACA family of home owners.

[Infamous12]

I FINALLY went to that First-Time Home/Condo Buyers course last night, and got some information. Since I had no prior knowledge on any of this, someone with more mortgage/finance experience could probably critique it, but for me it was a start.

Forgive me in advance for the lengthy post, I'm merely re-typing a few key points from the handout. The class was taught by a mortgage consultant and a real estate consultant and pretty much gave us the top 9 mistakes when trying to purchase, the breakdown of credit scores, biggest financing mistakes, the difference between pre-approval and pre-qualification and info needed for pre-approval.

*Whew* Here goes...

9 Costly Mistakes Many Home Buyers Make:
#1: Not using an Experienced Buyer's Agent
#2: Relying on Inaccurate Sources for Information
#3: Missing the Red Flags when House Hunting
#4: Making An Offer without a C.M.A.
#5: Not Protecting Yourself Legally
#6: Not fully Understanding the Purchase Contract
#7: Not Performing a House, Termite, and Radon Inspection
#8: Not getting a one-year home warranty
#9: Closing on the last business day of the month

(If you want the explanations to any of these, PM me. Or maybe I'll post them again if you guys want that too)

Biggest Financing Mistakes:
1. Not having a plan
2. Falling for the bait and switch advertising or choosing a lender solely on interest rate
3. Using an out-of-town internet company

They also stressed the importance of getting everything in writing, including closing costs, downpayments and personal vs. real property. And giving the seller no more than 24 hours to accept your offer.

Another stressed point was credit. 35% of your credit score is how you pay your bills, 30% is your ratio of balance to limit, 15% is the length of time you've had credit, 10% is the type of credit (a mix is desired) and last 10 is based on inquiries. If your credit score is 720 +, you're golden...

Something I never knew was that auto and mortgage inquiries are different from other types. You can have 20 inquiries from auto or mortgage within a 14 day period and it'll only count as one inquiry since it's evident you're merely being a 'smart consumer'.

So, that's pretty much the cliff notes of the class. They gave a website to learn more information, www. freehomebuyercourse.com.

My fingers will mutiny if I continue on... Hope some of this helps someone!

[SummerChild]

Great information Infamous12!
Can you elaborate on 3, 4 (what is a CMA?) and then 2 in the financial section or is it on the website that you referred to? If it's easier, I can give you a quick call. Let me know.

Originally Posted by Infamous12

I FINALLY went to that First-Time Home/Condo Buyers course last night, and got some information. Since I had no prior knowledge on any of this, someone with more mortgage/finance experience could probably critique it, but for me it was a start.

Forgive me in advance for the lengthy post, I'm merely re-typing a few key points from the handout. The class was taught by a mortgage consultant and a real estate consultant and pretty much gave us the top 9 mistakes when trying to purchase, the breakdown of credit scores, biggest financing mistakes, the difference between pre-approval and pre-qualification and info needed for pre-approval.

*Whew* Here goes...

9 Costly Mistakes Many Home Buyers Make:
#1: Not using an Experienced Buyer's Agent
#2: Relying on Inaccurate Sources for Information
#3: Missing the Red Flags when House Hunting
#4: Making An Offer without a C.M.A.
#5: Not Protecting Yourself Legally
#6: Not fully Understanding the Purchase Contract
#7: Not Performing a House, Termite, and Radon Inspection
#8: Not getting a one-year home warranty
#9: Closing on the last business day of the month

(If you want the explanations to any of these, PM me. Or maybe I'll post them again if you guys want that too)

Biggest Financing Mistakes:
1. Not having a plan
2. Falling for the bait and switch advertising or choosing a lender solely on interest rate
3. Using an out-of-town internet company

They also stressed the importance of getting everything in writing, including closing costs, downpayments and personal vs. real property. And giving the seller no more than 24 hours to accept your offer.

Another stressed point was credit. 35% of your credit score is how you pay your bills, 30% is your ratio of balance to limit, 15% is the length of time you've had credit, 10% is the type of credit (a mix is desired) and last 10 is based on inquiries. If your credit score is 720 +, you're golden...

Something I never knew was that auto and mortgage inquiries are different from other types. You can have 20 inquiries from auto or mortgage within a 14 day period and it'll only count as one inquiry since it's evident you're merely being a 'smart consumer'.

So, that's pretty much the cliff notes of the class. They gave a website to learn more information, www. freehomebuyercourse.com.

My fingers will mutiny if I continue on... Hope some of this helps someone!

[Conskeeted7]

CMA - Comparative Market Analysis

This lets you know what other comparable properties sold for recently to give you an idea of your potential property's value.

[SummerChild]

Thanks Soror. I'm been calling them "comps." LOL.
SC

Originally Posted by Conskeeted7

CMA - Comparative Market Analysis

This lets you know what other comparable properties sold for recently to give you an idea of your potential property's value.

[Infamous12]

Just in case others had the same questions...

#3 - Red Flags, was pretty much about looking at a house with rose colored glasses, or allowing your emotional connection to outweigh your logics. Making sure you and property are insurable, not waiting until the last minute for a CLUE Report. (Comprehensive Loss Underwriter Exchange)

#4 - Comparative Market Analysis...

#2 in the Financial Mistakes...dealt with falling for gimmicks. Getting with a company just because of their advertised interest rates, which may or may not pertain to you. You should shop around and according to my 'teachers' you should be able to ask the following four questions.
~ What are mortgage interest rates based on?
~ What is the next Economic Report or event that could cause interest rate movement?
~ When the Feds 'change rates' what does this mean, and what impact does this have on mortgage interest rates?
~ What is happening int he market today and what do you see in the near future?

[abaici]

Originally Posted by SummerChild

Soror, I just looked at the site and there is a workshop coming up on the 24th.
SC

I signed up for that workshop. I'll see. I spent the last year working on my credit. It wasn't bad, but there was room for improvement.

You are far ahead of me.

I think the downtown lofts are cool, however, it's just way too much. I think my problem is tied to being a native Californian. There are not enough gorcery stores and other things to make it attractive to me. But, they are in the process of building it up. I hate to even THINK of how much it will cost once they are finished.

[SummerChild]

Hi Soror, I'd signed up for the workshop too. Did you get your confirmation card in the mail yet? I received the confirmation a couple of days ago.

Yes, the downtown market is so expensive and it will be so much more so as you say, after they finish everything. You're right about the lack of services. There will only be one grocery - the Ralph's that they are building now. Maybe other businesses will come into the downtown area. For me, I moved away from that market b/c it was so expensive and I really don't know that even if I wanted to pay all that - that I'd want to live in a loft with just four walls (and any others that I create) for the next few years. I guess I'd feel like a paid a bunch of money for a studio. lol. But to each her/his own I guess.

NACA seems like a good program and I am looking forward to taking part in it. The limit seems a little on the low side for Cali but whatever. We just have to work with what we have to work with I guess. Did you see any 2 bedrooms under the limit (362,000) or were they 1 bedrooms that you located? Let me know if you found any 2 bedrooms. I hear that the resale is so much better on those. Of course the price is higher so that sucks. LOL.

Have you looked into FHA loans? There is also a comparable loan called My Community. The loans only require like 3% down and they finance the other 97% (or 100% in the MyCommunity program) and the interest rates are supposed to be decent and they are supposed to have really good first time homebuyer programs. I am looking into whether there are any income restrictions. One lender told me yes for FHA but I didn't see that on the FHA website. I'm in the process of getting that info from another lender and will try to call FHA directly - if I can ever find a direct telephone line for them.

I love my current community and was looking at a unit on my street and around the corner...literally. LOL.
But, soror, I am thinking of waiting until the fall and seeing if the prices don't fall on everything like they are projecting with all of the supposed foreclosures and defaults and more stringent mortgage loan requirements that they are talking about is/will be happening in 2007. We'll see. When do you think would be a good time to get into the market?

I also like single families in Torrance - can't afford it, single families in Culver City - can't afford it, single families in West LA - can't afford it, single families in Ladera - sure as h*ll can't afford it (lol). Found a couple of cute houses in Windsor Hills - 2 bedrooms in the low 4's. That might be an option. Shoot, I saw some single families (2 bedrooms) in LA that are in the high 3's and 4's but since I'm not from here, I really don't know about the neighborhoods and whether it's really safe in the evenings, etc. but the houses and lawns looked nice and well maintained - but I was also a little thrown off by the bars on many of the windows. That might be too depressing.

So I'm all in the condo/townhouse market. I'm looking in Culver City, Torrance, Playa del rey and Hollywood. Gardena seems to have some moderately priced units. I got a couple of really long listings of properties in the southbay. Let me know if you want me to send it to you. Know of any other good areas that I'm missing? Hollywood is supposed to be coming back up in the next year...and it's so central to downtown and to the westside.

SC

Originally Posted by abaici

I signed up for that workshop. I'll see. I spent the last year working on my credit. It wasn't bad, but there was room for improvement.

You are far ahead of me.

I think the downtown lofts are cool, however, it's just way too much. I think my problem is tied to being a native Californian. There are not enough gorcery stores and other things to make it attractive to me. But, they are in the process of building it up. I hate to even THINK of how much it will cost once they are finished.

[SummerChild]

Anybody had any personal experiences with obtaining foreclosures or properties on which the seller is defaulting and needs someone to purchase the property?

Have you found that the properties are as risky as everyone writes about? Are there any tricks for having an inspection done beforehand - most of the ones that I've seen don't allow that yet the property is sold "as is."

[Conskeeted7]

I've bought 2 foreclosures. I, personally, did not find the process to be any different than conventional real estate. Of course, you want to have an inspection to determine if you'll move forward with the property. I never had any trouble getting an inspection. However, you may have a hard time getting the bank to fix anything that you find. So, be prepared to handle that cost on your own. For me, it was worth it to fix things on my own because I bought the houses at 50% of market value and there were no structural issues, strictly cosmetic.

You can find information on foreclosures in your county office (if it's being foreclosed because of taxes) or some realtors work closely with them as well. We actually found ours by driving around and seeing houses that looked 'under the weather.'

[SummerChild]

Dang Soror, you've done everything in the real estate market! I want to be like you when I grow up.
I often see foreclosures listed but the ad often states something that made me think that you could not inspect the property before you bid. A realtor was telling me that he gets listings of pre-foreclosure properties so I'll follow-up with that. Did you find that it was much more expensive (like you had to pay out of pocket some huge % or could you just come with proof of loan funds)? I been reading a few articles and read a short book.
So it sounds like it was not all that risky at all - in your experience b/c you were able to get an inspection ahead of time.

SC

Originally Posted by Conskeeted7

I've bought 2 foreclosures. I, personally, did not find the process to be any different than conventional real estate. Of course, you want to have an inspection to determine if you'll move forward with the property. I never had any trouble getting an inspection. However, you may have a hard time getting the bank to fix anything that you find. So, be prepared to handle that cost on your own. For me, it was worth it to fix things on my own because I bought the houses at 50% of market value and there were no structural issues, strictly cosmetic.

You can find information on foreclosures in your county office (if it's being foreclosed because of taxes) or some realtors work closely with them as well. We actually found ours by driving around and seeing houses that looked 'under the weather.'

[abaici]

I am. I'll see you there next Saturday! I did not see any 2 bedrooms in my areas of interest. You are right, two bedrooms are more desirable. I am interested in a single family, however, I don't think it fits my lifestyle. I'm not one to worry about lawns and what not. I see that I will have to compromise a little bit on the location. Torrance is usually very expensive. I don't mind Gardena. I personally want to live on the Westside. That's my thing. I saw a really cute bungalow a while back in Hollywood. Overall, I'm not feeling Hollywood too much. Kinda cool, but I don't know. I'm trying not to look too much. I don't want to be too depressed with the loan people snap me back to reality. lol.

Originally Posted by SummerChild

Hi Soror, I'd signed up for the workshop too. Did you get your confirmation card in the mail yet? I received the confirmation a couple of days ago.

Yes, the downtown market is so expensive and it will be so much more so as you say, after they finish everything. You're right about the lack of services. There will only be one grocery - the Ralph's that they are building now. Maybe other businesses will come into the downtown area. For me, I moved away from that market b/c it was so expensive and I really don't know that even if I wanted to pay all that - that I'd want to live in a loft with just four walls (and any others that I create) for the next few years. I guess I'd feel like a paid a bunch of money for a studio. lol. But to each her/his own I guess.

NACA seems like a good program and I am looking forward to taking part in it. The limit seems a little on the low side for Cali but whatever. We just have to work with what we have to work with I guess. Did you see any 2 bedrooms under the limit (362,000) or were they 1 bedrooms that you located? Let me know if you found any 2 bedrooms. I hear that the resale is so much better on those. Of course the price is higher so that sucks. LOL.

Have you looked into FHA loans? There is also a comparable loan called My Community. The loans only require like 3% down and they finance the other 97% (or 100% in the MyCommunity program) and the interest rates are supposed to be decent and they are supposed to have really good first time homebuyer programs. I am looking into whether there are any income restrictions. One lender told me yes for FHA but I didn't see that on the FHA website. I'm in the process of getting that info from another lender and will try to call FHA directly - if I can ever find a direct telephone line for them.

I love my current community and was looking at a unit on my street and around the corner...literally. LOL.
But, soror, I am thinking of waiting until the fall and seeing if the prices don't fall on everything like they are projecting with all of the supposed foreclosures and defaults and more stringent mortgage loan requirements that they are talking about is/will be happening in 2007. We'll see. When do you think would be a good time to get into the market?

I also like single families in Torrance - can't afford it, single families in Culver City - can't afford it, single families in West LA - can't afford it, single families in Ladera - sure as h*ll can't afford it (lol). Found a couple of cute houses in Windsor Hills - 2 bedrooms in the low 4's. That might be an option. Shoot, I saw some single families (2 bedrooms) in LA that are in the high 3's and 4's but since I'm not from here, I really don't know about the neighborhoods and whether it's really safe in the evenings, etc. but the houses and lawns looked nice and well maintained - but I was also a little thrown off by the bars on many of the windows. That might be too depressing.

So I'm all in the condo/townhouse market. I'm looking in Culver City, Torrance, Playa del rey and Hollywood. Gardena seems to have some moderately priced units. I got a couple of really long listings of properties in the southbay. Let me know if you want me to send it to you. Know of any other good areas that I'm missing? Hollywood is supposed to be coming back up in the next year...and it's so central to downtown and to the westside.

SC