Want to Purchase A Home? Tips for Couples or Singles

[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.

[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.

[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?

[Lady of Pearl]

I hear that now is a good time to buy, unlike last summer when I was looking. There are even some real estate agencies that are now offering assistance to those who work in the public sector like teachers, and firefighters to buy at reduced rates. However, I am not in the market now as I am tired of moving! and will save for that 20 percent downpayment to lessen that mortgage payment!

[AKA_Monet]

Okey, I just started looking at this thread, so most of the info is well stated.

What I have done with my husband is start a mixed "Brokerage" fund: mid-high cap invest to obtain the down on a house. We live way off where the buffaloes roam by Microsoft, so most houses run ~$800K+ for ~3500+ sq. ft. (Yeah, I know, straight jack). And these are new constructions.

If you live in my city, you ain't eva gonna get new construction, unless you like high-rises, which is dumb 'cuz we just had a windstorm that isn't a joke and we sit on a seduction zone, meaning earthquakes AND volcanoes...

And you really have to love fixer-fixer, upper-uppers.

However, you must factor the cost of living in your area. How far is it from your job? Is the area safe? All housing CMA's in LA will say houses make $$$. But do you have security? What is the security? Who are the neighbors? You know how LA is crazy...

The other thing is grocery stores and other needed incidentals, like gas, repair folks, fire/police, libraries. Then walk in the area, oneday, it is enjoyable to be there?

Yeah, the shores are, but that's what folks pay for and actually, they may not be "owning" their house, some company does... Or the government for ops...

If you want to live in Ladera Heights, you have to know someone who knows someone from my understanding...

And the Urban League has some kind of homeownership program...

And the only major new construction that I heard is going on down there is in Vacaville or Barstow...

[SummerChild]

So a friend was telling me of his hypothesis that if one waits until mid-summer or fall that the prices for homes will be much lower b/c they are generally falling and will continue to fall b/c so many subprime lenders are out of biz and cannot make the loans to many people anymore. He also noted that in Cali, the folk with homes probably won't want to move b/c you will have taxes way beyond what they pay now and cannot get the same house for their money.

As a result, he thinks that if one waits until summer or fall to place a contract on a place, that the real estate market will be near the bottom and with no where to go but back up but that sellers will be desperate and one can get a good price.

Has anyone heard of these ideas? What do you think?

SC

[SummerChild]

Info about FHA loans - only requires 3% down. Also, apparently allows higher debt-to-income ratio and does not look at fico scores for those interested.

I might look into trying to get one of these if I can get under the loan cap of 362,000 and do the NACA program to obtain those benefits with closing costs reduction.


SC

FHA Loans - FHA Loans Bounce Back in Favor
From Elizabeth Weintraub,
Your Guide to Home Buying / Selling.
FREE Newsletter. Sign Up Now!
Buyers Returning to FHA Loans
FHA mortgages are becoming popular again! It's an institution that has been around for a long time, since June 27, 1934. The Department of Housing & Urban Development folded the Federal Housing Administration (FHA) under its umbrella in 1965.
FHA loans began to lose favor in the late 1990s, when home values began to inch upwards, surpassing FHA mortgage limits, and sellers balked at FHA's stringent appraisal guidelines.

How FHA Loans Work
Now, FHA does not make loans or guarantee loans. It insures loans. The insurance removes or minimizes the default risk lenders face when buyers put down less than 20 percent. Without further approval from FHA, its approved lenders are authorized to:


Take loan applications

Process loan applications

Underwrite and close the loan
FHA Increases Mortgage Limits
My parents bought our first home in 1955 for $9,000 with an FHA loan.

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All-Credit-Scores.BestRatesFrom.US
It's almost inconceivable to think of a home costing that today. As a result, FHA periodically increases its mortgage limits. As of July, 2006, mortgage limits range from:
$362,790 for high-cost areas

$200,160 for low-cost areas

$544,185 in Alaska, Guam, Hawaii and the Virgin Islands
Blemished Credit History
If your credit is less than perfect, FHA might be the loan for you. You may qualify for an FHA loan even though you have had financial problems.


FICO scores do not apply.

Bankruptcy. You can obtain an FHA loan two years from the date of your bankruptcy discharge, as long as you've maintained good credit since your debts were discharged.

Foreclosure. If you keep your credit in excellent shape since a foreclosure, an FHA loan will be available to you two years from the final date of your foreclosure.
Competitive Rates & Terms
Today's terms are pretty straightforward. In fact, in many markets the rates and terms are better than those for 80% / 20% piggyback loans.


There is little or no adjustment to the interest rate for an FHA loan, as the rates vary within .125 percent of a conventional loan.

Mortgage insurance is funded into the loan, meaning a premium of 1.5% is added to the loan balance instead of being paid out-of-pocket. In addition, a small portion for the mortgage insurance premium is added to the monthly payment, but it is far less than private mortgage insurance premiums.
Borrowers can finance 97% of the purchase price and put down 3 percent. In some instances, when combined with other types of loans, the down payment can be zero.
Allowable debt ratios are higher than the debt-ratio limits imposed for conventional loans.
Fewer Required Repairs
At one point, FHA repair demands were so excessive that sellers would discount the list price to buyers who would agree to obtain conventional loans over FHA loans. Today the requirements appear more reasonable.

Defective roofs that leak still need to be replaced but an older roof does not necessitate replacement if it doesn't leak.
Windows that stick upon opening or have cracked panes do not require replacement.
FHA appraisals do not take the place of a home inspection, never have. Buyers should still obtain a professional home inspection.
FHA loans are available to anybody but are used most often by first-time home buyers and low- to moderate-income buyers.

[Conskeeted7]

Hey Soror,

As for waiting until summer to purchase, I think it depends on how the market is moving. For me, the market is moving slow, so there are still homes on the market that have been on for several months already. So, they've lowered their prices already and I can take advantage of that. However, the market does typically heat up in the spring and summer. Those people who listed early in summer and are still on the market by September will probably be more willing to negotiate and take an offer much lower than asking.

[mccoyred]

From a seller's point of view, Spring is the ideal time to list. Why?

• flowers are in bloom so the curb appeal and neighborhood appeal are at their highest
• buyers are getting their income taxes back and may have extra money available for those pesky closing costs
• corporations are hiring after posting first quarter results

From a buyer's point of view, Fall is the ideal time to list. Why?

• sellers may have had their property listed since the spring and are more likely to be willing to negotiate or lower the price because they don't want to be stuck during the winter
• buyers want to get some of the tax benefits of home ownership before the end of the year
• many buyers can easily pick up a part-time job or get bonuses during the holidays to help them adjust to a possibly higher house payment

[SummerChild]

Great information!! Thanks for giving your collective feedback re times periods to purchase.

[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.'

[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