Want to Purchase A Home? Tips for Couples or Singles

[KAPital PHINUst]

I bought my home (a new build) when I was single at the age of 27. Because it was new, I had few problems with it as far as upkeep and repairs.

The challenges was keeping the yard mowed, weed-free, and watered, as well as keeping its interior clean. Since I lived by myself, I didn't dirty up the house as rapidly as that if I had a family. So once a quarter, I would do a deep cleaning, where I would dust, vacuum, and scrub the house keeping it nice and clean.

Later I put in blinds for the sliding back door and installed ceiling fans in the main room and master bedroom.

The problem was that the property values in the area was dropping dramatically, as there was a very high foreclosure rate in the area, prompting me to sell my home. I finally did that last July, and the sad thing was, I lost money on the deal. Had I waited a month or so, I would've had a buyer (who was very interested in my house but had to sell his home in Florida first) buy my home at my price and at I would've wound up breaking even on the deal.

The next time I buy a house, I want to be married, and I want to own a home in a state with a warmer climate (I really gotta get outta Ohio).

[Still BLUTANG]

I purchased while single, and i will never do it again. For me, it was a very challenging emotional process. I never thought i'd be 27 and single. Much less 27 and single and buying a place to live. Everything has been o.k., i love the physical space, but like i said for me its more of an emotional thing.

Good luck!

[RedefinedDiva]

I'd do it in a minute! I was going to do it before I came to school, but once I was accepted into school, I no longer needed the home. God does work in mysterious ways though, because had I bought it, it would have been under about 20 feet of water within the next year.

As far as expenses, I told the real estate agent what I was willing to pay per month and she found properties within my price range. She didn't try to force anything on me and she respected my wishes. I knew how much I made, as well as how much I could REALISTICALLY pay per month, in conjunction with other bills. After I factored all things, including unexpected and incidential expenses, I was within a reasonable range and was ready to purchase. As I stated before, my focus shifted to school and I put my plans on hold. However, once I graduate and get a steady job, I am kissing rentals GOODBYE!

I think owning a home also depends on what you buy. I was buying a condo/townhouse, just enough for me. Now, I wouldn't actually buy a free-standing home all by myself because I know that I would have to outsource for a lot of stuff. While I am pretty handy and whatnot, I don't get too down and dirty, hence extra expenses for a gardner, etc. Plus, I don't need a "family home" without a family. I just want something that's mine and that would fit my lifestyle. No one wants to be a large home all alone.

If I would suggest anything, I would say start off with a condo/townhouse if you really want to be a homeowner. There is NOTHING wrong with being single and owning a home. If I had a real job, I would own NOW. I am tired of paying rent on something that's not mine. Plus, I feel that I would feel more secure in something that I had more control over.

GOOD LUCK!!!

[Conskeeted7]

I bought my first house while I was married. However, I don't think that made it much easier. The only thing that was a little easier was having someone to help occassionally. But with work and our schedules, it wasn't like we were both at home to do everything necessary. A lot of the same worries and concerns are there whether you buy as a family or a single. As other posters have said, you have to pay to live somewhere, so I'd encourage you to pay into your own wealth and get tax deductions too!

[mulattogyrl]

This is a really good thread. Thanks for starting it Summerchild!

[SummerChild]

Sure. I'm glad folk are getting something out of it.

Did anyone hear about the effect on the interest rates that the stock market plunge last week had? A loan agent was telling me that numerous companies and divisions of mortgage loan companies are out of business. He was saying that the rates have gone up to 11-14% for some programs for the 20 part of the 80/20 setup. He also mentioned, however, that the rates went down to 5.75% for some loan programs if one has a credit score of 680 or better.

Originally Posted by mulattogyrl

This is a really good thread. Thanks for starting it Summerchild!

[SummerChild]

It seems to me that purchasing while living in a place that has high real estate prices can really bring out the implications of buying solo or jointly with someone else. For example, here in Cali, the median home price is 550,000 or so. Accordingly, many professionals that I know are still renting (as am I) or living with a roommate. It sseems like it's almost prohibitive if you don't have someone else to go in on the monthly payment with you. Even for a property in the 4s, when you add taxes at 1.25% (and the additional 400 per month that taxes brings), even at 6%, which apparently is a fairly good rate right now, you're at roughly 2400 (before taxes or HOAs or utilities)...and that's for a place that is 400,000 - which is usually not a very well maintained, older, 2 bedroom (yes 2 bedroom) house or an old one or two bedroom condo.

I have been very surprised at the number of young professionals that I have met in Cali who do not own.

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

SC

[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]

1BG,
Do you have any idea how long the program takes? I know that there are 10 steps to the process. Have you found that it's more like a few weeks to a month or three months or six months or otherwise?

SC

Originally Posted by 1browngirl

You might want to check out the NACA program, there aren't any income limitations but there is a limit on the loan amount - I believe its $206,000. The interest rate is much lower than the standard rate. Its a no downpayment, no closing costs program. There's no PMI (private mortgage insurance) either. I'm going through the program now, their website is www.naca.com

[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.

[1browngirl]

Originally Posted by SummerChild

1BG,
Do you have any idea how long the program takes? I know that there are 10 steps to the process. Have you found that it's more like a few weeks to a month or three months or six months or otherwise?

SC

SC, when I went to the workshop in January they said the process could be as fast as you wanted (if everything is in order - credit, debt, budget, mortgage qualification, etc) or it might take some time (if things aren't in order).

But, my former co-woker went to the workshop in July and closed at the end of September. For me, unfortunately it'll be a longer process but well worth it.

[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!