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Old 04-26-07, 08:57 PM
George's Avatar
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Help!! Need Advice and info on home mortgages...

hey guys i just need some advice and help. my fiancee and i are looking to buy a house and we are first time buyers. what we are wondering is if we can ask for more on a loan than what the house is valued. what we are looking to do is consolidate some balances and to have some money to buy some appliances. we have figured out our spendings and if possible this would be better for us. we know that we would be paying more interest in the long run but we plan to make more on the house pymt than what will be asked. and i know we wont have trouble making pymts.

we went to her fcu and they only approve for the amount the house is worth. do you guys know if its possible to ask for more? and if so which banks or lenders would help us out?
since its late right now and banks are closed i figured to see if my fellow spurs/cantina buddies can help me out with some info or advice. the house may be in the market for a while longer and im trying to get this deal done asap. thanks guys for your help
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Old 04-27-07, 01:50 AM
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Quote:
Originally Posted by George View Post
hey guys i just need some advice and help. my fiancee and i are looking to buy a house and we are first time buyers. what we are wondering is if we can ask for more on a loan than what the house is valued. what we are looking to do is consolidate some balances and to have some money to buy some appliances. we have figured out our spendings and if possible this would be better for us. we know that we would be paying more interest in the long run but we plan to make more on the house pymt than what will be asked. and i know we wont have trouble making pymts.

we went to her fcu and they only approve for the amount the house is worth. do you guys know if its possible to ask for more? and if so which banks or lenders would help us out?
since its late right now and banks are closed i figured to see if my fellow spurs/cantina buddies can help me out with some info or advice. the house may be in the market for a while longer and im trying to get this deal done asap. thanks guys for your help
Anything's possible in today's market with the creative financing going around. How much more are you looking to finance above cost? Putting nothing down? I would say that buying a house, furnishing it, and consolidating debt on top of it is a little risky. It makes debt that once was unsecured now secured by the one place you need -- your home! Not to mention you'll be upside-down on your home (owing more than it's worth), which means you're stuck in it until you pay down some stuff. It really can reduce some of your options should financial problems strike.

There's so much additional costs involved with buying a home that you may wanna wait a little while so you can save up for some of the costs associated with it -- just based on my experiences the past 2 1/2 years, my wife & i rushed into buying right after getting married, when renting might've been better for the situation at hand. In your situation, it would give you time to clear some consumer debt, save up some cash to buy some furniture and stuff, and maybe even part of your down payment.

Also don't forget to figure property taxes into your payment scenario -- many banks and salespeople will conveniently forget to include that in their financing estimates, only for your true payment to be hundreds of dollars/month higher. Yearly property tax runs nearly 3% of your home's value per year. In our $170k home, that's over $400/month.

Also, if it's a brand new home, you might be able to get the builder to give you money towards furniture and stuff as incentives to buy. There's so much inventory out there right now, they're throwing in tons of freebies as incentives.

Also, try asking TBNL -- i think he's in the real estate business. Feel free to PM me if you have any questions - i'd be curious to see how it all works out for you two. Congrats on the engagement.

I've learned a lot in the past 3 years with my first home purchase. I'm totally with ya on wanting to own a house, you just don't want that house to own you.
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Old 04-27-07, 03:09 AM
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A Cautionary Tale

One of my co-workers decided that she had to buy a much larger home despite the fact that her current home was fairly new and had adequate space. They did buy a beautiful big home. We were generally quite busy at work and she knew she could get all the OT she wanted. We had a slow stretch and there was no OT available. She had to sell her little cottage and nearly had to sell the new home because she could not keep up with the payments. Lenders will typically qualify you for more that you can really spend based on their formulas. When I bought my second home, the figures showed that we could afford probably $50K more than we knew from our own experience we could afford. I am very conservative about my debt, and we knew we didn't want to be house-poor. As luck would have it, we lived comfortably but were not "rich." Then my hubby took a job at a loss of 33% and I broke my back and am trying to get back to enough hours to make my mortgage payment. The last thing I want to do is lose my house. You may wonder wtf I am saying this for--the point is that with all the real estate candy that will be dangled in front of you and huge figures given for qualifying you, think about how little you would have to make to keep your house out of foreclosure. In that way, if there is a reversal of fortune (I am a Jeremy Irons fan) you will have your beloved roof over your head. And I would never recommend adding in other debt to your house payment because it is a big piece of collateral to wager against a hard time that you may face. Purchase what you can afford after allowing for payments of other debt. If you find that you can't get the house that you want, you might have to wait and save. I agree wholeheartedly with the other posts here. Also, if I were planning on staying in the house and had no plans to move every 3-4 years or so, I would stay way away from adjustable mortgages. Foreclosures are very much on the increase now for people who can't afford the adjustments. You will enjoy married life if you do not have to worry so much about being financially tight from home ownership or if something comes up. Ah, it is nice to be young and in love.
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Old 04-27-07, 09:34 AM
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thanks for all the info guys...thanks all are great points and tips.the last thing we want is to struggle with pymts. we know if its meant to be then great, if not then thats ok too.

the house is a starter home and yes it is an existing home. its only 5 yrs old and the asking price right now is $86,000. the seller is selling it "as is" and the seller is another bank, so i assume it might be a house that was foreclosed?

thank you guys for the advice i will talk things thru with my fiancee and see whats best for us. we really appreciate it and if anything comes about i'll message you guys. thanks
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Old 04-27-07, 09:58 AM
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we're in the process of buying a new home ourselves...and all i can say is...UGHHHHH
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Old 04-27-07, 10:10 AM
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Originally Posted by To be named later View Post
What you might be able to do is have the seller replace the appliances with your choice of $8K of appliances, and then put $158 down on the contract.
There's a downside to doing this though because your property taxes then get figured on $158, not $150. You'd then be paying property taxes on your appliances for as long as you're in the home.
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Old 04-27-07, 10:13 AM
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Originally Posted by njlovesthespurs View Post
we're in the process of buying a new home ourselves...and all i can say is...UGHHHHH
Same here.

But a little difference: I have to pay CASH. No loans.
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Old 04-27-07, 03:27 PM
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Originally Posted by To be named later View Post
True.......sort of.

First off, Bexar Appraisal has their heads up their rear ends and they more than likely will never make the change in value, dollar for dollar.

If the house is currentltly assessed at $140 for example, it may stay that way for years, and if it does increase, it will likely only move up based on the neighborhood average.

And if it does move up to $158....alll you would need to do is take the appraisal and the HUD 1 statement down to the tax office and show them that it was bumped up to $158 for concessions or down payment assistance.

However if the seller replaces the appliances, then it truly will be $158 fair market, improved. But again that is assuming Bexar Appraisal district would even reflect the sale.
Yeah I forgot we were talking about an existing house so that makes a difference. My wife and I are about a month out from moving into a new house that we're having built and our builder has told us that closing price = tax assessed value. We're in Travis County so I don't know if that's a standard new home thing, or just a Travis County thing. We were thinking of rolling our appliances into our mortgage and decided against it since that would raise our property taxes.
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