Homeowners and anyone thinking about owning a home

[cibomatto]

Is it as hard and full of heartache as I think it is... I am in VA beach and the military gives me roughly $900 a month to live in a place..I am wasting 700 a month renting right now and more and more I am getting that itch to dive into the world of homeownership mostly for investing. Problem is that the natre of being in the military I tend to have to move every 2 to 3 years. Soooo anyone got any insight or thoughts about honeownership..I m,ainly want to hear about your first experiance buying a house. (how much research did you do? how much money did you have to put down.. Do any of you have homes that are being rented out to others? if so do you use a third party to manage the home ectecte??thanks

[DoughBoy]

wow, this is exactly what I'm into. Well, sorta...it's a little more complicated than your situation, but nevertheless...I got into a new home about a year ago, and it's been great. If you're thinking new-new (ie. builder), let me know...I've got tons of advice for you. Anyway, I rent out the basement to students, which essentially covers the mortgage. Anything I contribute extra is pure gravy (and when mortgage rates are around 4-5%, it makes sense to put any and all cash against it, within reason).In the short term, new houses tend to appreciate more quickly because the builder tends to undervalue them so that they can sell them quickly. Pick a good area, upgrade the lot (if possible) and take good care of it. It shouldn't be hard to sell. But don't consider selling until the entire development is done...many buyers can't see past the road debris and dirt to offer a high price for the home.Did minimal research really...looked around, and picked. Put as much down as you can, but don't go nuts. 10% is okay, more is clearly better.Cheers,DB

[macrosonic]

I'm also a renter thinking about buying a home eventually. One question for you would be how the military deals with people selling homes. If they send you somewhere and you can't sell your home in time, will they help? Sometimes people need 4 to 6 months to sell a home. You would need to know you're moving in advance so you could plan for that.Right now I'm still unsure about buying because I might want to move to a new city. So for now I'm just trying to save as much money as possible so when the time comes I'll have something for downpayment and closing costs and funiture and ... Sometimes when I think of all the costs and headaches, I start to think renting isn't soooo bad.

[AKLGT]

well, i myself have not purchased a home, but i am helping my cousins who are moving up here from mt home. my dad is retired af and my cousin is also in the service. the military doesn't give you any "help" with buying or selling a home, but usually, you have to try and sell it on your own. if you move and you haven't sold it yet, then you have to have someone else, usually a realator work on getting it sold. up here, houses, depending on location and price range, are sold withing a few months or even a few days. my cousins finally got a house after searching since November. they sold their home in a couple months and it closes this thurs. the house they bought has been for sale for about 4 months and they were also military and pcs-ed out of here. they were asking $235K, but accepted our $220K offer. they figured it was better to take a slight loss in additional profit then try and have 2 monthly payments. houses here have appreciated at a phenominal rate and it just depends on the economy. when we lived in omaha, we were stationed up here to elmendorf, ak. that was when clinton made all the cuts for the jt cheifs of staff at offutt. there were so many houses for sale, 10 on our block alone. we managed to sell ours, but at a slight loss. here, we've always gained about $15K/year in appreciation. back in the late 80's, however, the housing market dropped and many people lost their homes. but, generally unless something major happens, homes are good investments as long as you stay there for atleast 3 yrs.

[VibeChick]

Quote, originally posted by cibomatto »the military gives me roughly $900 a month to live in a place..I am wasting 700 a month renting right now Just don't forget that legal fees are always more than you think they will be...and on top of the morgage payment, there are taxes, insurance, and mainenance costs. And in a brand new home, you have the extra costs of fencing, landscaping, etc.If you get a good real estate agent, they make it pretty easy for you. I didn't have a clue about what to do, and my agent was very helpful. He pretty much did everything, I just had to sign papers and hand over money.

[yank dini]

I've been working as a Mortgage Underwriter for the last 6 years...I can definately give you pointers on getting approved. But that about all I know though.

[wicked1981]

Well dont own a house but I just left the service (GO ARMY) last year and know people that bought a house and moved and rented another house when PCS'd. Yeah you are paying someone else for rent in the other house but your house is getting paid off. No matter how you look at it you will be paying rent or mortgage.

[wicked1981]

Usually you get at least 90 Days notice usually you know about 6 months out but there is always exceptions. I dont think or at least I dont know about anything the militay offers to help sell your house.

[AKLGT]

if i could do it, given the choice of paying someone else's mortgage or mine, i'd definitely pay my own. then i have something that actually appreciates in value than depreciates (like my vibe). money well spent. altho it's a bit scary to go into debt that much, atleast you are going somewhere with it.... you will own it and not rent it forever.

[Sputnik]

My bf and I recently (about 3 weeks ago) were pre approved for a mortgage and found ourselves a real estate agent. We're looking for condos right now. So far we've looked at 4, but haven't seen any that we want to buy. I'm hoping we'll find something before too long.

[millster]

It's really not too bad at all. I actually just recently sold my first home and to be honest, the sale part was worse than the purchase. I went with an FHA loan and only had to put 3% down. My payments were well within my reach at the time, but I did buy into a rather low property value area. My real advice is, know everything you can about your lender and your loan. I'm currently gearing up for a legal battle with my former lender and the title company that closed my sale because they messed up and now believe I'm two months behind in payments when in fact the house sold two months ago. They just didn't cash the check.Anyway, I think that is a rare incident and I know it will work out. Best of luck to you with your decision. I certainly think buying is the right choice. Trust me, the tax break on the interest you pay each year is worth it on its own. I loved every minute of owning my home and if it wasn't for losing my job, i probably still would.

[VibeChick]

Quote, originally posted by millster »Trust me, the tax break on the interest you pay each year is worth it on its ownI soooo wish we could claim that interest up here in Canada

[cibomatto]

I am going to take the Leap of Faith and pursue purchasing my first home. Its tough because I am in the military and will only be in it for a short time but my vision is to:Buy a homeLive in itRent it out when its time to transfer to continue to build equityand eventually sell. I have known people in the military that are able to manage a few homes at a time and thats my goal. I just want to be financially sucure by the time I retire which is about 14 years from now (Gosh thats a LONG time)

[cibomatto]

Quote, originally posted by Sputnik »My bf and I recently (about 3 weeks ago) were pre approved for a mortgage and found ourselves a real estate agent. We're looking for condos right now. So far we've looked at 4, but haven't seen any that we want to buy. I'm hoping we'll find something before too long.Hows it going now? also do condos/townhomes appreciate the same as standard 1 family homes?

[Sputnik]

Quote, originally posted by cibomatto »Hows it going now? also do condos/townhomes appreciate the same as standard 1 family homes?Well we've now looked at 5 condos, the 5th being the one the one we liked the most however our agent thinks its overpriced so we decided to wait and see if they drop it again (they've already dropped it $10K). If we don't get it its no big loss I guess. We'll just keep looking. I think condos were appreciating in Ottawa quite well for a while... I think they're leveling off now though.

[Vibe]

After years of living in apartments and nosey neighbors ---I bought my house 10 years ago.Now I listen to music at MY volume and barbeque anytime I feel like it. But most of all I put my Vibe in the attached heated garage. James (Vibe)

[AKLGT]

Quote, originally posted by cibomatto »I am going to take the Leap of Faith and pursue purchasing my first home. Its tough because I am in the military and will only be in it for a short time but my vision is to:Buy a homeLive in itRent it out when its time to transfer to continue to build equityand eventually sell. I have known people in the military that are able to manage a few homes at a time and thats my goal. I just want to be financially sucure by the time I retire which is about 14 years from now (Gosh thats a LONG time)not really, cibbo. how old are you again? not too old if i can remember correctly. my dad also served in the af for 26 yrs. he retired at 45 yrs old, gets his retirment and got a job working in a similar field now making $80K+. after his certification, he'll be making about $150+ not including his $35K military retirement! military is about the only career you can retire early, get a pension for life, get a second career, retire again and get another pension on top! not bad!

[Charlievibe]

I went through the whole new first home buying a few years ago, and my best advice for you is to do your reseach. If you go with a builder, check them out WELL. Talk to the Better Business Bureau in your area, the home builders association, and people in the neighborhood. You may find out that the builder has some problems or that they are awesome. If you go with a realtor, check them out as well, make certain they are properly certified through the real estate board. Here is a piece of advice I was given...make certain you will be in your house at least five years, if you plan to resell. If you are in an area where it is not a seller's market which bumps up your equity a little faster (but I think you are), it will take you about five years to pay enough to have any equity in your house. If not, you will be out of pocket the money for commissions and closing costs when you sell. If you plan to keep it and rent it out when you are transferred, you may not be able to do a VA loan. I know you cannot rent out your house when you have an FHA loan, you have to go conventional. In the loan papers I signed on my house (FHA), it explicitly states that the house may not be used as rental property. So make certain you look into that as well.As far as down payments, because you are military, don't you qualify for a VA loan? On a VA loan, if I remember correctly, you do not have to put anything down. Times may have changed since my parents got theirs, but check into that. Most of the time, if you are a first time buyer, there are incentives out there, look for them. These incentives will help you pay your closing costs, if they aren't covered by the VA loan.As for up-grading everything in the house, bad idea, unless you do it outside of the builder. Had I upgraded my appliances through my builder, I would have paid almost $2000 more than I paid at Home Depot. One of my neighbors had the builder put in their garage door opener, the opener, without labor, was $300. I paid $200, with installation, from Sears. So be VERY careful about upgrading with the builder, you will get ripped off. One of the other things you need to consider, is if you have it rolled into your mortgage, you will be paying for those upgrades for the life of your mortgage. It is like I was told, 10-years down the road, when you buy a new appliance, and pay it off, you will still be paying for the old one. It just isn't worth it - save up your $$$ and get what you want.Also, make certain you check out the cost of utilities, taxes, etc.I hope some of this information is helpful. Just be very certain this is what you want to do and you are ready for the committment. If your neighbors, or the neighborhood or the house itself suck, you can't break your lease and move.Best of luck in your decision. P.S. Here is a book a friend of mine said you might want to check out. http://www.booksamillion.com/n...83288 I have no clue if this book is going to be helpful or not. I used one put out by HUD.

[cibomatto]

Quote, originally posted by Charlievibe »Here is a piece of advice I was given...make certain you will be in your house at least five years, if you plan to resell. If you are in an area where it is not a seller's market which bumps up your equity a little faster (but I think you are), it will take you about five years to pay enough to have any equity in your house. If not, you will be out of pocket the money for commissions and closing costs when you sell. If you plan to keep it and rent it out when you are transferred, you may not be able to do a VA loanP.S. Here is a book a friend of mine said you might want to check out. http://www.booksamillion.com/n...83288 I have no clue if this book is going to be helpful or not. I used one put out by HUD.Thanks for the very useful tips... I do qualify for a VA Home loan however I will certainly have to make sure that I can rent the home out when that time comes.

[Sputnik]

Quote, originally posted by cibomatto »Hows it going now? also do condos/townhomes appreciate the same as standard 1 family homes?Well we conditionally bought a condo today!