Any House Buying Tips for ole' Rit?

[Ritalin Kid]

That's right I'm looking to buy a house when I move to Knoxville because it seems like an actual house payment is the same if not $150 less than renting a Apt for $585 month.. I've been looking for one of those first time buyers homes or maybe a rent to own situation... I just don't see any sense in paying someone $585 a month for something I will never own.. the way I see it I can make the same payment to a bank to go towards property that I own and if need be I can sell the property and get my money or maybe more out..

[Admin RR]

I agree, I'm in the same boat, looking into home ownership. The good thing about a home mortgage is that the interest and taxes are 100% deductible, and most of the monthly payment is usually interest. So if you pay $585 to rent, and the house payment is $585, it's actually less than $585 since you get the tax deduction straight off of your income.

There are lots of loan types out there. One of the more interesting is the interest only loan, where you pay only the interest part of the mortgage payment for 3, 5, or 10 years (but you own the house and are free to sell it), then you can refinance with a conventional or other loan. Interest only loans tend to have either fixed or adjustable rates - if a conventional loan is $585/month, an interest only LIBOR or prime based adjustable rate loan might be $300-$400/month which is 100% tax deductible.

[SickPup404]

You're right. I was in a 14x80 mobile home in a park while I was having my house built... Almost couldn't sell it.

Stay away from:
- Rent (you're paying the other guys mortgage)
- Mobile homes (they only DEpreciate)

Even if you get a small two-bedroom bungalow, it WILL APPRECIATE (given time).

Interest rates are in your favor now too, so go for it!

BTW: My house is about 1780 square feet on 7½ acres and I pay only about $715/month on 6 1/8% fixed for 30 years. When my wife starts working (she's in school to become an RN, already LPN), we plan on refinancing to 15-year or better.

Good Luck!

[jman01pa]

I am looking too. An "OK" house is going to cost me around $90,000. Ouch. However better than paying rent.


J

[daveleau]

Do not accept points on a loan unless you get a third party person who knows what they are doing and has no vested interest in your purchase makes sure it is in your best interest. Points are pre-paid interest added to housing loans. If you want to pay it off early, you still haev to pay the interest. The guy I listen to for advice Dave Ramsey (he has a radio show based on financial advice) adn he leans towards never taking points on a loan. The idea is to pay it off as early as possible so you can live life without payments/ debt-free and enjoy your money.

Best of luck!
Dave

[kenyg]

Get any house you're seriously interested in inspected - by an independent inspector - NOT the one the realitor recommends (the one they offer won't find anything to jeapordize the sale).

Find out what the local taxes are. Mine are 1/3 of my mortgage payment.


Ken

[vass0922]

Jump on the roof...
If you fall through..
Don't buy the house
DEFINATELY get another inspector!!
The realtor inspector may "overlook" some "minor" aspects.. .like the corner at the wall with the floor looks like it was created with a 30/60 triangle

[capybara]

neighborhood: all single family or lots of renters
in big apartment projects
street: no heavy traffic, dead ends are best
(here we call dead ends cul-de-sacs)
backyard: try for a creek or river or canyon in
your back yard instead of houses. it gives you more privacy.

[DVNT1]

In case it wasn't clear before, get a house inspector from a reputable (sp?) inspection service. (no joke)

It can save you a lot of headaches/tears/money later.

[Admin RR]

I'd also recommend that you have your own realtor to protect your interests rather than contacting a listing agent, who is acting as the agent for the seller. If you have your own agent, he/she will usually act to protect your interests, and the seller will pay his/her fee (usually 3%) anyway.