What should I know in relation to my details?

**twindle** · 01-17-2010, 11:51 AM

I'm not sure what sub forum this belongs in so feel free to move it if you know of a better fit.

I've been looking at some of the prices of houses as well as the fed tax credit, and I'd love to buy a house before the end of April. However, I've heard some things that make it sound like I may not have a chance getting a loan. I have a little over 10k I could put down on a house, but it seems like the really good deals are from foreclosure auctions, and it sounds to me like I can't get a loan except on a house that's not in need of any repairs. Is this the case?

The sad fact is that I'm 27, and I haven't been very productive. I haven't been working, and the cost of a house was far too out of reach to me in the past for me to even bother trying with the jobs I could get, but that's changed now. (I never understood how anyone could afford the houses they were buying before the bubble burst when I ran the numbers.) My credit is good last I checked, and I've never not paid anything off on time that I know of. Also, my parents would love to get rid of me, and suggested they could take a loan on their house, but I would prefer to buy a house myself because of the 10% tax credit from the feds.

Any suggestions on what I should look into, what's realistic for me to expect here, and anything else I should know are greatly appreciated. I have a lot of common sense with this stuff, but the financial world is foreign and obscure to me.

Thanks.

**markbrian** · 01-18-2010, 06:54 AM

I would suggest talking with a local lender to see about getting a pre-approval so you have a better idea of your budget as far as what the bank will lend you. Then look at your budget and decide on a monthly payment that would be very comfortable for you. Then start interviewing some local agents to find one that you feel comfortable with and has the experience you need and deserve.

**Derek** · 01-18-2010, 01:32 PM

As suggested, you should go talk to a lender who can pre-approve you. Rehabs are not out of reach with an FHA 203(k) loan, but a seller has to be willing to deal with the extra hurdles involved with the process. If they're desperate to sell, it could be fine, but if it's your 203(k) contract vs. a conventional loan or a regular FHA loan, you'll most likely get passed over.

Step 1 - Pre-Approval
Step 2 - The Hunt
Step 3 - The Kill (It may take several offers/attempts, but it's worth it in the end.)

**Greg** · 01-19-2010, 05:33 AM

Originally Posted by twindle

I haven't been working,

Without a job history it is going to be hard to get a loan. Talk to some local lenders and see what they say.

**BoiseRealEstateSoup** · 01-19-2010, 09:38 AM

The Tax Credit 'bribe' is a benefit, not a reason....

You need to seek out the benefits of home ownership as well as the hassles.

Owning isn't for everyone.

There are tremendous benefits for the right people and places and tremendous disadvantages for the right people and places. If you don't believe me, go down to your local county court house and see how many homes are in default...

Be smart, not bribed or influenced!

**twindle** · 01-19-2010, 10:43 PM

Originally Posted by BoiseRealEstateSoup

The Tax Credit 'bribe' is a benefit, not a reason....

It makes it a fairly decent reason to buy now rather than later. I never said I was interested because of the tax credit, but it makes now a very tempting time to buy combined with the already low house prices. I realize that the prices could fall even more after the tax credit thing is over because everyone bought now rather than later, but I don't feel the prices can get much lower.

Originally Posted by BoiseRealEstateSoup

You need to seek out the benefits of home ownership as well as the hassles.

Owning isn't for everyone.

There are tremendous benefits for the right people and places and tremendous disadvantages for the right people and places. If you don't believe me, go down to your local county court house and see how many homes are in default...

Be smart, not bribed or influenced!

I was a handyman for a while, and fixing up a house is a no brainer for me. Also, the reason so many homes are in default right now is because people are crazy. It was clear to me, during the peak of the bubble, that people were buying houses that cost way too much for their incomes. I even told a friend that owned two houses they ought to sell one about a month before **** hit the fan because the bubble had to burst sometime. Like I said, I have a lot of common sense with this stuff. I can run the numbers, and have a very good idea of what I can and can't afford, but it doesn't ultimately matter because I have to be judged by some lender. My common sense says this is a great time to buy right if I can manage it, and I trust my intuition.

Edit:

Oh, and thanks for everyone's input!

**mWoods** · 01-22-2010, 08:52 AM

Perhaps you may consider living on your own and renting before taking on the responsibility of homeownership. Yes, the tax credit is enticing but it's not a good enough reason to jump into something you may later regret.

**twindle** · 01-22-2010, 11:40 AM

Originally Posted by mWoods

Perhaps you may consider living on your own and renting before taking on the responsibility of homeownership. Yes, the tax credit is enticing but it's not a good enough reason to jump into something you may later regret.

I did rent for a while. It's just throwing your money down the drain to someone else.

Edit: I even explicitly stated that the tax credit wasn't the reason I wanted to buy a house. I didn't come here to have what I want questioned. I came here to find out what I realistically needed to know.