Homebuying Help!!

[BR549]

Ok, so I have been looking into housing in MS. The cost of living is so cheap there, that I could make a mortgage payment for the cost of renting an apartment. I figured if I'm going to be there for 4 years anyway, why not invest in a home(build a little equity). Now comes the dilemma. I have been approved for a mortgage, contingent upon me getting a job in MS. I teach in Atlanta, so they knew I wasn't being transferred. My mortgage for the house I am looking at is about $500 a month.

Does any one have any advice? I would greatly appreciate it, especially if you have purchased a home before.

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[fargeese]

If you have the approval, do it! I bought a house, rented out my basement, and now have a mortgage payment of 200$ a month. Interest rates are great, home prices are down and you get a credit from the government this year if you are a first time home buyer. Just make sure that your realtor knows you are moving in 4 years, so you can be sure to buy a home in a neighborhood that is desirable enough that you will be able to sell at the end of school. That whole location, location, location thing is true!

Good luck!

 

[sumstorm]

Talk to your lending agent and ask if your loan status will qualify as income. If it will, then it shouldn't be a problem. If you are going through a mortgage specialist at a real estate office, they are still typically trying to work with you (vs gate keeping for banks.) If you are dealing with a bank mortgage officer, it might be more problematic. The thing they generally want to be sure of is that the money will be coming in....but generally when the cost of living costs are similar for ownership vs renting, student loans as income isn't a problem.

Also, if possible, look around for a First time home buyers class. It can make you eligible for lower rates and special assistance. Typically it is a 1-2 day long class generally on weekends. It reduced my interest rate on my last house by 2.5 % and put me in contact with mortgage officers who really knew what to do but who were also not pushing risky mortgages (and who showed us how to spot risky mortgages) and with things like inspectors and HBA realtors. I learned a wealth of info from that, and it even helped later when I sold that house and I flipped another, then bought and restored his place (a conversion home that can be set up as an Inn if he choses to retire.) It also covered things like FHA, VA, HUD, and other exceptional programs, buying without downpayments, etc.

<---in the process of getting a house inspected for water damage to fix up this summer to have a nice place to live next year.

 

[cozycleo]

Homeowner here. Definitely know what you're buying and do your homework. Homes can quickly become money pits and the cost can be a lot higher than you think.

Also want to consider the costs of upkeep and whether or not you'll be able to sell the place if you need to move after school.

Honestly, I love my house, but it's a debt I wish I didn't have now that I'm back in school. That said, my mortgage is A LOT higher than what you're looking at for payments.

 

[TSUJC]

I figured if I'm going to be there for 4 years anyway, why not invest in a home(build a little equity). Now comes the dilemma. I have been approved for a mortgage, contingent upon me getting a job in MS.

Hey BR549 we are in the same boat. I wanted to bounce a few questions off of you if that is ok??


1. We would like to buy a house in Starkville but worry that we will not be able to sell it right after graduation. How do you plan to deal with selling the house. Will you rent it out until it sells?


My significant other will be coming with me to MS. He has money to put down on a house and has current employment in TX but has yet to secure a job in or around Starkville (We have found that the job market is VERY limited there). This leads me to my second question:


2. You mentioned that you had been approved for a mortgage, contingent upon getting a job in MS. If you are going to be a vet student, how can you show "proof of income" from MS to the lender?

 

[aeneas07]

Rates are at like 20 year lows, plus you'll get 8000 tax credit if you are a first time homebuyer until December.

If you have the down payment now is the time to do it.

 

[BR549]

Hey BR549 we are in the same boat. I wanted to bounce a few questions off of you if that is ok??


1. We would like to buy a house in Starkville but worry that we will not be able to sell it right after graduation. How do you plan to deal with selling the house. Will you rent it out until it sells?


My significant other will be coming with me to MS. He has money to put down on a house and has current employment in TX but has yet to secure a job in or around Starkville (We have found that the job market is VERY limited there). This leads me to my second question:


2. You mentioned that you had been approved for a mortgage, contingent upon getting a job in MS. If you are going to be a vet student, how can you show "proof of income" from MS to the lender?

1. I had planned on probably renting it out, depending on the market, until I could sell for a marginal profit. The house would have to be convenient to the school.

2. That's the problem I am having (and why I started the thread). I was going to try and get hired somewhere for at least the summer, but as you stated, jobs in and around Starkville are in limited supply. I was thinking of something to do with education, since I am a certified teacher in the state of GA.

If anyone has any suggestions, I would be glad to hear them.

Plan 2: Win the lottery! LOL!

 

[fargeese]

It will depend on your relationship with your parents, but you can get the loan without a job if they co-sign it with you. The first-time homebuyer credit is for someone who has not bought a home in the last 3 years, so even signing with a parent you could probably still get the credit as long as they have not bought a home in the last three years. If you call a realtor or a mortgage banker I am sure they could confirm. My dad signed the loan with me, but I make all the payments, and I gave him the tax deduction since I didn't need it, so we are both happy.

A house can be a money pit, but as long as you get a home inspection before the purchase, you can find out if there is any horrible thing waiting for you. Also, a condo might be a compromise. You would probably have to pay a association fee with a condo, but the fee covers the roof (the most expensive thing to replace) and outside maintainence and yard care, plus condos should be easier to rent out if you can't or don't want to sell your home after school lets out.

It really is a fantastic time to buy a house if you can manage it, I didn't get any credit, darn it!

 

[DollyyLlama]

Also, if possible, look around for a First time home buyers class. It can make you eligible for lower rates and special assistance. Typically it is a 1-2 day long class generally on weekends. It reduced my interest rate on my last house by 2.5 % and put me in contact with mortgage officers who really knew what to do but who were also not pushing risky mortgages (and who showed us how to spot risky mortgages) and with things like inspectors and HBA realtors.

that sounds like a great idea. how do i search for a class like that? or should i ask a real estate agent/ bank person (ugh, i'm showing my complete lack of knowledge.. obviously i need this class)?

 

[sumstorm]

I would google the city/county/state and home buyer class. I apologize, but I don't remember where you will be attending, so I did San Fran which came up with a First Time Home Buyer Counseling Program ran through the mayor's office.

Unfortunatly, in my experience, only a handful of the real estate agents know about them. Generally they are ran by either government offices or community centers, though occasionally churches and other civic minded groups offer these. I am not sure if they are available in all areas and it is worth checking through near by cities (since many programs are at the state level.) Replace 'class' with 'seminar' or 'course' as well. I know Re-max and US Bank offers them in the SE. If you call the court house or other government agencies, they may be able to direct you to the right place.

The other good option is to find a home buyer agent who likes to cater to new buyers. I prefer learning the stuff myself, then seeing what the agent can add to that. (If you don't have experience with an HBA, they do NOT increase your cost.....the commission of the sold house is divided between the sellers agent and the HBA...if you don't use an HBA, you can sometimes get the seller agent to reduce their commission and drop your offer by that percentage, but that is pretty rare...and an HBA will help keep everything legal and protect your interests.) They also generally have a good knowledge of resale value, local area peculiarities, etc. Also, if you are moving a decent distance....more than an hour or two, I would look for an HBA out of a relocation real estate office. These agents are familiar with working with clients at a distance and dealing with time constraints to view houses, etc.

 

[aeneas07]

It will depend on your relationship with your parents, but you can get the loan without a job if they co-sign it with you. The first-time homebuyer credit is for someone who has not bought a home in the last 3 years, so even signing with a parent you could probably still get the credit as long as they have not bought a home in the last three years.

Not quite true, the IRS defines a first-timer as someone who has not owned a house in the past 3 years.

You may still qualify for the credit even we a parent co-signer, you would have to ask a CPA though. You would obviously get the mortgage interest reduction either way. Basically you can write off all the interest you paid on your mortgage, which if you have no income doesn't really help you, but could help your parents.

The credit is a bit different though. It is a true credit, not a deduction, so even if you have no income the IRS will send you a check for 8000, which, unlike last years version, does not need to be repaid. Pretty good deal.