Home Buying & Real Estate Thread

[bjamez20]

You and me both man. Out here in the bay proces are so crazy almost afraid to buy as this whole thing feels like one big bubble waiting to pop smh

Man, I just saw a place that went for 500k over asking

 

[703 hwy]

Don't get caught up in the hype. Buy when you're ready or you'll regret it.

 

[getyashinebox]

I have property thirst so bad right now......




...

You and me both man. Out here in the bay proces are so crazy almost afraid to buy as this whole thing feels like one big bubble waiting to pop smh

Count me in there too.

Although I have a pretty affordable rent arrangement for now (relative to the area), I've had a real urge to buy lately sine I've now got a consider downpayment ready in cash, but townhomes/rowhomes in DC/Arlington are so pricey I'm sure it's way worse in the bay :x

Might wait til I'm done w school

 

[crcballer55]

"only" $5.5M for 23 Acres. Compared to some of the crackerboxes I've seen here going for half that, this seems like a steal!

 

[capital sb]

I think between now and the next year or two is the best time to buy in the DC area. The market is not in a downtrend anymore and the prices are steadily rising. historically low interest rates , grants for closing , down payment assistance and tax credits are also a huge plus (in MD).

Hopefully I can buy my first home by next summer. I'll keep the thread updated.

Anybody in the DMV heard of the My Home II program in MD? Or the Maryland Mortgage Program ?

 

[stuntman mike]

buying a bigger place now that we have a son (shouts to all the nt dads). picking out our unit at noon today!

 

[capital sb]

I have decided that I am going to purchase a new construction townhouse at The Park at Addison in MD. For 305K this is he best bang for my buck (2400sqft , 2 car garage, luxury, 3bd 3.5ba, metro, 5 mins from DC) and I love the fact I can choose exactly how I want the house to look.

I am going with the Maryland Mortgage Program (MMP) conventional loan. Hopefully I can lock in a 4.0% interest rate. Currently improving my score to get the best rate, hoping to have a house on contract by August and closing by December. Aiming for the December closing date to lock in the annual 2K Maryland Home tax credit. I'm nervous as hell since I'm so young but it will be worth it. Rent is crazy out here and I refuse to throw that money away.

Here are a few pics I took when I was out there earlier this week.

Pretty sure I will be getting the model with the garage in the front because they only have 7 homes with the back garage left.

Anyone have any advice for buying a new construction home, or just first home buying in general?

 

[monstar]

^congrats man, wish prices were reasonable out this way I dont wanna move smh

 

[crcballer55]

I am going with the Maryland Mortgage Program (MMP) conventional loan. Hopefully I can lock in a 4.0% interest rate. Currently improving my score to get the best rate, hoping to have a house on contract by August and closing by December. Aiming for the December closing date to lock in the annual 2K Maryland Home tax credit. I'm nervous as hell since I'm so young but it will be worth it. Rent is crazy out here and I refuse to throw that money away.



Anyone have any advice for buying a new construction home, or just first home buying in general?

Get pre-approved before you start looking. Don't "hope" for something, find out what you can actually afford so you don't get your hopes up.

Don't be afraid to rent. Don't think of it as throwing your money away so long as you're living frugally and have a plan and timeline to buy. Don't just jump in because rent is crazy. Buying too early can be just as dangerous if you don't have adequate reserves.

After getting pre-approved, look for a Realtor who knows what they're doing. Only a handful of Realtors really know the business inside and out and offer a quality level of service. Don't just pick someone who will rebate a portion of the commission. Although that sounds tempting, the ones that generally do that are the ones most desperate for the business. Somewhere like Yelp or Zillow should give you a good feel. And don't be afraid to interview 2-3. Generally you get a good feel of what they do compared to others and who you would like working with during the process because it WILL be very stressful. Especially during the week or two in the middle of escrow. If you're open, also have them refer a lender to you too. It probably won't be the cheapest, but since they work together all the time, there is a level of trust and knowing the Realtor refers them business based on their performance and how the lender takes care of their clients, there is an incentive to close the loan on time instead of the chop shops like Quicken or Lending Tree. Not that they aren't good, but they make their money on volume, not quality.

On that note, interview 2-3 lenders too so you get a good feel. Your Realtor can tell you if any of them are hacks.

 

[capital sb]

@crcballer55  I will have about 35K saved by December, and plan on keeping 3K-5K in savings for emergencies. I am currently living rent free I rented for 3 months and it just didn't work out, so they let me out of the lease (no fee, credit hit or anything). It doesn't make sense for me to rent prices are much higher than I am willing to spend. I'd rather buy a property now while I have a super low debt to income ratio, good income, and no big responsibilities . I don't want to get priced out of housing in 2-3 years, because I decided to wait. 

I have started the process backwards due to the type of loan I am getting (only 10 lenders offer the loan and tax credit) . I found the lender first , then they referred me to a realtor. I didn't even think about checking her reviews, but I just checked and she has a 5 star rating. She is familiar with the area, but hasn't done any work with that specific community. Think I should look for more realtors?  So far she has great communication , and is very understanding. 

I am meeting with the lender next week to get pre-qualified (no credit pull) just to get a rough estimate, but using their calculator it says I can afford a loan up to 350K guess i will find out forsure when i go. When i called him earlier this week he said that I qualify for the MMP loan, but need to come in to officially get pre qualified.

During the interview what type of questions should I ask? I plan to talk to the top 5 lenders for the loan.

NVR is one of the preferred lenders for the builder and they offer the MMP loan, but I have heard about all of the extra fees that the builders lender adds on. Is it true that they have fee's have you heard anything bad about NVR?

 

[crcballer55]

Sounds like you have a good start.

As long as you have a good Realtor with good communication, go ahead and stick with her. They put in lots of work, so I don't like just jump around just because. If there are red flags coming up, that's when I get concerned.

For the lender, yes, there are inevitably fees associated with your loan. When a lender says they can do a "no cost loan", that just means they're rolling the fees into the loan so you're paying over the life of the loan (with interest) instead of paying up front. This appeals to most people because they just want to know how much they can afford monthly vs. the total cost over living in the home. Sometimes, it can make sense though. We just completed a no cost refi because the break even for paying up front was 7 years. We're planning on staying here a little longer than that, but we took our chances since the monthly cost was negligable. I digress.... if you're looking at a specific loan, look at the total breakdown of the good faith estimate of costs each one gives you. As I stated earlier, after interviewing a couple lenders you should get the hang of the types of questions to ask as long as you take notes while you're on the phone with them.

One of the big things you can ask a lender (and verify) is how quickly can they close and what kind of communication do they utilize. I also like to know who the loan might be sold to since I hate dealing with the larger banks, but that's just me.

I don't know anything about the type of loan you're getting, or NVR, but it's a MUST that there are no prepayment penalties for the loan.

 

[flyny]

Beezy how much u putting down?
That's out in Capitol heights? I got folks out ther I heard it's pretty rough

Those houses look dope. The only sketchy thing about new develoments is you don't know what the area is gonna look like in about a year or two

 

[edshoecator]

Congrats b.

I will agree that homeownership isn't all it's cracked up to be but through the trials of owning, you do gain something that renting will never provide, equity.

If you got it, send a lil more. I'll be mortgage free in 5 years....at 38-40 years old so I can have more flexibility with when I retire, buying other property, etc.

Just keep 5-10k for emergency repairs

 

[superantigen]

Congrats b.

I will agree that homeownership isn't all it's cracked up to be but through the trials of owning, you do gain something that renting will never provide, equity.

If you got it, send a lil more. [COLOR=#red]I'll be mortgage free in 5 years[/COLOR]....at 38-40 years old so I can have more flexibility with when I retire, buying other property, etc.

Just keep 5-10k for emergency repairs

*Inserts clapping gif*


Congratulations brah...





...

 

[edshoecator]

*Inserts clapping gif*


Congratulations brah...

...

 Good looking

 

[301216baller]

 
@crcballer55  I will have about 35K saved by December, and plan on keeping 3K-5K in savings for emergencies. I am currently living rent free I rented for 3 months and it just didn't work out, so they let me out of the lease (no fee, credit hit or anything). It doesn't make sense for me to rent prices are much higher than I am willing to spend. I'd rather buy a property now while I have a super low debt to income ratio, good income, and no big responsibilities . I don't want to get priced out of housing in 2-3 years, because I decided to wait. 

I have started the process backwards due to the type of loan I am getting (only 10 lenders offer the loan and tax credit) . I found the lender first , then they referred me to a realtor. I didn't even think about checking her reviews, but I just checked and she has a 5 star rating. She is familiar with the area, but hasn't done any work with that specific community. Think I should look for more realtors?  So far she has great communication , and is very understanding. 

I am meeting with the lender next week to get pre-qualified (no credit pull) just to get a rough estimate, but using their calculator it says I can afford a loan up to 350K guess i will find out forsure when i go. When i called him earlier this week he said that I qualify for the MMP loan, but need to come in to officially get pre qualified.

During the interview what type of questions should I ask? I plan to talk to the top 5 lenders for the loan.

NVR is one of the preferred lenders for the builder and they offer the MMP loan, but I have heard about all of the extra fees that the builders lender adds on. Is it true that they have fee's have you heard anything bad about NVR?

go through the NACA Program..im telling you they  will help you out...my cuz went through this program back in 2008 to buy his first house

https://www.naca.com/naca/index.aspx

 

[301216baller]

I think between now and the next year or two is the best time to buy in the DC area. The market is not in a downtrend anymore and the prices are steadily rising. historically low interest rates , grants for closing , down payment assistance and tax credits are also a huge plus (in MD).

Hopefully I can buy my first home by next summer. I'll keep the thread updated.

Anybody in the DMV heard of the My Home II program in MD? Or the Maryland Mortgage Program ?

man If I had my way I would get a house in SE or a condo in SW

 

[capital sb]

3 houses were sold this week in the community, so there are only 33 homes left. They are selling more houses than they ever have before , so I am moving up my dates to get a home on contract. I will be starting my pre approval process the 2nd week of June. I gathered all of the paper work that is needed for the pre approval already to make the process as smooth as possible.

@crcballer55  The good faith estimate of costs and closing time should be my deciding factor between lenders? I am not too familiar with a good faith estimate, so I will look more into what that estimate entails. What is a prepayment penalty ?

I will definitely ask about who the loan could be bought out by, I am the same way as you I don't like dealing with big bank ( I only do my banking with credit unions). One of the major lenders for the MMP loan is Wells Fargo I am staying far away from them. Thanks alot for the help man I really appreciate it.

@FlyNY  I'm looking to put down 30K-35K depends how much of a difference it makes wit the monthly payments. The area of Capitol Heights where the community is at isn't bad at all. The community is full of professionals that work for the government, military, or gov.t contractor . I have been driving through the community at night and during the day to get a feel for it. Not much activity over there besides residents with their dogs walking around. I even spoke with a few residents they said its super quite and the only people that walk around the community are people that live there. The community is actually pretty old they started developing right at the market crash lol terrible timing. 

@Edshoecator  congrats man I can't wait to be mortgage free that is a great accomplishment ! I am aiming to pay this loan off in 20 years or less, so I will be around 43 living mortgage free. I plan on keeping 3K-5K for repairs and emergencies, hopefully the 10 year warranty on the house will actually cover any repairs. I have heard about builders not honoring the warranty for certain repairs.

@301216baller  I will look into that NACA loan. Living in DC ain't for me I'd rather live in MD or VA. My boy is looking into buying a house is NE or SW though. He's hoping for gentrification then selling the home for 700K.

Edit: @crcballer55  Do you think the $2000 annual tax credit is worth going with the MMP loan (no pmi) over a conventional loan from Navy Federal (no pmi). NASA Federal Credit Union offers a $0 no PMI loan (very tempting). Should I just compare all loans and get pre approved?

Background on the MMP conventional loan. 

-Up to $8500 closing cost assistance (0% interest deferred loan paid after mortgage is paid off)

-$2000 annual tax credit

-Minimum credit score of 640 needed for a conventional loan of 4.125% interest rate 4.6% APR 0 points (based on current rates)

 

[supermanblue79]

Great advice in here, and Congratulations to all the new home buyers.

With new construction, remember that everything is negotiable. Ask for everything that you can while you are at the table from upgraded light fixtures, appliances, flooring, brick exterior to a finished basement. You'd be surprised at what builders will be willing to give you so that you will purchase in their developments.

Another good thing to do is to purchase a seperate reputable home warranty that covers your home, appliances, and heating/cooling system. This will save you thousands of something goes wrong.

 

[crcballer55]

 
3 houses were sold this week in the community, so there are only 33 homes left. They are selling more houses than they ever have before , so I am moving up my dates to get a home on contract. I will be starting my pre approval process the 2nd week of June. I gathered all of the paper work that is needed for the pre approval already to make the process as smooth as possible.

@crcballer55  The good faith estimate of costs and closing time should be my deciding factor between lenders? I am not too familiar with a good faith estimate, so I will look more into what that estimate entails. What is a prepayment penalty ?

I will definitely ask about who the loan could be bought out by, I am the same way as you I don't like dealing with big bank ( I only do my banking with credit unions). One of the major lenders for the MMP loan is Wells Fargo I am staying far away from them. Thanks alot for the help man I really appreciate it.
 
Edit: @crcballer55  Do you think the $2000 annual tax credit is worth going with the MMP loan (no pmi) over a conventional loan from Navy Federal (no pmi). Should I just compare both loans?

Background on the MMP conventional loan. 

-Up to $8500 closing cost assistance (0% interest deferred loan paid after mortgage is paid off)

-$2000 annual tax credit

-Minimum credit score of 640 needed for a conventional loan of 4.125% interest rate 4.6% APR 0 points (based on current rates)

I'm not saying the GFE should be your deciding factor, but the costs each lender have are an important factor. Another major factor may be the ability of the lender to close on time. We had a loan that closed 2 weeks late and it cost us about another $1000 in penalties for failure to perform from the seller and having to lock in our rate longer than the initial 30 day period.

Which reminds me... Most lenders will give you a 30 day lock. Ask what a 45 & 60 day rate lock look like since it may be difficult to close the loan on time for some unknown reason. See what the difference is there. Ask what happens if you're unable to close during the initial 30 day escrow. How much does that cost you to continue the rate lock?

I can't say whether the tax credit is good for you or not. It sounds good on paper, but I would consult my tax specialist to confirm.

BTW... I plugged in a $30k down payment on a $300K home in Zillow in Washington Heights for a first time buyer and it looks like rates & APR are around 4%. If you're paying an extra .5% on your rate, it seems like there's a lot of fees with the type of program you're using. That might be because they're offsetting the closing cost assistance in the fees and rolling it into the payment.

Like I said earlier, most of the quotes will show different things. The key point is to find out what your break even point for each type of loan is and how long you plan on staying in the home.

 

[mr jordan04]

Just be careful with that good faith estimate. Depending on your lender/realtor they can add fees and/or jack up the prices. Being a first time homebuyer you won't even know what it is and just say ok.

Take that good faith estimate to another lender and they should tell you if their fees are comparable or if you're getting got. Too many shady realtors/lenders out there that will try to milk you until you say something

 

[capital sb]

@crcballer55  Okay thanks that makes a lot of sense. One last question , how do I figure out what my break even point is for the loans? 

I haven't heard anyone bring this up.

@Supermanblue79  Thanks I have heard about all of the free upgrades you can get the builder to throw in. I will be trying to get as much as possible out of the builder. I will have to look into other warranties for the house.

@mr jordan04  Thanks I will definitely do that. This mortgage process has so many things I have to look out for its crazy.

 

[flyny]

Congrats Beezy, sounds like you got ya **** together

Hope everything goes smooth. I'm definitely feeling that 2 car garage

 

[mr jordan04]

Yea man, these lenders/realtors are sharks, and they work together too, so just be careful.

I knew somebody in the business to look over my good faith estimate and you would be surprised at how many times what you bring up is a "mistake or a typo"

 

[Los Angeles]

@crcballer55 hey bro always appreciate the info youre passing along. My question is i'm hoping to get an FHA loan by next year. Trying to do the first time homebuyer fha loan but my credit is currently at 610 but i'm hoping by this time next year i could be at around 620+. What would you suggest for my fico to be at to qualify for the lowest possible down payment?

Also do you have experience with state employees getting home loan assistance? I currently work with la county but have an interview for a state position and was reading they offer home loans.