Buying a house
#1
11-21-2012, 08:19 PM
Join Date: Apr 2008
Location: Lee County, North Carolina
Posts: 7,055
Likes: 0
Received 5 Likes
on
5 Posts
Buying a house
I guess I'm finally old enough to get my own place. I'm going to miss being able to blow my money on whatever I want. I only have three bills now, they are Netflix, Insurance and a cell phone but that's all about to change.
I've been looking for a reasonably priced house for a while now and I found a deal that I couldn't pass up. This place is a manufactured home with brick underpinning so that sucks that it isn't stick built but that's about all I can comfortably afford since the biggest bill I've ever had was a truck payment.
The house is was built in 2002 and the previous owner upgraded the windows to the double paned type and installed laminate flooring along with building a deck on the front and back of the house. He left a ceramic top stove, a dishwasher, washer/dryer, microwave and one of those side by side refrigerators with the drawer freezer made by Samsung so I don't need to buy any of that.
His wife died and he ended up moving back to Pennsylvania and now he's ready to get rid of the house.
He first listed it for about $75000 a few months ago and he has gotten one offer before mine. When I decided to call about it he had the price down to 59,900. I offered 55,000 and he was happy to take it along with being willing to pay the closing costs. The only hitch with that is that by law he is only able to pay %6 of the final cost of the home in closing costs so I'm still on the hook for about $4000.
So my payments will be about $400 a month with an escrow account set up for taxes and insurance.
One thing that's kind of bugging me about part of the loan process is how they scrutinize your bank account. Did you know that if you save for a while and get enough cash to cover closing costs together that you can't use it? You need to use a check, debit or a money order so that they will have a paper trail of where that money came from. Ok, no problem, I will just deposit the saved cash and use a check. Nope, can't do that. In fact, it is likely that you will be denied for a loan if you have a large deposit in your bank account and cannot prove where that money came from. So basically if you save money then go to deposit that money then you are a liar and not worthy of a loan since you don't have a record of where every dollar came from. So now I have to use my saved cash for my daily spending and use what's in my bank account for the closing costs. I can't deposit the cash until after closing (up to 60 days from today). I'm just glad that I don't have any big bills so I can cover the closing costs with whats in the bank.
I've been looking for a reasonably priced house for a while now and I found a deal that I couldn't pass up. This place is a manufactured home with brick underpinning so that sucks that it isn't stick built but that's about all I can comfortably afford since the biggest bill I've ever had was a truck payment.
The house is was built in 2002 and the previous owner upgraded the windows to the double paned type and installed laminate flooring along with building a deck on the front and back of the house. He left a ceramic top stove, a dishwasher, washer/dryer, microwave and one of those side by side refrigerators with the drawer freezer made by Samsung so I don't need to buy any of that.
His wife died and he ended up moving back to Pennsylvania and now he's ready to get rid of the house.
He first listed it for about $75000 a few months ago and he has gotten one offer before mine. When I decided to call about it he had the price down to 59,900. I offered 55,000 and he was happy to take it along with being willing to pay the closing costs. The only hitch with that is that by law he is only able to pay %6 of the final cost of the home in closing costs so I'm still on the hook for about $4000.
So my payments will be about $400 a month with an escrow account set up for taxes and insurance.
One thing that's kind of bugging me about part of the loan process is how they scrutinize your bank account. Did you know that if you save for a while and get enough cash to cover closing costs together that you can't use it? You need to use a check, debit or a money order so that they will have a paper trail of where that money came from. Ok, no problem, I will just deposit the saved cash and use a check. Nope, can't do that. In fact, it is likely that you will be denied for a loan if you have a large deposit in your bank account and cannot prove where that money came from. So basically if you save money then go to deposit that money then you are a liar and not worthy of a loan since you don't have a record of where every dollar came from. So now I have to use my saved cash for my daily spending and use what's in my bank account for the closing costs. I can't deposit the cash until after closing (up to 60 days from today). I'm just glad that I don't have any big bills so I can cover the closing costs with whats in the bank.
#2
11-21-2012, 08:32 PM
Champion
Join Date: Apr 2011
Location: Harrisburg,PA
Posts: 3,574
Likes: 0
Received 0 Likes
on
0 Posts
Congrats man.. Thats a big step..
I know what you mean about the money thing.. My buddies dad just built a HUGE brand new building for his shop.. Think its got 22 bay doors and whatnot.. Either way I guess he had the money to pay for it but there was something about he couldnt prove where the money came from so he had to get a loan to have the building built.. Come time for the first loan payment he was able to just pay it all off...
Banks have a weird way of doing things
I know what you mean about the money thing.. My buddies dad just built a HUGE brand new building for his shop.. Think its got 22 bay doors and whatnot.. Either way I guess he had the money to pay for it but there was something about he couldnt prove where the money came from so he had to get a loan to have the building built.. Come time for the first loan payment he was able to just pay it all off...
Banks have a weird way of doing things
#3
11-21-2012, 08:39 PM
congrats. its a good move.
are you getting FHA financing? it has a lot of strings attached.
i'd think conventional financing would have none of that. i've moved money before in pretty big chunks.
why are your closing costs so high? i'd expect about 3% total.
if not too late, you might want to shop around for a better mortgage deal.
are you getting FHA financing? it has a lot of strings attached.
i'd think conventional financing would have none of that. i've moved money before in pretty big chunks.
why are your closing costs so high? i'd expect about 3% total.
if not too late, you might want to shop around for a better mortgage deal.
#4
11-21-2012, 09:40 PM
Congrats on the purchase. The first 15 years we owned our home, all my money and time went into remodeling (it was built in 1960 and still had 1960 style everything....green tile, tubs and toilets in the bathrooms....etc) Anyway, it was not until we got the house right that I was finally able to get back into fixing up cars and trucks...oh, dont know if your married...but that will come soon enough now that you have a house...or kids....hopefully the former before the latter....haha
#5
11-21-2012, 09:41 PM
Join Date: Apr 2008
Location: Lee County, North Carolina
Posts: 7,055
Likes: 0
Received 5 Likes
on
5 Posts
FHA loan is the only loan Wells Fargo will do for a manufactured home and it takes twice as long to get approved along with a lot of criteria that needs to be met in order to get it.
The closing costs have a 3.5% down payment included along with all of the fees like inspections, lawyer fees, bank paperwork fees (because it costs the bank over $400 to take 10 minutes of their time to type and move some papers) and other BS fees (the realtor told me that a handful of them are BS fees and even pointed them out to me on the list of what is covered with the closing costs. I believe the earnest money and due diligence is also included.
From what I've always heard it is best to go with Wells Fargo if you want to finance a manufactured home because a lot of finance companies won't touch them. I'm already locked in with them now anyway.
I forgot to mention earlier that the house is on 3 acres and it is only 7.5 miles from work (I'm 14 miles from work now).
Not having a house is the only thing holding up the marriage. I dunno about kids yet.
Remodeling will come. I need to drop about $1200 on building a 12x16 shed and about $600 on a home made carport plus the cost of the concrete.
We plan on painting the whole inside of the house, ripping out a wall between the two small rooms and laying some tile in the kitchen and bathrooms. The house also needs a handful of little things like some baseboard here and there since the flooring got put down but the baseboards didn't. We'll also have to patch a couple little holes in the walls before painting (i'm going to get a 5 gallon bucket of joint compound and that will be plenty).
The closing costs have a 3.5% down payment included along with all of the fees like inspections, lawyer fees, bank paperwork fees (because it costs the bank over $400 to take 10 minutes of their time to type and move some papers) and other BS fees (the realtor told me that a handful of them are BS fees and even pointed them out to me on the list of what is covered with the closing costs. I believe the earnest money and due diligence is also included.
From what I've always heard it is best to go with Wells Fargo if you want to finance a manufactured home because a lot of finance companies won't touch them. I'm already locked in with them now anyway.
I forgot to mention earlier that the house is on 3 acres and it is only 7.5 miles from work (I'm 14 miles from work now).
Not having a house is the only thing holding up the marriage. I dunno about kids yet.
Remodeling will come. I need to drop about $1200 on building a 12x16 shed and about $600 on a home made carport plus the cost of the concrete.
We plan on painting the whole inside of the house, ripping out a wall between the two small rooms and laying some tile in the kitchen and bathrooms. The house also needs a handful of little things like some baseboard here and there since the flooring got put down but the baseboards didn't. We'll also have to patch a couple little holes in the walls before painting (i'm going to get a 5 gallon bucket of joint compound and that will be plenty).
Last edited by Sheriff420; 11-21-2012 at 09:46 PM.
#6
11-21-2012, 09:47 PM
Grand Champion
Congrats on the house!
Banks are funny. You, small time smuggler (or not), cannot prove where every dollar came from so they won't touch it because it might be drug money. Meanwhile, they happily and profitably launder money from murderous black market cartels every day without asking a single question about its origin. Land of the free, baby!
Banks are funny. You, small time smuggler (or not), cannot prove where every dollar came from so they won't touch it because it might be drug money. Meanwhile, they happily and profitably launder money from murderous black market cartels every day without asking a single question about its origin. Land of the free, baby!
#7
11-21-2012, 09:48 PM
FHA loan is the only loan Wells Fargo will do for a manufactured home and it takes twice as long to get approved along with a lot of criteria that needs to be met in order to get it.
The closing costs have a 3.5% down payment included along with all of the fees like inspections, lawyer fees, bank paperwork fees (because it costs the bank over $400 to take 10 minutes of their time to type and move some papers) and other BS fees (the realtor told me that a handful of them are BS fees and even pointed them out to me on the list of what is covered with the closing costs. I believe the earnest money and due diligence is also included.
From what I've always heard it is best to go with Wells Fargo if you want to finance a manufactured home because a lot of finance companies won't touch them. I'm already locked in with them now anyway.
I forgot to mention earlier that the house is on 3 acres and it is only 7.5 miles from work (I'm 14 miles from work now).
Not having a house is the only thing holding up the marriage. I dunno about kids yet.
Remodeling will come. I need to drop about $1200 on building a 12x16 shed and about $600 on a home made carport plus the cost of the concrete.
We plan on painting the whole inside of the house, ripping out a wall between the two small rooms and laying some tile in the kitchen and bathrooms. The house also needs a handful of little things like some baseboard here and there since the flooring got put down but the baseboards didn't. We'll also have to patch a couple little holes in the walls before painting (i'm going to get a 5 gallon bucket of joint compound and that will be plenty).
The closing costs have a 3.5% down payment included along with all of the fees like inspections, lawyer fees, bank paperwork fees (because it costs the bank over $400 to take 10 minutes of their time to type and move some papers) and other BS fees (the realtor told me that a handful of them are BS fees and even pointed them out to me on the list of what is covered with the closing costs. I believe the earnest money and due diligence is also included.
From what I've always heard it is best to go with Wells Fargo if you want to finance a manufactured home because a lot of finance companies won't touch them. I'm already locked in with them now anyway.
I forgot to mention earlier that the house is on 3 acres and it is only 7.5 miles from work (I'm 14 miles from work now).
Not having a house is the only thing holding up the marriage. I dunno about kids yet.
Remodeling will come. I need to drop about $1200 on building a 12x16 shed and about $600 on a home made carport plus the cost of the concrete.
We plan on painting the whole inside of the house, ripping out a wall between the two small rooms and laying some tile in the kitchen and bathrooms. The house also needs a handful of little things like some baseboard here and there since the flooring got put down but the baseboards didn't. We'll also have to patch a couple little holes in the walls before painting (i'm going to get a 5 gallon bucket of joint compound and that will be plenty).
Trending Topics
#8
11-21-2012, 10:00 PM
#9
11-21-2012, 10:18 PM
Join Date: Apr 2008
Location: Lee County, North Carolina
Posts: 7,055
Likes: 0
Received 5 Likes
on
5 Posts
Cameron now, soon to be just north of Sanford.
I assumed that the screwed up way the do it was geared more toward making sure that you don't take out a loan to cover closing costs and get in a situation where you owe more than you make every month and eventually get foreclosed on because you can't pay the bills.
Congrats on the house!
Banks are funny. You, small time smuggler (or not), cannot prove where every dollar came from so they won't touch it because it might be drug money. Meanwhile, they happily and profitably launder money from murderous black market cartels every day without asking a single question about its origin. Land of the free, baby!
Banks are funny. You, small time smuggler (or not), cannot prove where every dollar came from so they won't touch it because it might be drug money. Meanwhile, they happily and profitably launder money from murderous black market cartels every day without asking a single question about its origin. Land of the free, baby!
Last edited by Sheriff420; 11-21-2012 at 10:20 PM.
#10
11-21-2012, 10:28 PM
Cameron now, soon to be just north of Sanford.
I assumed that the screwed up way the do it was geared more toward making sure that you don't take out a loan to cover closing costs and get in a situation where you owe more than you make every month and eventually get foreclosed on because you can't pay the bills.
I assumed that the screwed up way the do it was geared more toward making sure that you don't take out a loan to cover closing costs and get in a situation where you owe more than you make every month and eventually get foreclosed on because you can't pay the bills.