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Legend
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Legend
Joined: Sep 2006
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Canada was lucky enough to not get hit too bad by the crash. Property values went down for sure but they are already on their way back up.
Although I realize that property values are wildly contigent upon place, local economy etc, the price differences blow me away. If my job suddenly moved to Ohio, I'd be looking for a freaking mansion.
That's because Canada didn't try to give mortgages to everyone, regardless of whether they had the credit to qualify, or whether or not they could actually afford them.
It's amazing what happens to a housing market when 10% or so of it (maybe it's more, I'm not sure) is thrown into chaos by rampant defaults and foreclosures. Even those without truly toxic mortgages have been effected by the drop in property values.
Micah 6:8; He has shown you, O mortal, what is good. And what does the Lord require of you? To act justly and to love mercy, and to walk humbly with your God.
John 14:19 Jesus said: Because I live, you also will live.
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Legend
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Legend
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My house is a little over 1,000 sq. ft. My buddy who lives in New Jersey lives in a condo that is almost the exact same size, and he paid 3x as much for it.
I am unfamiliar with this feeling of optimism
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Legend
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Legend
Joined: Sep 2006
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I always wince in physical pain when they have these shows on with people buying in New York ....... "This is a lovely 350 square foot apartment ........ and it's only $2.5 million .......... "  lol
Micah 6:8; He has shown you, O mortal, what is good. And what does the Lord require of you? To act justly and to love mercy, and to walk humbly with your God.
John 14:19 Jesus said: Because I live, you also will live.
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Dawg Talker
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My house is a little over 1,000 sq. ft. My buddy who lives in New Jersey lives in a condo that is almost the exact same size, and he paid 3x as much for it.
Tell me about it. I live in Jersey now and had plans to look for houses here but an old 2,000 sq ft house goes for close to 500k. Prices near the city are ridiculous. I decided when we had our 2nd it was time to move back to the midwest so we could buy a nice house. You can get a house triple the size for 500k in Michigan!
“It doesn't make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.” -Steve Jobs.
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Legend
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Legend
Joined: Sep 2006
Posts: 14,248 |
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My house is a little over 1,000 sq. ft. My buddy who lives in New Jersey lives in a condo that is almost the exact same size, and he paid 3x as much for it.
That our problem. Would love to own, but 20% on a starter house, and you're looking at $60,000.
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OP
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What is the best way to find a buyer's agent?
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Dawg Talker
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A lot of the problem wasn't the original mortgages. A vast majority down here is because folks re-fi'ed and took cash out on equity that had built up. They bought the house for $700k, then when the market spiked, they took out HELOC's of upwards of $300 - $500k. Bought cars, vacations, etc. The homes weren't really worth that, but that's what they appraised for.
There was a time when the average sales price in Key West was $998k. And there wasn't enough inventory. Homes would go on the market and have multiple offers within hours above listing price.
Now that the market has corrected itself, prices have come down to 2003 levels here. (Close to $500k per). And a lot of the banks are doing short sales and ridiculous prices which is depressing the actual market values.
Now is definitely the time to buy if anyone has the cash and/or credit. Millionaires will be made out of this that's for sure.
KeysDawg
The fact that some geniuses were laughed at does not imply that all who are laughed at are geniuses. - Carl Sagan
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Legend
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Legend
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I'd recommend even looking at 15 year fixed loans instead of a 30 year fixed.
my personal preference is a 30yr fixed but paying 1 extra 'principal payment' per year. you have to be disciplined enough to do it, but you end up with a 23 year loan that way with the security of lower monthly payments per housing price (in case something catastrophic happens).
I was going to say,, always take out the 30 year fixed.. you can pay it off sooner if you are able.. but this way, you aren't stuck with a larger payment...
Go with the 10 year fixed loan (I bought a house 2 months ago)...If you can afford the payment, you can't beat the interest rate
I'd never do that for the simple reasons that circumstances change.. Today, you may be able to pay a higher payment, but what if your company goes out of business, or you lose your job and the next one doesn't pay enough to cover the higher payments.,
Then your choices are limited..
I'd always take the longest and if able, pay it off sooner.
The house I bought was listed at 78K and I got it for 46K after only being on the market for a couple months. After putting down around 35%, my 10 year mortgage with 3.25% interest payment w/taxes and insurance included comes to $390 per month...Not sure why I would pass on that payment/rate when my rent was over $100 more per month. Basically, if you can afford it, 10 years is the way to go IMO
Well for $390 bucks I see your point.. not a big amount of money.. I was thinking of a much higher number... Try that same exercise with a 250K house and see what the difference is between a 10, 15 and 30 year note.. then you will understand why I said what I said.,.
#GMSTRONG
“Everyone is entitled to his own opinion, but not to his own facts.”
Daniel Patrick Moynahan
"Alternative facts hurt us all. Think before you blindly believe."
Damanshot
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1st String
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1st String
Joined: Feb 2007
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What is the best way to find a buyer's agent?
Talk to the agents listed locally. From my experience, the agent becomes a buyers agent when you are using a realtor that did not list the home. For example, I used Lantzy Realty and the home I bought was listed by Century 21...Lantzy became a buyers agent because he was representing me and Century 21 was representing the seller
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Dawg Talker
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Dawg Talker
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What is the best way to find a buyer's agent?
Here in Florida, there are 3 types of agreements.
Single agent (for either the buyer or seller) works for that person alone and most agents are reluctant to do that now. Mostly for legal purposes.
No Brokerage - Which is when a agent isn't working for anyone. This usually occurs when a Realtor approaches a FSBO (for sale by owner) and has a client that wants to show the house. The agent has to see if the owner is willing to pay his share of the commission if he brings a client since it's not listed and does not have a commission established.
Transaction broker - This is the default status for any agent in the state. It protects the seller in case the listing agent does something wrong, and it protects the listing agent in case the seller does. The big thing with Transaction brokers is they are basically working for the deal. Anything that is said is pretty confidential, with the exception of illegal items (Discrimination, any material defects with the property etc). The agents work with both the buyer and seller to get the deal done. The nice thing with Transaction brokers, is they can be from the same office. Where in the past and still with single agents, If C21 has the listing and it's a single agent relationship, They cannot represent the buyer as well without massive disclosures. Makes it very tough on everyone. So they have gone to the Transaction broker relationship as the standard now.
There is one other, where you will see Buyer Brokerages. They represent buyers only. And if they cannot get the listing agency or the FSBO owner to pay the commission then the buyer will agree to pay it. But those are more rare these days.
Probably more info than you wanted. lol But there is the gist of it.
KeysDawg
The fact that some geniuses were laughed at does not imply that all who are laughed at are geniuses. - Carl Sagan
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Legend
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Legend
Joined: Sep 2006
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Get preapproved by a TRADITIONAL BANKING INSTITUTION not a broker
Why?
Thank about it,, your options are:
Traditional Banks and Savings and Loans type companies..
or
Mortgage Brokers
Those are the two main options that you have. There are others, but really, those are the two primary options.
Traditional banks are when you walk into the branch, sit down with the branch manager or loan originator one on one and discuss your plan. They are the Lender.. They are the one that most likely will carry your loan to the end.. (assuming the bank doesn't get sold or somethiung like that)
A mortgage broker is a "go between" between you and a bunch of lenders..
Brokers get a cut of the upfront fees they charge which usually mean you will be charged more points.. They also get points out the back end of loans meaning they are paid by the lenders themselves. But in the end, it's you that end up paying for those costs.
The other side of it is the shadiness of using brokers. At one point before the foreclosure bubble erupted in 2008 (maybe 2007) there were probably 300 such brokerage firms in NE OHio. Maybe more.
There might be 50 or so left now because most of them were not operating in a professional manner.
You may have heard some stories. In cleveland, there were a large number of them forced to close because of the tricks they played on people.
Brokers are mostly known for handling what is termed B and C credit.. Meaning not clean credit.. People with problem credit.
If you have good credit, if you have 20% down or qualifiy for FHA Financing.. you don't need a broker.. just go to a bank.
Here in town, you can walk into almost any bank, with good credit, 20% down, stable work history and a good debt to income ratio and a solid property appraisel, you will get the loan and you will get it at a very good rate. Third Federal, First Merit, Liberty Bank, PNC, Huntington, Park View Federal, Ohio Savings or Key Bank... any one of those would be very glad for that kinda customer and they'll fight over you.
Brokers on the other hand, don't generally offer loans from those traditional lenders. Mostly, they have lenders that package up your loan with 100 or so other loans and sell them off for servicing.
I just prefer to deal with my bank.. it's cleaner, safer and I don't have to keep my guard up all the time.
But that's just my opinion.., you can always work it anyway you want.
#GMSTRONG
“Everyone is entitled to his own opinion, but not to his own facts.”
Daniel Patrick Moynahan
"Alternative facts hurt us all. Think before you blindly believe."
Damanshot
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Dawg Talker
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Dawg Talker
Joined: Oct 2006
Posts: 1,663 |
Quote:
Thank about it,, your options are:
Traditional Banks and Savings and Loans type companies..
or
Mortgage Brokers
Those are the two main options that you have. There are others, but really, those are the two primary options.
Traditional banks are when you walk into the branch, sit down with the branch manager or loan originator one on one and discuss your plan. They are the Lender.. They are the one that most likely will carry your loan to the end.. (assuming the bank doesn't get sold or somethiung like that)
A mortgage broker is a "go between" between you and a bunch of lenders..
Brokers get a cut of the upfront fees they charge which usually mean you will be charged more points.. They also get points out the back end of loans meaning they are paid by the lenders themselves. But in the end, it's you that end up paying for those costs.
The other side of it is the shadiness of using brokers. At one point before the foreclosure bubble erupted in 2008 (maybe 2007) there were probably 300 such brokerage firms in NE OHio. Maybe more.
There might be 50 or so left now because most of them were not operating in a professional manner.
You may have heard some stories. In cleveland, there were a large number of them forced to close because of the tricks they played on people.
Brokers are mostly known for handling what is termed B and C credit.. Meaning not clean credit.. People with problem credit.
If you have good credit, if you have 20% down or qualifiy for FHA Financing.. you don't need a broker.. just go to a bank.
Here in town, you can walk into almost any bank, with good credit, 20% down, stable work history and a good debt to income ratio and a solid property appraisel, you will get the loan and you will get it at a very good rate. Third Federal, First Merit, Liberty Bank, PNC, Huntington, Park View Federal, Ohio Savings or Key Bank... any one of those would be very glad for that kinda customer and they'll fight over you.
Brokers on the other hand, don't generally offer loans from those traditional lenders. Mostly, they have lenders that package up your loan with 100 or so other loans and sell them off for servicing.
I just prefer to deal with my bank.. it's cleaner, safer and I don't have to keep my guard up all the time.
But that's just my opinion.., you can always work it anyway you want.
You are partially correct.
Brokers do deal with many different companies and can be very helpful because they have a lot of the latest info on the various companies they are doing business with. There are a lot of different options for lending. None of this is stuff that banks and S&L's can't do. They just work for one company. Brokers typically charge a fee, and that fee can vary depending on your broker. I have worked with a couple of very good brokers who knew their stuff and got me a awesome rate (4.25%) in Feb of 2009.
Traditional lenders in your description (the banks and savings and loans) do the same thing you attribute to the Mortgage brokers. These are the primary lending institutions. And depending on the loan type they can carry it on their books or they can sell it to a servicing company. They can also sell it to the secondary market (Fannie Mae and Freddie Mac) to recoup the money and lend it to others. Right now they aren't because the interest rate for borrowing from the Fed is so stupid low they get a better deal borrowing Fed money instead of using the savings money they have in deposits.
FHA loans are partially guaranteed by the government. They require smaller amounts of down payment (there was a time where they would fund 100% Loan to Value!). Now they require about 3.5% down instead of the 20% that a CONVENTIONAL mortgage does. Conventional mortgages are not guaranteed by the government in any way.
VA loans are for veterans of the military and require very low down payments as well. They can be funded up to 100%. These are also assignable (meaning you can give the mortgage to someone else). They do have other costs involved but that's the basics.
Conventional loans are done by banks and S&L's. These typically require at least 20% down and good credit (above 620 for sure, 700's and above for the best interest rates).
Any of these can be sold to servicing companies. They can be packaged (Fannie Mae and Freddie Mac do this) and can be sold as MBS's. (Mortgage backed securities).
The biggest difference with all of these on the consumer level is the amount of the down payment and closing costs. Generally speaking, if you have less than 20% equity, you will be required to pay mortgage insurance.
KeysDawg
The fact that some geniuses were laughed at does not imply that all who are laughed at are geniuses. - Carl Sagan
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Legend
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Legend
Joined: Sep 2006
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Golly - the price of my house vs. the rent on a comparable home? I come out at 20.84%. Guess I got a deal. Unless I'm figuring wrong - do the math for me: $150,000 house - comparable rent for such a place would be, at a minimum, $600 per month. And that's a MINIMUM. ( actually, you wouldn't be able to find a rental home around here - similar home - for even close to $600 per month. Shoot, I see 1980 trailer homes with no land that rent for $450 a month. 2 "bedrooms" - 1 being 12 X 8, the other being 8X8)
You also live in a rural area, which is going to make home ownership a MUCH better option than renting, and is a lot different situation than most people.
The equation is 600 * 12 for annual rent, divided by $150k, which would give you a little less than 5%. Except that, you're talking about a 2 bedroom apartment versus a house with major land. A house similar to your would probably rent for a lot more, and likely would put your house deal closer to 9%. You more than likely got a good deal.
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You also forget that I have more freedom on my land than a renter does. Yes, I pay property taxes. Yes, I pay my maintenance. Yes, I pay for the roof, for any internal or external up grades. Renters also should have insurance. Not homeowners insurance - but I pay $700 per year for my home insurance - and that includes the jewelry rider)
I think our renters insurance is around $150 a year. Renters have quite a bit of freedom as well. Mostly to move if/when they need to and the ability to live much closer to their job. I live 2 minutes from my job right now. A few co-workers have homes that are around a 45 minute drive away. Not only am I saving a few hundred dollars in gas costs a month, but I also have an extra hour and a half of time in my day. If I lose my job, I can pack up and move in a week or two, not have to let my house sit on the market for months and worry about selling it for thousands less than what I bought it for.
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You pocket your couple hundred a month in savings - I'll pay the couple hundred more per month. Talk to me in 20 years - we'll see who comes out ahead.
From the costs of the house we had before, compared to the apartment we're currently renting. I'm probably saving at least $1500 a month. If I bank the difference (which we're currently doing to an extent), in 20 years, I would have $360,000, plus a bunch of interest.
I would MUCH rather own, but we're still waiting for the prices in the area to come down a bit, while building up some down-payment cash. I'm not going to poo-poo renting, as it does have it's advantages and you're not exactly "throwing away" your money either.
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Legend
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But you live in California, where the real estate market is fubar'd 
We don't have to agree with each other, to respect each others opinion.
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Legend
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Nothing you said really contradicts what I said.. Remember, My wife worked for several brokers for almost 15 years.
I got to meet some of them and to be honest, I didn't trust any of them on a personal level.
But when there was a lot of loans being done for B and C credit, it was the only way to go. Banks, as a general rule, don't even mess with that level of credit.
#GMSTRONG
“Everyone is entitled to his own opinion, but not to his own facts.”
Daniel Patrick Moynahan
"Alternative facts hurt us all. Think before you blindly believe."
Damanshot
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Wasn't really trying to over correct you, more give a different perspective of it. You call it "the shadiness of using brokers.". Which can be true about a bad bank as well. So to give brokers that stigma would be, in my opinion, a disservice.
There are a great many Mortgage brokers that are very good at what they do. As usual, it's the faults of the few that outshine the many.
KeysDawg
The fact that some geniuses were laughed at does not imply that all who are laughed at are geniuses. - Carl Sagan
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Joined: Sep 2006
Posts: 43,071
Legend
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Legend
Joined: Sep 2006
Posts: 43,071 |
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Wasn't really trying to over correct you, more give a different perspective of it. You call it "the shadiness of using brokers.". Which can be true about a bad bank as well. So to give brokers that stigma would be, in my opinion, a disservice.
There are a great many Mortgage brokers that are very good at what they do. As usual, it's the faults of the few that outshine the many.
Perhaps I'm being harsh,, but why would anyone with good credit and a down payment go to a broker?
And with todays tight lending restrictions, few brokers will survive. Until they loosen restrictions again, which of course you know they'll do at some point.
#GMSTRONG
“Everyone is entitled to his own opinion, but not to his own facts.”
Daniel Patrick Moynahan
"Alternative facts hurt us all. Think before you blindly believe."
Damanshot
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Legend
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Legend
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I bought my current home in 2003, they said at the time I was preapproved for 500k. I just looked at them and smiled as there wasn't anyway I could afford a payment on 500K, well and still count on eating.
I found the home I wanted in the neighborhood I wanted and a seller who was selling it himself. No realtor. Going along with no realtor was one of the better decisions I ever made, saved about 10K on the price. Once we agreed to a price and the conditions, I went to Office Depot and bought a real estate contract. We sat down at the kitchen table, went over everything, wrote in our special conditions and it was off to the races.
I hired an inspection firm, guy did a great job spending about 3 hours checking the house out, had the owner fix a few things I never would have noticed and I sent the contract to the abstract company and 30 days later we closed.
I purchased a 4 bed, full brick, 3 bath, 3 car garage, single story with 2350 sq ft for $157,000 in a golf course neighborhood. 8 years later I still think is the best investment I've ever made.
500K, sheesh, what kind of morons are out there that took advantage of that inflated garbage?
#GMSTRONG
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