Looking to live in the greater Boston area. Trying to gage how much one should be making (gross or net) to afford about 4k per month. We have maybe above average spending as we like to go out and do some traveling and have student loans. I am Searching mostly on realtor.com so it seems like they include the mortgage, the property taxes and home insurance.
Hello!
Potential first-time home buyer here who's placed a bid and completed the inspection on my (hopefully) home. I'm getting very confused about a few things I hope some here can advise me.
The sellers listed for 300K, I bid 295 at my agent's advice and asked 3% towards closing, and they counted with 305K for the house and agreed to the 3% towards closing. My agent said this seemed good and we moved on to the inspection.
The house is 90 years old (and super cute!) but obviously has some issues. I assumed we began the negotiating stage for repairs, but since the sellers (say) they have no more money, my agent says we skip this step because any repairs we ask them to make, they'll have to take from the money they contribute towards closing costs. So I either get $9,150 towards closing costs, or, if I ask for them to repair something for 2K, they spend the 2K on the repair and I get $7,150 towards closing.
Based on research I've done on the internet and one friend's advice, I thought we could now negotiate a lower sales price. I asked my agent directly if we should try to negotiate the lower sales price, and her response seems odd to me.
Here's what she said:
I would suggest keeping the 3% and having these things done after since you will be paying for it either way but at least you will get to choose who does it. This would be the same in asking for a lower sales price, their bottom line is the same. The current terms have them paying $5K in closing costs, they would not be able to lower the price unless we took off the full amount of closing costs so they would be able to repairs and what repairs would be dependent on the cost.
I'm very confused about how their bottom line is the same, and why I can't ask them to lower the price if there are some potential big electrical, roofing (this old house has a slate roof!), and plumbing (also has some original plumbing!)
I do get that the sellers might not be able to afford to sell this house at a certain point/price, but doesn't it seem smart to try to negotiate some? Like even to get them to go back to the 300K asking price?
Am I missing something? Does anyone have any insight or experience they could share with me to better understand this?
Thanks so much for your time and advice!
I’m in the running to buy a house but have noticed the bricks at the bottom of most of the external walls look mouldy / damaged. I’m yet to have it surveyed, but should I be worried?
Hi all, looking for some advice. Married couple based in Brooklyn, NY.
My wife and I recently found a condo that we really like and we definitely can see living there for about 5-10 years. Property taxes are a little above than normal, but it is something that we had to just accept especially us living in NY state.
I am putting most of the down payment but I was wondering if it’s wise to take some money out of my stock brokerage to contribute to the down payment. I understand that events like these it’s what your stocks are used for, however, I am curious about how much taxes will I need to pay for selling a decent amount and if its better to take out a loan for the downpayment and use my stocks as collateral so that I avoid taxes from IRS.
I’m not sure how this second method works to be honest, but would love to hear anyone’s experience with selling some of your stock to use for your down payments and how hefty your tax bill was when you filed for that year or next.
***First time homebuyer here, definitely am curious to hear y’all’s approach***
My husband and I are trying to decide between two homes in Mesa, AZ, and we’d love some outside perspectives, especially from people who have owned homes or invested in real estate.
About us:
Both 23 years old.
Household income: about $106k/year gross
Over $32k in savings.
Planning to use an FHA loan.
No kids.
Our biggest goal isn’t just owning a house, we want to build wealth, invest, travel, and ideally reach financial independence earlier in life.
Option 1: New Build ($480k)
Pros:
4.5% fixed interest rate through the builder (special incentive).
Builder pays closing costs and realtor fees.
New construction (less maintenance expected).
Nice newer neighborhood.
1,600 sq ft.
Blank slate to landscape and customize.
Cons:
About $3,000/month payment.
HOA.
About a 40-minute one way commute for me.
Very car-dependent since it’s a newer development.
I’m unsure how strong the rental demand will be in that area if we ever decide to rent it out.
Option 2: Older Home ($415k)
Pros:
About $500/month lower payment.
Central Mesa location.
No HOA.
Close to bus routes and amenities.
Shorter commute.
Similar lot size (~7,000 sq ft).
Cons:
6.5% interest rate.
Older home with possible repairs.
We’d likely need to negotiate/pay some closing costs and realtor fees.
Smaller at about 1,300 sq ft.
One thing that’s making this difficult is that the builder’s 4.5% interest rate feels like a huge opportunity. On the other hand, the older home gives us much more monthly flexibility, which would let us invest more and travel without feeling stretched.
If you were in our shoes, which would you choose and why?
Purchase price was about 450k and appraisal came in at around 340k. The house comparisons supports the purchase price. All of them were about half a mile away. There was one for a house on the same street (maybe a few houses down) that was $485k. This one had pretty much the same total area and living area. Also shows that the current owner brought the house 4 years ago at $390k. There is no issue with covering the difference. Just wanted to understand if this difference was something to be concern about. Checking this on the behalf of someone else. This is in CT (none of the major cities in CT). First time posting in Reddit, thanks for the help.
Has anyone been approved for a USDA loan with a credit score of around 600? If so, I’d really appreciate any advice or tips about what helped you get approved. Thank you!
I’m hoping to buy my first home (a flat/apartment) in the next 3–5 months, ideally in the £210k–£250k price range.
By then I’ll have around £45,000 for a deposit, with £10,000 of that being a gifted deposit from my mum.
Income
Basic salary: £32,000
Unlimited overtime due to the industry I work in.
Total earnings:
Last tax year: £65,000
Year before: £55,000
Year before that: £48,000
I rarely take home less than £4,300 per month after deductions.
Annual bonus:
This year: £1,400
Previous years: around £1,000
Annual pay rises:
This year: 4.1%
Last year: 3%
Year before: 6%
Standby payments: minimum £189 every 5 weeks
Monthly Outgoings
Company share scheme: £400/month (already deducted before take-home pay)
Car finance: £422/month
Car insurance: £80/month (I’ll be paying this off in full before applying)
Gym: £26/month
Netflix: £19/month
Board to my mum: £240/month (this will stop when I move out)
I have no children or other financial dependants.
My concerns
I have an unsatisfied default of around £850 that will reach the 6-year mark in approximately 2 months. From what I’ve read, it should then drop off my credit reports completely. Is that correct, and would it make a significant difference if I waited until then before applying?
I’ve also stopped gambling completely for the last 4 months. It was never excessive (usually £30–£50 at weekends), but I’ve read lenders can look unfavourably on gambling transactions.
I do spend quite a bit on things like eating out, socialising and holidays. I always have money left over each month, but I’m wondering whether lenders are likely to see this as irresponsible spending, or whether they mainly focus on missed payments, debt and affordability.
I already have a Mortgage in Principle, but I understand that’s only an initial assessment and the full application involves much more detailed checks, including bank statements, spending habits, car finance and my previous default.
I’ve also heard that being declined for a mortgage can make future applications more difficult, so I’d like to give myself the best possible chance.
Based on my situation, would you apply now or wait until the default has dropped off my credit file? Any advice would be greatly appreciated.
As someone researching the home-buying process, one thing I've noticed is that listings can only tell you so much.
Some homes look incredible online but feel completely different in person, while others don't photograph well and end up being much more impressive during a viewing.
For those who've already bought their first home (or are currently searching):
I'm hoping to learn from people who've been through the process so I know what to pay attention to during showings.
While researching different ways sellers prepare vacant homes for listings, I came across virtualstaging.art. I'm not endorsing it; I was just wondering if anyone here has experience with tools like this and whether they influence your opinion as a buyer.
Wife (38) and I (41) are touring properties and will be ready to buy within the next 6 to 9 months. We have a decent down payment locked and loaded ($80k) but I like for us to continue to add to that to cover closing costs, cash reserves, moving expenses, etc.
We’ve been finding listings off Redfin and a local agent who works there has been helping us tour properties. We asked him what down payment amount is he seeing lately that buyers like us are using. His response was the minimum 3.5%.
I’m reluctant to believe that because of the high list prices of properties in San Diego. Condos and Townhomes alone are easily $400k and up. SFH’s are $750k to over a million.
Curious for those who’ve purchased since 2022, what was your down payment amount as a percentage and closing costs? What was the list price of the property?
I made on offer on a home that required the P&S to be signed on a very short timeline which was yesterday. My wife really liked it, so I decided to just sign it. Earlier that day, my home inspector showed me proof that the sellers tampered with his radon machine. He showed me the report and pointed out the red Tamper on the results. He said they unplugged it and did something to disable the backup battery.
I also uploaded the report from the inspector to gemini and it confirmed that the radon machine was tampered with. My agent says I can't ask them to pay for the radon test because I already signed the P&S. I thought there might be a way since it can't be legal to mess around with a machine involving radiation.
Inspection was done and inspector found these small cracks and water stains under the windows on front facing bedroom. No other damage noted to the house. No signs of water damage anywhere else. Windows replaced 3 years ago and roof last year. Inspector is not sure if it’s from the wood frame around the windows or within the wall . What do yall think? is this a major red flag that could cost a lot to repair?
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Hey everyone,
I'm hoping to buy my first home sometime this year and I've been doing way too much research lol.
Everyone talks about the big stuff like mortgage, interest rates, inspection, location, etc. But I keep thinking... what are the small things people dont even notice until after they move in?
Like I've already heard stories about people finding out the internet is terrible, water pressure sucks, or the neighbors are noisy every weekend.
What else should I be looking at before making an offer?
Right now my list is something like:
Check water pressure in every bathroom.
See what the house sounds like at night, not just during the day.
Test phone signal inside.
Look for any weird smells (trying to cover mold maybe?)
Ask how old the roof, HVAC and water heater are.
Check if windows and doors actually open without getting stuck.
Drive the route to work during rush hour instead of trusting Google Maps.
Look at where rain water drains if possible.
Check if there's enough outlets in the rooms.
Ask about utility bills, not just the mortgage.
See if there's any future construction planned nearby.
Make sure renovations were actually permitted.
Walk around the neighborhood in the evening too.
I'm sure I'm still missing a bunch of stuff.
For the people who already bought a house... what's the one thing you thought was "not a big deal" but ended up being a huge pain later?
Trying to avoid learning the hard way 😅
I’m in attorney review was shopping around for home owners insurance to get a feel for what I will owe and found out there was a claim for water damage in 2022
15k payout. This was not on the sellers disclosure.
Realtor asked listing agent. Seller responded “ I forgot about it” and said a line burst in the laundry room.
During viewing no obvious signs of any of this.
What should I do now before I’m out of attorney review ?
Have a hard time believing the seller “forgot” to list this
Just looking for a sanity check on whether I can/should buy a $725k house.
I’m 35 and looking at buying my first home. Purchase price would be around $725k. I’d be targeting a mortgage around $500k, so putting roughly $225k down. 800+ FICO and rates I’ve been quoted recently are around 6.125%-6.25%, which puts the estimated PITI at about $4,250/month.
Financial picture after the down payment would be roughly:
$70k left in a taxable brokerage / liquid-ish
$100k in IRA
$250k in 401k
Paid off newer vehicles
No other debt at this time
My W-2 income is around $175k ($25k of that is a pretty reliable bonus). I think my job is relatively stable but who knows these days. I’d like to keep maxing retirement if possible.
I’m not married yet, but I have a long-term girlfriend who earns around $110k. We would be buying the house in my name only for now, but she would likely contribute around $1,500/month toward housing costs until combine finances after getting married.
So my effective monthly housing burden would probably be closer to $2,750/month after her contribution, but I’m trying to make sure I could still survive this on my own if needed.
We don’t have kids yet, but we’d like to have 1–2 in the near-ish future, so daycare / child expenses are definitely on my mind.
A few other details: The house is in an area I like and I think it should hold value reasonably well, but I’m trying not to justify a stretch just because I like the property.
My main questions:
Is $4,250/month PITI too aggressive on my income, even with no debt?
Is having around $70k left after closing enough cushion, or would you want more?
Would this prevent me from continuing to max retirement comfortably?
Ive done the math multiple times and it seems like it is right at or above the conventional rules of thumb for affordability for me alone, but should be easily doable with GFs income. I know this is ultimately personal/risk-tolerance dependent, but I’d appreciate honest feedback. I’m trying to figure out whether this is a reasonable stretch for a good house/location, or whether I’m setting myself up to feel house poor. Also having a tough time seeing past the 7-10% I could make a year parking that $225k in the market. I could probably rent a comparable home for around $3,650, but we’re tired of renting.
As title says, got my offer accepted and had a home inspection including termite/wood destroy insects.
Crawlspace has some pretty significant moisture and rot in the floor joists and the main girder. Also lots of mud tubes coming from the ground from subterranean Termites which are active. No vapor barrier either.
Owner before the current seller had Termites issues (disclosed to me in seller disclosure) but it was "taken care of". Obviously it was either a shotty job or they returned anyways because the conditions remained (Moisture, wood touching earth)
Seller may offer to fix it all up and have a professional kill the Termites as well as put in a vapor barrier. My concern is the Termites returning later down the road and it becoming my issue.
Curious what other people's opinions are. Will a vapor barrier prevent them from returning? This is in southern Pennsylvania.
EDIT: Bailing on this deal. Thanks for everyone's help.
From rural Eastern KY, went to professional school and now I am back. My husband and I basically got the opportunity of the century. A home with minimal cosmetic issues (my grandparents next door neighbor) was brought to us to offer to sell for 125K. It is 4 bedrooms, 1.5 bathrooms, new HVAC, newer roof, septic system, custom cabinets, great backyard and could be close to my grandparents as they are in their late 70’s and will eventually need more assistance really the only work done would need to be cosmetic. It would be a direct sell. Unfortunately my husband and I have a lot of student loan debt. I am a chiropractor that makes decent money, my husband is a safety director that also makes decent money. My credit took a massive hit this year when I was ill informed about options for my Sallie Mae loans and a customer service rep basically told me I would be ineligible for a lower payment unless my loans defaulted and I could get loan modification payments. However husband’s credit is good. The issue pointed out to us by a local mortgage guy was our debt to income ratio. We are looking into financing programs that offer 3.5% down or 100% financing since we are just really getting on our feet and can’t afford the standard 20% down since this house basically was offered to us for purchase and we weren’t really looking. Our monthly student loan payments are right at $750 for the both of us and we both have some on deferment for the time being. Our families aren’t really in positions to assist us. According to calculations with 6.75% interest, 100% financing for 30 years would give us about an $815 monthly payment which is easily something we could afford. We both drive paid off cars, have relatively no credit card debt (we pay it off monthly), and our monthly bills are very low. We live with my parents at the moment for free. Are we crazy to think we have a chance of qualifying for a mortgage of some kind? I am fine with my husband taking ownership of the mortgage without my name on it, if that would be a better option. We have been put in touch with another lender but I’m feeling very discouraged and just need some sort of outsider opinion.
Edit: update post update post
So we have a contractor coming tomorrow, this is her first home and the first big rain she has received. She’s worried about sinkholes etc. I told her worst case scenario is the deck gets damaged but the house is likely safe. Is this normal for a neighbors yard to also drain water into her yard like this? I don’t even know what our options are here other than then sending the water down to the other neighbors yard as well. Another video of that side I’ll post in comments if I can.
Moved into my new place recently and I’m already losing the battle against bugs. Feel like they just moved in with me. I’m curious if I should just try DIY stuff first or if it’s a waste of time? Has anyone dealt with a sudden infestation right after moving, or am I just cursed?
