Wednesday, August 01, 2007

this whole house shopping thing

is kind of a pain in the ass.

how come no one told me how HARD it is? because it is. and while it's overwhelmingly exciting at first- it's just plain overwhelming now. i called our loan lady and all she does is talk really quickly and then get pissed if i interrupt her to ask a question. she wants me to wait until she's done talking to ask a question, but by the time she shuts up, i can't remember what the old questions were and i just have new ones! it's because i don't know what the hell she is talking about. when we met with everyone this past weekend, we walked out of there with no paperwork. i mean absolutely nothing that explains what loan types there are.... what they mean... what an amortization loan is- just tell me SOMETHING! as first time home buyers, isn't it obvious that we won't have a fucking clue what anything means?!?!

and then there's the whole pre-approval process where i personally feel we are approved for far more than we can actually afford. i think they tell you that you can pay per month, but they don't factor in the fact that you will most likely want to eat as well. and i don't know.. actually pay for gas to make your car run? but who needs those things? YOU HAVE A HOUSE!

so i'm sitting here in desperate need of an accountant because how the hell can i find out what i can change my claming amount to on my paychecks without getting screwed at the end of the year? is there a simple way to figure this out? when you bought a house, got married, etc- did you change what you claim? do you get a big refund at the end of the year, do you break even, or do you have to pay?? my biggest thing right now is figuring out what boyfriend and i can change our claim # too, without having to pay at the end of the year. and will it give us enough money each month to afford a mortgage? that's the real question.

this sucks when you have no money to put down on a house. i envy all of you who bought when the market was truly affordable. and when having 20% down didn't equal $110,000 dollars.


Alison said...

Don't be swindled by the mortgage thieves. The only loan that is worth considering is one that is a 30 year-fixed rate. Sure, your mortgage will be higher with this loan than the more dangerous types, but it is the only safe loan to make in this market. The market is slowly crashing as home values continue to plummet. Anything you buy now will be worth less the second you move in. Also, the rule of thumb is that you want to try to keep your mortgage payment (prinicipal and interest) about 30% of your monthly take-home income. Lenders have softened these standards in recent years to attract buyers while home prices soared. The result of this: record foreclosures. You don't want to be caught in this trap. My advice is to wait until home prices have sunk back to normal levels and ONLY get a 30 year-fixed rate loan with a mortgage payment that is roughly 30% of your take-home income.

Jill said...

Too add to Alison's wonderful post any loan officer who will not explain to you the whole process and each step needs to be fired and get yourself someone who will.

Ask to speak with HER supervisor. If you get the same thing go to someone else. Yes, it is a pain but it will keep you from getting in over your head. Remember Jenn, they are in this to make money. It no skin off their nose if you can't make the payments they take the house back.

Do NOT let them railroad you. Your a young couple and most of these places will walk all over you because you do not understand.

Slow down and take a breath. This is not a hurry up and do it now. Take your time. Put money away while this whole market is in flux. It took us two years to find this place. But we all felt at home here and knew we could make it.

This website might help you. It has helped others that are confused and you and boyfriend can sit down and go over together and not be in a hurry. It explains and defines everything in layman's terms. Stand your ground and don't be pushed. If it doesn't feel right in your gut don't walk......RUN!

Anonymous said...

I loved house shopping. But I'm a nosy beyatch and wanted to see the insides of all the houses for sale!!!!

jennster said...

jill- THANK YOU.. that website is super helpful!

Dana J. Tuszke said...

I never had to go house hunting because we bought the house I grew up in.

but lemme just say, had I been forced to house hunt, I'd have decided to live in a cardboard box.

it is so difficult! good luck sweety.

AND, I've got some boob grabbin' "raunchy" blogher shots up at flickr just for you!

Cathy said...

OK, I'm delurking here to tell ya that it's frustrating to hear what you're going through. My husband has been in the mortgage business for 13 years in California and has actually advised AGAINST a loan if he felt it was wrong for his clients. His clients have gone on to get another mortgage loan from a less upfront broker and then ended up paying for it in the end (and basically just miserable with the loan they got). Hang in there; there are many decent brokers & agents out there. Nor Cal is a tough area but there are neighborhoods where you can get what you want. It's still a buyer's market, so you will get the perfect place for your family with patience! Best of luck to you!!

Chase said...

It's been way too long for me now to remember details...but here's a forum that I LOVE. I used it when I was looking. (I also used the main forum to sue a debt collector and win tons of money...woot!)

There are tons of good things to read up on. Ask questions. You'll get answers. :)

Chase said...

That link didn't work. Let me try again.


teebopop said...

If you don't understand her and she won't take the time to explain properly, get rid of her. She's supposed to be working for YOU.


Also, I have a software tax program that does all the "what ifs" with this kind of information and I will be very, very happy to send it to you. It's very intuitive. It has "what if" scenario's for 2007. Let me know. I can drop it in the mail tomorrow. (you don't have a Mac, do you? it's windows software)

Back in the day, I used to know all the tax info (for paychecks) but I don't now. But, if you go to your payroll person at work, they should be more than happy to help.

Phoenix said...

Just don't let them talk you into buying a house you can't afford. Even if you move to the new town and then buy, it's better than being stuck with a house you can't afford or sell.

But good luck on it all, I'm sure you'll find an awesome house.

RWA said...

Damn. I never knew so many of your readers were real estate agents and/or accountants.

dcrmom said...

I wish I could be more help, but this is about all I know: they will DEFINITELY approve you for more than you can afford. You need to decide what monthly payment you can afford, not what they say you can afford.

It is overwhelming, but it is also very fun! I hope you get this figured out and find something affordable that you love!!

Elizabeth said...

Alison's advice was right on. When I worked at the credit union, we saw so many people who didn't have enough available credit left to do much of anything because their ratio of mortgage debt to income was so high. Buy what you can afford and still have enough money left over. Even if it is something smaller, or a fixer-upper. I bet you could take a house that needed work, fix it up, and resell it for a big profit, and that becomes your down payment for the next house.

cat said...

YAY---all in order
buying a house-check
baby--almost check ( SOON? )