First time home owner

[Deeznutz]

Oh, if the house is under value, just re-read that part, than it may be a good move to buy it. It's a nice cushion. Home prices will always go up, it's cyclical. So even if the monthly goes up, you're still owning the house. You can always sell it for what the market is asking for on your same block which is a nice feature.

Good luck with getting it. Fingers crossed. When it's all said and done, if you ever sell it, you will always get back your down and then some like my sister did with her investment!

-Frank

The only way to know the value is to get it appraised? Correct?

I believe is called having the house "assessed". The realtor can hire someone to do the assessment. Basically research what other comparable houses in the area are going for. I know that is part of the process. My ex-gf was taking classes to become an appraiser. When purchasing a house, you're buying into the neighborhood, it you want to look at it that way. A house in North Tampa goes for $80/sq ft. In South Tampa.... $161/sq ft. due to the.....neighborhood. Which is what an appraiser does.

If you're getting in at a good price, below market value make for damn sure it's for a good reason. "It needs a new roof". If it needs plumbing or wiring. To fix it, will bring it back to the neighborhood comparable market value. It's like buying a salvage motorcycle for cheap, once you get done with it, it's within $500 of a non-wrecked bike.....so you really didn't make out as well as you thought!

-Frank

[Kade]

Kade, ask your realtor about that monthly payment. That is way too low.

When I purchased my house, the payment booklet sent to me had $675 slips to send in. I was in heaven. My rate was 5.25% Something like that.

The following year they sent me a check back for $900. So I cashed it and spent it. I was naive.

This money was extra, in escrow, so it was returned to me. I should have sent it back to the mortgage company and rolled it into the next years escrow account.

Since I spent it, the following year(s), the payment went up to $725, than $785. All the way to $931/month.

I asked why and I was told because I have everything bundled together.

Mortgage payment, home owners insurance, and property tax. Insurance will always go up, property tax tends to go up slowly.

If you bundle, they ask and prepare for the following years payment requirements.

After I paid off the house, I received a check again, for what was left over in escrow. I rolled that into the property tax I now have to pay out of pocket.

That $620 you were quoted maybe with out PMI, Home Owner's Insurance, and Property tax bundled. Not trying to scare you, but educate you.

-Frank

My realtor is checking with some of his agents to compare prices and stuff right now. When I talked with the mortgage company, she said that price was the insurance and taxes added. Not sure if PMI was part of the insurance. Even realtor.com gave me estimated prices that were close to $620 on a 30yr fixed loan. We'll find out later I guess.

Haha. I'm telling you man, if you have it an escrow that $620 will change even with a fixed rate mortgage. They always ask for more the following year. If there is an excess, they will offer it back to you or roll it over in next years payment. They send you a booklet for the year with what you will pay in installments for that year. Insurance rates and taxes are never fixed so your payment will go up. It's not like buying a car. Think about it. My insurance was $894 the first year. Later it slowly went up to $965, then $999, then just over $1k. When the insurance company saw my house was over 20 yrs old, they said I needed a new roof or the insurance would be $1800! This was through Citizen's Insurance Company, the largest insurer in Florida! I did redo the roof in 2007. The roofers luckily were still in business and one phone call made, they were able to fax the receipt to the insurance broker. Anyway. After all was said and done my insurance went up to $1180 (something like that) and I never used it! Do you think my bundle payment stayed the same? Nope, the mortgage company covered the payment, than increased the payment the following year.

The $620 is for the first year.

-Frank

That's BS. So, what should I do if the prices are going to fluctuate regardless of what's on the papers at the time of signing?

Oh, if the house is under value, just re-read that part, than it may be a good move to buy it. It's a nice cushion. Home prices will always go up, it's cyclical. So even if the monthly goes up, you're still owning the house. You can always sell it for what the market is asking for on your same block which is a nice feature.

Good luck with getting it. Fingers crossed. When it's all said and done, if you ever sell it, you will always get back your down and then some like my sister did with her investment!

-Frank

The only way to know the value is to get it appraised? Correct?

I believe is called having the house "assessed". The realtor can hire someone to do the assessment. Basically research what other comparable houses in the area are going for. I know that is part of the process. My ex-gf was taking classes to become an appraiser. When purchasing a house, you're buying into the neighborhood, it you want to look at it that way. A house in North Tampa goes for $80/sq ft. In South Tampa.... $161/sq ft. due to the.....neighborhood. Which is what an appraiser does.

If you're getting in at a good price, below market value make for damn sure it's for a good reason. "It needs a new roof". If it needs plumbing or wiring. To fix it, will bring it back to the neighborhood comparable market value. It's like buying a salvage motorcycle for cheap, once you get done with it, it's within $500 of a non-wrecked bike.....so you really didn't make out as well as you thought!

-Frank

The only reason it may be below market value is because the tenants are deceased and the son who owns it is just getting rid of it. Still furniture, appliances, and beds in the house. All included. Few rotten boards that the paint didn't protect, but that's all. I'll have to get them inspected before hand, but roof looks new, newly remodeled bathroom, fairly new carpet... It was well maintained from my perspective.

[Kade]

Welp...That house went under contract over the weekend.

[Deeznutz]

Sorry to hear man! Just know the limit you are approved for and put in an offer when you see the house you like. For me, my offer was accepted, but it was contingent on the home inspection. If my house failed inspection, I would retract my offer or offer less. Homes move very fast which is why it's so nerve racking.

-Frank