Shorty11857

Member
Oct 25, 2017
841
Got an offer accepted on house on Wednesday with a 3 day financing condition.

Bank told us we'd get a response within 1 business day. 2 days later they've told us it'll be 5 to 10 days at the earliest.

Having to waive a financing condition on the biggest purchase of my life is terrifying
 

greepoman

Member
Oct 26, 2017
1,980
Got an offer accepted on house on Wednesday with a 3 day financing condition.

Bank told us we'd get a response within 1 business day. 2 days later they've told us it'll be 5 to 10 days at the earliest.

Having to waive a financing condition on the biggest purchase of my life is terrifying
Is that any different than getting a pre-approval? Pre-approval is submitting all your financial info and they give you an estimate of how much they will lend you and give you a formal letter to give to the seller. This shouldn't take 5-10 days. Also the bank you get pre-approval for doesn't have the be the same as the one you get the final loan from so you can go to several different banks and "shop" the rate and loan amount.

In the worst case you may lost the earnest money but in a hot housing market I know you may have to risk it.
 

Shorty11857

Member
Oct 25, 2017
841
Is that any different than getting a pre-approval? Pre-approval is submitting all your financial info and they give you an estimate of how much they will lend you and give you a formal letter to give to the seller. This shouldn't take 5-10 days. Also the bank you get pre-approval for doesn't have the be the same as the one you get the final loan from so you can go to several different banks and "shop" the rate and loan amount.

In the worst case you may lost the earnest money but in a hot housing market I know you may have to risk it.

Got our pre-approval already which was 20% above our purchase price and assumed we were getting a condo when we were able to find a freehold so not worried about qualifying for the final approval. Just went with my original bank because they originally offered to process it quickly, we only had 3 days for financing and a 30 day close, but since that's not happening might as well shop around.

Deposit is $50k so if we commit Monday and can't get financing it's a lot to lose but should be super low probability.

Just still a terrifying concept!
 

Brando

"This guy are sick"
Member
Oct 25, 2017
1,288
Just had my offer accepted. The inspection is scheduled for Monday but should i hire another inspector to get a different opinion?
 
Oct 27, 2017
8,003
Just had my offer accepted. The inspection is scheduled for Monday but should i hire another inspector to get a different opinion?
Congratulations!
I wouldn't unless the inspection finds a massive problem. Like if the inspector thought that the whole electrical system in the house needed to be rewired I'd hire someone who specializes in electrical stuff to do a follow up but I wouldn't hire another general home inspector for a second opinion unless the original one gave me a reason to doubt their findings
 

Brando

"This guy are sick"
Member
Oct 25, 2017
1,288
Congratulations!
I wouldn't unless the inspection finds a massive problem. Like if the inspector thought that the whole electrical system in the house needed to be rewired I'd hire someone who specializes in electrical stuff to do a follow up but I wouldn't hire another general home inspector for a second opinion unless the original one gave me a reason to doubt their findings
Thank you so much for your insight!
 
Oct 27, 2017
4,560
Just had my offer accepted. The inspection is scheduled for Monday but should i hire another inspector to get a different opinion?

I would say only if he finds something big or specific, then you could find a special inspector for that kind of thing.

Also, if you can, be present during the inspection so you can walk around and learn from the inspector and what kind of stuff to look for in the future. My inspector was really good and gave me advice on how to proceed forward with certain things once I got the house.
 

Leona Lewis

Member
Oct 25, 2017
2,935
Yeah, it's wild. No idea what's fueling it to be honest. I just sold mine last week for $30k above asking (which, even before that, was $100k above what I paid for it) after half a day of showings, and with the additional contingency that they'd cover any gap between the appraised value and the sale price.

Insane considering I've done nothing to improve the place since I bought it five years ago.
 

Brando

"This guy are sick"
Member
Oct 25, 2017
1,288
I would say only if he finds something big or specific, then you could find a special inspector for that kind of thing.

Also, if you can, be present during the inspection so you can walk around and learn from the inspector and what kind of stuff to look for in the future. My inspector was really good and gave me advice on how to proceed forward with certain things once I got the house.
Thanks! I'm going to be present but they are not allowing me to go with them. I'm guessing this is because of covid, but I am meeting with them after they're done at the house.
 

Deleted member 41178

User requested account closure
Banned
Mar 18, 2018
2,903
My wife and I just had our house built, we've been working on this project on and off for about 3 years and thought that we'd be in it for at least 10-20 years.

Today my company announced that they are closing our office and we will all be WFH 100% from now on.

We're now considering selling up again and moving to our dream location closer to the coast, as much as I really want to do it I don't know if I've got it in me again so soon to deal with another move.
 
Oct 27, 2017
7,587
Lockdown for a month, not sure how that's going to affect the move. I mean we still (still!) haven't got a date but it was in all likelihood going to be November at some stage.
 

Waggles

Banned
Oct 26, 2017
3,180
So, anyone ever run into a type of plumbing called polybutylene?

I'm a first time buyer, and nearly went through on a home where one of my local repair sources pointed it out in an inspection photo.

anyone have any experience dealing with it? As a seller or buyer?

like even if I was able to afford that headache, the guy warned me to stay away from the property all together, now that I knew.
 

whatsinaname

Member
Oct 25, 2017
15,126
So, anyone ever run into a type of plumbing called polybutylene?

I'm a first time buyer, and nearly went through on a home where one of my local repair sources pointed it out in an inspection photo.

anyone have any experience dealing with it? As a seller or buyer?

like even if I was able to afford that headache, the guy warned me to stay away from the property all together, now that I knew.

Oh yeah, that's not a good thing I understand. Even if you are able to live with the potential drawbacks, you might not get insurance on it. And have trouble when you may have to sell down the line.

(Same with knob and tube wiring. I was warned to stay away from them.)
 

Whitemex

Member
Oct 27, 2017
15,717
Chicago
Uh....hey there. First post here.
My wife and I are selling and we got 4 offers today and having a hard time picking which one. I was wondering if I can get some insight and help here
SIMNO0b.png

My wife and I are between 2 and 4
 

Tapiozona

Avenger
Oct 28, 2017
2,253
Uh....hey there. First post here.
My wife and I are selling and we got 4 offers today and having a hard time picking which one. I was wondering if I can get some insight and help here

Cash is king since they won't be reliant on an appraisal and will normally close super fast. But lots of cash buyers are investors and this is where emotion comes into play. When we sold out last house we chose a family getting a loan over a cash investor because we liked our old neighborhood and wanted to keep it family friendly and investors were part of the reason for the housing shortage.

Edit:. There wasn't that image with the offers when I replied to your post.

Offer 2 and 4 seem like the obvious choices. Earnest money isn't that big of a deal because they can always get it back thanks to inspections. I guess it comes down to 500 bucks extra or closing 2 weeks earlier
 
Last edited:

Whitemex

Member
Oct 27, 2017
15,717
Chicago
Cash is king since they won't be reliant on an appraisal and will normally close super fast. But lots of cash buyers are investors and this is where emotion comes into play. When we sold out last house we chose a family getting a loan over a cash investor because we liked our old neighborhood and wanted to keep it family friendly and investors were part of the reason for the housing shortage.
The closing is not an issue because shit we haven't seriously looked for a house yet. We were unsure if we'd get offers this fast. It's only been 10 days and our first open house was today. Our asking is 265k which I honestly thought was too high but yet here we are. This is so exciting, frustrating and nerve wracking
 

BlackGoku03

Member
Oct 25, 2017
7,284
Fuck yeah, the seller accepted our counter. The appraisal was 10k less than the asking price. We countered to match that this past Friday and they took their sweet time and waited until today to confirm they accepted it.

Almost feels like they did it just to spite us for getting less than they wanted. Oh well, it worked out for us in the end and that's all that matters. 😂
Congrats man! Have you moved in?
 

Whitemex

Member
Oct 27, 2017
15,717
Chicago
Cash is king since they won't be reliant on an appraisal and will normally close super fast. But lots of cash buyers are investors and this is where emotion comes into play. When we sold out last house we chose a family getting a loan over a cash investor because we liked our old neighborhood and wanted to keep it family friendly and investors were part of the reason for the housing shortage.

Edit:. There wasn't that image with the offers when I replied to your post.

Offer 2 and 4 seem like the obvious choices. Earnest money isn't that big of a deal because they can always get it back thanks to inspections. I guess it comes down to 500 bucks extra or closing 2 weeks earlier
Yeah, our realtor agreed. She's going to tell the first offer if he can match the other terms first. But whatever, by mid week we should be contingent!!
 

greepoman

Member
Oct 26, 2017
1,980
The closing is not an issue because shit we haven't seriously looked for a house yet. We were unsure if we'd get offers this fast. It's only been 10 days and our first open house was today. Our asking is 265k which I honestly thought was too high but yet here we are. This is so exciting, frustrating and nerve wracking
The biggest catch in a hot market is appraisal value. I've known some people who got offers way above asking but then appraisal came in low and one case split the difference and another where it fell through. Probably not a concern in your case but just wanted you to have it in mind.
 

Whitemex

Member
Oct 27, 2017
15,717
Chicago
The biggest catch in a hot market is appraisal value. I've known some people who got offers way above asking but then appraisal came in low and one case split the difference and another where it fell through. Probably not a concern in your case but just wanted you to have it in mind.
Yeah. Comps in the area aren't too far off from us but what pushed us to sell this fast was a house that is nearly identical to ours a couple blocks away sold for 275k. So we'll see, but right now we're just riding this high.
 

Babyshaq90

Member
Oct 28, 2017
342
Yeah just watch the appraisal value. We put in an offer for 388k for a house with the seller paying 7k closing. House appraised at 371k and they countered with no 7k close since we were pretty much getting 17k off. I was fine with that end of day.
 

Rice Eater

Member
Oct 26, 2017
2,823
Congrats man! Have you moved in?

Thanks man. We just closed on Thursday and moved in this past Friday. House is a mess right now, we have a lot of work to do but we're looking forward to it.

Oh and I tried to change one of the light switches and caused something strange to happen. The laundry room now controls the living room light and fan. Welp, that's probably another 100+ to an electrician since I don't know what the fuck to do 😭
 

Deleted member 3010

User requested account closure
Banned
Oct 25, 2017
10,974
Me and my GF are looking for a house since about a month. A 1975 bungalow which got the whole relooking stuff well really catched our eyes but after the inspection, our inspector recommended that we call a drain specialist, which we did. Dude found a correction that needed to be made with the sewer, short term (about 3K to fix) and the original drain was broke at two places (2K to fix but 15K to replace the whole thing around the house.). Among a bunch of old pipes and electric outlets not up to the code. Dude flipped the house but not the important shit.

Then the dude was willing to drop the house 5K$ but hell, I thought it wasn't really productive to patch an end-of-life drain, broken at two spots which prevented us from looking the entire north side of the drain which potentially hide a third broken part. So in the end we made an offer that would cover both fixes and the guy just refused, not even an counter-offer. :|

We'll be probably looking for something newer now. There are some semi-detached that have enough space for what I'd like, too. My fear with those always are neighbor related, that's a coin flip. The middle wall will need to be properly sound proof, too.
 

Whitemex

Member
Oct 27, 2017
15,717
Chicago
Just signed the the acceptance offer for 2k above asking. Our realtor got them to agree to buying as-is and push the closing date 2 weeks to the 29th of Dec. Riding high tonight on this. Going to start looking at houses tomorrow
 

hom3land

Member
Oct 27, 2017
2,619
Finally got an offer accepted with embarrassing amount of over asking price and due diligence. At least we were able to lock in our rate at 2.25. The housing market is just disgusting.
 

elLOaSTy

Member
Oct 27, 2017
3,880
Finally got an offer accepted with embarrassing amount of over asking price and due diligence. At least we were able to lock in our rate at 2.25. The housing market is just disgusting.

Damn, I thought the 2.75 we got in Aug was nuts. We got lucky though with the process since it was new construction so it was just asking price and really straight forward.

Cudos and congrats on the home.
 

hom3land

Member
Oct 27, 2017
2,619
Damn, I thought the 2.75 we got in Aug was nuts. We got lucky though with the process since it was new construction so it was just asking price and really straight forward.

Cudos and congrats on the home.


Congrats to you too! I would have loved it if new construction was an option but all new construction in my area starts in around 400k. My first house was new construction and the whole process was such a breeze.
 

elLOaSTy

Member
Oct 27, 2017
3,880
Congrats to you too! I would have loved it if new construction was an option but all new construction in my area starts in around 400k. My first house was new construction and the whole process was such a breeze.

Thanks! It's wild to think I still havent gotten over the fact that we own a home now. Only a few years ago I was still very very broke with so much debt and living in a pretty unsafe rundown place.

I feel like we need a home repair DIY thread. I'm getting into this shit bigtime. We're painting all the walls, and my first ever work bench just came. Have lots of cool projects to do now.
 

ferma

Member
Oct 27, 2017
158
La Jolla
San Diego ERA -

Finance calculators suggest I can afford a $360k house. My lender and agent suggest $430k considering deductions. Anyone have experience with this and can shared some light?
 

whatsinaname

Member
Oct 25, 2017
15,126
San Diego ERA -

Finance calculators suggest I can afford a $360k house. My lender and agent suggest $430k considering deductions. Anyone have experience with this and can shared some light?

Those online calculators all threw out some crazy high numbers for me tbh. If you are counting on deductions to hit your purchase price, you are playing with rather fine margins I would say.
 

Lumination

Member
Oct 26, 2017
12,646
I'm not thinking of selling my home yet, but just so I have an idea of the math I have to do. I have to pay federal + state income tax on the profit made from the sale, right? And then I also have to pay for the realtor. So napkin math, my cost will be roughly 30% of my profit + 4-7% of my sale price? Not forgetting that profit is defined by sale price minus depreciated home price.
 

whatsinaname

Member
Oct 25, 2017
15,126
So I should probably not consider tax deductions when considering the purchase price?

Yeah. We never know how the tax rules might change. Trump's SALT limit hit some high property tax states hard. We don't know how next year will look.

Don't count on bonus pay, overtime pay or any income that you feel might be vulnerable.

(This is all a more personal risk discussion I guess. The mortgage lenders will try to push you to the limit of course.)
 

maximumzero

Member
Oct 25, 2017
23,062
New Orleans, LA
Wife and I have been trying to buy a house for a little over two years now. Finding a place that's in our price point that isn't a total dump has been difficult. We've already gone to inspection twice and had to bail because of a litany of unseen problems.
 

whatsinaname

Member
Oct 25, 2017
15,126
I'm not thinking of selling my home yet, but just so I have an idea of the math I have to do. I have to pay federal + state income tax on the profit made from the sale, right? And then I also have to pay for the realtor. So napkin math, my cost will be roughly 30% of my profit + 4-7% of my sale price? Not forgetting that profit is defined by sale price minus depreciated home price.

Actually, not 30%. If your profit is less than $500k (or $250k if you are single), you won't have to pay tax on that.

(i.e. considering you have been living in the house for a reasonable amount of time).
 

SOLDIER

One Winged Slayer
Banned
Oct 26, 2017
11,339
I may have enough funds to give independent living a try.

I just wanted to know if "now" was a good time, as in rates being at an ideal low to get in now vs waiting a little longer. As far as the market goes, when would be my best bet?
 

ferma

Member
Oct 27, 2017
158
La Jolla
Yeah. We never know how the tax rules might change. Trump's SALT limit hit some high property tax states hard. We don't know how next year will look.

Don't count on bonus pay, overtime pay or any income that you feel might be vulnerable.

(This is all a more personal risk discussion I guess. The mortgage lenders will try to push you to the limit of course.)

got it, thank you!
 

Lumination

Member
Oct 26, 2017
12,646
Keep in mind that's profit...not actual sale price. So sale price minus what you bought it for. So unless your house had crazy appreciation it's generally not hard to avoid tax.
Yup, I understand. Taxes are always on income. I've just owned for a bit is all.
So above that $250k, it is counted as long term capital gains. So you have another $40k on top of that at 0% if you have no other capital gains that year! Then 15% tax after that.
Ah, I didn't know it would be counted as LT capital gains. That's great to know. Yup, that $40k is pretty much the basis behind tax loss harvesting, haha.
 

Sadsic

Banned
Oct 25, 2017
1,806
New Jersey
Got my offer accepted on my first house a few days ago with a 10k seller assist and 6k worth of work being done by the seller - its a big house in a nice suburb and pretty much way better than what I expected to get so I'm pretty much just bragging here lol
 

Xero grimlock

Member
Dec 1, 2017
2,947
So, anyone ever run into a type of plumbing called polybutylene?

I'm a first time buyer, and nearly went through on a home where one of my local repair sources pointed it out in an inspection photo.

anyone have any experience dealing with it? As a seller or buyer?

like even if I was able to afford that headache, the guy warned me to stay away from the property all together, now that I knew.
I'm a plumber and am very familiar with polybutylene so I can give you some general knowledge which you may already have and you can pm me for more. As you may know its been outlawed due to its high failer rate, and it will fail. I've had people that have had it for 25 years and only had to do 1 or 2 repairs, but of course that included very minor water damage, to multiple leaks in a few years forcing a recipe. the good thing is, is that its pretty easy to repair and repose as it works essentially just like pex, if its a multi level unit thats a lot of wall opening. also stay clear of cpvc (yellow hard plastic pipe)water piping as it gets brittle and breaks, and shutoff valves that are grey. they are known as quest valves and are essentially polybutylene shutoff valves and they don't leak when they fail they explode off, though I usually see them installed on copper pipe.

Back on topic my wife and I have started looking recently in tacoma area of Seattle. We have a budget of 300k. and know we will need to go 45 min to an hour away, though we looked at a very nicely remodeled manufactured home (i mean like quartz counter tops) that just dropped in price from 300k to 289 and were willing to drop to 280 if we cover closing costs. and with a fha loan with down payment assistance, that would be really great for our first home, though I'm not thrilled about the toll over the narrows.
 
Oct 27, 2017
8,003
Got my offer accepted on my first house a few days ago with a 10k seller assist and 6k worth of work being done by the seller - its a big house in a nice suburb and pretty much way better than what I expected to get so I'm pretty much just bragging here lol
That's great, congratulations! Brag a little, buying a house is a big accomplishment
 

water_tempo

Member
Oct 31, 2017
115
I hope I can ask a dumb mortgage question here.

My spouse and I want to refinance with cash out to do a renovation (estimated $100k US). We plan to be here at least 10 more years (but will stay probably closer to 25 years):
  • Our original loan amount was $188k; current balance is $171k
  • Loan originated in 2016
  • Current interest rate is 3.625%; our monthly payment (just principal and interest) is $858/month; amortized the principal + interest is $264,300.
  • Our credit scores are excellent (I think it was 820 for us both, last time we checked).
I popped numbers in to Lending Tree to get an idea.
  • our best option at 30 years is 2.490% with $91,818 cashout; monthly payment jumps to $1,034; amortized the P+I is $373,300 ($110k increase)
  • our best option at 15 years is 2.404% with $97,054 cashout; monthly is $1,770; amortized the p+i is $319,500 ($55k increase)
I know I also need to account for closing costs, but am I looking at this wrong? It seems like if I do this, I can withdraw nearly $100k on 2.49%. That seems like a good deal, but I feel like my brain is oversimplifying it and I am missing something. Just comparing the amortization schedules, I pay an extra $50k over 15 years and get $100k for the house now, right? Like I said, I just feel like I am looking at this wrong and I can't determine if it's "good" or not.
 

ThiefofDreams

Banned
Oct 27, 2017
1,481
Welp, I just sold my house for 105k more than I was asking for it back in feb. So I'm pretty happy lol. Now its just the wait for the market to settle down so I can actually use my money to get more house.