I need some advice..?
Ok, I’ll try to keep this short…
My lease at my apartment is ending at the end of December. I really don’t want to stay in my current complex mainly due to recent problems with several of the new neighbors in my building…loud, lots of people living next door (like 3 kids and 3 adults in a 600sf apt)…it’s just become uncomfortable living here. Anyway, I need some advice on what I should do.
Like I said the lease is up at the end of December. I’ve basically decided to tell my complex that I’m not going to renew but will go month to month through January 31st.
In the current "financial world" would you A) Start looking for a house to purchase? or B) Start looking for another apartment to rent?
I REALLY don’t want to move into another apartment where I’m just throwing my money away every month, but I’m also afraid that I won’t be able to afford a house.
I just don’t know what to do or where to begin in the process of home buying. I live just north of Orlando, I know what I’d be able to afford a month, but I don’t know if it’s feasible for the area I need to be in. Ugh…I’m just so confused and the clock is ticking…
I suggest you start by visiting your bank or credit union and see if you pre-qualify for a loan. They will be able to tell you, within a day, whether and for how much you qualify. You can also go to a mortgage broker, but you can usually get a better rate at credit unions/banks. Then you can see whether it is feasible to find a property for that amount.
Make sure you take into account taxes, insurance, and any condo fees into what you can afford monthly. NOTE: YOU decide how much a month you are comfortable with! Just because on paper you can qualify for, say, $1,500 a month, if you know you struggle to pay more than $1,000, stick with the $1,000. It will give you a lower total price on the house you can buy, but at least you’ll get to keep it!
And you’ll need at least 5% for down payment and/or closing costs. Do you have that saved? You’ll need to show it in the bank. If you do not qualify for FHA, you’d need more.
Then, go online to realtor.com or a local realtor’s website that lets you search the MLS, and see if you find any properties that look interesting for the total amount you can afford. If you find something, then you can call a real estate agent and start looking at those properties with them. They can take it from there.
Orlando is one of the top 10 areas in the country for foreclosures. You might be able to find a great deal right now. But on the other hand, will you qualify for a loan, or have money down to purchase that house you might want? Go to a bank and get pre-qualified to make sure you can afford a house, how much, and what the monthly payments would be. You will also find out if you would actually qualify for a loan in today’s market. Sometime a mortgage payment isn’t that much more than a rent payment. If, after doing all of that you do not qualify, you will have to start looking for someplace else to rent.
If I am not sure I can afford it I would take it slowly and not rush into buying a house. It is a serious and very important decision so, if the plan is to purchase a house any time in 2009 I would go month by month in my current apartment while doing my homework.
Good luck!
Buying house isn’t a joke for people like me and perhaps you But if you can somehow afford to,buy it even at the cost of comforts! .
So, the clock is ticking?
Getting a mortgage right now is really hard since you need to make at least 25% down payment, and have a good credit rating. If you can make the required down payment, then my advice would be really simple. You see, right now is the moment when people would generally say that don’t buy, while in reality there are so many sellers who would literally give you bargains right now.
That is when you plan to buy a home, ask 15%-25% lower price from the actual price they first asked you. Some sellers do not agree with lower price, but there are a lot of sellers who can give you a house literally for "free".
So, Is It the Best Time For Buying A House? Read This:
http://www.freetomanifest.com/investment_property_rates.html
If you can not get a mortgage, then just rent.
make sure you first give notice before Dec 1….some states allow for landlords to demand 60 day notices….if you don’t you could find yourself paying more for rent as a hold over tenant….the apt complex would love that…
I would downsize…and spend the next six months paying off consumer debt (credit cards/cars/etc) and saving like crazy….
You will need at least 10% down AND good credit….
Certainly don’t spend your good money on rent in a building where you are uncomfortable…
Make the clock stop ticking by renting until you have figured out whether you can afford a house.
Don’t get talked into a bigger loan than you can afford.
Don’t get talked into an interest only loan.
Don’t get talked into a loan with a variable interest rate.
Don’t assume that house you are buying will increase in value right away. It may take years.
These are all things that have gotten people into trouble in the last year or two.