So I'm supposed to sign the contract on a house today...

I'm kinda nervous about the whole thing, as it's kinda a 30-year commitment. But at the same time, I want to start building equity, so... Do I just sign the contract and put down the deposit? If I decide later that I don't want it, I figure I lose $15k...

I didn't get much sleep last night...

try to sleep 1 night at the house

ALWAYS check for ghosts

Erm depends on the area, I suppose, and the house itself. Good house/area?

I would go for it. I'm stuck renting atm and its a black hole for your cash

Perhaps you should start charging service fees.

Nice location, new builds, and the square footage is more than I've found on anything else at the same price. The lot is small, but I don't really mind that.

I have this stupid 30 page contract I have to read and sign... I hate this stuff. It seems like it might be a good decision, but it's really hard to know without having the actual terms of the loan and knowing exactly how much other expenses will add up to, and I'm not sure I'm ready for that kind of responsibility yet..

On the other hand, if I get a few roomates, it will be a piece of cake and I might actually make a bit of money off the thing. It's really wierd, part of me really, really wants to do it and at the same time part of me really, really wants to just back out.

couple things - the chances of you (or just about anyone) staying in the same house for 30 years is slim. People buy and sell constantly- which I assume you know. So regardless of the terms of the mortgage, it's not a bad thing to own a house- in any market.

also, If it were me buying a house, I'd ask a real estate lawyer for guidance on what's in the contract you're looking at- I don't really understand what you mean when you say

wouldn't it be a good idea to know the terms of the loan ahead of time so you actually CAN figure out what your expenses will be, and maybe begin to estimate what other costs you'll ahve to be aware of when becoming a home owner?

That seems to me to be about the biggest (most important) part of anything you'd be interested in buying...

Talk to a bank about it- talk to a lawyer about it, talk to your parents about it (they've probably gone through this all before, right?).
Talk to real estate people about it- talk to anyone who might have some experience in owning, renting out a place, whatever-
This is something of a surprising post coming from you since you don't seem like the type of kid to do things in half measures- why would this type of situation be so different from anything you'd want to do- research it, get as much information as you can about it, and then you have something to start with in order to make your decision...

Right, but it's a 30-year loan, and unless I can sell the house for what I bought it for (shouldn't be a problem in five years though), it's still a 30-year responsibility.



The problem is, it's a new build, so the house won't actually be finished until four to seven months from now. They haven't started on the construction yet. I won't actually have to get the loan until closing time. I only had to get pre-approved, which doesn't tell me anything about what the terms of the loan will be, but only that I'll be able to get a loan. When I asked about monthly costs, she figured in a 6.325% or so interest rate, so I really have to just go on that assumption.

And I do have pretty much all the information I can get. I talked to speculators I know about the future market, my parents have been involved in the whole thing, and I'm even going to call my uncle today and ask him if there are any causes for concern in the actual land/foundation. But at some level, there is always the possibility for it to work out perfectly and for it to be a complete disaster.

she- who? The real estate agent who wants to sell the house?

I still think you'd do well to talk to a bank about it- have you already been pre-approved by them or are you going through a mortgage company or what?
Actually it doesn't matter- all I'm telling you is don't just make a stab in the dark about it- contact people who do this for a living and find out what your options are and what kind of risk is involved in the type of purchase you're looking into right now.

A thirty year mortgage used to be a fairly standard term- but with the real estate market turning into what it has over the last ten years or so- maybe that's changed- I don't really know- nor do I think anyone here would have a load of experience in this kind of thing either.

I think it's fine to get people's opinions, but ultimately this is the kind of thing
where you decide for yourself what you can or cannot handle at any given point in your life.
This is why I'd get as much information from as many places (mortgage companies, lawyers, banks etc etc) as possible beforehand so that I'd know what I was in for upon completing the purchase.

Certainly I wouldn't take the guesstimate of just one person.

$úñ_DëV|L, don't forget about the tax advantages to buying a house. Good luck!

I sell real estate. AT's what I do. I don't know much about your specific area, but generally speaking it's a strong investment over time. Congrats on the purchase.

How'd you write his name like that?

Come on Frank join the club, everyone's doing it.

$úñ_DëV|L

I'll be in your shoes by the end of the month SunDevil. I have the same doubts, the same "what am I getting into?" feelings as you. I know it's for the better but to see that you're on the hook for something that expensive until the year 2037 is on the overwhelming side.

$úñ_DëV|L

Yay! I did it!

I was in the same situation a few years ago and ended up buying a modest place in Pittsbugh and have no regrets...

Some things to consider:

- Closing costs: lawyer fees, agent fees, title insurance, down payments, pre-paid property taxes, home inspection (I guess not if this is new construction), etc. These can add up quickly.

- In addition to your mortgage payment (interest and capital) you'll be making monthly insurance and property tax payments. Make sure you can afford those.

- Try to figure out what your monthly utilities will be. Your heat/cooling bill will likely be a lot higher than when you were renting.

- Going with roommates is a good idea, but make sure you want to be a landlord. You're the go-to guy if the toilet stops flushing, a window breaks, the hot water heater stops working, etc. In a new house, you should have fewer problems, but you'll inevitably have something go wrong. Be prepared to deal with that. Also, are you planning on renting to strangers, or friends you know? I rent to two friends, and it's great... we all get along really well. But I know people who rent out to guys they find on Craigslist and a lot of problems have ensued...

Everything's worked out great for me, and good luck as you move forward...

I feel like you're making this up

If you don't have tons of cash available at this very moment (aka - at closing), your Realtor should be able to get the seller to pay the closing costs FOR you if your Realtor knows what the hell he/she is doing. Especially in today's buyers market.

You can also have your taxes paid via escrow. They charge a nominal fee, but that's one less check you have to write throughout the year.

I have no idea on the US property market nor the tax consequences of owning your own home over there. What I do know is that buying our house (in Oz) was one of the best decisions we ever made.

At the end of the day if you can afford the repayments (and even better if you can get others to share in the costs through subletting rooms) the capital growth is a total bonus.

The thing is, once you do the deal the house and land is yours, locked in at that price. If (when) the value goes up over time, that growth is all yours.

I mentioned this in a previous thread, and obviously this depends on your specific property market, but our house has earned more than me or my wife for the last few years!

Good luck. It's a big step but a pretty exciting one.

I have a pretty good idea as to what the monthly costs will be as far as mortgage, etc. go. Alot of that depends on the interest rate though, which shouldn't go up due to the depressed housing market. I am trying to find the roomate among people I know or friends of friends if possible, and I don't have a problem throwing someone out if they don't take care of the place.

I actually don't have an agent, so I was able to save $5k that way.

I signed the contract and everything, so it's all but final now... I don't have as much doubt now as I did earlier today, although I'm still a bit uneasy, but I suppose that is natural.