Sunday, March 26, 2006
Help Wanted
Here's the deal: Chris and I are seriously considering looking for a house to buy, but we need encouragement. We feel that buying a house is a huge step that will determine our placement for quite a while. As you know, Chris is working in Delhi and I will be commuting to Ruston for another year. The most logical location would be West Monroe. Should we go for it? It makes sense to us in many ways and we're excited, but when we get excited we usually make impulse decisions. I know a lot of prayer is needed on our part to see if this is the step we need to take, but I'd like to hear what anyone else has to say, too, good or bad.
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3 comments:
Hey Denise~
If ya'll would like some help with the whole buying a house thing we would be glad to, since we have been there done that. There were a lot of things I never knew about! Just let us know!
Jamie V
Denise,
Will and I have been wanting to buy a house for awhile. We came really close to doing so about two years ago. When we went through the whole process, we really didn't know what we were doing, and what surprised us the most was the amount of money it took for things like inspections and appraisals and closing costs. If you have the money saved up for your downpayment, you are already ahead of the game. Just make sure you have enough money for everything before you start the process of seriously looking and talking to banks about loans and stuff. That's why we have yet to get a house. We don't have enough money for all the upfront costs that come with buying a house. And if you don't have all the money needed, buying a house is a very stressfull process, even if you do succeed in the end. I hope everything works out for you I'm sure you'll make the right decision.
p.s. It's kind of hard to buy a house on impulse. It's very easy to see a great house that's out of your price range and think you can actually afford it (this happened to us), but you quickly realize that it's out of reach. But if the right house comes along at the right price, and it's meant to be, I would think that things would go smoothly.
I'm sorry for the epic post.
Definitely plan on 5% for the down payment, a few thousand, or approx 3% of the asking price, for closing prices. So on an 80-100K home, figure anywhere from $6,500 to $8,000.
Then remember about buying appliances, paint, carpet, any improvements or repairs.
Dave Ramsey reccomends paying of all other debts (vehicles, student loans, credit cards, etc) before going for a house.
At the least, stay away for Adjustable Rate mortgages, interest-only loans, or other non-traditional mortgages. These may sound like a good deal at first, but they typically are more benificial for the lender than the lendee.
Your best bet is a regular fixed-rate mortgage, either 30-years, or 15-years if you can swing it. The 15-year mortgage is a bit more every month, but basically means you pay for the house 1.5X as opposed to 3x with a 30 year (a lot less interest).
The West Monroe market is pretty good right now, the prices are reasonable, there's a lot to choose from, a good job market.
You'll want to make sure that you'll probably be there at least a few years to re-coup all your closing costs or that the area is good enough to sell your house quickly if you suddenly have to move far away.
Make sure you are very sure about the area's long-term stability and safety. You don't want to be in an area that's "going downhill", just so you can get a good deal on a house. You also want to make sure there's not going to be any massive development (say, a new highway or a Lowes) being build right next door. You'll want an area that's desirable to other people. So typically that means areas that have traditionally been safe and quiet streets and near public schools with "good" reputations.
And safety, of course. I wouldn't let my kids roam any neighborhood these days, but anywhere where you can comfortably walk the sidewalks or play in the front/back yards without fear. A house in a non-rental neighborhood, since you don't really know who might move in next door and how they might affect your property value.
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