19 Dec 09 First Time Home Buyer – Tips?
Tags: Bank Owned Property, Beautiful, Burst Pipe, Carpeting, Dry Rot, First Time Home, First Time Home Buyer, First Time Home Buyer Tips, foreclosures, Furance, Home Buyer Tips, Midst, Mold, Mortgage, Tax Purposes, Terrible Shape, Time Home Buyer, Warwick Ri, Window Sills
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5,ooo down? is that all? wow! you should be glad you do not! live in southern california! the median price of a junk!! home is over 650,000 dollars and you would need about 30,000 down payment! of course, rhode island is the worst place on earth to live so the cost of housing is cheaper!!
Tropical Fish Care
Have you gone the bank to prequalify. They wil be able to tell you if 5,000 is enough and what the interest rate will be.
Jump Higher Tips
What is the worst the bank can say – no?? If it’s in forclosure, they usually want to get rid of them. I would make sure the Foundation is secure, if not you are going to pay ridiculous costs to have it redone. Also, the mold is a terrible issue. My dad’s sump pump quit working and he hadn’t gone to his basement in weeks and it was flooded. It took close to $40,000 to get the mold problem under control and given a clean bill by a health inspector. So, with everything else you have going on like the furnance and the siding which are extremely expensive to replace, I would think a bank would jump at an offer of $190,000. You are going to have at least $50,000-$100,000 in fixing it up!
As for the person in California, we have a ranch home that we built 10 years ago and it’s on 3 acres. In California, our property would appraise for at least $2-$3 million! Thank goodness we don’t live there – couldn’t afford it. The home cost us 5 figures to build.
Just remember, it this house is meant to be yours, it will happen. If it doesn’t, realize that there is something else out there waiting for you.
Quick Baby Showers
The house needs so much work, that even if your offer is accepted, you will have a very tough time getting a bank to lend on it. Your appraisal will come back incomplete with a “cost to cure” without siding, and other multiple issues. Honestly it will be much more of a headache than it is worth as a lot of foreclosure homes are. You would need something called a rehab loan which are very tough to come by, and if you got one, you would have to get a whole slew of estimates to be approves by the bank’s appraiser, money would be given to the contractors to complete the work, you can’t do it on your own, and they give you time requirements which if nt met, means thay will recall the loan or take the house. Do your homework, find a house in better shape, and you will have a much easier time. I have been a loan officer for 7 years and can’t tell you how many times I have seen this situation, and it is never good, unless you know the obsticles ahead of you and are educated enough to deal with it. If you need any more information check the website below, and/or email me. Good Luck!
Need Mystery Shoppers
I just bought a house last year for 62,000 and got approved for 100% financing and it went wonderfully. But then again my house was completely remodeled on the inside and only needs work on the outside. But if I were you I honestly would not buy this house unless you are up for taking on the major tasks ahead of you. Since there isn’t afurnace then you aren’t going to have to heat this winter {just incase you don’t get a furnace}. The mold in the basement can be a huge problem and can cost a lot of money when it comes to cleaning it up and getting rid of it, I have seen houses condemned because of a mold problem. And if they are pricing a house at the same price for a house in “perfect” condition, then you are really getting ripped off sweetie. I would look for a better house else where or just move to the south where everything is cheaper LOL
DVD Decoders
There are some things you need to be aware of regarding the financing. In your negotiating you need to make the owing bank agree to all required repairs.
That home will not be eligible for financing in it’s present state. Mortgage investors have specific guidelines for property which include the home be free of any structural and/or safety defects prior to closing.
At a minimum the following will need to be fixed before you will be able to finalize your loan.
Repaired or replace furnace
new siding or, at a minimum, primer over all exposed wood on the exterior
mold abatement
dry rot repair
as well as any repairs cited by the pest and dry rot report the appraiser (if he/she is worth the fee) is sure to make the appraisal subject to.
If I were you I ‘d make my offer subject to an acceptable full home inspection, you have no way of knowing what else may be wrong with this house without one.
Foreclosed homes generally exhibit some deferred maintenance, this one sounds not only deferred but abandoned. BE VERY CAREFUL!
Rent the movie The Money Pit, yes it is a comedy but too true.
Stop Smoking Guide Review
Our first home was a HUD house, and we bid about 85% of the asking price. Try that as your starting point and you can negotiate up from there if you like. Be sure to also subtract the cost of all of the repairs you’ll need to do from your offer price.
Also, see if RI Housing can provide you any assistance with the downpayment or closing costs.
Good luck – Warwick is a great area!
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