I found a house.
It is 6 years old, corner lot, zero lot line, single story, 3 bedroom, 2 bath, 2 car garage alley-way house in one of the communities I wanted to live in. I want a zero lot line house because I really don't want to worry about yard work.
There is a small front and side yard (in front of house is 3 feet wide by length of house, about 20 feet, it is a very small yard!) HOA fees are $32 a month (pays community lighting and watering of two parks in area).
PITI payment would be about 23% gross, 30% net. I have a friend and colleague (different area of the department I work in) who wants to move out of the house she has been sharing and wants to downsize to one room. Offered $400 a month and part of utilities which would be amazing. I would take her because she is in her mid 50's, going back to school to complete her BA, and goes away every third weekend to visit her adult kids about an hour away.
I can afford the house without a room mate, her rent would just be more I would use to pay off the house.
I am trying to figure out the Calpers loan process because colleagues have said it saved them money in the end. Of course, it is a weekend, the house just came on the market and this model (single story) in the community sells very quickly.
I just don't know what to do. I have wanted to be in my own home for several years, and here is my preferred house design, two miles from my office!
It would be a conventional loan as the FHA loans now have that PMI that is permanent. Have a percentage to put down, not as much as I wanted but with a room mate I would make up the difference.
Thoughts? Things to consider? Tax ramifications of buying a house? What can I write off in the first year (e.g. 2013 taxes)?
Comments welcome.
(and does anyone know what is going on with the "" things on the web page?? it is driving me nuts for the past couple of weeks.)
Do I or don't I?
November 10th, 2013 at 05:12 am
November 10th, 2013 at 12:34 pm 1384086899
I don't know your situation but certainly look into it when the banks open on Tuesday. If this one gets under contract before you have your financing in place, at least you will be ready for the next one.
November 10th, 2013 at 04:43 pm 1384101837
First thing would be to secure financing. Find out how much in closing costs and everything you would need to pay.
It sounds great, but could you afford the house without a roommate? (Just in case.) If so, I'd do it!
The "" thing is driving me crazy too.
November 10th, 2013 at 04:56 pm 1384102614
November 10th, 2013 at 07:57 pm 1384113429
If you decide to go ahead with an offer, hire the best appraiser and home inspector recommended. Make sure you go through the property with the home inspector to see potential problems. Check out the reputation of the builder if at all possible. 2007 was a high point for home sales, was there any shoddy work? The appraiser and inspector should be able to comment. It's only 6 y/o so builder problems would have been resolved and fixes will be a number of years away.
How exciting to consider taking this big step forward into home ownership
November 10th, 2013 at 08:43 pm 1384116196
November 10th, 2013 at 08:52 pm 1384116775
People seem to love living there.
I will definitely have the house inspected and appraised. I won't go above appraisal price.
Will play banks off each other for best mortgage.
I also called and got the utility bill estimates for the house based on the past year. It is only about $40 more a month than I am paying and they had a family of two parents and one child living there.
I wont't wait for 20% down but I can qualify for a mortgage without PMI based on my familly's military service.
November 11th, 2013 at 12:20 am 1384129202
November 11th, 2013 at 12:38 pm 1384173530
November 11th, 2013 at 05:16 pm 1384190170
And an alley way house means that the houses on two streets back up to each other and have one common "drive way" into their garages. So there is no parking other than the garage, no slab in front of the house.
While I love the house and it is exactly what I want, it got four offers yesterday alone. They expect it to be pending by this evening.
I am trying to figure out how purchasing a house would mean I could adjust my withholding but my accountant is on vacation this week. I currently claim zero for fed and 1 for the state, partly because of the business I run and I never know how much money I will earn.