Decisions, decisions
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Decisions, decisions
| Wed, 04-18-2007 - 10:44pm |
Our school board approved our new salary schedule for next year at their meeting last night.
| Wed, 04-18-2007 - 10:44pm |
Our school board approved our new salary schedule for next year at their meeting last night.
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Well girl... I have all kinds of "advice" I can give you... but I am cautious to throw it all out at you at once as I know how insanely overwhelming it is when you first start trying to gather information! I cried when I realized how complicated it all was! (maybe you've already made it past that stage!?)
I've started working on a reply - I'll be back soon!
And CONGRATULATIONS on your raise - that is FANTASTIC!!!!! :)
Hey, Shy-
I know the home buying stuff can be super scary the first time (and a pain in the rear every time) but a great first step is to take a first time home buyers class. They are usually free (required if you're using any kind of first time buyer's assistance program) and a good one will give you a LOT of information on everything from down payments, all the different kinds of mortgages (i.e. A.R.M.s are bad!) and even details on buying procedures like pre-approval for a loan and home inspection.
Definitely ask around about realtors. Some can be awesome and will work to find what you need AND want and some are just in cahoots with finance people to get the most amount of $$ out of you. Word of mouth is the best (and only, if you ask me) way to find a good realtor. Some signs to look for: don't let them make you sign any kind of commitment contract until you're clear on what you want. Don't let them convince you of something that's "only $5,000 more." I think it's like buying a car but on a much grander scale. If you feel uncomfortable at any point and feel like your questions aren't getting answered, shake their hand and tell them goodbye. It sounds harsh I guess but the way the market is now, times are a little more desperate than even a couple years ago.
Another thing about townhomes and condos. Association dues tend to cover everything outside the door frames, including insurance. This means things like roof leaks, railing replacements, liability insurance, etc. are all covered by the HOA. You are only responsible for what's called Content Insurance which is cheap- mine is about $15/month, I think. It covers a million and a half dollars (literally) in any kind of damage- flood, fire, robbery, etc.) This might be different in your state but I cannot imagine that it's any more expensive than here.
Also, association dues cover things like trash, snow removal, outdoor maintenance, sometimes security, etc. which are all things you'd be paying for separately in a house. There are appeals to a house but for me, I don't have time to mow a yard or shovel snow (nor the desire) so my condo set up is perfect for me- and I do have a dog.
Anyway, just some things to think about. I hope this doesn't sound like a lecture, I just wanted to give you some encouraging information so it didn't all seem quite as overwhelming.
Good luck!
Lesley :)
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Fabulous advice that I forgot to mention!
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Unethical behavior should be reported to the Association of Realtors. They have a strict code of ethics. Remember - there is a difference between a "real estate agent" and a Realtor.
As you know, I bit the bullet and bought my first place last summer. I chose an older townhouse with a small yard/patio area, so that I could have a place to garden without having major yard work. It is also in a nice neighborhood where I couldn't afford a single-family home (yet). The location and the yard finally sold me.
I think there are pros and cons to either side. The HOA fee is definitely a con, but they are paying to reroof everyone's place and refence everyone's yard this year. The cost of those repairs would be many times more than my yearly dues, so I think it's worth it. Plus, they do snow removal, take care of plants and it pays for the community pool.
As for deciding whether to buy at all, I say go for it. It's an investment. When I realized that, in my many years of renting, I had paid more than $60,000 in rent - that was the clincher for me. That money went nowhere. My mortgage is higher than my former rent in an apartment, but it's going toward something. I feel good about that.
With the timing, that's up to you. There are so many first-time homebuying programs out there that you don't need a huge down payment (sometimes even no down payment). (Ask your school district's HR department - I bet there's even a program for teachers). If you buy now, you get the benefit of those programs, plus an extra year of building equity. If you wait, your payment might be lower because you have more of a down payment. BUT, interest rates COULD go up, so you're difference might not be that huge.
I used a down-payment assistance program from my employer, and a lower-interest rate first-time buyer's program from the bank. My realtor helped me find the bank program - so I'd start there. Interview a few realtors and mortgage lenders, drive around and get a feel for neighborhoods, and go from there.
The timing is always a bit of a gamble - so do it when it feels right for you.
GOOD LUCK. :) It can be stressful, but it is fun in the long run and feels really good to buy a place as a single woman.
AJ, enjoying life with C.
>>I have no idea why they were that high, but it pizzd me off everytime I had to send the check off. <<
They usually include homeowners insurance fees - that's part of why they are high. Shy - you will have either HOA or homeowners' insurance costs -- so there's extra money involved either way. Mine also covers water, plus all exterior building maintenance, landscaping, etc. (Mine is quite a bit higher than $130, btw -- that will vary in different areas of the country).
Also, the larger the place, the more you pay in property taxes. All of these things will end up being factors in the bottom line price.
These issues are why it is so important to find a realtor you like and trust. I loved mine - he was like a dad, walking me through all these things and bringing up issues I never considered. He very wisely (for me and my circumstances) steered me away from a much older single family home because of the many, many potential home repairs.
If you do end up somewhere with an HOA, be sure to read the bylaws before you put an offer in. I almost put an offer on a place, then I learned they didn't allow dogs. Part of me wanting to buy a place was so that I could have a dog, so that was a dealbreaker.
Also, some HOAs DON'T cover building exteriors. The fee will be MUCH lower, but then you have to fix your own roof, siding, patio, etc. My second choice place was one of these - and I finally decided I didn't want the hassle of housepainting, etc.
Just food for thought.
AJ, enjoying life with C.
"They usually include homeowners insurance fees - that's part of why they are high." Yes, this is what I thought I understood to be true, until a pipe burst in my dining room. Nope, turns out, I had no home owners insurance, even though I was told that it WAS included in the association fee when I bought the condo. This is why I ended up filing bankruptcy and had to default the loan, $20k in damages. There was no way I could have paid for it. I should have taken them to court, in hindsight.
Shy, make sure you have a thorough list of everything included in the fee should you decide to buy. Then, if insurance is included, make sure you read what that covers, carefully, and get a copy of it. I realize this is probably common sense, but it was knowledge I did not have five years ago that I wish I had.
Edited 4/20/2007 1:48 pm ET by cfk_3
Well, I've been on my own little home search the last year. Actually alittle longer than a year as I initially started looking for a house on my own early last year. Then P and I decided I'd move in with him. And now we've been on a new search ever since.
We came very close to "leasing-to-own" a home up by I-29 and 435 (have you heard of them? Northcreek http://www.genesisdevelopmentteam.com/comm_detail.php?community=3) that situation went TERRIBLY wrong and I had to get an attorney here at work involved. NEVER sign anything until you've seen the FINISHED product! UGH!
We also seriously considered buying a "cottage home" up off 291 near Liberty - GREAT little homes, brand new and good builder (http://www.mcbridehomes.com/community.asp?cid=64) we came really close to getting into one of those (even had a deposit on a lot) but they entice you with the "starting price" and come to find out that price basically gets you walls and a roof - once you start adding things (including $50 for an extra phone jack in the master bedroom - one of the minor add ins) your price skyrockets! So, that option went out the window! :( But this is the same builder who built the little cottage homes off Barry and Platte Purchase (http://www.mcbridehomes.com/community.asp?cid=68) again notice the base price - but the price of an actual home "ready to occupy" is around $150,000 that's because it has carpet! :p Just teasing - I'm a bit jaded!!! :p
Also the same builder, with the townhomes off Barry - Robincrest (http://www.mcbridehomes.com/community.asp?cid=111) those are right in front of the apt community P and I use to live in. We just didn't really care to get into a townhouse (plus we really want a 2 car garage). but I have a girlfriend at work who just moved in there - her sister has one side of the townhouse and she has the other - pretty cool, I think! And I know she is really pleased with her place (I think McBride makes really solid homes). She has a low mortgage but even still with minor addins she was around $145k.
I know there are some new townhomes near where you live (on that back road Tiffany Spring Road, I think!?) but those are for rent (you probably know that) and they also have some new ones going in on the north side of the road (with two car garage) but those are for rent too! :( grrrrr and the rent for the ones with the two car garage are $1250... UNBELIEVABLE - WHY would someone throw that amount of money away when you can get a decent house for that!? Well, I guess so you don't have to deal with home maintenance and such - that makes sense (I guess).
There are townhomes over off 169 and 95th street (have you been over that way - between 169 and N. Oak) they are called Serrano (crummy website http://townhomesofserrano.com) but they are just like the others... same type, price range, yadda yadda.
And you probably know about the townhomes over off 152 and N. Brighton (http://www.brightonwoodsnorth.com/) they have been around for a year or two now and some people are trying to get out of theirs (for whatever reason - not because there is anything wrong with them I don't think) and with the market the way it is - those can be fairly reasonable (as you can see here http://www.fsbo-kc.com/Listing.asp?on=3475) as well as older options like this townhouse in my mom's neighborhood - older but reasonable http://www.remax-missouri.com/RemaxMidStates/index.asp?p=findahome.asp&page=search&search=&selected=neighborhood&listing=true&ptd=&mlsnumber=1391210&mlsid=310 sign in for pictures.
But as you know and someone mentioned - you'll have to keep in mind there will be a monthly HOA due on top of your mortgage!
Although I think this community is waiving that fee to get people into the townhomes (http://www.pulte.com/homefinder/community.asp?DCMP=browsemap&commorg_acctcode=2357 that's Kinsley Forest with Pulte if the link doesn't work).
So, as you can see there ARE alot of different options for NEW townhomes - rent or buy! And I'm pretty sure I'm forgetting a couple too...
But... my advice to you would be: don't rush yourself. You don't HAVE to move right away so give yourself plenty of time to research and know what you want. Of course with the way the market is - if you find something you really like and seems to be "falling into place" don't delay! :)
P and I took a Home Buyer's class last fall (not the most informative - but we've learned alot along the way that stemmed from the class). I've "worked with" 2 real estate agents off and on and one mortgage broker for the last year. I'm in NO hurry and they know that.
I'd suggest saving as much as you can - but not necessarily for a down payment as there are ALOT of programs out there where you don't have to have a downpayment - if your FICO score is high enough it doesn't matter - they waive the PMI and that's the reason most people want to have 20% down anyway. (I wouldn't recommended first time home buyer programs but that's for you to decide).
My brother just bought a place last fall for $90,000 - CUTE little place, 2 bedrooms, 1 bath, 1 garage. Structurally it is sound and furnace/pipes, etc. were all good! But it did need some major cleaning and some painting and random things (he's put all new hinges on doors, new door knobs, new light switches, etc.) His payment is around $830. But when I say, try to save a good deal before finding something - I mean for things like paint and any other little things you want to do when you move in. He's spent $2,500 in the first few months just for those things. Nothing drastic has been done though! So it's nice to have those initial start up dollars so you don't have to charge a credit card or anything.
Hmmm there's other stuff I can offer - but I don't want to bombard you.
I'll leave this for now - and come back later to see how things are going! :)
Oh one more thing - I COMPLETELY know how you feel about living in a stand alone house verses sharing a wall with someone! I've always felt safer in an apartment than I do when I go dog sit at my mom's house when she's out of town. But I think you could find ways to make yourself feel safe (atleast I'm hoping! :) )
If my head wasn't spinning before, it certainly is now.
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