Home Buying Question

Started by JTA, October 05, 2013, 05:48:38 AM

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taxed

Quote from: Solar on October 06, 2013, 05:57:05 PM
They split 10s of thousands of tons of solid rock where I live, they find a tiny fracture that's wet, and they slowly expand over decades till what was nothing but a hairline fracture, becomes a 6" or better split.

I remember replacing my parents old cast iron sewer line 45 years ago, then again decades later, and finally with a poly or or PVC, can't remember which, but it too had issues, the roots actually grew around it and collapsed and squeezed it closed.

Wow!  Yeah, you really can't stop those things... and they just know where the water is.  It is fascinating how nature is.
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JTA

Quote from: taxed on October 06, 2013, 01:47:31 PM
Hey JTA,

I'm a real estate investor and have purchased a home or two in my day, and one of my main rules is to not buy slabs, unless the deal is just too good to pass up.  I stick with crawl-spaces and basements.

Also, regarding plumbing, if you go down the checklist and everything looks good to put an offer in, you really should run a camera snake through the lines to check the plumbing.  I can get it done for $75, but the going rate is $300-$500.  Don't use any of the big names like Roto-router though.  Get someone who really knows his stuff and has been doing it a long time, and who is halfway honest.  Tree roots like to just shoot through pipes, and it's at least nice to know you have a $5k repair job waiting on you while you're making the purchase instead of finding it out after you redo the bathroom and poo floods the new tile job and an entire hallway a day before an open house (yes, been there).

Again, save it as a final due-diligence expense, as there is no reason to do that, say, if you find out you have other costs that may prevent you from putting in an offer, but it is important.

I'm in Georgia, btw.

Thanks Taxed.

We found a home with a slab foundation we're thinking about purchasing that happens to be a real good deal and is exactly what we're looking for. I'm definitely thinking about paying the extra money to get the pipes inspected as well if we do decide to continue with the purchase.

If you don't mind me asking, what makes you avoid slab homes?


Solar

Quote from: taxed on October 07, 2013, 11:40:10 AM
Wow!  Yeah, you really can't stop those things... and they just know where the water is.  It is fascinating how nature is.
:biggrin:


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taxed

Quote from: JTA on October 07, 2013, 04:41:59 PM
Thanks Taxed.

We found a home with a slab foundation we're thinking about purchasing that happens to be a real good deal and is exactly what we're looking for. I'm definitely thinking about paying the extra money to get the pipes inspected as well if we do decide to continue with the purchase.

If you don't mind me asking, what makes you avoid slab homes?

In general, I reduce probability of headaches.  When we do a walk-through, we check around the house for major cracks (there will always be cracks), and we notice where the trees are.  Even trees that seem out of distance can still reach our house.  Also, the floors are hard on a slab, and it seems to make a difference when a buyer has kids, etc., and like Solar said, if there is a problem under the foundation, you gotta tear it up and that is a pain in the ass.

Most of the slabs I have passed on are probably fine, and yours will be too I'm sure, so don't let me get you paranoid.  Your floor will be hard, and colder during the winter, but there are ways to deal with that.  That's probably the main thing you'll need to deal with, since you'll be living in it, but there are solutions for that.
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taxed

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JTA

Alright guys one last question. This should probably be moved to the financial section, but let me just ask anyway.

When I'm shopping around for a mortgage, what's the be all end all way for me to compare offers and determine which is best? Is the APR the best indicator on how good of a deal I'm getting? Or are there other factors I should look into? I've been asking the lenders to give me an idea of how much my payments would be factoring in taxes, insurance, etc. it seems like there's not a huge difference between lenders even though the APR may differ by +/- .5%. I found some lenders on zillow (home shopping website), but I'm kind of wary of finding lenders online I haven't really heard of despite pretty good reviews. I got in touch with one lender but the APR seems kind of high even though the estimate the guy gave me doesn't differ but like 20 bucks a month from another whose APR is much lower.

Solar

Quote from: JTA on October 08, 2013, 03:18:24 PM
Alright guys one last question. This should probably be moved to the financial section, but let me just ask anyway.

When I'm shopping around for a mortgage, what's the be all end all way for me to compare offers and determine which is best? Is the APR the best indicator on how good of a deal I'm getting? Or are there other factors I should look into? I've been asking the lenders to give me an idea of how much my payments would be factoring in taxes, insurance, etc. it seems like there's not a huge difference between lenders even though the APR may differ by +/- .5%. I found some lenders on zillow (home shopping website), but I'm kind of wary of finding lenders online I haven't really heard of despite pretty good reviews. I got in touch with one lender but the APR seems kind of high even though the estimate the guy gave me doesn't differ but like 20 bucks a month from another whose APR is much lower.
Just make sure it's a fixed rate, not an adjustable loan, all in all they're about the same, and most likely your loan will be bundled and sold repeatedly over the years to come.

But to be safe, see a CPA to get the details before you sign.
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walkstall

Quote from: Solar on October 08, 2013, 03:44:12 PM
Just make sure it's a fixed rate, not an adjustable loan, all in all they're about the same, and most likely your loan will be bundled and sold repeatedly over the years to come.

But to be safe, see a CPA to get the details before you sign.

A fixed rate should be the only way to go.  Also make sure there no penalty for paying your loan off early.
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Always remember "Feelings Aren't Facts."

Solar

Quote from: walkstall on October 08, 2013, 05:23:50 PM
A fixed rate should be the only way to go.  Also make sure there no penalty for paying your loan off early.
Yep, that's why I suggest a CPA, they are up on all the little details.
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walkstall

Quote from: Solar on October 08, 2013, 07:07:12 PM
Yep, that's why I suggest a CPA, they are up on all the little details.

My younger brother is a CPA  :lol:  there is things he as saved my butt on more then once.   
A politician thinks of the next election. A statesman, of the next generation.- James Freeman Clarke

Always remember "Feelings Aren't Facts."

Telmark

Slab foundations are also common where water table levels are high. This is probably the number 2 reason (behind lower build costs) for slab foundations.

My wife and I have purchased 2 houses with slabs and 2 with crawl space foundations (we've never had any plumbing issues with slabs that we know of...).

Some of the main drawbacks with either type have been well stated by other members. However another problem with slabs is that lot grade and/or drainage problems can be difficult if not impossible to correct due to cost factors.  This, and the absolutely terrible lot grading that's often seen with low-to-mid cost housing built during the boom, can make for an iffy buy (lots with little or no drainage away from the foundation coupled with "soft" land-fills can result in a foundation that's a half a foot or more below grade in just a decade or so).

Anyway, all said and done, my wife and I prefer slabs over crawls for the simple reason that we're used to the feeling of a  "solid" floor (my wife doesn't care for HVAC floor registers either).

As for the "mortgage shopping" question; yes, always always go with a fixed rate.

I'd also recommend retaining not only a CPA, but an attorney as well. This may seem kind of "expensive" but it can save you a ton of money in the end. I also strongly recommend that you have 2 separate home inspections from different companies Never, ever trust only the inspector that's recommended by your, or the sellers, R.E. agent/broker (always get a second inspection from your own inspector).

Purchasing a house is usually the biggest single expenditure that we make in your lives and, as such, it's a good idea to seek and retain legal representation before and during the escrow process. With proper inspection(s) and some luck, you'll not have a need for legal rep. after the sale.

JTA

Quote from: walkstall on October 08, 2013, 05:23:50 PM
A fixed rate should be the only way to go.  Also make sure there no penalty for paying your loan off early.

Yeah I definitely went for a fixed rate loan. Looks like I got locked in at a good time. From what I've been reading, if we default on our obligations mortgage interest rates may spike since they're closely tied to T-Bonds, which will become more risky requiring higher interest rates to entice investors. I feel bad for those with ARM's.

taxed

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Telmark

Quote from: JTA on October 14, 2013, 04:59:48 PM
From what I've been reading, if we default on our obligations mortgage interest rates may spike...

Do not even think about defaulting on you mortgage obligations. If you're not sure you can meet these obligations throughout the term of the loan, then you are not ready to buy a house. And don't think that bankruptcy can "save" you (those days are long gone).

Also remember that defaulting on a home loan can destroy your credit for many years and can also reflect badly on your ability to get a job.

walkstall

Quote from: Telmark on October 15, 2013, 04:28:46 AM
Do not even think about defaulting on you mortgage obligations. If you're not sure you can meet these obligations throughout the term of the loan, then you are not ready to buy a house. And don't think that bankruptcy can "save" you (those days are long gone).

Also remember that defaulting on a home loan can destroy your credit for many years and can also reflect badly on your ability to get a job.

I say do not get a house that you can not pay for in 15 years. You need to own the house not the house own you.  Defaulting should not be an option when thinking about buying a house.  But that's just my way of thinking.
A politician thinks of the next election. A statesman, of the next generation.- James Freeman Clarke

Always remember "Feelings Aren't Facts."