Rebellab Posted January 30, 2008 Share Posted January 30, 2008 Right now my housing is part of a salary package. The cost of fuel oil, not having to have a truck load of cash to buy my partner out at the end of the year, and a nice nest egg to put some money down, we have started the process of house hunting. Bear in mind that South Dakota is not being affected by large inventories of homes and the sub-prime bullpeaches by the bucket. We are currently in a buyers market and our little town of 14,000 is trying to land a software company that will employ 200 people right out of college and pay them at least $35,000. So this may not last. We figure with mortgage rates the way they are, we would like to get a house. We are looking in the $200,000 to $250,000 range, we have exceptional credit, with no CC debt. We will have at least 5-10% down depending on the home we buy. The wife also works at a local bank, so the fees they charge will be waived. After all that, should we be in a hurry, or can we shop around and find exactly what we want? How long do you see the mortgage rates staying low and do you see them going lower? I know everyone has an opinion at the Huddle, so lets here em. Quote Link to comment Share on other sites More sharing options...
Chief Dick Posted January 30, 2008 Share Posted January 30, 2008 Congrats. Sounds like you have it planned out perfectly. Take your time, make a list of what your must-haves are and compromise on the rest. Have fun and good luck! Quote Link to comment Share on other sites More sharing options...
yo mama Posted January 30, 2008 Share Posted January 30, 2008 You know, a low interest rate is only part of the equation. (Though, IMO, rates should remain low for at least the next 12 months). But the benefits of a great rate can be wiped out by overpaying for a home, or buying a home that will require you to make repairs or improvements that you didn't factor in beforehand. As a first time buyer, my advice to you is NOT to shortchange your investigation process in an effort to move faster. Take your time. Buy the house that is right for you. Be honest with yourself: if you don't have a ton of free time, or you suck at manual labor, it's probably worth your while to pay a little more any buy a house that doesn't have any real problems. Quote Link to comment Share on other sites More sharing options...
Rebellab Posted January 30, 2008 Author Share Posted January 30, 2008 You know, a low interest rate is only part of the equation. (Though, IMO, rates should remain low for at least the next 12 months). But the benefits of a great rate can be wiped out by overpaying for a home, or buying a home that will require you to make repairs or improvements that you didn't factor in beforehand. As a first time buyer, my advice to you is NOT to shortchange your investigation process in an effort to move faster. Take your time. Buy the house that is right for you. Be honest with yourself: if you don't have a ton of free time, or you suck at manual labor, it's probably worth your while to pay a little more any buy a house that doesn't have any real problems. That is why we are looking in the price range that I mentioned. These will be all but new homes. At least built in the last 10 years. I am exactly as you described. I don't have a ton of free time, peaches by the bucketty schedule, and carpentry was not a trade I excelled at. So we will do a little paiting before moving in and pay for improvements as we can afford them. I feel the same way about rates, so that makes me feel less anxious. Quote Link to comment Share on other sites More sharing options...
yo mama Posted January 30, 2008 Share Posted January 30, 2008 That is why we are looking in the price range that I mentioned. These will be all but new homes. At least built in the last 10 years. I am exactly as you described. I don't have a ton of free time, peaches by the bucketty schedule, and carpentry was not a trade I excelled at. So we will do a little paiting before moving in and pay for improvements as we can afford them. I feel the same way about rates, so that makes me feel less anxious. Be careful, though: not all new construction is top quality. My philosophy to date (which has worked out fantastically) has been that if a home is still in excellent condition 70 years after it was built, there's a good chance it's going to hold up just fine for another decade or so. Some of today's new construction is done so poorly that owners experience problems after just a few years, and by then the builder may be long gone. I'm not trying to talk you out of new construction; I'm just encouraging you to treat your home buying process as an intense research project regardless of which direction you go. Quote Link to comment Share on other sites More sharing options...
Ramhock Posted January 30, 2008 Share Posted January 30, 2008 History tells us that the rates can not go much lower, if any at all. Everyone I speak with says they want to wait and see what the rates will do after the Fed Funds rate goes down . . . again. In the summer of '04, the Fed Funds rate was 1% and the average mortgage rate was 6%. Today, the Fed Funds rate was lowered to 3%. Need I say more? My advice is get prequaled now and start shopping. When you walk into a house and can't catch your breath, buy it. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted January 31, 2008 Share Posted January 31, 2008 Quarter of a million dollars in South Dakota should be able to get you something on the scale of Blenheim Palace. Quote Link to comment Share on other sites More sharing options...
Rebellab Posted January 31, 2008 Author Share Posted January 31, 2008 Quarter of a million dollars in South Dakota should be able to get you something on the scale of Blenheim Palace. Wouldn't that be nice, it is not quite that easy Here is one that has been on the market for 8 mos. Realtors says should be able to low ball. We would be dealing with the mortgage company on this one. The owners are seriously upside down. One of the few. Quote Link to comment Share on other sites More sharing options...
dmarc117 Posted January 31, 2008 Share Posted January 31, 2008 sect. paulson was saying today that the fed needs to figure out a way to get the mortgage rates much lower. Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted January 31, 2008 Share Posted January 31, 2008 Wouldn't that be nice, it is not quite that easyHere is one that has been on the market for 8 mos. Realtors says should be able to low ball. We would be dealing with the mortgage company on this one. The owners are seriously upside down. One of the few. Can't see either, the links just take you to the MLS home page. Quote Link to comment Share on other sites More sharing options...
Chavez Posted January 31, 2008 Share Posted January 31, 2008 Mortgage rates are suh-weet right now, and with the sub-prime shakeout, you should be purchasing right in the middle of one of the best buyer's markets in real estate for quite some time. Take yo's advice and enjoy probably getting a lot of house for what you'd like to pay. Quote Link to comment Share on other sites More sharing options...
AtomicCEO Posted January 31, 2008 Share Posted January 31, 2008 Mortgage rates are suh-weet right now, and with the sub-prime shakeout, you should be purchasing right in the middle of one of the best buyer's markets in real estate for quite some time. Take yo's advice and enjoy probably getting a lot of house for what you'd like to pay. Splurge a little. Don't be afraid to overextend yourself, because housing prices will always go up. Consider an ARM. Quote Link to comment Share on other sites More sharing options...
Chavez Posted February 1, 2008 Share Posted February 1, 2008 Splurge a little. Don't be afraid to overextend yourself, because housing prices will always go up. Consider an ARM. Thanks for translating EXACTLY what I said. :oldrolleyes: Quote Link to comment Share on other sites More sharing options...
polksalet Posted February 1, 2008 Share Posted February 1, 2008 Splurge a little. Don't be afraid to overextend yourself, because housing prices will always go up. Consider an ARM. Quote Link to comment Share on other sites More sharing options...
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