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#22
06-03-2006, 05:10 PM
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Re: Pro poker player buying a house...
[ QUOTE ]
Am I the only guy who just paid cash? [/ QUOTE ] Maybe. In the United States it's stupid for most people to pay cash. Generally interest paid for a residence is tax deductable. I'm lending money today at about 6.5%. After taxes, you're borrowing money from me at a real cost of a little over 4%. If I gave you $100,000 today, do you think you could earn more than 4% on your money? If so, you should get a mortgage. --------kitty PS. I know for a lot of people the above doesn't apply. You have little income so you don't pay much in taxes or you are getting ready to retire and, for mental reason, you just don't want a mortgage. I am not going to disagree. It is a personal choice. 
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#25
06-04-2006, 02:09 PM
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Re: Pro poker player buying a house...
[ QUOTE ]
No, you are wrong, on a No Income verification loan the lender usually wants to see a 6 months reserve of PITI (principle, interest, taxes and insurance.) It also raises her spidey senses to see someone who claims making $10,000 a month with only $2,000 in their checking account. Then she/he can/will start asking more questions. That is something you don't want to see. It only goes downhill from there. [/ QUOTE ] I just got a NI loan. They did not ask to see anything. Credit score and 10% down. Period.
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#26
06-04-2006, 03:02 PM
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Re: Pro poker player buying a house...
[ QUOTE ]
No, you are wrong, on a No Income verification loan the lender usually wants to see a 6 months reserve of PITI (principle, interest, taxes and insurance.) It also raises her spidey senses to see someone who claims making $10,000 a month with only $2,000 in their checking account. Then she/he can/will start asking more questions. That is something you don't want to see. It only goes downhill from there. -------kitty [/ QUOTE ] I believe this completely depends on the lender. I just bought a house 2 months ago 100% financing, no doc. I did not have to provide bank statements, proof of PITI, or rental history.
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#28
06-04-2006, 03:57 PM
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Re: Pro poker player buying a house...
Slavic, you're not the only guy who just paid cash. All real estate is local though, and if the original poster lives in an area where real estate prices are sky-rocketing, then he may want to go ahead, secure the loan, and get the house for today's price. Then he can pay off the note early when he's able, as long as there is no pre-payment penalty. That's the route I took, and it allowed me to get my house considerably cheaper than if I waited to save up the money. I'm aware of cash buyers though. Having a paid-off house is an advantage not to be underestimated if you are involved in any kind of self-employment venture where there are long periods where you are not being paid.
Another huge advantage of owning your home outright is that if you are victim of disaster -- and I have been victim of not one but two! natural disasters in the past few years -- then the insurance money goes to you instead of to the bank. You can put your life back together a little more quickly and efficiently. And I never even thought about the difference it made, until I saw the other people around me with mortgages, second mortgages, home equity loans etcetera struggling to get the money in their own hands instead of a lender's hands so that they could do the needed repairs in time to save their homes from mold.
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#29
06-04-2006, 06:25 PM
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Re: Pro poker player buying a house...
[ QUOTE ]
Jeez!!! You guys need to find a better loan officer to begin with. It's kind of like with a car dealer. If I really wanted too, I could stick it to my clients and make a lot of money. I'd also make a lot of mad customers. I think it's really funny with someone tells me that they are going to shop around. I immediately re-raise them! "If you can find someone who is a lot cheaper than me, they are lying. I am a professional. I am paid well for what I do, because when I tell you that you are approved, it's a done deal. You don't have to worry. Yes, you might be able to find someone who is new in the business and you can save $100 or so because he needs the practice." Then I let them know to call me if I can be of any further assistance. I lose some clients, and then have to listen to the horror stories from the Realtors involved. There are some crooks in the business, I don't deny that. Talk to your friends. Talk to your Realtors. Get quotes from a couple people and then go to the person you trust and say here's what I been offered. Why should I go with you. Listen to his explaination, don't look at the figures. You'll know who to trust, because that's what you really need. A professional you can trust. ----------kitty [/ QUOTE ] I shudder. When I purchased my place (my first real estate transaction), I went with a smaller internet broker who [censored] me. He was going to save me .25 off the bigger institutions and a little bit in closing costs, sure. But everything he said about how I could document my assets (which included a somewhat odd homebuying assistance program from my employer, and a lot of money that had arrived from neteller in the last 3 months) went to [censored] [censored] a week before I was supposed to go to closing. Went to a big, respected mortgage company. They got everything prepared in under 2 weeks. I had to give the sellers $1000 and an extra 6 weeks in the place on my tab in order to not lose the condo (since they lost the one they had a contract on because of our delayed settlement) 2nd
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#30
06-04-2006, 07:13 PM
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Re: Pro poker player buying a house...
[ QUOTE ]
[ QUOTE ] No, you are wrong, on a No Income verification loan the lender usually wants to see a 6 months reserve of PITI (principle, interest, taxes and insurance.) It also raises her spidey senses to see someone who claims making $10,000 a month with only $2,000 in their checking account. Then she/he can/will start asking more questions. That is something you don't want to see. It only goes downhill from there. -------kitty [/ QUOTE ] I believe this completely depends on the lender. I just bought a house 2 months ago 100% financing, no doc. I did not have to provide bank statements, proof of PITI, or rental history. [/ QUOTE ] What did you have to provide? And what rate did you get?
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