The House Buying Thread

[lordscarlet]

I thought for sure one of these existed, but I can only find random threads to specific adventures. There does not seem to be an official house hunting or "I bought a house!" thread. So, feel free to make this that thread if anyone cares too. But as I approach move-in day I'm getting very excited.

Last Thursday (6/3/2010) I bought my third home (the first that was a purchase by both my wife and I). I don't own three, this is just the third I have owned. After 8+ months of searching, several failures at getting a ratified contract, and attempting to buy a short sale, we found a fantastic home in one of the "up and coming" areas of DC called alternatively "H Street" or the "Atlas District." It is going to be a part of the first street car line in a 37 mile plan to return street cars to the District.

The previous owners are renting the house back for a week, so we can't actually live there until Friday. The movers are coming on Saturday to get all of our stuff in, and then we're off the following week to work on getting settled in and what-not.



View from the street



Front porch



entryway/foyer





Living Room



Dining Room



"Sun Room" off of the dining room



Back Deck



Parking under the back deck




Kitchen



Upstairs Hallway



Master Bedroom



"Sitting room" off of the master bedroom


Guest Room



Office



Upstairs bathroom



Basement





Utitlity/work room



Basement bathroom


These pictures are with the previous owners' belongings (from the listing). They used some sort of extreme lens -- the rooms are neither as narrow or as deep as they appear in the photos.

A brief explanation of the sun room and sitting room: "Back in the day" DC homes (as well as many in the southeast/mid-atlantic) had "sleeping porches". Before there was A/C they were barely a step above a deck. It was where people would go to sleep on hot nights. Or at least that's my understanding. Anyway, most renovated homes have turned these areas into an enclosed part of the house, and that's why they are there.

[Lathum]

The kitchen looks a little narrow for my liking but otherwise it looks really nice. Congrats!

[Flasch186]

i think removing that long table under the pots will open up the kitchen but I love it. congrats!!!

EDIT: just read about the lens issue...kitchen might be just fine in RL

[JediKooter]

Congrats man and the color of the walls in the dining room has just resolved my question of what color I wanted to paint my living room.

[lordscarlet]

Originally Posted by Lathum

The kitchen looks a little narrow for my liking but otherwise it looks really nice. Congrats!

Originally Posted by Flasch186

i think removing that long table under the pots will open up the kitchen but I love it. congrats!!!

EDIT: just read about the lens issue...kitchen might be just fine in RL

Yeah, the lens makes it look way narrower than it is. Not to say it's not a small kitchen, but the pictures are a little deceptive.

Originally Posted by JediKooter

Congrats man and the color of the walls in the dining room has just resolved my question of what color I wanted to paint my living room.

Yeah, we decided to leave the colors as-is for now. They're not necessarily our top choice, but they are definitely nice and we will stick with them until we have furniture and a better feel for what will work for us.

We are moving from a 1BR to a 3BR + finished basement. We have a lot of furniture to buy.

[3ric]

Lovely house -congratulations!

[JediKooter]

Originally Posted by lordscarlet

Yeah, we decided to leave the colors as-is for now. They're not necessarily our top choice, but they are definitely nice and we will stick with them until we have furniture and a better feel for what will work for us.

We are moving from a 1BR to a 3BR + finished basement. We have a lot of furniture to buy.

I feel your pain on the furniture thing. I just moved from a 250sqft studio to a 800sqft 1 bedroom condo and other than a recliner and a bed, I have zero furniture!

[terpkristin]

House looks nice, congrats!

I'm a bit embarrassed to admit that I bought my house and moved in back in September 08 and still have yet to unpack my guest room. It's admittedly mostly books, which requires me to figure out where I want to put everything else (bookshelves, etc)...maybe this thread will give me the motivation I need to finally finish hahah.

/tk

[johnnyshaka]

Congrats...the place looks fantastic!!

I'm on week number 3 in our new place and I'm loving it so far as are the wife and kids...which is always concern number one.

[MikeVic]

Congrats! I'm coming on two years in my place and still have boxes unpacked.

[lordscarlet]

Originally Posted by JediKooter

I feel your pain on the furniture thing. I just moved from a 250sqft studio to a 800sqft 1 bedroom condo and other than a recliner and a bed, I have zero furniture!

600 sq ft to 2000 sq ft.


To those who have yet to unpack: my wife would NEVER let that happen.

[stevew]

Looks nice, but the lens they used was awful.

[chesapeake]

Congrats lordscarlet! It looks lovely.

My wife and I are starting the process of cleaning the house and staging it to sell later this year. I'm not looking forward to that. You must have sold a couple of houses now. Any suggestions?

[claphamsa]

Originally Posted by lordscarlet

Yeah, the lens makes it look way narrower than it is. Not to say it's not a small kitchen, but the pictures are a little deceptive.



Yeah, we decided to leave the colors as-is for now. They're not necessarily our top choice, but they are definitely nice and we will stick with them until we have furniture and a better feel for what will work for us.

We are moving from a 1BR to a 3BR + finished basement. We have a lot of furniture to buy.

I have a 5BR and its just me... needless to say, I have only furnished parts of it

[claphamsa]

Originally Posted by lordscarlet

600 sq ft to 2000 sq ft.


To those who have yet to unpack: my wife would NEVER let that happen.

i moved close enouhg when i bought my house, that i never REALLY packed, I used lundry baskets and ferried stuff. but when I lived in alrington, the only reason I finished unpacking (28 months) was so I could get rid of shit to move to Hawaii

[lordscarlet]

Originally Posted by chesapeake

Congrats lordscarlet! It looks lovely.

My wife and I are starting the process of cleaning the house and staging it to sell later this year. I'm not looking forward to that. You must have sold a couple of houses now. Any suggestions?

Well, my first house I lucked into the sale for. A friend of a friend was an investor and I sold it to him without listing and without realtors.

It depends a lot on the neighborhood and market. The main things I would say is to get good pictures and to price competitively. I don't know how competitive it has gotten where you are, but when I sold in February in DC it was very hot. I priced the house pretty low in order to get multiple offers. I ended up with 5 offers and sold for 10k over the asking price.

[lordscarlet]

Originally Posted by claphamsa

i moved close enouhg when i bought my house, that i never REALLY packed, I used lundry baskets and ferried stuff. but when I lived in alrington, the only reason I finished unpacking (28 months) was so I could get rid of shit to move to Hawaii

5 BR in Arlington? Wow.

[claphamsa]

Originally Posted by lordscarlet

5 BR in Arlington? Wow.

nah i lived in arlington for a while, hated my job so i moved to hawaii, realized most of the people there suck, so i moved back, and i live in takoma park now

[lordscarlet]

Originally Posted by claphamsa

nah i lived in arlington for a while, hated my job so i moved to hawaii, realized most of the people there suck, so i moved back, and i live in takoma park now

We will probably be buying a lot of our furniture from a new vintage store in Takoma (not Takoma Park).

A 5 BR house in Takoma Park is still nice!

[fantom1979]

Congrats on your house. My wife and I are in the final stages (I hope) of buying our first home. I am hoping to start moving in next week.

[Rizon]

My fiance and I are 3 1/2 months into a short sale purchase.

Also, LS, your GE Frontload washer has been recalled. Double check the serial numbers:
http://www.cpsc.gov/cpscpub/prerel/prhtml10/10259.html

[wade moore]

Hrm - I think this is the washer I have, thanks for pointing that out.

[lordscarlet]

Originally Posted by Rizon

My fiance and I are 3 1/2 months into a short sale purchase.

Also, LS, your GE Frontload washer has been recalled. Double check the serial numbers:
http://www.cpsc.gov/cpscpub/prerel/prhtml10/10259.html

Thanks, Rizon! I will check it out this weekend.

[Marc Vaughan]

Congrats - looks a lovely house, very 'English' in layout imho actually*

*Apart from the basement which looks very American and particularly awesome

[Philliesfan980]

Very nice! I would agree with Marc's assessment that the basement looks awesome!

[I. J. Reilly]

I guess this is the most fitting thread for this question, so how is the dollar amount you qualify for with a mortgage company is determined?

The wife and I are facing a bit of a catch-22, one that I’m sure a lot of people with young kids face. The basic facts: our son is 1.5 years old and my wife has stayed home full time since he was born. She wants to stay home until he is a least 4. But we would like to move to a nearby town with a much better school district before he starts kindergarten.

So if we move before she starts working again will we only qualify for a mortgage based on my salary? Or will they take into account my wife’s earning power from when she was working, which is nearly 2 years ago now?

[DanGarion]

Originally Posted by I. J. Reilly

I guess this is the most fitting thread for this question, so how is the dollar amount you qualify for with a mortgage company is determined?

The wife and I are facing a bit of a catch-22, one that I’m sure a lot of people with young kids face. The basic facts: our son is 1.5 years old and my wife has stayed home full time since he was born. She wants to stay home until he is a least 4. But we would like to move to a nearby town with a much better school district before he starts kindergarten.

So if we move before she starts working again will we only qualify for a mortgage based on my salary? Or will they take into account my wife’s earning power from when she was working, which is nearly 2 years ago now?

They usually like 2 years of salary on people. We ran into a problem with our credit union because my wife had only owned the business that she runs for 1 1/2 years, even though she had worked there for 6 years before we bought it. So we had to go with a bank that would allow that exception.

[johnnyshaka]

Originally Posted by I. J. Reilly

I guess this is the most fitting thread for this question, so how is the dollar amount you qualify for with a mortgage company is determined?

The wife and I are facing a bit of a catch-22, one that I’m sure a lot of people with young kids face. The basic facts: our son is 1.5 years old and my wife has stayed home full time since he was born. She wants to stay home until he is a least 4. But we would like to move to a nearby town with a much better school district before he starts kindergarten.

So if we move before she starts working again will we only qualify for a mortgage based on my salary? Or will they take into account my wife’s earning power from when she was working, which is nearly 2 years ago now?

We were in a similar boat and while my wife still works part-time they didn't even bother including her in the income qualification because they don't really consider it steady income.

My advice, without knowing your financial history and how long and how much your current mortgage is worth...do whatever you have to do get the house you want in the area you want...within reason, of course.

If that means pushing your amortization back a little bit (say you have 15 years left now...push it to 20 or 25 years) now so you can keep the payments affordable for the short term and when it comes time to redo your mortgage, presumably in 5 years, you can bring that amortization back down because you'll be back to two incomes. Also, make sure you have the flexibility to be able to put down lump sums so when your wife does back to work you can pay down the mortgage before it's time to renegotiate a new one.

Good luck!!

[lordscarlet]

Originally Posted by I. J. Reilly

I guess this is the most fitting thread for this question, so how is the dollar amount you qualify for with a mortgage company is determined?

The wife and I are facing a bit of a catch-22, one that I’m sure a lot of people with young kids face. The basic facts: our son is 1.5 years old and my wife has stayed home full time since he was born. She wants to stay home until he is a least 4. But we would like to move to a nearby town with a much better school district before he starts kindergarten.

So if we move before she starts working again will we only qualify for a mortgage based on my salary? Or will they take into account my wife’s earning power from when she was working, which is nearly 2 years ago now?

Of course they won't consider her "earning power." You said yourself she isn't going to get a job again for two years, so why would they? Besides the fact that there is no reason they would anyway. They only care about money you are actively earning at the time of application. Why would you even want to buy a house based on her earning power when she won't be working again for another 2 years? You still have to pay your mortgage.

My advice would differ from johnnyshaka's. Buy a house you can afford now. Get a 30 year fixed rate loan. Know that you will be able to afford it regardless of what happens. What if your wife is unable to find work when your kid goes to school? What if she does find work, and then you lose your job? Lastly, if a bank says you can afford something, don't take their word for it. Run the numbers based on your budget and putting some money into savings and see if you can actually afford it.

Also, I don't see how this is a "catch-22". (just because I'm a big fat jerk and thought I would mention it)

[I. J. Reilly]

Dan and Johnny; thanks for the info. And lordscarlet, um, nice house?

I guess my thought was that if she is going to be earning a salary for roughly 28 years of a 30 year loan that would be relevant. But you’re probably right, it won’t be in the banks eyes.

And while I certainly appreciate the lecture, I don’t see where I’m being fiscally irresponsible enough to deserve it. I am not going anywhere near an adjustable rate loan and I won’t be purchasing anything that I can’t put 20% down on. That seems fairly conservative to me actually.

As for the catch-22 here; it’s that we want to move before my son starts school, but my wife wants to stay at home until after he starts school. And as you eloquently pointed out this means her future salary will have no bearing on our loan approval. How is that not a catch-22, you big fat jerk?

[JediKooter]

In Texas, I would imagine most of the houses aren't too expensive. So 20% down seems like a doable thing there in Texas.

[I. J. Reilly]

Originally Posted by JediKooter

In Texas, I would imagine most of the houses aren't too expensive. So 20% down seems like a doable thing there in Texas.

Yep, hell of a lot different than back in Portland, that's for sure.

[JediKooter]

Originally Posted by I. J. Reilly

Yep, hell of a lot different than back in Portland, that's for sure.

Just out of curiosity, what's a 1500sqft house going for in your neck of the woods?

I'm probably never going to be able to buy a house here in California unless some crazy old lady sells her house for a dollar or something like that.

[I. J. Reilly]

Originally Posted by JediKooter

Just out of curiosity, what's a 1500sqft house going for in your neck of the woods?

I'm probably never going to be able to buy a house here in California unless some crazy old lady sells her house for a dollar or something like that.

It's kind of a strange market here, there is such a big variation between the school districts that there is a wide range of prices. But I would say you could find that size house in a nice town with a well respected school district at probably $175,000ish.

[molson]

I bought my first house a few months ago. It's quite small and humble - built in the 30s, 768 square feet. But it's a decent size lot, has some character, and it's the edge of downtown of a growing city (Boise). And it's just me here, and it was cheap ($93k, after selling for $148k in 2006.)

With my down payment and the tax credit, my mortgage payment comes in well less than what my rent did, and I should be able to pay it off in 10 years or less. And buying way below my means allows me, hopefully, to be able to afford a bunch of improvements over the years.

I've loving home ownership so far, after a decade in apartments.

[JediKooter]

Originally Posted by I. J. Reilly

It's kind of a strange market here, there is such a big variation between the school districts that there is a wide range of prices. But I would say you could find that size house in a nice town with a well respected school district at probably $175,000ish.

175K isn't too bad at all. There's freaking mobile homes selling for more than that here! MOBILE...HOMES...

Good luck on the house hunt!

[k0ruptr]

Originally Posted by claphamsa

nah i lived in arlington for a while, hated my job so i moved to hawaii, realized most of the people there suck, so i moved back, and i live in takoma park now

hey hey hey now...

[claphamsa]

im sure your a nice person..... too bad i didnt meet you then :P

[lordscarlet]

Originally Posted by I. J. Reilly

Dan and Johnny; thanks for the info. And lordscarlet, um, nice house?

I guess my thought was that if she is going to be earning a salary for roughly 28 years of a 30 year loan that would be relevant. But you’re probably right, it won’t be in the banks eyes.

And while I certainly appreciate the lecture, I don’t see where I’m being fiscally irresponsible enough to deserve it. I am not going anywhere near an adjustable rate loan and I won’t be purchasing anything that I can’t put 20% down on. That seems fairly conservative to me actually.

As for the catch-22 here; it’s that we want to move before my son starts school, but my wife wants to stay at home until after he starts school. And as you eloquently pointed out this means her future salary will have no bearing on our loan approval. How is that not a catch-22, you big fat jerk?

Sorry, my lecture about variable rate loans was to johnny, not to you. I was attempting to make no assumptions about your financial situation and was giving my generic opinion: Figure out what you can afford and then see if the bank agrees. Many people just apply for a loan and buy the most expensive house the bank will let them buy. If you know you can float the mortgage payment for two years then you're set. If you are being financially responsible, then presumably you wouldn't be buying a house that you couldn't afford over those two years -- and in that case, the bank will probably approve you.

[johnnyshaka]

Originally Posted by lordscarlet

Sorry, my lecture about variable rate loans was to johnny, not to you. I was attempting to make no assumptions about your financial situation and was giving my generic opinion: Figure out what you can afford and then see if the bank agrees. Many people just apply for a loan and buy the most expensive house the bank will let them buy. If you know you can float the mortgage payment for two years then you're set. If you are being financially responsible, then presumably you wouldn't be buying a house that you couldn't afford over those two years -- and in that case, the bank will probably approve you.

My angle on the situation stems from my current situation...we just sold our place in hopes of moving into a particular neighbourhood...better schools, closer to work, overall just a better place to live for my family and I. Obviously that's going to be more expensive and we knew that going in. With interest rates at virtually an all-time low we figured now (4 months ago) was probably the best time to get the wheels in motion so I went ahead and got pre-approved and made sure that we had the low interest rate locked in for several months. They pre-approved me for $500,000 but there is no way that we could afford the mortgage payments on what would essentially equate to a $375,000 mortgage payment after the sale of my current house minus the remainder on my current mortgage. So, I crunched some numbers and figured what we had to spend based on trying to keep our mortgage payments close to what they were at the old place.

Now, here's where the sacrifice came in, for us at least, the figure that I came up with meant we would have a tough time finding something livable (there were a few places that were cheaper but needed $50,000 or more in renos just to make it livable...not mention the months of living in a construction zone with young children) so I decided to play around with the amortization as I had originally done my math with a 15 year amortization...which is where we were at on our old mortgage. After figuring out what 20 and 25 year amortizations could do for our bottom line we set out to try and find something we liked but that wouldn't push the upper limits of our "new" budget.

So, we ended up buying a place for $360,000 while the bank said we were approved for $500,000 but we knew we couldn't go much above $375,000 if we wanted to keep the same lifestyle we had now (having my wife stay home for a few more years until the kids are both in school). The only thing we had to sacrifice is the amortization...so essentially instead of getting a 15 year mortgage we went with a 25 year mortgage. In the short term that will keep our payments down and when it comes time to renew in 5 years (I'm guessing mortgages work differently up here as you typically lock in 5 years at a time) my wife will be back to working full time and we'll be able to crank up the mortgage payments to get us back on track to have the house paid off by the time we're 50.

[lordscarlet]

I apologize, I thought you were talking about balloon loans, not an adjusted amortization. Here in the US it's pretty standard to do a 30 year mortgage.

[lordscarlet]

Originally Posted by Rizon

My fiance and I are 3 1/2 months into a short sale purchase.

Also, LS, your GE Frontload washer has been recalled. Double check the serial numbers:
http://www.cpsc.gov/cpscpub/prerel/prhtml10/10259.html

Thanks for this, Rizon. It turns out we do have one of these washers. They are coming out Tuesday to fix it up.

[lordscarlet]

Rather than post a ton of photos and re-captioning them: Incompatible Browser | Facebook

[Rizon]

Originally Posted by lordscarlet

Thanks for this, Rizon. It turns out we do have one of these washers. They are coming out Tuesday to fix it up.

No problem.