Finally bought a house!!!

[Nugget]

Very few, particularly first time buyers, qualify to not do escrow. I get the philosophy behind your post but what can one earn on an average balance of an escrow account? Then there is the headache of actually paying it. Not worth it to me…

On a conventional loan with 20% down, most will allow you to waive escrow. If they won't, someone else will. If you're doing a 5% FHA loan, you'll have to use an escrow. But then, you probably don't have the discipline (or income) to save consistently, so an escrow is probably a good move.

If you're paying $1k+ of HO insurance and $1 - 2k (or more) of taxes, I'd rather earn 4 or 5% on that money than not. Especially if it means I only have to write a few checks during the year to do it. A penny saved, etc...

I've had mortgages with several lenders in my life and every one of them over or underestimated payments almost every year. One forgot to pay my insurance one year. F that!

 

[Popeye Thee Sailor]

So as a millennial, buying a house has been somewhat of a challenge to say the least. Married late 2019 , laid off in March 2020 due to COVID and then the bubble burst in July of 2020 and prices and rates skyrocketed.

I literally had to get a significant promotion at work to comfortably afford the mortgage and whatnot. But after spending the last three years saving and planning we are finally doing it.

Having it built by Arbor in Westfield, I love the location. Hoping to refinance and drop PMI when rates eventually drop. It's a 4 bed , 2 bath ranch.

I don't have any experience in this realm and would appreciate some help as to what to look out for during the build process. We just did the mortgage paperwork, doing final house choices tommorow and design on Wednesday and they start building with an completion date of December.

If I provided too much information please let me know to delete, like I said I trust most on INGO and would just really appreciate some thoughts / advice.

Congratulations man! I too recently got a house and never did we think we would find a good home in the countryside for less than 200k

 

[Sigblitz]

Congratulations.
Problems I had. A gas station drink spilled on the sub floor attracting a swarm of ants. Closets for 2 adjoining rooms framed in wrong, affecting the entry of one of the bedrooms. Plastic sheeting put on the wrong side of the insulation. Gutters didn't extend past the roof. Front porch sides weren't flashed in. Contract was extremely veig. Some things were great. There were some moron moments.

 

[Dean C.]

On a conventional loan with 20% down, most will allow you to waive escrow. If they won't, someone else will. If you're doing a 5% FHA loan, you'll have to use an escrow. But then, you probably don't have the discipline (or income) to save consistently, so an escrow is probably a good move.

If you're paying $1k+ of HO insurance and $1 - 2k (or more) of taxes, I'd rather earn 4 or 5% on that money than not. Especially if it means I only have to write a few checks during the year to do it. A penny saved, etc...

I've had mortgages with several lenders in my life and every one of them over or underestimated payments almost every year. One forgot to pay my insurance one year. F that!

First house, less than 30 years old. I literally do not know a single person in my age range that has $60,000 in the bank to avoid escrow. Well let me take that back, one couple, but it's their parents money not theirs lol.

 

[Nugget]

First house, less than 30 years old. I literally do not know a single person in my age range that has $60,000 in the bank to avoid escrow. Well let me take that back, one couple, but it's their parents money not theirs lol.

Ah yes, the old $300k "starter home" in Westfield.

 

[Dean C.]

Ah yes, the old $300k "starter home" in Westfield.

Welcome to 2023, it's a **** show. Home ownership is now a privilege IMHO, the boomers killed the American Dream , buried it 12 feet deep and filled the hole in with concrete.

 

[DoggyDaddy]

Welcome to 2023, it's a **** show. Home ownership is now a privilege IMHO, the boomers killed the American Dream , buried it 12 feet deep and filled the hole in with concrete.

*I* did nothing of the sort.

 

[Nugget]

Welcome to 2023, it's a **** show. Home ownership is now a privilege IMHO, the boomers killed the American Dream , buried it 12 feet deep and filled the hole in with concrete.

My point was more the shift in expectations for younger folks. I'm not THAT old (youngest Gen-X) and *back in my day* your first home was expected to be a small fixer in a sketchy neighborhood. That's probably still possible these days, but everyone wants to move right into their "forever home" in Westfield/Carmel/Noblesville, instead of doing their time in a true starter home.

 

[***Ironhead***]

*I* did nothing of the sort.

I 2nd that.

 

[Dean C.]

My point was more the shift in expectations for younger folks. I'm not THAT old (youngest Gen-X) and *back in my day* your first home was expected to be a small fixer in a sketchy neighborhood. That's probably still possible these days, but everyone wants to move right into their "forever home" in Westfield/Carmel/Noblesville, instead of doing their time in a true starter home.

A quarter mil still is not cheap especially at 7.5% , especially considering

I was raised to be afraid of two things, commies and being poor

 

[Dean C.]

Just got a 10% raise at work for being freaking awesome at my job , early December close !!! Things are really coming together gentlemen.

 

[Dean C.]

Side note for those looking, due to 10 Treasury Bonds jumping .5% you average mortgage rate in America right now is 8.5% (that's my quoted rate as of today , I am well qualified), I FULLY EXPECT 10% next year and the Midwest is one of the few states with positive YOY yeilds for real estate

I will also add as an added bonus I had not considered, since we bought new our homeowners is going to be dirt cheap, $100 a month roughly.

Last edit, if I am right and rates hit 10% Joe Bidens chance of winning next year is approximately 0% IMHO. Also Indiana is still on the upward trend appreciation wise as well.

 

[COOPADUP]

The house is looking great ! After you get in, PM me and we’ll go shoot a round of clays.

 

[Dean C.]

The house is looking great ! After you get in, PM me and we’ll go shoot a round of clays.

Thank you very much, and yes I will definitely take you up on that offer.

 

[Born2vette]

Thank you very much, and yes I will definitely take you up on that offer.

If you want, after you move in you will be close to Tim’s where I have a membership and we could meet there sometime.

 

[Dean C.]

If you want, after you move in you will be close to Tim’s where I have a membership and we could meet there sometime.

I actually have a membership there as well , my house is less than 3 minutes away, also yet another definite yes on this offer as well. I will bring my Staccato

 

[Born2vette]

I actually have a membership there as well , my house is less than 3 minutes away, also yet another definite yes on this offer as well. I will bring my Staccato

I have several flavors of CZs!

 

[Dean C.]

I have several flavors of CZs!

This will be fun!

 

[Creedmoor]

First house, less than 30 years old. I literally do not know a single person in my age range that has $60,000 in the bank to avoid escrow. Well let me take that back, one couple, but it's their parents money not theirs lol.

I bought my first home at 23 yrs old. home was $112,000 with 20% down with 17% 30 year interest. I saved the money growing up.

 

[jwamplerusa]

I actually have a membership there as well , my house is less than 3 minutes away, also yet another definite yes on this offer as well. I will bring my Staccato

Me three! I'm about 30 minutes away, but shoot in Tim's Action Pistol league twice a month. I usually get there at least one other day per week.