Moving Questions! (to rent, home owners insurance, mortgage)

[Sunshine 12]

We purchased our first home 5 years ago and just got done completely remodeling it. We now are thinking about moving. We want to stay in the same area and have been looking at new houses and our realtor showed us one already. To be safe though we would have to sell our home first right????


I was just wondering what all goes along with moving......what problems have you all encountered? And what are some of the pros and cons of moving??? It is a big step for us, but we would like an extra bedroom now since the family has grown, a garage since we changed ours into a master bedroom and maybe some land... Other than that we love our home.

[doll lady]

When we found and bought our current home, it was almost done being built. We had not even put our old home on the market but it was paid for. Going to the lender was the scarey part. We always worried, is our credit as good as we think???? As we were applying for a loan, we asked our lender about taking out a bridge loan against our old home for the down payment. The lender didn't hesitate. Then we waited for closing, and for the day we were getting the new shiny key.

At that time, the economy was in one of those slow gears and it took our home 8 months to sell. Our bridge loan was written where we didn't have to make payments, it was just payable at the time we sold our house and of course we made sure it was a renewable one because as I remember it had some time period it was written for in order to figure interest. Wow we were really glad it was paid for and we didn't have a payment on both houses. But now I think there are a lot of different avenues the lenders are willing to take with consumers regarding bridge loans, especially when the original home isn't paid for. Maybe some members who work in lending could address that for you.

Wow it was nice to move into a new much bigger home. But the packing and getting boxes labeled was a nightmare because I was working at the time. After you move though, it's just nice to look back and smile at the new place and thank goodness "that move" is over. You will swear you won't do it again....but after a few years you might break that promise to yourself. LOL

Just kind of something funny I have to tell about when we moved.

I had a piano. When my husband and friends actually moved this piano into our old house, hubby had told me "I hope I never have to move this thing again". Well, then we moved into our new home, he was really grumbling about having to move this same piano. Our home was a two story house and hubby had been grumbling about having to carry entertainment centers, huge chests, bedroom furniture and so forth upstairs, so I thought why not have some fun with old grumbling hubby about the piano. So when he and his buddies got the piano to the new house, they get it up the porch steps and into the foyer. They are carrying it in towards the den and I said, oh honey, that piano goes upstairs in the second room to the right. I really thought my hubby was going to suffer a heart attack on the spot. I had to hurry and tell him I was just kidding. Moral of the story.....do not create situation where hubby might stroke out if you make him do something like that!!!!!!! ROFL

Good luck with your move!!!!

doll lady

[Sunshine 12]

We do have a loan on our current home but we can get double out of our house now since we competely remodeled and did all the work ourselves.
It is scarry to start all over again, but I think worth it in the long run...

Someone advised me against a bridge loan.??? What is the problem with them because that is what we thought about doing?

Around how much are closing cost????
Also, what do you have to come up with out of pocket???
Home owners insurance, taxes, realtor cost???


If I list my house and it doesn't sell do I have to pay anything???

[doll lady]

Someone other than me needs to answer those bridge loan and other financial related questions that's for sure. Surely we have some people in the lending industry!

When you buy a house the seller usually pays the taxes on a pro-rated basis since taxes are "behind". As a buyer you don't have to come up with the taxes at that time for the new house.....As a seller you will be charged the amount of the pro-rated taxes and comes out of the proceeds when title is exchanged as are realtor charges. Our homeowners insurance we had to pay a year in advance and had to have the policy on the day of closing....then I believe the lender will allow you to put that under your escrow account and included in your payment if you want. The lender will then pay it out of the escrow account.

Closing costs are a number of things....AND BELIEVE ME I AM NOT AN EXPERT ON THIS nor do I want to be ::::smile::::!!! Loan points, appraisal fees, loan application fees, credit report fees, attorney fees, title and recording fees, property inspection fees, etc etc. Maybe do an internet search on typical closing costs.

I'm downstate, and when you use a realtor, you sign a realtor contract to use them through the end of the agreement period. If it hasn't sold at the end of that period you can renew the agreement or get a new realtor. I don't know how hard it is to break a contract but they have obligations to meet on listing, advertising, showing, etc.

Hope someone else comes along who can help you a bit more.

[Sunshine 12]

What about building??? Does anyone know anything about a construction loan???
Right, I remember paying the taxes.. I know it is all so confusing since we don't buy houses everyday!!!!
We thought about going ahead and listing but our credit has a couple flaws on it so I am worried about getting approved for a construction loan. I would put like 50,000 down on a 100,000 loan and do all the work ourselves. Does that make a difference on the interest rate or approval part????

[Sunshine 12]

Thank you all so much for your help. Thanks for the mortgage tip jmall i didn't know that!
ANYWAY..........I think we are going to try and build. There are some lots close to us that we are looking at. This is a very good area we are in so we figure if we don't like the house, well sell again for a profit and start all over or buy another one then....But I have more questions.....
After you buy the land, do you have to get permits???? How does that process go....I am just starting to research all the info about building now.
We are going to do most work ourselves since we remodel on the side anyway.
About how much does everything cost total? Without labor? I know a couple places are offering home packages and they seem really reasonable. We asked about the quality of the mterial and it is supoose to be crestline windows, mastercraft doors and tru-wood cabinets which seem to be pretty nice stuff.
I am just trying to get some ideas and tips ..It seems to me like I am at the beginning of a long journey from what I heard....

Any tips or ideas would be appreicated.

[pandagal]

We're thinking about building too because we're in the same boat and although my hubby is one heck of a handy man (completely remodled our house) it seemed more reasonable to contract the work out. The construction loan is a pain unless you are one patient and super detailed person. First you have to get the lot. Either buy it outright or get a lot loan. You will probably need to put a percentage down to secure the loan depending on your credit worthiness. Then you have to start making your lot loan payments. Once you have the blueprints and itemized materials list and permits you can then talk to your bank about the construction loan. Odds are good that they will roll your lot loan into the construction loan and your monthly payment will be based only on the part of the money you borrow since they give it to you in installments. (EX. you need to pour the foundation, you give them the cost and they give you the money. Now you need to get the framing done, give them the quote and you get the money and so on.). Once your building is complete, you can probably turn your construction loan into a permanent (standard mortgage) loan after the house has been assessed. The biggest problem with building is that unless you can afford the loan payments and your current household expenses, you will need to sell and find some place else to live for the duration of the building. If you do it yourself, you are looking at a lot more time and the headache of getting the permits every time you need to have something done as well as getting all of your quotes signed by a notary. There are so many things involved in building, that unless you have alot of experience starting from the ground up, I wouldn't recommend doing it yourself. Plus, if you have a licensed contractor you have someone to blame if the appropriate things aren't taken care of. Oh, and you'll also need to have the land assessed before you can break ground because your architect and excavator will need that info. Not sure where you live or where you are looking, (maybe we will be neighbors but if you need a well and a septic tank....move closer to town, those things can be pricey.

And finally, you need to know what the city and county laws and regs are as well as any neighborhood 'covenants' that may be applicable in the area you are looking to build.

P.S. There are contractors that will take care of the big things and let you do some of the other work. You can have them frame and you can drywall and paint, or lay your own flooring, or trim and roof it yourself. These are things that can save you money but still allow you to have an experienced contractor to take care of the things that are just well, too big for 2 people to do. Just remember, the house has to be inspected and pass before you can move in, so whatever you don't know the code for or don't feel 100% comfortable with doing you should let someone else do. If you don't, it could cost you alot of money to remedy and blow your whole budget.

Hope this helps, good luck.

[Sunshine 12]

Thanks for the tips.......From everything I am hearing I know it is going to be challenging.

We did all the work ourselves on our home. Even added on and everything went good. We changed everything, walls, flooring, underfloor, wiring, fridge, stove, tankless water heater, washer, dryer, new outlets, siding, fascia,outdoor lighting,landscaped, ceramic tile, outdoor building, pool, 2 decks, porch, trim,shutters, windows, doors, hardwood flooring, light fixtures, toliets, vanities, sinks, and added on a master bedroom with a walk in closet. We enjoyed fixing up our house and it is time comsuming but I don't work and hubby only works 4 days a week. So the rest of the time we would have for the house. We don't want to pay someone to build it because we are trying to save money this way. He has been remodeling forever, just never started from the ground up besides our room and the outbuilding we put in.....
We are trying not to get a loan at all. I am very patient and detailed though. But we thought if we did it ourselves we won't have to get a loan. Which would be wonderful to have a brand new home paid for!!!!
We found a lot. It is in our subdivison and has city water and sewer. Our association gives out free building permits. Would I need something else to get started?
Why do I need to take quotes to a notary??? My friend is one so that is not a problem but what is the reason>>>? And why do I need several permits?

We are going to go by the blue prints in the home package we are purchasing. So we won't have an architect.....And the lot is pretty clear so he was just going to rent a bobcat and level it.

Any other tips......

[pandagal]

Sounds like you have things under control. You would only need to have the notary if you are getting a loan. Not exactly sure why, but the bank seemed to want that. (just one more thing that the contractor can take of) I am not sure how many building permits you need, you would need to check with the city or county that you are building in for that info. Good plan to get a lot that is clear. That's what we're going to do too. Too bad we don't get free building permits. Not that they are very expensive, but still. You must be in a good area. The area that we are looking at is up and coming so they are offering good incentives on the land which creates a great savings and instant equity once the area is completed. You are in a good place if you don't need a loan to build, so I say go for it!

Hope you have a great time and best of luck with your new home!

[Sunshine 12]

thanks pandagal...let me know if you think of any other cost with the home process besides the home kit and land.........I just started researching all the extra costs that come up and trying to come up with a budget........