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View Poll Results: Should I buy?
Yes! Now is an excellent time to buy! 17 60.71%
I suggest you wait a year, until after the baby and/or prices come down. 11 39.29%
No, you should not buy anytime soon, if ever! 0 0%
Voters: 28. You may not vote on this poll

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Old 04-23-2008, 10:06 AM
 
9 posts, read 29,056 times
Reputation: 11

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Quote:
Originally Posted by 5stones View Post
The only problem i see is financing.

with only enough cash for 5% down you may have a hard time getting a loan.
The more you can put down the lower your intrest rate will be. The rates that are published are usually for 20% down.
Yes, that is one of my concerns. However, I have been looking at Navy Federal Credit Union (NavyFCU), and their 30-year conforming loan is 5.6% right now with 3% down.

Quote:
Originally Posted by 5stones View Post
IN calculating your mortage payment remember things like taxes and insurance. If you don't have 20% to put down you may have to have PMI and that will also raise your monthly payment.
Yes, tax will add about $250/month and insurance maybe $150/month, but tax savings should be around $400/month, so they more or less cancel each other out. Of course this is just for the first few years, property tax will go up as interest payments (and thus Federal+state tax savings) goes down, but in my time frame it shouldn't matter much.

Also Navy Federal does not require PMI.

Quote:
Originally Posted by 5stones View Post
Also I suggest IF you do buy (with a baby on the way etc...) to get an escrow account so that all your taxes etc...are rolled into your mortgage. It's easier to budget and you don't have to worry about your RE taxes not getting paid.
I'm not sure if NFCU requires escrow, but most likely I'll do the escrow anyways.

Quote:
Originally Posted by 5stones View Post
It is a good time to buy. Just remember the old adage...LOCATION LOCATION LOCATION. and even though you do not have school aged children, buy in a neighobrhood with GOOD schools.
Certainly. Thank you for the advice.
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Old 04-23-2008, 10:13 AM
 
Location: -
488 posts, read 1,583,112 times
Reputation: 103
Why escrow?

Deposit each month the correct amount to your savings account, and make a bit of money every month.
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Old 04-23-2008, 10:20 AM
 
9 posts, read 29,056 times
Reputation: 11
Quote:
Originally Posted by VEIK View Post
Why escrow?

Deposit each month the correct amount to your savings account, and make a bit of money every month.
After reading more about it, the only time it makes to have an escrow account is:
  • The lender requires it.
  • The mortgage rate is sufficiently lower for a mortgage with escrow than without, such that the lost escrow interest is less than the alternative invested amount (did I say that right?).
  • The borrower doesn't want the hassle of paying a couple extra bills, and would rather have someone else take care of it.
If it's the first or second one, I'll have it, otherwise I agree with VEIK, I'll pay it myself. Interest + Control =
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Old 04-23-2008, 12:28 PM
 
1,623 posts, read 4,323,852 times
Reputation: 1291
I've actually seen some really nice 3BR townhomes for $300K in Burke and Springfield that feed into the well regarded Lake Braddock S.S. and West Springfield H.S. school pyramids. Most look like foreclosures, but look like they are in decent shape. If the schools aren't concern there are plenty of places near Ft. Belvoir right now.
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Old 04-23-2008, 12:41 PM
 
5,210 posts, read 9,101,538 times
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Quote:
Originally Posted by slim04 View Post
I've actually seen some really nice 3BR townhomes for $300K in Burke and Springfield that feed into the well regarded Lake Braddock S.S. and West Springfield H.S. school pyramids. Most look like foreclosures, but look like they are in decent shape. If the schools aren't concern there are plenty of places near Ft. Belvoir right now.
From what I've seen, a lot of the foreclosures in the Burke/Springfield area are in good shape. Many of the homes had long time owners in them who decided to sell and cash out their equity for retirement. The homes were then bought by so called "investors" looking to make some simple upgrades and a quick profit. Then the market turned and they bailed on the mortgages.

There has *never* been a foreclosure issue before in this area, this is a very unusual situation - there is a lot of good value out there.
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Old 04-23-2008, 12:45 PM
 
Location: TX
3,029 posts, read 10,642,391 times
Reputation: 1362
Quote:
--------------------------------------------------------------------------------

Why escrow?

Deposit each month the correct amount to your savings account, and make a bit of money every month.
as stated:
some lenders require it esp with first time home buyers.
alot of times you can get a better rate.

for me (esp when I had babies etc...and not fully realising the additional cost those buggars create) it was nice not having to worry about it. It's easy to say yeah I'll put that aside or I'll pay it when it's due etc....Then it comes in and you have to pay a thousand.
I am a bad money magr though. so it works for me. I've done it both ways and just prefer not having to worry about it.
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Old 05-17-2008, 07:32 AM
 
Location: Florida
21 posts, read 130,033 times
Reputation: 28
Joshtp,
This is a great time to buy. When you write a contract, ask for the seller to pay your closing costs. We got our mortgage with Navy Federal Credit Union Navy Federal ph# 888.842.NFCU (6328) and got the Homebuyer's Choice mortgage which give 100% financing. They also have White Fence which sets up utilities and service transfer for TV, electricity, etc., and Realty Plus, which gives you cash back on your purchase and gives you a select of realtors in your area who know the area and will do right by you.
One thing I found out is that with the Homebuyer's Choice, if the seller contributes to closing costs, and money is left over after the closing costs are covered, in order for the extra money to be used to buy your rate down, you have to specifically state in the contract that the seller will pay closing costs "including pre-paids." We used Realty Plus, and finding out about that little detail was one of the great ways she looked out for us, otherwise we would have never known. As a result we are currently paying a much lower APR on our loan.
Check them out. I found out they also offer a 100% financing loan made specifically for Veterans, and a 100% financing loan that is made specifically for active duty people, and none of them charge PMI. They also don't have any junk fees. I check out the HUD, and the only fees they charged were bare bones to get paid back for what they were charged to get the flood cert, and pull our credit, etc.
Good luck!!!
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Old 05-17-2008, 07:34 AM
 
Location: Florida
21 posts, read 130,033 times
Reputation: 28
I forgot to say that our escrow account at Navy Federal gets paid dividends for the money sitting in it.
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Old 05-17-2008, 08:03 PM
 
3,504 posts, read 7,920,013 times
Reputation: 3466
I would wait a year - prices are still going down dramatically.
Also - one thing I learned - DO NOT MAKE MAJOR DECISIONS WHILE PREGNANT - I made the mistake of buying a mini-van while I was pregnant and I am not that happy with it.
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Old 05-18-2008, 09:09 AM
 
5,210 posts, read 9,101,538 times
Reputation: 5879
Quote:
Originally Posted by Fairfax Mom View Post
I would wait a year - prices are still going down dramatically.
Also - one thing I learned - DO NOT MAKE MAJOR DECISIONS WHILE PREGNANT - I made the mistake of buying a mini-van while I was pregnant and I am not that happy with it.
I hear you about pregnancy brain, and for the most part I agree with this statement, but....

There is nothing like planning and preparing for a new baby. Especially the first. When you own your home you can paint, wallpaper and decorate the baby's room however you like. You really can't do that in a rental.

I don't think prices can come down much more in the op's price range. In fact, by waiting a year, there may be less inventory to choose from and higher interest rates. Now is a great time to buy.
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