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Old 12-18-2013, 08:53 AM
 
159 posts, read 191,957 times
Reputation: 74

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We are actively looking to buy as our current lease expires Jan 6th and we will be on month to month thereafter (don't want to lock ourselves). We live in Philadelphia city and looking to move to suburbs (preferably Main Line if you know of the area).
I am curious to know if we should be buying now? The new mortgage rules that come in effect Jan 1st - will they affect us negatively or positively?
I am going to apply for getting pre-approved today.

Negative: It will make tougher for us to get qualified for a mortgage. (We are first time homebuyers)
Positive: Housing prices might come down.

Any input will be appreciated.
Thanks
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Old 12-18-2013, 10:34 AM
 
Location: Southern California
4,453 posts, read 5,837,531 times
Reputation: 2221
Quote:
Originally Posted by sunguy13 View Post
We are actively looking to buy as our current lease expires Jan 6th and we will be on month to month thereafter (don't want to lock ourselves). We live in Philadelphia city and looking to move to suburbs (preferably Main Line if you know of the area).
I am curious to know if we should be buying now? The new mortgage rules that come in effect Jan 1st - will they affect us negatively or positively?
I am going to apply for getting pre-approved today.

Negative: It will make tougher for us to get qualified for a mortgage. (We are first time homebuyers)
Positive: Housing prices might come down.

Any input will be appreciated.
Thanks
You shouldn't expect to make money when purchasing a home, it should be about locking a monthly payment. If the value goes up and you could make money, are you going to sell it immediately? If the value goes down and you become upside down are you going to walk away from it. There has been a lot of noise on qualifying, but many lender have already been using those guidelines, maybe you'll qualify for less, I don't know the situation.

1st time buyer shouldn't make any difference, what have you heard and how will it specifically impact a 1st time borrower. Are you on that edge of your borrowing limit, borrowing to you maximum limit?

But to answer your question, I'd apply now, you never know when a deal falls from the sky, maybe sellers are scared too and want to dump their home.
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Old 12-18-2013, 11:00 AM
 
159 posts, read 191,957 times
Reputation: 74
Default Good credit

Quote:
Originally Posted by thelopez2 View Post
You shouldn't expect to make money when purchasing a home, it should be about locking a monthly payment. If the value goes up and you could make money, are you going to sell it immediately? If the value goes down and you become upside down are you going to walk away from it. There has been a lot of noise on qualifying, but many lender have already been using those guidelines, maybe you'll qualify for less, I don't know the situation.

1st time buyer shouldn't make any difference, what have you heard and how will it specifically impact a 1st time borrower. Are you on that edge of your borrowing limit, borrowing to you maximum limit?

But to answer your question, I'd apply now, you never know when a deal falls from the sky, maybe sellers are scared too and want to dump their home.

Thanks. I will say our credit is on the borderline of good and excellent. My wife and I both work and make decent money so it seems the QM will not affect us much. I was just wondering about the price reduction in home prices.

Appreciate the response.
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Old 12-18-2013, 11:08 AM
 
3,806 posts, read 8,364,205 times
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OK, you're asking an anonymous message board if you should buy your first house now. That's a Red Flag. And QM, to you, means, if you want to go Conventional, a little tighter debt ratio. Where did you even hear about it?

Talk to a human being face to face. And then talk to your spouse.
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Old 12-18-2013, 12:17 PM
 
159 posts, read 191,957 times
Reputation: 74
Default QM - Qualified Mortgage

Quote:
Originally Posted by Pfhtex View Post
OK, you're asking an anonymous message board if you should buy your first house now. That's a Red Flag. And QM, to you, means, if you want to go Conventional, a little tighter debt ratio. Where did you even hear about it?

Talk to a human being face to face. And then talk to your spouse.
How can asking for opinions on a forums be red flag? Just asking for opinions, not counseling. I am new to homebuying and just collecting info BTW. Thanks but no thanks
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Old 12-18-2013, 06:52 PM
 
927 posts, read 1,209,470 times
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I am in the same boat with the OP. I am in the market to buy a house.

1)Should I act before Jan1st to lock in mortgage to avoid new rules? does it matter for people like me with credit scores higher than 760+?

2) Is there a first time house buyer program that I can take advantage of although my Household income is more than 140K?
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Old 12-18-2013, 08:50 PM
 
430 posts, read 317,159 times
Reputation: 395
Same as the OP and I've been wondering this for the last two weeks. Already going through the pre-approval and that's not the problem. I'm just worried that prices could go up or down and I'm not sure "when" is the right time this year. 3 months? 6 months? I'm so torn!
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Old 12-18-2013, 09:39 PM
 
280 posts, read 306,949 times
Reputation: 85
Hey man welcome to the club. We are in the same boat. We have been in the market for more than 8 months now. I guess we are so close to go in panic mode. We are still looking for houses even though we just renewed our lease. I shall take penalty for paying 1 months rent in case if I move.
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Old 12-18-2013, 10:10 PM
 
Location: Southern California
4,453 posts, read 5,837,531 times
Reputation: 2221
Quote:
Originally Posted by Ranredd View Post
Same as the OP and I've been wondering this for the last two weeks. Already going through the pre-approval and that's not the problem. I'm just worried that prices could go up or down and I'm not sure "when" is the right time this year. 3 months? 6 months? I'm so torn!
Quote:
Originally Posted by misterno View Post
I am in the same boat with the OP. I am in the market to buy a house.

1)Should I act before Jan1st to lock in mortgage to avoid new rules? does it matter for people like me with credit scores higher than 760+?

2) Is there a first time house buyer program that I can take advantage of although my Household income is more than 140K?
Quote:
Originally Posted by sunguy13 View Post
We are actively looking to buy as our current lease expires Jan 6th and we will be on month to month thereafter (don't want to lock ourselves). We live in Philadelphia city and looking to move to suburbs (preferably Main Line if you know of the area).
I am curious to know if we should be buying now? The new mortgage rules that come in effect Jan 1st - will they affect us negatively or positively?
I am going to apply for getting pre-approved today.

Negative: It will make tougher for us to get qualified for a mortgage. (We are first time homebuyers)
Positive: Housing prices might come down.

Any input will be appreciated.
Thanks
If you go though all of thread where people were asked to predict the future you will always get mixed results , someone is bound to be right.

If you are a first time buyer worried about losing value in a home , don't buy. I can tell you the right time to buy was 2009-2012, you already missed the boat. In 2015, I'll be able to tell you when was the best time to buy in 2014.

For most 1st time buyers who aren't going to buy a fixer upper, you will lose money on the purchase. Right off the bat , just to sell your home , you lose 5%-6%, if you can't accept the fact that you are underwater as soon as you buy, you shouldn't buy. IF you can get your mortgage close to your rent, why does it matter if the value goes up or down, you aren't going to sell it for that reason.

What will drive prices down is higher rates , because the demand is already there. If rates go up and prices go down, you'll still be paying about the same per month, but at a higher rate, less of your money goes towards principal.

Also missed the 1st time buyer tax credit of up to $7500 a couple of years ago.

When prices were falling people said 1) I don't want to buy because my house will still lose value", when prices are increasing people say "It is a bubble I'll just wait for it to burst and prices to fall" 2) Go back and read 1)

some people ignore the hype and just buy and sell and don't worry about interest rate , home value and rent. Also if any of you buy a home , stop watching it on Zillow.

Unlike before, people aren't dying to sell there home and get out of their mortgage. All market are different. If rate go up and prices go down, you'll see much less resold nice homes. People just will pull them off the market because as rates go up, their cash in the bank becomes stronger, cash in their investment accounts will grow faster, they really have no need or desire to sell their nice house, if anything , just buy more, and now you are competing with people with much more money than you. Now that I made my prediction, I'll look back at this in a couple of years and see how wrong I am/was.

Last edited by thelopez2; 12-18-2013 at 10:25 PM..
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Old 12-19-2013, 01:31 PM
 
1,018 posts, read 1,402,876 times
Reputation: 1809
Any mortgage you apply for now or basically for the last month or two will already be using next years standards because the loan will close next year. Prices might start to level off a little in the hot markets but it really isn't going to cause the crash of 2007 to repeat. You will start to see fewer conventional loans and more non conforming portfolio loans.
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