Anyone buy and end up house poor in the post bubble? (agent, mortgage)

[Podo944]

So, yeah, we're looking around to buy, and yes it IS a good time to buy. Of course, especially compared to prices during the bubble.
I'm just wondering if some first time homebuyers who are jumping in now are finding themselves "house poor" because the Agent and Lender have convinced them of taking on a larger mortage because the "rates are soooo low". Also for those buying condos, what about those non deductable HOA fees... don't you just love the mortgage insurance price on an FHA loan?
Are your utilities higher than you thought? The tax advantages not so much? Are you spending your weekends mowing hammering, fixing, etc. etc... miss the carefree days of renting?

Seriously, I really want to find a place to buy... just nervous and want to go in with my eyes open! Some real estate agents sure try to make it sound all good and easy don't they?

[Amaro]

Maybe you should save up 20% of the house value that you are interested in and buy something well below your means?

[NJBOSCH]

Delay buying until you can save up enough to put 20% down. I bought 1.5 years ago with a big DP, the value has dropped some but the house is still worth much more than the mortgage amount. Unexpected repairs are the biggest headache. Ut I don't regret the purchase.

[manderly6]

Why the victim mentality?

"because the Agent and Lender have convinced them of taking on a larger mortage"

How about people take responsibilities for their own actions?

[SmartMoney]

I agree, only adults can get a mortgage. If the buyer's expectations of a mortgage payment are realistic and they still over-buy, it's not because anyone twisted their arm.

If you were to tell me you want to buy a 400K home and not pay more than $1200 a month total, then yeah, you'll get sold a higher payment, but only because you aren't being realistic......But I can guarantee you in this market you will not get a loan you cannot afford, unless you go out and incur debt after closing. We may be at our lowet rates, but we are also at the tightest for qualifying for a new mortgage.

[Boompa]

Originally Posted by Podo944

So, yeah, we're looking around to buy, and yes it IS a good time to buy. Of course, especially compared to prices during the bubble.
I'm just wondering if some first time homebuyers who are jumping in now are finding themselves "house poor" because the Agent and Lender have convinced them of taking on a larger mortage because the "rates are soooo low". Also for those buying condos, what about those non deductable HOA fees... don't you just love the mortgage insurance price on an FHA loan?
Are your utilities higher than you thought? The tax advantages not so much? Are you spending your weekends mowing hammering, fixing, etc. etc... miss the carefree days of renting?

Seriously, I really want to find a place to buy... just nervous and want to go in with my eyes open! Some real estate agents sure try to make it sound all good and easy don't they?

I paid cash, so any loss is on me, likewise I do not take any tax deduction. I am however saving all that money people are paying every month in interest. I don't expect the government to subsidize my housing and have found trusting my own decisions satisfying

[Rakin]

Originally Posted by manderly6

How about people take responsibilities for their own actions?

Isn't there an Obama Law against this ?

Everyone needs a house that costs more then they can afford. Then when they can't make the payments, they should just get it for free.

I don't mind my income going to help some idiot.

[Chrisk327]

Originally Posted by SmartMoney

I agree, only adults can get a mortgage. If the buyer's expectations of a mortgage payment are realistic and they still over-buy, it's not because anyone twisted their arm.

If you were to tell me you want to buy a 400K home and not pay more than $1200 a month total, then yeah, you'll get sold a higher payment, but only because you aren't being realistic......But I can guarantee you in this market you will not get a loan you cannot afford, unless you go out and incur debt after closing. We may be at our lowet rates, but we are also at the tightest for qualifying for a new mortgage.

I disagree, lenders will still let you get in trouble.. at least mine would have let me take a very large loan if I wanted it. People should do their own analysis on what they can or cannot affford, the lender is certianly not always the voice of reason.

Gotta love when posters make something political when it isn't. what does Obama have to do with the OP affording a house?

I am house poor. I bought my "new" house after the deflation, and sold my house I bought during the bubble in the same post bubble market although houses by me certianly aren't really deflated.

My agent didn't talk me into anything, niether did my loan officer nor anyone else. I bought an expensive house for my income, because I wanted it. Its not outlandish, just nice and big enough at 2000 sqft. I pay for it by driving an older car, brown bagging it to work, less dinners out and making due with less of a cushon currently. It will get better, my income will eventually go up. its not that I can't afford it, its that I'm less comfortable.

I do miss the carefree days, of not worrying about bills, fixing things etc. never did the real renting thing, so my comparison is to living with my parents, whcih despite the cost savings at the time, isn't worth doing as a real adult.

[Boompa]

Originally Posted by Rakin

Isn't there an Obama Law against this ?

Everyone needs a house that costs more then they can afford. Then when they can't make the payments, they should just get it for free.

I don't mind my income going to help some idiot.

An Obama Law? Source please

[middle-aged mom]

Originally Posted by manderly6

How about people take responsibilities for their own actions?

^