Buying A Home
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
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Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
WWYD?
Ok, so i am going to try and make this the least confusing that I can. When I was 18 my parents and grandma helped me purchase a home, my grandma held the mortgage and when she passed it was Paid upon death. We found a home for sale that we really like, it would be a step up from our current home as far as size goes. They are asking 84k for the home, based on prices of homes in the area I would like to offer 74900.
So we have serveral different options that we can take here, our ideal way was to put our home up for sale, sell it and take the funds from the sale and use them as a down payment on a home loan and be left financing a minimal amount.
However since this is such a good deal we don't want to let it pass us by. So we have discussed getting a loan and purchasing the home and putting our current home up for sale in the mean time. Then when our home sold we would refinance our loan, to get rid of PMI and lower our payment. Our loan would then be extremely low, but to do this we would have to pay closing cost again, possibly around two thousand dollars. TO me that is a lot of money to just throw out the window. I am not a huge fan of this option.
We could also put in a contingent to sell offer, so we will buy your house when we sell ours. The problem with doing this is the seller is less likely to take a hit on their asking price if they have to wait.
The other option possible, but I am not sure how likely the owner is to do it is for us to contract for deed until we sell our house. I am not sure how this would work, I do know they had 2 other people interested in this option that they were considering but I don't know what the terms of this deal would be.
For those of you who have bought homes what would you do? Would you go with a loan on the home and try and sell ours after? Knowing we will have to refinance and throw money out the window, especially after just paying closing costs when we purchased the home. I don't want to let a good deal pass us up but I want to be smart about this as well.
So we have serveral different options that we can take here, our ideal way was to put our home up for sale, sell it and take the funds from the sale and use them as a down payment on a home loan and be left financing a minimal amount.
However since this is such a good deal we don't want to let it pass us by. So we have discussed getting a loan and purchasing the home and putting our current home up for sale in the mean time. Then when our home sold we would refinance our loan, to get rid of PMI and lower our payment. Our loan would then be extremely low, but to do this we would have to pay closing cost again, possibly around two thousand dollars. TO me that is a lot of money to just throw out the window. I am not a huge fan of this option.
We could also put in a contingent to sell offer, so we will buy your house when we sell ours. The problem with doing this is the seller is less likely to take a hit on their asking price if they have to wait.
The other option possible, but I am not sure how likely the owner is to do it is for us to contract for deed until we sell our house. I am not sure how this would work, I do know they had 2 other people interested in this option that they were considering but I don't know what the terms of this deal would be.
For those of you who have bought homes what would you do? Would you go with a loan on the home and try and sell ours after? Knowing we will have to refinance and throw money out the window, especially after just paying closing costs when we purchased the home. I don't want to let a good deal pass us up but I want to be smart about this as well.
Married since 5/21/2011
Re: WWYD?
What would I do? I'd get my home up for sale, list it at a price that will make it sell quickly and then purchase the other house. If the other house is no longer available, find a new one.
I'd rather take less on a fully paid off house and have it done and over than go through the hassle of buying and refinancing in a short period, plus, you might be hard pressed to find a lender that would even do this.
How much more is the house you're looking at compared to your current? Is there a reason you can't just spend a little more time saving and then purchase outright? In that price range it should be doable given the huge help you've been given.
ETA: It may be a good deal but there will always be more good deals especially in this market. You can't go into every house thinking it might be the only one like it because its not.