I’m not sure if I posted this in the right section, but I want to buy my mom a house for Christmas of 2010, but I really don’t know all the ins and outs that I think I should be aware of before buying a house. Like back taxes? Escrow repairs? City inspection?
Let me give some background information. My mom’s mother died when she was 4 years old, and her father drank himself to death when she was 16. From the time of her being a very young child she was shuffled from different foster homes, with no one really caring about her. She had my older sister at 18, another girl at 20 whom she gave up for adoption, and then me at 24.
We were always very poor, sometimes without heat or electricity, or food to eat. We had to take many meals in a homeless shelter, and sometimes lived in shelters. When I turned 16 I started working, and helping with the bills, and moved out at 19. I got married, and recently divorced. Since I’ve been divorced I’ve been doing great, improving my credit and saving up money.
My mom lives in Jackson, Michigan. If you go to century21.com you will see the houses there are VERY inexpensive. There is one in particular for $16,900.00. My credit score is only 604 right now, but I have 2 credit cards that I’ve had over a year and have never been late on them, so I’m hoping my score will be higher in November of next year.
What are my finance options? I was planning on putting 20% down. I know most loans are based on 30 years, but I know that this loan stretched out over 30 years is highly unlikely (and what? 75 a month? Haha). But I also can’t afford to pay 17k right out, either.
Can anyone give me some ideas of what to expect? Also, my plan is to go to Michigan for Thanksgiving next year ( I live in NYC) and start the loan process. Given worst case scenarios, when can I expect to give my mom a gift box with her keys inside?
Hmm, now I just have more questions.
Well I do think buying a house for my mom would keep her much less stressed. Do you think that she lives in a good neighborhood now? She doesn’t. She rents an apartment currently in the same neighborhood that these houses are for sale in. It’s not a good neighborhood, but it’s where I grew up, and where she has always lived.
you can get a 15, 20 or 30 yr mortgage – the shorter mortgages usually have lower int rates
you may have to make it a personal loan or "Home Equity to purchase" loan
I bought 2 house last year that cost under $23,000 each – got a regular mortgage on one and a Home equity to Purchase" loan on the other – higher int rate, but payments are about $200/mo each and I rent one house out for $500/mo, my ex and kids live in the other one
look at houses online at www.realtor.com
while you are in Michigan – contact a real estate agent and sign them up as your buyer’s rep (no cost to you) – they can then get you the official MLS listing that will show more details than Realtor.com, like RE taxes, etc
research data on different towns at www.city-data.com – has stats on crime, unemployment, demographic info, more
On top of 20% down, yo will need another $1000-2000 for closing costs, inspections, etc.
when you next visit – try and get to see your top 2-3 choices for houses in person – ask lots of questions – get disclosure documents
when you make a decision, and AFTER you get pre-approved for a mortgage, and are ready to make a written offer – include in that offer – CONTINGENCIES for the home inspection, and anything else your RE agent suggests – the contingencies will allow you to back out of the deal and get your deposit money back if the home winds up having major problems discovered in the inspection
for $17000, don’t expect a pristine house, but if there is termite or mold issues, RUN AWAY – you won;t get your inspection money back, but it would have cost you a ton more to deal with those issues after buying the house – IF the mortgage company even went thru with financing – they might not if there are major issues – same thing with homeowners insurance – they might not insure the house if it has a leaky roof
Insure the house for the REPLACEMENT value – which may be $150,000 or more – it will still only cost $500/yr or so and well worth it, otherwise if house burns down, you have no house and you still have a mortgage to pay, plus no where to live
GET a professional FULL HOUSE inspection, including termites, mold and Radon gas (about $400-600 total)
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Century 21 Realty Group Muncie, IN. Real Estate Listing located on 5K Estates in Muncie, IN. For more information on this listing please contact Craig West, Broker Associate. Business: (765) 284-6313 Cell: (765) 546-0551 Email: cwest@c21rg.net
Lovely executive home with Short Sale options for purchase make this a sound investment opportunity. Full, finished basement. Tall ceiling design with quality features throughout.
This 1495 SqFt ranch style home is located on 1021 S. Sunset in Yorktown, IN 47396. Built in 1972 and has 8 rooms and 2 baths. Two car garage attachment with patio and beutiful backyard for family and friends. Appliances include dishwasher, range-electric, microwave, softener, washer and dryer. Call Century 21 today (Mr. Craig West Broker associate to see this home at (765) 284-5313 or email cwest@c21rg.net
20 Quaker Rd. Mickleton, NJ 08056
16 octobre 2008