Should I buy now...?

NEW -> Contingent Buyer Assistance Program
<p>"Add this to the equation... the builder's preferred lender attempted to broker our loan which in effect produced a lot of inquiries on our credit report. Plus our lease on the current apartment is about to expire so they ran a report too!





Our credit score when we began this whole fiasco was 705 and 703 now its down to 680 and 685. Sub-prime Lending here we go!"</p>

<p>This shouldn't be the case anymore. The law changed so that if you have multiple inquiries for a mortgage within a 14 day period your score should not change. And even in the old way of scoring inquiries it wouldn't drop by 20 points. You must have had something else change in the report. Did you go buy some furniture or anything like that? Balances have more of an effect that would be more in line with a 20 point drop.</p>

<p>You can get your deposit back if you cancel when they resell the place to a new buyer with a new deposit. Your score dropped so now you don't qualify for the loan would be a good one too. If you lost your job you wouldn't qualify either and they have to verify employment. You should be able to get it back fairly easy they don't want to pay the attorney fees when they can just give you the $6k back. Don't listen to the sales agents and speak to the sales director if you have any problems. </p>

<p>Your wife works at a bank so I give you this warning. You get a below market rate because she works there and that may change if she doesn't work there anymore. I know B of A will redo the note when someone leaves voluntarily or involuntarily. Not all the banks do it but it is clear as day in the disclosures and I don't know if your wife would ever leave either. </p>
 
Not that I know off... I do Information Technology consulting and the only thing that happened was I charged a $4k Server on my Credit Card (to get the reward points) and after that I paid it all off at the end on the month when I got the check from the project. They never hit me with financing charges though.





It sat on my credit card more than 4 weeks since I got it the start of the billing cycle. Will that throw my credit score way off? $7.5K limit on the card.
 
Yes it will. First the bad news you have no idea when the credit card company reports to the bereaus so you have no idea when it will come off for sure. The good news is you can get a current balance from the credit card company and have the person who ran your credit get you a rescore with the lower balance. Two months from now and it would be off of there.
 
$4k on a $7.5k limit will definitely hit your score, thought the impact would be lessened if the overall credit utilization were low. How many other revolving accounts do you have?
 
nirvinerealtor,





I probably should give as much credence to the opinions of the people on this bearish forum as I should to a realtor's mantra "there may never be a better <strong>time to buy</strong> a home than right <strong>now"</strong>. I was actually looking for perspectives that are different than my own, especially ones that are technically and analytically supported as offered by some of the bloggers on this board. That said, the question is not whether I should or should not buy at all, but rather whether I should buy NOW given my family's needs and my own desire of homeownership.





Will OC see a 50% housing price correction? Japan never thought it would see a 70% price drop, but it did (and for those interested, it may be worthwhile to check out Knowledge @ Wharton's article on Japan's real estate). If this mortgage mess is on par with the dot-com bust according to OC Register, there will be a lot of pain for homesellers looking "to hold your price".





Given the shady business of the subprime lenders, I predicted the eventual demise of New Century and its cohorts years too early, but when NEW actually collapsed, the quick death of it surprised even me. With 2MM foreclosures from subprime lending, prices will go down, but how much further down and whether I can wait out the storm if I buy now.




 
<p>artichaze,</p>

<p>Qualifications of a home buyer: Ready, Willing, and Able. </p>

<p>Seems like you got all your ducks in a row; then you asked the question with a known answer on this forum. You were willing until you got fearful of the unknown (or should I say the "inevitable" of the future home price crash!)</p>

<p>By statistic, 99% of the buyer have "buyer remorse"; meaning after you signed a contract to purchase, the next day you regreted it. Your behavior is very normal. Remorsed buyer looks for reasons to back out. That why I strongly believe with the abundant amount of data, you need to realtor to hold your hands even more so to become a homeowner. I only can wish next time you are more considerate to people's time; meaning make up your mind and stick with it.</p>

<p>I am a business person, and of course, I have to ask myself, is there a demand for my products (services), and that is how I stay in the business. Most of us on this forum would say I am "puffing" and would suggest I get another job.</p>

<p>lllrvine,</p>

<p>Don't you think it was odd that within a few weeks, most of the subprime lenders collapsed? Sounds to me like a very well planned mission!!!!!! </p>
 
nirvinerealtor...speaking of suggestions, are you suggesting that you become the realtor for Arctichaze?





Yes I know that is absurd as you hypothesizing that the sub-primer's collapsed on purpose at the sametime. Why would they ever want to do that when they were making so much money for so many years? Oh yeah and also many of the have the SEC in auditing their books and questioning their practices....hmmm if I was the CEO or CFO I would want to go to jail.
 
<p><em>"By statistic, 99% of the buyer have "buyer remorse"; "</em></p>

<p>I'd love to see a study or poll that supports this. Sounds like a complete exaggeration. </p>

<p><em>"That why I strongly believe with the abundant amount of data, you need to realtor to hold your hands even more so to become a homeowner."</em></p>

<p>Yeah, just like browbeating <a href="http://www.youtube.com/watch?v=Ubsd-tWYmZw">Suzanne</a>. You have to gang up on potential homebuyers in order to get them to commit.</p>

<p><em>"I only can wish next time you are more considerate to people's time; meaning make up your mind and stick with it."</em></p>

<p>I thought there were only supposed to be bitter <u>renters</u>, not bitter realtors! Arctichaze- you're being given the guilt trip for making a financially prudent decision. How dare you.</p>

<p>SCHB</p>
 
<p>artichaze,</p>

<p>you now have two polar views of what to do with your dilemma. after reading your last post, i would have to agree with the bears and say back out of your contract. consider your deposit a sunk cost, which it is, and if you get it back, that's great, if not, it is the price you pay for not having to live with a decision that you appear to be regretting already. i am a little more bearish than bullish though i don't find myself in either extreme, meaning i am not completely against buying a home in this market if you have more reasons that purely making a riskfree investment. however, that being said, i think the only reasons someone should buy a house in today's market are:</p>

<p>1. you <strong><u>love</u></strong> the house</p>

<p>2. you can comfortably <strong><u>afford</u></strong> a traditional 30-yr fixed mortgage</p>

<p>3. the house is big enough for you to grow in if you have a family, change in lifestyle, etc.--basically, can you live comfortably in this house for the next 10 years and be happy/satisfied with the size/location/etc. if you are <strong><u>unable to sell it.</u></strong></p>

<p>the bears definitely have a point in that buying a home now is an extremely risky investment of your money. however, you are the only one that knows what price you are willing to pay to <strong><u>own</u></strong> a home that you <strong><u>love</u></strong>. if and when you find that home, ask yourself, is it worth it to me to potentially pay anywhere from 5% to 20% (equaling bears' predictions of depreciation) to enjoy this home over the next few years or am i willing to postpone my enjoyment of owning a home until i am more comfortable with market conditions. personally, we just bought a home. was it the most practical investment decision we've ever made? no. but we went in this knowing the risks we would be taking--we do not have delusions of guaranteed appreciation over the next few years. and now, as we are going through all our to dos (flooring, windows, furnishings, landscaping, etc.), i am quite at peace with our decision because it will probably take us a year to turn this house into a home. it takes a lot of work, time and effort and i much prefer to have our "home" in place before we start a family. just personal preference. good luck. </p>

<p> </p>
 
Anyones opinion is welcome.





nirvinerealtor: We placed the deposit early this year and we never looked back since then. We were committed to buy regardless. But all the CNN reports and nationwide news articles are starting to bother us. These news become reality when the newer phase of the development becomes under priced compared to their phase 1 counter parts, in most if not all of the new developments Irvine.





The real problem lies in the fact that I am not in love with the house but its the best that we can afford in a neighborhood that we liked. The plan was to get our foot on the door and trade up in 5 years (+/- a couple of years). But with these current market conditions that is not even a possibility.





I don't think that I think I never mentioned that we are not buying in Kensington Court but rather we are buying in Savannah. If I lived in Kensington I would have no trouble enduring the 10 year real estate storm because I actually like their floor plans. But fact is that we might be stuck in a crappy 3 story condo with small rooms and a crappy masters bedroom without a nice bathroom or a walk in closet not to mention the stairs - which forces me to do regular cardio every time I go up and down the house. The builder's incentives has made the interior of the house real nice but to me its just a chocolate covered piece of rock. It looks nice but the fact remains its just a piece of rock. A piece of rock that I am not willing to live in the next 10 years. Now if I ended up buying in Kensington or even La Casella there wont be any doubt in my head. The fact remains we cant afford them and were stuck with Savannah which is far from my ideal house to live in for the next 10 years.
 
<p>arctichaze,</p>

<p>Now that you explained well I absolutely do not think you should move foreward. You are good.</p>

<p>I worked very hard to help many people into buying because I STRONGLY believed they had very valid reasons to do so. I also disqualified many buyers as well because ethically it's a right thing to do. I have not yet had an unhappy buyer!</p>

<p>Good luck with your dream house. It will come a reality and you will know it when you find a home that you "know" your family will be happy in. I believe you must buy a happy home.</p>

<p>Take your time. I would not say this if there is a current indication of a price run up. This may change next month though.</p>
 
Arctic,



I am one of those waiting with you to buy a home that I presently cannot afford. I would love to get into the Astoria models, but I can’t afford it unless it comes down another $100K or so. But every time I think “what if I made $100K more per year?”, I ask myself whether I would buy the place. And every time, I come up with the same answer. At the present price, no.



A home should be more than a decision made purely on numbers. There is a lot of emotion attached to purchasing a home, and many benefits that are not easily quantifiable. A big thing for me is the ability to customize it to your liking, and you really can’t put a price on that. But you must realize that buying a home is the single most important economic purchase you will ever make. And when this is the case, you owe it to yourself and your family to make the most sound ECONOMIC decision on it. You have to FIRST work out the numbers that is fiscally responsible for your, then determine “what is the premium that I am willing to pay for living in my own place”, and determine whether that place you want is within the sum of these two numbers. Of course, the more you are in love with the place, the higher that premium will be. If not, no matter how much you want that place, you CANNOT buy it. Because you will be making a financial decision that could be detrimental to your family. If the number falls within that figure, by all means buy it.
 
<p>mino2126,</p>

<p>I am not suggesting to be anyone's contracted realtor. I am just blogging in the mind frame of an ethical realtor.</p>

<p>You know, in my business, I see things that are unexplainable. Why did Martha Steward try to make $200K on insider trading and went to jail? Why that famous actress, Wynona Rider shop lift? .... I just accepted the fact that these great ones do risky things.!!!!!</p>
 
Nirvinerealtor....





<em>"You know, in my business, I see things that are unexplainable. "


</em>I see alot of things that are unexplainable too. Like stated income loans, interest only loans, homes appreciation at very alarming rates, realtors complaining the got screwed because newer phases in neighborhoods they bought in are getting greater incentives and price reductions. All this happening while the Feds make it all the more easier for foolish people to waste money. Those are just the little things, we won't touch on the fraudalent realtors or brokers.





<em>"Why did Martha Steward try to make $200K on insider trading and went to jail? Why that famous actress, Wynona Rider shop lift? .... I just accepted the fact that these great ones do risky things.!!!!!"


</em>First thing first, when did Martha Stewart and Wynona Rider become great ones, hopefully you are being sarcastic. I might give you Martha b/c she can whip up some mean dishes but Wynona Rider....come on.





Secondly, what these two did is not <strong>RISKY</strong> rather just plan f-ing dumb. If you have kids would you tell them that, "shop lifting is risky, so you better not get caught" or would you tell them "shop lifting is illegal and you could go to jail"?





And as for Martha and insider trading....what a fool. Lets think about this for a minute Martha makes millions of dollars of year, was considered to be almost on the same level as Oprah in regards to her successes, had her own company that she started from the ground up, and she was trying to make an extra $200K....that is probably a very small fraction of her networth let alone a great tax write off that year? Come on that is like splitting Kings on the black jack table when the dealer is sitting on a six. Their are certain things that you just shouldn't do and if you do them and get caught you deserve whatever you get.
 
Nirvienrealtor....I hope I didn't offend you, that was not my goal. I like debating and at the same time I sometimes come off very shrewd, and that is b/c I get passionate about the subject.
 
<p>mino2126,</p>

<p>You are fine. The insiders, fraudalent mortgage brokers and realtors, are causing a huge headaches for everyone; and it is quite bothersome for me too.</p>

<p>Thank you for bringing up my wrong choice of words (RISKY); I tend to be neutral with words and change the meaning completely.</p>
 
Mission accomplished. I talked to the sales office and from the way it looks i'm getting as much as 90% of my deposit back.



I'm turning into a real estate bear now and hibernating for 1 year. I just renewed our lease for another year. Hopefully save more down payment or pay off our cars by that time frame and see how the market looks like by next april.



Much thanks to all that helped. I was so close from making the biggest mistake of my life.
 
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