Just your ordinary average guy...
Thanks for that Mr. Walsh.... Well I am average with a few things that sort of set me apart. Oh and there is one BIG glaring thing in this song that is SOOOOOOOOOOOO not me, I DO NOT have a Chrysler product!! They have and will always be $HIT!!!!! HA!!!!!!
Being that I have been a homeowner for almost TEN years, I closed on it July 2005, and a young 25 year old asked for some of my knowledge on buying a house, I decided to give all 5 of you that read this, some advice on buying a house.
- First off, DO NOT listen to all of your friends that are telling you that you are dumb for not buying a house because rates are so low. They say "You are just throwing money away by renting, buy a house because at least the money is going towards paying it off and house values NEVER go down." UMMMM let me stop those clowns right there, they don't ALWAYS go up in value. Be like the turtle in the 'Tortoise and the Hare' and just take your time looking and these are the things you have to think about before making one of the biggest financial decisions in your life.
- I know you have a plan for your life. Get a good job you love to go to and do, marry, have 2.5 kids, love and do EVERYTHING your in laws say, you will ALWAYS stay in one area of the country, THE LIST goes on. BUT as a 42 year old, I can tell you that 'life' throws you curve balls and sinkers all the time. Stuff like job loses, divorces (I KNOW, NOT very 'positive' of me BUT I have a few good friends deal with it) and moves happen. So "THINK" before you take the plunge......
- ASK yourself the question " Do we plan to stay here for at least 5 years or we want to go to another part of the country?" If you do then just RENT for now. It's OKIE DOKIE! Side note, "the kid", I CAN'T believe I just called her that!!! MY GOD, I'm old!!! Anyways, she wants to move and live in California, so buying here and then having the stress of being a long distance landlord by default is NOT GOOD!!!!! FYI- RENTERS SUCK!!!!! I have examples of this and I will gladly share them with you over a frosty beverage. DEFAULT LONG DISTANT LANDLORD: where you have no choice but to rent the house out just to make the mortgage payments and you live in a different part of the country and can't 'check up' on the renters so you PRAY they are not changing the oil in the Harley on your living room floor.....
- Shop around for a mortgage, at least 5 places will do. DO NOT try to get a mortgage from one of the big monster mega banks. They cannot compete with a credit union or a regional banks rates. SAD BUT TRUE!
- Know your limitations- The person that sells you a mortgage will SAY 'Mr/Mrs. SOandSO, you qualify for 2 times the mortgage." Don't take the bait because you will end up 'house poor'. That is where all of your pay check goes to your mortgage payment and you have nothing left for anything else. GOOD LORD!!!! I had to stop typing because I am watching Bailey for the weekend and she just let loose a doozy of a fart!!! I have to leave the room and try to escape the smell of DEATH!!!! BE RIGHT BACK!
- OKIE DOKIE! I think it's safe to go back in the room and type some more. WHERE WAS I? Get a conventional 15 year FIXED mortgage! DON'T consider those crazy @$$ adjustable rate or interest only ones!!! They can totally screw you up!! The mortgage broker will TRY to sell one of this to you because it GETS you qualified for the mortgage and they get the commission (HELLO CAPITALISM) BUT just remember to K.I.S (Keep It Simple) with a 15 year mortgage. If you can't afford the payments then OH WELL!! You are NOT ready to buy a house. Oh and DON'T tell yourself you will pay a 30 year like it's a 15 year because you are sooooooooooooooooooo kidding yourself....
- Have at least 20% for your down payment... Because if you don't then you will have to pay PMI, you will see how much money you are spending for it every month and KICK YOURSELF for NOT saving the 20% for a down payment.
- Learn to just walk away from a house... I can guarantee that there will ALWAYS be a 'MYSTERY bidder' who has a higher bid than yours. It's what realtors do!!! So just be that person that says, "That's OK" and walk away.... 8 out of 10 times they will accept your offer because there WASN'T a higher bid and YOU called their bluff. Kenny Rodgers would be so proud of you!
- Do NOT buy one of those stupid home warranties!!!!! I thought I had to when I bought my house. It's like driving down the road throwing $100 bills out the window! Those companies try to do EVERYTHING NOT to have to pay for stuff in your house.
- Know that BUYING is TOTALLY different then renting. EXAMPLE- when you own a house, you CANNOT just call your landlord because the sink is backed up. YOU have to fix it!!!! In my job, I have come to the conclusion that there are RENTERS AND OWNERS!!!! Some people accept that stuff that happens has to be fixed by them. Others just can only handle giving a check to a landlord each month because the LANDLORD has to fix stuff that breaks NOT THEM.
- One last thing, GET YOUR 'FINANCIAL BUTT' in order before making such a huge financial decision. If you have debt such as student loans, car or credit card debt, get those paid off and out of the way before even THINKING about buying a house. Don't be that guy/gal that has a house payment AND other payments to make!!!! They will stress you out! The poor B@ST@RD "MAN! I have this mortgage payment to make and this STUPID student loan to pay too!!! I sure hope I have enough left over to pay for my electricity."
Pretty exciting stuff huh?
AND as promised, the newest wall in the front yard that will reduce my time mowing to 1.5 PBRS! THANK GOD Bjorn, my mower, has a cup holder!!!!