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Trying to buy a home for the past 7 years


tonyp1

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They say third times a charm. But not with this guy. Brief overview here. Have money saved and have very strong credit. So why do I have such problems? #1 commission based sales (good income though) #2 I do not want a track home, I want a older well built home anything built before 1930 would be awesome. #3 When I do find a reasonable priced nice older home one of two things always happens. Either it fails inspection or some yuppie swoops down with a bag full of cash buys the home right from under me CASH. My most recent misadventure was a home priced at 88k but valued at 130k and restored close to 250k. What I don't understand is, If there is really 65000 homes for sale on homepaths government repo site then why is it so difficult to purchase one? Also Why the heck is it so hard to obtain financing on a home even with good credit? Any insites are greatly appreciated.

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Edited by tonyp1
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nothing under $600K here so $88K sounds sweet! even 130K! hell a cheap condo 'round here starts at 300K

thought the banks were tightening down on the whole lending thing no matter how good your credit rating, cash is king...always.

if you do buy an older home (1930) it might be hard for it to pass inspection, asbestos wrapped pipes, vermiculite in the attic, [censored] and tube wiring, plaster walls, it sounds nice to own a home with a lot of history but the before mentioned things i would not (ever) want to personally deal with.

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I think your requirement of age and a passed inspection will always be at odds with each other. Seems like you need to accept the condition as it is (assuming nothing horrendously wrong like a foundation). Just remember, the inspection condition is the buyers tool to bail on the deal if even the smallest issue arises. You can still proceed if you so choose.

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Bank owned short sales are next to impossible without an "in" with the bank. That's why all the good deals get scooped up with cash while you're pissing around trying to get a mortgage. If that house was anywhere near me, I'd be paying cash for it Monday morning right after I went to my bank. And by Friday, it would be rented for $2000 a month.

And for those saying "buy it anyway, as is". The problem is you won't be able to finance it until the problems that show up in the pre-sale inspection are fixed.

Maybe you better think about a higher down payment where it's much easier to get financed.

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if you are buying foreclosed or short sale homes, you are always going to find cash buyers that can move quickly and won't get held up by an inspection. When playing in this area, 99% of the time you won't be getting beat out by 'yuppies with cash'. You'll be getting beat out by professional real estate investors.

In your example above, you state that you were trying to buy a home that could be 'worth' $250k, for only $88k. Even with your stated current appraised value of $130k, there will be tons of interest in homes like that. Huge upside for flippers. Think about it, if you could buy it for $88k, put $100k in renovations, and sell for $250k that's a very nice payday.

To compete for houses like that, you'll need a pre-approved lender and be ready to write a contract with a deposit the second one of those hits the market. Your post implies that you haven't secured financing yet. Getting pre-approved should be the first thing you do before even looking at properties. Commission sales jobs shouldn't be a problem for a house of that value. Pay stubs can easily support your reported income, and you wouldn't even need to make that much to qualify for a loan under $100k even with today's tighter lending requirements.

If you've only made three offers in seven years of looking, then pardon my reality check, but you aren't serious about finding a place. Either your standards are too high for your budget, you are trying to find the 'perfect' place, or the perfect 'steal of a deal'. A bit of advice, the 'perfect' place and the 'perfect' deal do not exist. There will be something that's not 'perfect' in every real estate purchase deal. You need to lower your standards for 'perfect'. Find something that is better than 80% of your ideal and you will be doing great. Try to buy at a good price, not a fantastic one, and in a good neighborhood where homes sell.

I went through some of the same issues early on when buying my first home, so I know what you are going through. Relax, and you'll find something.

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