[nyalpine90]

Thanks guys for the input.

we have a budget, 10% for down payment. Ideally we want to put 20% down to avoid PMI. At the same time we want to have some funds for emergencies. I know PMI drops onces 20% is met. It all depends if we find the right houses. How long is pre approval good for? what happens if preapproval expires? does it effect credit score down the road?

[infinitekidM2C]

Originally Posted by nyalpine90

Thanks guys for the input.

we have a budget, 10% for down payment. Ideally we want to put 20% down to avoid PMI. At the same time we want to have some funds for emergencies. I know PMI drops onces 20% is met. It all depends if we find the right houses. How long is pre approval good for? what happens if preapproval expires? does it effect credit score down the road?

I think you're locked in for a while on the PMI issue, not just until the PMI threshold is met. Maybe i'm wrong but check on that.

[izzyM2]

Low interest rate

[x3sm]

I'm in Real Estate and I can tell you that historically low rates are a big contributor to the hot market. Most buyers know the pandemic is temporary and treat it more like a natural disaster. I have people getting 2.5-2.75% on a 30 year. Also, what we are seeing is nation wide low inventory, it has been dropping combine that with best rates in history and demand is high!

Like someone else also mentioned the high unemployment is for certain sectors only and those people were not really in the market to buy properties anyways.

I think inventory is low because builders/flippers are not making as much money as before due to all of the requirements/permits it takes to build that only big guys are still doing it and they are not interested in smaller communities. Most builders I know don't even build less than 400k, not worth it to them.

[RickFLM4]

Originally Posted by infinitekidM2C

I think you're locked in for a while on the PMI issue, not just until the PMI threshold is met. Maybe i'm wrong but check on that.

Depends on the loan but usually it goes away automatically when you get to around 78% or 80% LTV either through scheduled payments or paydown, or you can usually get an appraisal to get rid of it if value increases. We bought a vacation condo last year with 15% down because the rate was lower than if we put 20%+ down (due to small loan size I was told). But I had $50/mo. PMI for the first time ever. I planned to wait 6 mos. (minimum window) and paydown the balance to get rid of PMI. Then COVID came and I decided I wanted to hold as much cash as possible as a precaution. Pricing was pre-construction from 2018 in a market where prices have been on the rise. Paid $325 for an appraisal earlier this month and now PMI is gone.

Edit: above is for conventional loan as pointed out in post below.

[x3sm]

Originally Posted by nyalpine90

Thanks guys for the input.

we have a budget, 10% for down payment. Ideally we want to put 20% down to avoid PMI. At the same time we want to have some funds for emergencies. I know PMI drops onces 20% is met. It all depends if we find the right houses. How long is pre approval good for? what happens if preapproval expires? does it effect credit score down the road?

PMI lasts until 20% equity is established IF you have a conventional loan. With FHA loans on the other hand PMI is there for the life of the loan unless of course you refi.

Pre-approval is usually good for 30-60 days, sometimes 90 (probably not right now though). I would say do not get pre-approved unless you are 100% set on buying next month. Credit is affected during the pre-approval when lenders pulls, but you could pull as many times as you want during a 45-day period for the same thing. Technically you could get pre-approved and go to another lender with the letter and have them beat the "numbers" they will pull credit, but it won't be affected. Credit bureau knows you're shopping around.

Also, I would avoid big banks, they have too much on their hands right now, best rates will be found at local credit unions.

PM if you have more questions.

[izzyM2]

Originally Posted by x3sm

I'm in Real Estate and I can tell you that historically low rates are a big contributor to the hot market. Most buyers know the pandemic is temporary and treat it more like a natural disaster. I have people getting 2.5-2.75% on a 30 year. Also, what we are seeing is nation wide low inventory, it has been dropping combine that with best rates in history and demand is high!

Like someone else also mentioned the high unemployment is for certain sectors only and those people were not really in the market to buy properties anyways.

I think inventory is low because builders/flippers are not making as much money as before due to all of the requirements/permits it takes to build that only big guys are still doing it and they are not interested in smaller communities. Most builders I know don't even build less than 400k, not worth it to them.

Can I PM you for specifics regarding our current situation if I made the right move regarding our current loan? Thanks!

[zx10guy]

I personally feel it's irrational exuberance.

I'm in a job that's as secure as one can expect other than being a Federal Government employee. My income hasn't really been affected. But with how things have been with the economic uncertainty, I'd be damned to get into a large purchase such as a home.

But the market is hot around here in the DC Metro area. The ex was able to sell her condo after it being on the market for about 2 weeks and turned around and bought a townhouse a few weeks after.

[x3sm]

Originally Posted by izzyM2

Can I PM you for specifics regarding our current situation if I made the right move regarding our current loan? Thanks!

Yes of course!

[obert]

Originally Posted by bucketfoot

People just are not selling and the mass defaults on loans haven't started yet.

Not that I want people to loose their homes. But I need to buy something the the prices are crazy right now.

I mean 350k just to get into a house that is just ok and needs work

[Our03z4]

Sorry to hijack the thread! Does anyone know if the $24,000 standard deduction gets added back as income on a mortgage application? Can't find the answer any where. Thanks!!!

[IndyRed128i]

Originally Posted by obert

Not that I want people to loose their homes. But I need to buy something the the prices are crazy right now.

I mean 350k just to get into a house that is just ok and needs work

Don't think anyone on this forum wishes that kind of hardship on others.

That being said, if the pandemic isn't under control in the next 6 to 12 months absolute max( vaccine, heard immunity, exc), I think you will see many with collar professionals get cut as well. If this happens it will absolutely become a buyers market.

Hopefully thats doesn't happen though.

[obert]

Originally Posted by IndyRed128i

Don't think anyone on this forum wishes that kind of hardship on others.

That being said, if the pandemic isn't under control in the next 6 to 12 months absolute max( vaccine, heard immunity, exc), I think you will see many with collar professionals get cut as well. If this happens it will absolutely become a buyers market.

Hopefully thats doesn't happen though.

I wasn’t suggest that anyone here wants that

I am about a year out from being ready to buy so we will see.

[eluded]

Two driving factors: Low interest rates and crack.

[Nachbar]

Switzerland here. Prices are higher then ever. Good for me and my family. We own several properties.

[RickFLM4]

Originally Posted by Our03z4

Sorry to hijack the thread! Does anyone know if the $24,000 standard deduction gets added back as income on a mortgage application? Can't find the answer any where. Thanks!!!

No it’s not income. It’s a deduction from income to determine taxes. Banks care about income that can be used to pay them back.

[nyalpine90]

Originally Posted by x3sm

PMI lasts until 20% equity is established IF you have a conventional loan. With FHA loans on the other hand PMI is there for the life of the loan unless of course you refi.

Pre-approval is usually good for 30-60 days, sometimes 90 (probably not right now though). I would say do not get pre-approved unless you are 100% set on buying next month. Credit is affected during the pre-approval when lenders pulls, but you could pull as many times as you want during a 45-day period for the same thing. Technically you could get pre-approved and go to another lender with the letter and have them beat the "numbers" they will pull credit, but it won't be affected. Credit bureau knows you're shopping around.

Also, I would avoid big banks, they have too much on their hands right now, best rates will be found at local credit unions.

PM if you have more questions.

thanks for the valuable information.

[RickFLM4]

Originally Posted by obert

Not that I want people to loose their homes. But I need to buy something the the prices are crazy right now.

I mean 350k just to get into a house that is just ok and needs work

$350k isn’t too bad. I remember looking in Miami in 2001/2002 and $300K was either a tear down in a good neighborhood or something in a sketchy neighborhood. (We bought elsewhere.)

[TrevorM3]

just wait until next year. Covid is here to stay. Jobs wont be coming back, forclosures to come..

[9M71]

Originally Posted by cmyx6go

It depends where in the city. I listed the day real estate opened up the end of June. I had non stop showings for 4 days straight and accepted an offer on the 4th day. Got my price too. I thought I listed high. I'm kind of suburbia for NYC. Tree lined block, 60' x 100' lot, in ground pool. My buyers came from Brooklyn.

SI? If you had a 2 car garage or larger, should have sold it to me! .

[cmyx6go]

Originally Posted by 9M71

SI? If you had a 2 car garage or larger, should have sold it to me! .

Yes, SI. Just one car garage

[9M71]

Originally Posted by cmyx6go

Yes, SI. Just one car garage

Ah, bummer. Congrats on the quick sale regardless. I'm on the other end of the table and been shopping around SI for almost 2 years now but its tough. Finding a home with a 2 car (or larger) garage in SI w/o major reno for <$1m, and convenient for commuting to the city, is like finding a needle in the haystack. The ones we do, we're getting beat out by cash offers even if we go in @ asking. Might need to become new jerseyians at this rate...