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Homebuying advice please!

Posted by on Aug. 13, 2014 at 3:10 PM
  • 28 Replies

My husband and I are looking to buy our first home. We found one that we want to buy. We got pre-preapproved (meaning we talked with a lending company and they said they think we would qualify for like $150k and that if we wanted to fill out a second application that we could get preapproved for that amount... Strange right?) Anyway the house we want is $265k. This has dropped down from $324,361 in Aug of last year. Since being pre-preapproved we have had to buy a new car which changed our debt to income ratio quite a bit. I was thinking of asking FIL if he would co sign on a loan because his income is substantially higher than our. I was also thinking of offering like $165k for the house... what are your thoughts? and sorry I know this is a little scatter brained.

 

ETA: Since many of you are bringing up that you would not co-sign on the loan I should add that FIL already offered to co-sign but we turned him down because his credit is like mine, not the best. Also he is going to be putting down $1000 a month for MIL to move in with us. They are divorced and she has alzhiemers so we will be caring for her. She will have the MIL. Also the reason I am thinking of asking for such a low price is because of how much we will have to invest in order to fix up the house. There is an upstairs that we would need to install stairs to because the previous owner took them out. Also there are two or three unfinished room like the dining room and kitchen. It would be a lot of time (we would be doing most work ourselves) but we know what we are looking for. Most homes in that area are selling for $250k with the same acreage and finished homes.

by on Aug. 13, 2014 at 3:10 PM
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Replies (1-10):
Adnalor
by Bronze Member on Aug. 13, 2014 at 3:17 PM
I don't think anyone's going to sell a house for 100,000 less than the asking price. You can reapply with the lender and see if there's anything you can do to get more. Or find a cheaper home. I would never consign a loan. But maybe that would help.
momtimesx4
by on Aug. 13, 2014 at 3:39 PM

That is too low of an offer and seller would not even bother to respond to it.

 

OHgirlinCA
by on Aug. 13, 2014 at 3:45 PM

 If it were me, I'd keep searching for a house within my price range without the help of someone as a cosigner.  Keep in mind that the buying of your car may reduce the amount of loan you will qualify for.

In most cases, if you were to offer $100,000 less than the asking price, that offer would be laughed at. 

k8smimi
by on Aug. 13, 2014 at 3:53 PM
2 moms liked this

You are ridiculous in your thinking.  Find a home in your price range or less.  You are trying to live out of your league.

atlmom2
by Ruby Member on Aug. 13, 2014 at 4:07 PM

I would never max yourself out on a loan.  Whatever you are pre approved for is usually more than you should be spending on a home.  We always went well lower than our pre approved amount and we only got approval on DH's salary and not mine because we were always moving and I wasn't allowed to use mine since I didn't have a job yet at our new location.  Only once did we go to Dh's approval amount but we knew we had my salary to add on since I always did get a job pretty quick.  Of course with my salary we would have been approved for a much larger amount. 

Mom2Just1
by Mom2boys on Aug. 13, 2014 at 4:36 PM

Find a house in your price range.  I would never co sign for a loan...especially when it is obvious you can't afford the loan.  Why be house poor?

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Mom2Just1
by Mom2boys on Aug. 13, 2014 at 4:37 PM
1 mom liked this

If someone offered me 100,000 less than asking..I would just toss it in the trash and move on.

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a_and_j_momma
by Platinum Member on Aug. 14, 2014 at 12:28 AM
It doesn't sound like a wise idea or like you can afford the house
a_and_j_momma
by Platinum Member on Aug. 14, 2014 at 12:29 AM
Also, your offer is too low for the home
ceciliam
by Cecilia on Aug. 14, 2014 at 11:01 AM
1 mom liked this

I'm confused. If you are approved for $150,000, then you should be looking in that price range or under, depending on what you have to put down on the home. Also, I can't imagine someone will accept your offer of $100,000 lower than asking price, especially since they have already lowered the price significantly. Whether your FIL co-signs or not (which I don't think is a good idea), it still sounds like the home is way out of your price range.

If it were me I would be looking for a home that works with my budget. This is how people end up in financial trouble because they buy a home that was financially too much to handle. Just because you are approved for a certain amount doesn't mean you should max that amount out.

Good luck! :)

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