topic Re: Thinking about buying in Mortgage Loans

Thinking about buying

llecs — Thu, 05 Mar 2009 15:35:20 GMT

With the $8,000 tax credit floating out there and with prices at a low, DW and I are thinking about taking a plunge.

We are renting from the in-laws (they live elsewhere) and they want to give the house to us. That isn't possible because of gift taxes. But they can sell the house to us at market value. Our CPA advised us to get an appraisal to use as a basis for the loan amount.

When getting an appraisal, is it advisable to get more than one estimate and then choose the lesser? Would all result be ballpark? And how close are appraisals to the taxing government's estimate (e.g. I live in Fairfax Co., VA and Fairfax Co. will send tax assessments based on their preceived value)?

Re: Thinking about buying

DallasLoanGuy — Thu, 05 Mar 2009 15:43:26 GMT

Check the rules. Buying from family may make you ineligible.

Or did that change?

Re: Thinking about buying

llecs — Thu, 05 Mar 2009 16:03:00 GMT

Are you referring to the $8000?

Re: Thinking about buying

DallasLoanGuy — Thu, 05 Mar 2009 16:19:38 GMT

yes, sorry.

Re: Thinking about buying

llecs — Thu, 05 Mar 2009 16:30:22 GMT

I guess I should confirm. Might put a monkey wrench in our plans if true. I thought that a spouse couldn't sell to a spouse or to anyone else within the household.

How about the appraisal question? Do appraisals vary widely if more than one is given? I met two appraisers a couple months ago. One was fresh out of college and the other has 30+ yrs experience. I was thinking that with two different experiences would result in two different results.

Re: Thinking about buying

DallasLoanGuy — Thu, 05 Mar 2009 17:01:01 GMT

Check into it...

Lender orders appraisal anyway. And while they can vary.... if they vary too much, then one is wrong.

The data is there... only so much manipulation can go into it and u/ws can spot that!

Re: Thinking about buying

llecs — Thu, 05 Mar 2009 17:16:53 GMT

Thanks for the info. So I take it a lender wouldn't consider an appraisal if we found someone locally to do it? I suppose there's always the room for fraud or an appraisal buddy purposely hiding stuff or changing this or that within an appraisal.

Re: Thinking about buying

Wonderin — Thu, 05 Mar 2009 17:25:16 GMT

I don't know if I'm tiptoeing too close to the unethical edge, here, but technically, if YOU buy the house (without Mrs. Ilecs), you CAN claim the credit.

This is EXACTLY what the IRS says:

Q. Who cannot take the credit?

A. If any of the following describe you, you cannot take the credit, even if you buy a main home:
* You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

No mention of in-laws in there. Like I said, though, that might be pushing it. :/

Re: Thinking about buying

ladyofnight — Thu, 05 Mar 2009 17:47:43 GMT

It's possible the law considers in-laws your parents if you're legally married.

Re: Thinking about buying

DallasLoanGuy — Thu, 05 Mar 2009 19:14:03 GMT

llecs wrote:
Thanks for the info. So I take it a lender wouldn't consider an appraisal if we found someone locally to do it? I suppose there's always the room for fraud or an appraisal buddy purposely hiding stuff or changing this or that within an appraisal.

lenders usually don't allow the buyer to pick.

Re: Thinking about buying

llecs — Thu, 05 Mar 2009 23:07:36 GMT

:smileysad:

Thanks for being the bearer of bad news on the credit limitations, Wonderin and Dallas! j/k.

Oh well. This is probably a blessing in disguise. The place we are paying rent on is a money pit. The in-laws always hired sub-par contactors to do the work and it shows. I was hoping the savings on the house would offset the cost to fix everything.

Re: Thinking about buying

DallasLoanGuy — Thu, 05 Mar 2009 23:36:03 GMT

llecs wrote:
:smileysad:

Thanks for being the bearer of bad news on the credit limitations, Wonderin and Dallas! j/k.

Oh well. This is probably a blessing in disguise. The place we are paying rent on is a money pit. The in-laws always hired sub-par contactors to do the work and it shows. I was hoping the savings on the house would offset the cost to fix everything.

you could get all of the work done by contractors. Have them put a mechanics lien on the property which will be paid off at sale or refi.

Re: Thinking about buying

TheBargainHunter — Fri, 06 Mar 2009 22:52:22 GMT

I'm also thinking about buying, but riddle me this Batman, how did you get your scores up so high in less than a year? That's awesome!:smileyvery-happy:

Re: Thinking about buying

Wonderin — Sat, 07 Mar 2009 03:01:49 GMT

TheBargainHunter wrote:
I'm also thinking about buying, but riddle me this Batman, how did you get your scores up so high in less than a year? That's awesome!:smileyvery-happy:

If you're talking to me, I was able to do it just by posting my DH's baddies (I fixed up his credit, not mine -- but mine's next!) here and asking stupid, stupid questions in the Rebuilding Your Credit Forum -- to which I received awesome, supportive, clever answers!!

'Specially from the OP (Ilecs).

*nods emphatically*
Ilecs ROCKS!!!! Yeah ... I have a crush! But he knows that already. ;)

Then, when I thought we were close to being ready to buy a house, I came in here (the Mortgage Forum) and asked oodles of even stupider questions -- to which, typically Dallas and Shane took great, great patience in answering.

The people here are wonderful. If you listen to their advice, you, too, will raise your scores and be posting in here about closing on your dream home!!

My FICO-Family RULES!!! Luvs to them!! :)

Re: Thinking about buying

Wonderin — Sat, 07 Mar 2009 03:08:31 GMT

llecs wrote:
:smileysad:

Thanks for being the bearer of bad news on the credit limitations, Wonderin and Dallas! j/k.

Oh well. This is probably a blessing in disguise. The place we are paying rent on is a money pit. The in-laws always hired sub-par contactors to do the work and it shows. I was hoping the savings on the house would offset the cost to fix everything.

Then honestly, I'd not do it. I'd shop around and find a home that's the perfect balance between "saving on a fixer-upper" and one that's not too MUCH of a fixer-upper. Your in-laws' home sounds a bit too much like the latter. No offense. :(

And this is coming from the woman who JUST found out that by the end of summer, we'll be spending (more than likely) about $5K on fixing the foundation (DIY) on our poolhouse and $3K on fixing a crack in the concrete pool skirt. >:(

Signed:
"Walter and Anna" Wonderin
*sigh*

Seriously, though ... it may SEEM like you'd be saving money, but you've got a family. And I can tell you that when your home is ripped apart being remodeled (or fixed), your family SUFFERS. Big time.

It's not worth it.

Re: Thinking about buying

llecs — Sat, 07 Mar 2009 04:52:41 GMT

Wonderin wrote:

Then honestly, I'd not do it. I'd shop around and find a home that's the perfect balance between "saving on a fixer-upper" and one that's not too MUCH of a fixer-upper. Your in-laws' home sounds a bit too much like the latter. No offense. :(

And this is coming from the woman who JUST found out that by the end of summer, we'll be spending (more than likely) about $5K on fixing the foundation (DIY) on our poolhouse and $3K on fixing a crack in the concrete pool skirt. >:(

Signed:
"Walter and Anna" Wonderin
*sigh*

Seriously, though ... it may SEEM like you'd be saving money, but you've got a family. And I can tell you that when your home is ripped apart being remodeled (or fixed), your family SUFFERS. Big time.

It's not worth it.

I feel the love!!

I think I feel guilty about bailing on the in-laws. We've (or I before we got married) rented from the in-laws since 1997. They can't afford the house without a rentor and they like the extra income. And we never had long-term plans to live here forever (though 12 yrs is kinda long). Plus we actually hired an architect a few years ago. I still have the blueprints; we planned on razing the house and increasing the size from 2100 sqft to 3700 sq ft by expanding some rooms and adding a master suite by adding an extra level. The cost was a little hefty, but I think it would be worth it.

We did talk to mom-in-law today about this and she was disappointed. However an opportunity presents itself in that some in-laws moved to the area last month and need a place to stay. They are actually staying with the in-laws until they find a place to stay. When DW told MIL that maybe they could move in if we move out, she got all giddy. She then offered to do whatever it takes to help us move out and get us a new home. So, the search resumes.