Is anyone else discouraged by the complexity and all the costs in this process?

[sherizel73]

I guess it's my fault for not doing enough research but I am really discouraged with the whole home ownership process.  I was so excited to be pre-approved but what I can actually afford is so much less than I thought.  I can't find any property I like.  Everything I like I can't afford.  Closing costs and fees are more than thedown payment.  Property taxes in my county are through the roof.  I'm just down today because something that was supposed to be a fun exciting process has shocked me into reality that this process is really costly.

[GirlMelanie89]

Yes!!!! I definitely feel the same way!! Plus I'm a single mom with only one income to qualify with. I kept thinking I was going to qualify for my dream home and of course I didn't so I kinda have to "settle" but when you think about it. Most people's first home isn't their dream home, but often a starter home. The positive side about my situation is hat since it's a townhouse, it would make an excellent investment property and it beats throwing rent money away! 

As as far as the closing costs, typically the seller pays those. I personally wouldn't purchase from a buyer that wasn't willing to pay them. That's probably bad, but it's part of the negotiation. How much did you qualify for and what ranges afford you with something you like? Is there anything you can pay off to lower your DTI and qualify for a higher amount? 

Im sorry you're going through this, but I'm kind of there with you and it sucks. I'm still waiting for the exciting part. 

[sherizel73]

I am also looking at townhomes and some of the HOA fees are high which increases my monthly payment.  I think I qualified for what I can afford.  I guess I'm just picky and I kept telling myself I wasn't going to settle if I was buying something but what I am learning fast is that I have to settle a lot because I can't afford to have the perfect place! Plus I'm under pressure because I'm renting right now so if I don't find something I need to renew my lease which locks me in for another year. 

I'm looking in the 180K - 200K range but am in the Chicago suburbs which are costly.  Good luck with your search! 

[Anonymous]

GirlMelanie89, I 100% understand you as I'm a single mom and if the 89 is any indicator of you're age, we are in the same boat.

Sherizel73, I would have never imagined that there were so many hidden costs in addition to simply having a downpayment. I came across a NACA (which I'm not going through) comparison chart of all of home buying costs and I was floored to say the least.

[GirlMelanie89]

sherizel73, yes the HOA fees are definitely an added, high expense. The way I justify it is the fact that I don't have to mow the lawn, they remove my snow, take care of all outside issues and etc which is good when you don't have a husband like me. Lol. But it's good that you qualified for what you can afford because too often we live outside of our means and end up and having to foreclose or live check to check. But also think about the tax benefits from being a homeowner. You'd be amazed at how Pinterest ideas can definitely turn a house into a home. 

But I'm too under pressure, as my apt complex decided to increase my rent by $260+ dollars and I was like heck no!!! So my lease ends on May 14th which is the same date my BK is 2 years post discharge.  So they'll be a 2-4 week time frame I'll have to crash at someone's house with my daughter and 3 pets but I keep telling myself it will all be worth it when I sleep in my first home that I bought on my own. Anything worth having is worth working for. Good luck to you as well on your search. 

[GirlMelanie89]

MsNique, Lol. Yes my 89 is my birth year. Owning a home can be expensive but if much rather my hundreds of dollars mean something rather than paying someone else's mortgage or just being thrown away in general. Plus as parents, that adds on to our tax benefits and deductions! 

[Anonymous]

Oh yes!  I cried when I filed my taxes last week.  Apparently, I make too much money in the eyes of the government (who I work for, btw) and I'm supposed to pay more taxes as a result.  I barely broke-even this year.  I'm itemizing everything as I go this year and all deductions are appreciated. 

[Anonymous]

HOA fees are kind of ridiculous, if you are not getting a lot in return for the fees it might make sense to try and find a single family home that looks more expensive on paper but without HOA fees might make sense. You get a lot more for your money and can improve on it, townhouses and condos are limited as to what you can do and what they will allow you to do to improve the value, just my 2 cents.

[Anonymous]

Suffering sticker shock here too. I paid for an inspection & elevation survey on one property that didn't pan out. Plus the costs to connect the utilities for that inspection. $750 - poof! It would be different if I got something tangible for that.

[GirlMelanie89]

---

---

@Anonymous wrote:
Suffering sticker shock here too. I paid for an inspection & elevation survey on one property that didn't pan out. Plus the costs to connect the utilities for that inspection. $750 - poof! It would be different if I got something tangible for that.

---

Wait!!! Your inspection money is gone??!!!