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4spotentialbuyer
ParticipantIf a bank is willing to finance this loan, then that’s up to the bank…however I do not think tightening the credit standards is a bad thing.
100K to support a 500K mortage, 60% of take home pay? I think that is risky. Yes, credit standards were too leinent before, however what happens if you relative loses his job or there is an emergency? The bank needs to cover itself and most people should not get loans if it requires 60% of the pay. A 500K loan at today’s 7.5% APR would equate to a monthly payment of $ 3496.08/month…100K salary probably only brings home 4-5K max income to support a family of 4. I hate to sound harsh, however, this is why the housing market is in such a terrrible state, people overstretching themselves and then complaining when credit/loan standards starts tightening. It’s time for people to be financially prudent and live within their means….if more people did that and the housing market corrects itself, then maybe your relative will be able to buy a bigger house once price drops…there is nothing wrong with being a patient renter and then buying a house you can AFFORD, rather then run up the risk of foreclosing on an OVERPRICED home.
ParticipantOzzie,
Why would your relative not be able to buy a home if he/she will be putting down more than 20%? Does his/her income or credit score not support 500K loan?
This is precisely why a market adjustment and tightening of credit needs to occur. It doesn’t matter if you down 400K…if you can’t afford a 500K loan based on your income, then people should not be buying those homes. People have to learn to live within the means, I don’t think conforming loan limits need to be raised to allow buyers to purchase property that they cannot afford…bottom line is that your income/savings/lifestyle choices have to be sufficient to support your mortgage.
People don’t have to rent, your relative can still buy a home with 400K down…people just have to buy a home that they can AFFORD….no one if forcing your relative to buy a 900K home.
ParticipantOzzie,
Why would your relative not be able to buy a home if he/she will be putting down more than 20%? Does his/her income or credit score not support 500K loan?
This is precisely why a market adjustment and tightening of credit needs to occur. It doesn’t matter if you down 400K…if you can’t afford a 500K loan based on your income, then people should not be buying those homes. People have to learn to live within the means, I don’t think conforming loan limits need to be raised to allow buyers to purchase property that they cannot afford…bottom line is that your income/savings/lifestyle choices have to be sufficient to support your mortgage.
People don’t have to rent, your relative can still buy a home with 400K down…people just have to buy a home that they can AFFORD….no one if forcing your relative to buy a 900K home.
ParticipantOzzie,
Why would your relative not be able to buy a home if he/she will be putting down more than 20%? Does his/her income or credit score not support 500K loan?
This is precisely why a market adjustment and tightening of credit needs to occur. It doesn’t matter if you down 400K…if you can’t afford a 500K loan based on your income, then people should not be buying those homes. People have to learn to live within the means, I don’t think conforming loan limits need to be raised to allow buyers to purchase property that they cannot afford…bottom line is that your income/savings/lifestyle choices have to be sufficient to support your mortgage.
People don’t have to rent, your relative can still buy a home with 400K down…people just have to buy a home that they can AFFORD….no one if forcing your relative to buy a 900K home.
ParticipantWe loved those homes, however could not afford the steep price and yes, I agree, they don’t seem to be coming down much…actually none of the Pardee neighborhoods including Pacific Highlands are offering any terrific deals YET.
I agree sell your house now and rent…It would be better to wait for a resell or wait for one to fall out of escrow and try to negotiate a further discount as getting 3% off as you are not using a realtor…last year they did not offer a broker’s commission and the last time I went they were offering broker’s commission so you should look at that. They are also offering to assist with closing costs now, which is something they refused to do last year…so the longer you wait…the better your deal will be.
ParticipantWe loved those homes, however could not afford the steep price and yes, I agree, they don’t seem to be coming down much…actually none of the Pardee neighborhoods including Pacific Highlands are offering any terrific deals YET.
I agree sell your house now and rent…It would be better to wait for a resell or wait for one to fall out of escrow and try to negotiate a further discount as getting 3% off as you are not using a realtor…last year they did not offer a broker’s commission and the last time I went they were offering broker’s commission so you should look at that. They are also offering to assist with closing costs now, which is something they refused to do last year…so the longer you wait…the better your deal will be.
ParticipantWe loved those homes, however could not afford the steep price and yes, I agree, they don’t seem to be coming down much…actually none of the Pardee neighborhoods including Pacific Highlands are offering any terrific deals YET.
I agree sell your house now and rent…It would be better to wait for a resell or wait for one to fall out of escrow and try to negotiate a further discount as getting 3% off as you are not using a realtor…last year they did not offer a broker’s commission and the last time I went they were offering broker’s commission so you should look at that. They are also offering to assist with closing costs now, which is something they refused to do last year…so the longer you wait…the better your deal will be.
August 20, 2007 at 10:20 PM in reply to: Best San Diego Builder Incentives for New Homes 3000 sq ft+ #78601ParticipantThank you ahead for your comments.
August 20, 2007 at 10:20 PM in reply to: Best San Diego Builder Incentives for New Homes 3000 sq ft+ #78731ParticipantThank you ahead for your comments.
August 20, 2007 at 10:20 PM in reply to: Best San Diego Builder Incentives for New Homes 3000 sq ft+ #78752ParticipantThank you ahead for your comments.
July 31, 2007 at 2:52 PM in reply to: NEED your input, About to buy a new Pienza home in 4S Ranch #68970ParticipantBuyorhold,
The incentive is currently at 15K. The sales person stated that they had 20K incentives earlier in the year and that they NEVER had a 30K incentive (I think they are not including the discounts on homes that fell out of escrow or people who backed out). We did not negotiate as we are waiting to see if the prices will drop in winter 2007 or spring 2008. We are also checking out the other neighborhoods in 4S to see which one has the best deals.
The incentives seem to be smaller and the prices steady…we will have to see if the prices go lower…Pienza still had 4 plan 2901s as of last week (ranging from 726K to 776K including some with upgrades).
Which upgrades were included in your home and how much did they cost (did they itemize it for you)? Did you negotiate with them? We wanted to figure out how much more to add to the price of the house as we know we want stainless steal appliances, a few recessed lights, and any stereo/surround sound package.
Thanks and good luck to you too….
July 31, 2007 at 2:52 PM in reply to: NEED your input, About to buy a new Pienza home in 4S Ranch #69041ParticipantBuyorhold,
The incentive is currently at 15K. The sales person stated that they had 20K incentives earlier in the year and that they NEVER had a 30K incentive (I think they are not including the discounts on homes that fell out of escrow or people who backed out). We did not negotiate as we are waiting to see if the prices will drop in winter 2007 or spring 2008. We are also checking out the other neighborhoods in 4S to see which one has the best deals.
The incentives seem to be smaller and the prices steady…we will have to see if the prices go lower…Pienza still had 4 plan 2901s as of last week (ranging from 726K to 776K including some with upgrades).
Which upgrades were included in your home and how much did they cost (did they itemize it for you)? Did you negotiate with them? We wanted to figure out how much more to add to the price of the house as we know we want stainless steal appliances, a few recessed lights, and any stereo/surround sound package.
Thanks and good luck to you too….
ParticipantAny updates? Were you able to get your deposit back or did you decide to stay in? We are also thinking of buying in 4S however we will wait to see if prices continue to drop in the next 6-9 months.
ParticipantAny updates? Were you able to get your deposit back or did you decide to stay in? We are also thinking of buying in 4S however we will wait to see if prices continue to drop in the next 6-9 months.
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