VA Home Loan - Tips and Timeline?

[Lurch]

Can't help you with the loan part as I went a different route.

But on the realtor hire one and remember they are working for you but I found they also will show certain homes first and steer you towards homes they want to sell. I got out first and drove around and found the areas I wanted to live in first and then ask the realtor to look up homes in those areas. When they give you the list look on Zillow (etc) for others in that area that you like the look of and ask to see those also. I found our cabin up in Cripple Creek this way and the realtor didn't even know it was for sale. We found the perfect place up there that way.

As mentioned before DON'T OVER PURCHASE if the rental works for you now then look for something that size or a little bigger. I worked in the construction biz during the last housing boom and people would have these huge ass home and sheets on the windows because they couldn't afford blinds. Also they would have empty rooms because the couldn't afford furniture.

[CS1983]

Several people have mentioned not financially over-extending oneself. I agree with this. With rent at $1500, what would a good buffer mortgage monthly payment look like?

[BushMasterBoy]

I would say $750 or there about. Other expenses would be taxes and insurance.Realtor dot com and zillow have some estimates on there website. Office excel program has some fill in the blank loan programs. I paid cash for mine so I can't really say for sure.

[00tec]

Several people have mentioned not financially over-extending oneself. I agree with this. With rent at $1500, what would a good buffer mortgage monthly payment look like?

Our mortgage is $1543, $97 in mortgage insurance, and $180 in escrow (tax and insurance). I'm on a USDA loan. Just to give you an idea.

[CS1983]

I would say $750 or there about. Other expenses would be taxes and insurance.Realtor dot com and zillow have some estimates on there website. Office excel program has some fill in the blank loan programs. I paid cash for mine so I can't really say for sure.

What on earth would one get for $750 a month... a shack?

I've looked at various calculators and cannot find consistency, and they don't say what is included in said payment.

Was under the impression people were talking about being able to put aside the difference for repairs.

Let me clarify -- what would a TOTAL monthly look like with a buffer, vs the risk transference seen in renting.

[Lurch]

Depends on down payment but I'm going to assume zero for this example.

Loan amount $225000.00
Interest Rate 3.5%
Property Tax $2250.00
PMI $0.00 VA loan
Insurance $2000/yr

Monthly payment would be $1364.00

Now with that said I estimated property taxes and insurance off of what I pay and both are on the high side but not outrageous. Interest rate will not effect the loan payment that much but does effect total paid over 30 years.

[Irving]

Using the example above, if you can comfortably afford $1,500 a month, and you get a mortgage of $1,364, I'd either still pay $1,500 a month, which will end up as just over an additional payment a year and could take as much as 10 years off a 30-year note, or I'd put that money directly into savings for maintenance. Could even split the difference and do both.

[Lurch]

Using the example above, if you can comfortably afford $1,500 a month, and you get a mortgage of $1,364, I'd either still pay $1,500 a month, which will end up as just over an additional payment a year and could take as much as 10 years off a 30-year note, or I'd put that money directly into savings for maintenance. Could even split the difference and do both.

A quick calculation off the above statement will save you 6yrs and about $31000 in interest.

[Irving]

Totally worth it for an extra $136 a month.

[MarkCO]

I pay an extra few hundred a month on my mortgage. Helps out a lot in the long run.

If you use Lurch's monthly payment above, that still does not cover Utilities. Trash, Gas, Electric, Water & Sewer is going to vary based on house size and location and construction, but I would budget at least another $300 to be safe. Avoid HOAs IMHO. If my current home had an HOA, I would not have bought it.