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Fluff203
LIF Zygote
Member since 11/11 15 total posts
Name:
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Ok- We made a decision to buy a house
Hi Everyone. I'm new here.
So my husband and I decided, last night, to buy a house we love in Fort Salonga.
Yikes!
My in laws are giving us the down payment. We both have good credit, so are not worried about getting a mortgage. We have nothing to sell, no kids (but the house is in an excellent school district).
What do I need to know? And I'm not really talking about BIG things like get a mortgage, get a good rate.
What are the things YOU encountered when buying a house you WISH you knew about?
And advice, insight, words of wisdom, etc would be appreciated.
THANKS!!!!!!
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Posted 11/22/11 11:45 AM  |
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Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: Ok- We made a decision to buy a house
Start gathering your paychecks, bills, bank statements. You'll need paperwork for everything.
Get qualified with a lender.
Look ino a company that does home inspections.
Check out neighborhoods you like and styles of homes you like/don't like so you focus on those.
Message edited 11/22/2011 1:01:15 PM.
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| Posted 11/22/11 1:00 PM |
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Kizzy
LIF Infant
Member since 11/11 303 total posts
Name:
Kim
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Re: Ok- We made a decision to buy a house
Have an attorney and home inspector picked out before you make an offer. Once your offer gets accepted things move quickly, and its just one less thing you will have to worry about.
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| Posted 11/22/11 5:30 PM |
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LL514
LIF Adult
Member since 4/10 1901 total posts
Name:
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Re: Ok- We made a decision to buy a house
you could run into trouble getting a mortgage because you are getting the down payment as a gift. they are not really letting that fly as easily as they used to.
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| Posted 11/22/11 6:08 PM |
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Sweetlax22
LIF Adult
Member since 5/10 1904 total posts
Name:
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Re: Ok- We made a decision to buy a house
Posted by LL514
you could run into trouble getting a mortgage because you are getting the down payment as a gift. they are not really letting that fly as easily as they used to.
Yes, there is all sorts of paperwork that needs to be completed show this.
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| Posted 11/22/11 6:15 PM |
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CindySN23
Stop, Think & Breathe...
Member since 8/11 3550 total posts
Name:
Cindy
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Re: Ok- We made a decision to buy a house
def use a buyer's broker...they are working in your best interest....get a good lawyer not the cheapest...find a mortgage broker who is knowledgeable and def get a home inspector who is an engineer.
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| Posted 11/22/11 7:14 PM |
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Fluff203
LIF Zygote
Member since 11/11 15 total posts
Name:
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Re: Ok- We made a decision to buy a house
This is all great stuff. Thank you!!!
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| Posted 11/22/11 11:48 PM |
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cityandbeachmom
Vineyard hopping time
Member since 6/10 1821 total posts
Name:
Suffer the pain of discipline,
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Re: Ok- We made a decision to buy a house
Posted by Sweetlax22
Posted by LL514
you could run into trouble getting a mortgage because you are getting the down payment as a gift. they are not really letting that fly as easily as they used to.
Yes, there is all sorts of paperwork that needs to be completed show this.
Banks are afraid that your parents who are "gifting" you may actually ask you to pay it back after you close, therefore potentially placing a financial a hardship on you and your ability to pay your mortgage. To ensure that it is a true gift basically a few papers need to be signed aknowledging that your parents do not expect a repayment ever.
Message edited 11/23/2011 6:51:10 PM.
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| Posted 11/23/11 6:50 PM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: Ok- We made a decision to buy a house
Posted by cityandbeachmom
Posted by Sweetlax22
Posted by LL514
you could run into trouble getting a mortgage because you are getting the down payment as a gift. they are not really letting that fly as easily as they used to.
Yes, there is all sorts of paperwork that needs to be completed show this.
Banks are afraid that your parents who are "gifting" you may actually ask you to pay it back after you close, therefore potentially placing a financial a hardship on you and your ability to pay your mortgage. To ensure that it is a true gift basically a few papers need to be signed aknowledging that your parents do not expect a repayment ever.
Unfortunately by proving it's a gift, while it will help you secure a mortgage, the IRS may come looking for some tax money, as a downpayment may exceed the thresholds for being tax-free.
Message edited 11/25/2011 11:28:40 AM.
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| Posted 11/25/11 11:27 AM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: Ok- We made a decision to buy a house
Posted by Karen
Posted by cityandbeachmom
Posted by Sweetlax22
Posted by LL514
you could run into trouble getting a mortgage because you are getting the down payment as a gift. they are not really letting that fly as easily as they used to.
Yes, there is all sorts of paperwork that needs to be completed show this.
Banks are afraid that your parents who are "gifting" you may actually ask you to pay it back after you close, therefore potentially placing a financial a hardship on you and your ability to pay your mortgage. To ensure that it is a true gift basically a few papers need to be signed aknowledging that your parents do not expect a repayment ever.
Per year, an individual can be gifted 13k tax free. Not sure how much more you are being gifted but start with separate checks to you and your husband. Speak with a lawyer about the down payment as a gift. They will have all the info.
Also, set proper expectations with the seller up front re Closing etc. GLz,
Unfortunately by proving it's a gift, while it will help you secure a mortgage, the IRS may come looking for some tax money, as a downpayment may exceed the thresholds for being tax-free.
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| Posted 11/25/11 5:03 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Ok- We made a decision to buy a house
If you are getting the dp as a gift have a check deposited in 2011 for $13K each and then do it again in Jan.
That will help alleviate the tax consequences but it still may not make the amount you need.
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| Posted 11/26/11 12:21 AM |
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Karen
Just chillin'!!
Member since 1/06 9690 total posts
Name:
Karen
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Re: Ok- We made a decision to buy a house
Posted by Blu-ize
If you are getting the dp as a gift have a check deposited in 2011 for $13K each and then do it again in Jan.
That will help alleviate the tax consequences but it still may not make the amount you need.
Actually they can get $26k a year tax free - $13k to each of them from each parent. Gifts are one of the few areas of the tax code where married couples are treated as individuals. So MIL can give each of them $13k, and so can FIL.
The only issue is I'm not sure what kind of timing the mortgage company is looking for?? I'm not sure if they want the money sitting in the account this soon, or if it's something they want to see being gifted right before closing?
Message edited 11/26/2011 7:18:02 AM.
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| Posted 11/26/11 7:17 AM |
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bookworm
Two Little Rosebuds
Member since 8/09 2106 total posts
Name:
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Re: Ok- We made a decision to buy a house
Posted by LL514
you could run into trouble getting a mortgage because you are getting the down payment as a gift. they are not really letting that fly as easily as they used to.
Agreed! Wells Fargo tortured us over it. It was so awkward to have to keep asking MIL to keep explaining with more paperwork every little detail of her checking statements.
ETA: Gift tax falls on the giver, not the receiver. It helped that she split the gift between us, giving half to me and half to DH. And since it's the end of the year, they may want to hurry up and give you each a portion now (13k each) so they're free and clear to distribute next year's gift allowance in January (or whenever you close).
Message edited 11/26/2011 8:08:37 AM.
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| Posted 11/26/11 8:05 AM |
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