All Forum Posts by: Tyler Condon

Quote from @Matthew Kwan:

Do you have finance contingency to protect yourself? Typically it's 21days for you to back out from the deal. You can always try to renegotiate new terms based on whatever inspection you find and counter offer them. They can either accept/decline the offer and most likely you can back out from the deal. However, make sure you question yourself what is the real reason that is stopping/hessitant from this deal?

@Albert Bui @Carlos Valencia

 I have a 17 day loan contingency but if I don't have a good reason then I will have to forfeit my earnest deposit right? I am hesitant because the mortgage payment is 43% of my gross income and will go to around 50% after 2 years (because of 2 1 buy down). I'm worried if I lose my job I won't be able to make payments. I am planning to rent out the house as a mid-term / short-term rental but based on my projections rent may not cover the full mortgage year round. However it should rent well over the mortgage amount in the Summer months. But this is also best case scenario given that it could stay vacant or my projections could be too optimistic.

I saw that rate had drop by about 1 percentage point since I resumed my search so I thought they would continue in that direction. If rates do not go down I'll likely have to wait to refinance which will leave me with a high mortgage payment (close to 50% of gross income). I can cover the mortgage payment on my own if rents drop or the property sits vacant although that is of course not ideal. I think the idea of owning in this area was so enticing that I used best case scenario for my numbers.

Quote from @Scott E.:

Why are you thinking about backing out of the deal?

Also, why would you lose your earnest deposit if you backed out on day 8?

My strategy is to buy now and then refinance when rates go lower but I am thinking now what if rates don't go lower. Then I will be stuck with high mortgage payment for longer period of time. And don't I need to back out based on the contingencies? Loan, Inspection, Appraisal?

Quote from @Julien Jeannot:

@Tyler Condon

1. If you are concerned about losing your earnest $ and truly want to back out, talk to your agent. If no agent, get to know better the contingencies in your contract.

2. Sounds like a good deal, what's holding you back?

I'll find out on Friday if it is indeed a good deal. My idea was that once rates drop and going into spring summer months the market will heat up. So should jump in now to get ahead of competition but then I thought what if rates don't go down. Which put me in a tail spin.

Quote from @Chris Seveney:

Quote from @Tyler Condon:

Put in an offer at list price with 3% seller concessions and furniture included. With the concessions I am able to cover closing costs and get a 2 1 buy down. So my monthly payment for the first year is approximately 43% of my gross income. I can rent out the property to cover most of the mortgage some months and more than cover the mortgage other months. I am putting more than I was hoping to put for the down payment. I have 17 days for contingencies. Now on day 8. Cleared inspection with no issues. Will receive the appraisal on Friday. Problem is I feel like pulling out. But I don't want to lose my earnest deposit. I am oscillating between thinking this is just pre game jitters to thinking I should pull out losing my earnest deposit or not. What have other people done in this situation?

 43% of gross just for the mortgage. Yikes. Have you ever owned a property before? Are you not living in this and using it as a rental? Or you house hacking? 

 This is my first property. I am planning to rent it out. The projected rent should cover most of the mortgage.

Put in an offer at list price with 3% seller concessions and furniture included. With the concessions I am able to cover closing costs and get a 2 1 buy down. So my monthly payment for the first year is approximately 43% of my gross income. I can rent out the property to cover most of the mortgage some months and more than cover the mortgage other months. I am putting more than I was hoping to put for the down payment. I have 17 days for contingencies. Now on day 8. Cleared inspection with no issues. Will receive the appraisal on Friday. Problem is I feel like pulling out. But I don't want to lose my earnest deposit. I am oscillating between thinking this is just pre game jitters to thinking I should pull out losing my earnest deposit or not. What have other people done in this situation?