It's probably irrelevant, but why do you have to pay a year of rent up front?
Some landlords, if each person on the lease doesn't meet the income requirements (4x the monthly rent on your paystub/tax returns), you can't rent the apartment. So you need to pay upfront.
I've actually seen this here on MM too---it's just that the landlord needs to know he or she will get his or her money when the income is too low (I don't have traditional paystubs--just my checks I write myself each month).
I meant to respond to this but work got in the way. If you make $25K consistently as a photographer over the past 2 years, you should be able to afford a mortgage for $75K. Have you filed your tax returns in the past 2 years as an independent contractor, and which reflects the $25K of income?
Also, did you file a form 2106 or something similar? The bank usually will net out your monthly income from the expenses there.
I do file tax returns every year...but my husband and I were married filing jointly, so my income is on a Schedule C. I do have my 2106's too.
The first year of my business, I only made 10k, then 16k, then 25kish. So it is growing, but not super fast.
So they actually would average that out (17k a year) and I might qualify, maybe, for like a 51k mortgage. And moving a business from out of state apparently has a whole other set of issues that they are telling me might actually be considered a "new" business and need to restart the clock?
I am considering doing it this way too, getting pre-qualified for just what I can do and putting cash down on the rest.
You may also be able to get a better deal if you do ultimately decide to pay in cash, as it may make it a more attractive offer to a seller because they won't have to deal with lender issues or financing falling through.
I have heard this and find it very attractive. I love getting a good deal---I am considering this for this reason alone.
The reason no one will work with you is probably because you want such a small loan that the amount of work required by the broker isn't reflected in the commission they'll earn
Really; you think so? But people buy cheap houses with mortgages all the time in much of the country. I don't recall where kwynn is, but I'm guessing mortgages in the amount she's considering are not uncommon. I'd agree with others to check CUs and community banks.
I'm trying to buy in the suburbs of Pittsburgh, Pennsylvania, and a 120k house would get you a 3/2 in okay shape in an okay school district.
Many of my friends have homes that only cost 60 or 70k there, believe it or not.
Of course, there are multi-million dollar homes there too if that's what you want!
Cheap area of the country for sure for housing (it used to be cheaper---a few years ago, 100k could get you a 3/2)
I'm sure ppl would be more excited to loan me money if it was a 300k mortgage though---I wish I was buying something that nice!
You could try Churchill mortgage, which is the company Dave Ramsey endorses. They are supposed to be good to work with and could advise you on options. I think they'll do manual underwriting for people who have a 0 credit score, but are great candidates to buy a house because they have a lot of assets and no debt. If they do those types of things, I imagine they'd have a solution for you. Good luck!
I tried Churchill...but they use like ppl in individual cities that work for them, and the person they sent me to couldn't help, although he was very nice.
Wow, and I was complaining about 3k-4k in taxes in Pittsburgh.
Do you feel you need credit built up? Some people say that's overrated. What about getting a credit card and just paying it off every month, would that be good for credit building?
Why not cut down a few spending categories like groceries and misc?
If you got rid of groceries and misc and maybe could trim $400-500 there, you'd be in a better place. You'd be in a more excellent place without the car payment.
Maybe don't use the whole 15k for appliances, etc, and save some of that?
Also, wow, those taxes are high! Is there anywhere locally that has lower taxes? I'm going to a place that has lower taxes to keep my monthly payment lower hopefully.
You ladies are the best---you are so much more helpful than the places I've called and so knowledgeable about things! I was crying before I wrote the OP and told my mom "I'm just going to ask my friends on the Internet if there's anything else that can be done because I don't know what else to do."
I'm so glad I came back to this board... I love talking money with ppl and no one in my real life (except for my late husband) likes to--they all think talking about money is weird/boring. So I've really been missing these kinds of discussions and wisdom and debates since Steve passed away.
The tightening guidelines are becoming worse and worse. I completely understand why they made stricter guidelines, but when qualified people are trying to get mortgages and can't, it is going to create another housing crisis, because nobody will be able to buy.
I agree looking at credit unions. My other question is, would anything change if you put more down, like 30-40%? That way you can still keep some of your other assets.
I was thinking this too---like do 40% and try to get qualified for the remaining 60k if I can qualify for that much (maybe not given my average income but you never know)...
If you really, really hate the idea of having that much money sunk into a house could you just pay for the house in cash up front, and then in a year do a cash-out refinance for 75% of the home's value? Then you should be able to avoid PMI, and there won't be as much hoopla because the house is already paid for.
I know my parents did a cash out refinance years ago---do you think the interest rates will rise a lot in a year?
I feel like that's some stock market crash stuff---weren't ppl in 1929 doing this and then using the borrowed money to invest?
It would be a great option though because, if money ever got really tight for me, I could always sell the house, you know? Or cash out refinance? I need to think of it not like the money is gone and spent on something frivolous but in a different kind of asset that may or may not retain/rise in value.
Because they get the house if you don't pay. The collateral on a mortgage is typically the property.
Ohhh...I see. So what's the point in all the verifying if they have the collateral right there?
If you owe 100k on a home and you walk and they take the home and can only get 80k for it, do you then owe them the 20k? Couldn't they sue you for that and take your savings?
It's just silly I think---wouldn't the better collateral for them be actual cash?
What kind of workout gets good results in 15 minutes? I'm trying to get on that band wagon. I don't see any progress unless I do about an hour and then you have to drive there, shower after, drive home---it's a two hour thing.
If you're sitting on $200k in cash/bonds, then no, it's probably not earning 6%. Cash is around 1% these days and an index fund of the total bond market returned 4% last year.
I would pay cash. You're right, everyone without an income would be in the same position - they're not going to give a mortgage to a student, a stay-at-home spouse, whatever. If you look at the logic from a non-recourse state, the can't go after your retirement account or bank account or whatever if you decide not to pay. And what's to stop someone with a ton of cash, from going and getting a bunch of mortgages and then only paying the ones that make a profit. The financial mess that we got in five years ago makes these restrictions a necessity.
Wait, if you don't pay your mortgage, they cannot go after your bank account? Really?
That seems ridiculous---why not? Isn't the money I have in assets sort of collateral for the loan?
So you can just walk away and they can't touch your savings...I know student loans, credit cards, all other creditors will come after your savings with a vengeance.
I have 200k in retirement (mutual funds and stocks), 100k in cash, and the remaining 470k in a mix of things like muni bonds, stocks, funds, and other things I don't really understand. 1% sounds pathetic---I need to talk with my FA and ask him what percentage I'm getting exactly.
That seems outrageous that they can't get their money back if you do indeed have the money. That's straight up stealing to have, say, 100k in the bank and owe 100k on a house and just leave and never pay--how is that even legal?
I should just rent, I know that. It's what I originally wanted to do. It's just SO hard trying to find a rental that will take me and that fits the budget. I need to give them the year upfront and that's a lot of money to part with too.
I also am scared about renting because it just drains my money every month...it doesn't allow me to save much. Especially because I plan to live in the area long-term.
Also, I hate moving But that's a purely selfish, lazy thing---I just hate hate hate moving.
Another vote for renting here. I think by living in the area for a year, you'll be in a MUCH better place to buy. You will have a much better understanding of the area (what parts you like, what you don't, commutes, etc.), plus, you will actually be IN the area to go house hunting.
I totally understand how much you hate to move, but I think if you buy now you will regret it later. Even if it costs a little more every month, you'll likely still be "saving" money in the end if you end up in house you are happier with, and you don't have sell something (an pay a 5% commission) on a house you regret buying.
I feel like I know the area pretty well since I lived there since I was a kid..I obviously don't know every area though or every specific town and that's hard knowing specific streets to narrow it down to.
I think if I rent I'll probably do it for 2-3 years though because I'll need time to rebuild my savings after first/last/security (or a year of rent upfront, yikes--it's like 12k right there) and I think I would need 2-3 years worth of income on my taxes for a mortgage application anyway.
I just do not want to go through this all again in just a year---I either want to buy now or buy in five years or something. I just need some stability. I've moved 4 times in 8 years and it's pretty annoying. I don't care if I rent or buy, I just want to find something decent that fits my budget and something I'll be "okay" with for a few years.
Ugh, I'm sorry that I have no suggestions but that's a pretty unique and crappy situation you're in. I don't blame you for not wanting to buy something outright and I think your reasoning for wanting to avoid that is completely sound, but maybe in your situation it's not the worst idea. $120K out of an asset base of $770K doesn't seem so bad. I wouldn't want to mix family and money either so I'd avoid the co-signer route as well.
All that said, if it were me I think I'd continue to rent and just keep meeting clients at coffee shops and such. Then reassess next year and see if things have changed.
I should just rent, I know that. It's what I originally wanted to do. It's just SO hard trying to find a rental that will take me and that fits the budget. I need to give them the year upfront and that's a lot of money to part with too.
I also am scared about renting because it just drains my money every month...it doesn't allow me to save much. Especially because I plan to live in the area long-term.
Also, I hate moving But that's a purely selfish, lazy thing---I just hate hate hate moving.
We have run into this issue with our clients and it is maddening. I have a client with over $14M of investment assets, and BOA would not refinance a $250K mortgage because she didn't have enough "earned income." Well, duh, she has $14M, why would she need to work? I went round and round with them, and finally we just cut a check and paid it off.
That was maybe 2 years ago? I have found things starting to get a little bit better in this area, but I do think it will be hard given your last 3 year's income.
I wish I had better advice for you, but I would really try to avoid paying in cash. You will definitely have to submit asset/investment statements. I don't think it's hopeless. Have you tried both banks and brokers? What about local shops or credit unions?
I think they told me today on the phone there is a new law that is going to make it *even* harder to qualify without earned income.
I do work, and I work really darn hard. I'm hate talking on the phone about how I make like 25k but have saved up money. It is so hard to just get the words out. I feel horrible about how I got my assets, but I also wanted to state that that's not even life insurance money---it's money WE saved together as a couple to buy a house someday, and I contributed to that by working odd jobs, clipping coupons, negotiating our rent down, supporting my husband as he worked, and not spending really anything over the past few years at all. I also saved money living at home after college to save every cent of my paycheck.
I feel like any stay at home parent or spouse with a lower earning job (a student, a more entry-level worker, someone unemployed/underemployed, starting a business) would be up the same crick without a paddle, you know?
I'm going to try a credit union now. It's a really unique situation most companies are not equipped to deal with--I've only tried four places so I'm going to keep Googling for maybe more unconventional style places.
I really don't want to pay cash because I can make more on my money sitting in the bank. One mortgage broker said that's not true and he doesn't feel I could be earning more than 3-4%? I think I'm earning 6%, does that sound unreasonably optimistic?
Have you checked with a credit union? Where are you assets held? Does that bank do mortgages also?
I didn't realize credit unions do mortgages. I don't have a credit union--I use a regular bank for free checking. I used to belong to a credit union though--that's a really good idea.
My assets are held via a financial firm and they don't do mortgages--they only do investing for individuals and institutions.
I'm embarrassed to call them and tell them what I'm looking for---I think they've gotten a little tired of all my questions lately and that I took literally 4 months to fill out paperwork they sent me.
I have called three mortgage places and no one is really willing to work with me on a pre-approval or mortgage.
I feel (of course I am biased) that I would be an okay candidate for a mortgage.
I have never ever had a late payment on my credit report. I am completely 100% debt-free. I have 770k in assets (includes retirement at about 200k, all in mutual funds and cash).
I have two years' worth of expenses in an emergency fund, and want to buy a house at around 100-120k. I planned to put down 25k and finance the rest to avoid PMI.
My current rate payment is $670 plus utilities, which I am meeting just fine. My new place, the expenses may go up a bit, but I will have a roommate contributing about $400/month to rent and utilities.
I'm actively trying to work to get my income up as well. I'm very financially conservative and don't want to make any bad mistakes.
As far as my income, well...
I own my own business and have for three years. Before my husband died, it was just a side business and wasn't making much due to start up costs, etc, and the fact that I was still new and also not the breadwinner in the family---but we lived on about 25k as a couple, saving every penny we could. I'd say I claimed on my taxes my income being 10k the first year, 16k last year, and about 25k this year.
Starting this year (they are getting the accounts set up now from my financial advisor), I will have approximately 36k coming to me each year from investments as income but I will not touch that unless I need to---it will go into my accounts for me. But obviously, that has not started yet--I will not touch the principle under any circumstances.
I know for a fact that other widowed people have purchased homes, even SAHM's, after the spouse has died and it hasn't been with cash, it has been with a mortgage. How were they able to do it?
But every single company is telling me it's a law now (or will soon be) and they can only count my income, not assets. It doesn't matter at all what you have, it's only what you earn--I understand that but is there anything else that can be done?
If someone worked for a traditional company, she could get laid off tomorrow and not be able to pay her mortgage, but she is still approved according to the rules. But me, I have the actual money for the entire mortgage in the bank---even if I could never work another day I could still pay off the house. I just didn't want to liquidate so much $ right now and the interest rates are low.
I have no idea what to do---everyone's telling me to get a co-signer, but my family does not have as good credit and I'd have to pay PMI even with a >25% downpayment, so that sucks. I'm understanding that, with a co-signer, I need PMI for the life of the loan. I was also told alternately at other brokers that the co-signer option isn't even available to me, so who knows.
Also, I hate involving family in finances.
It'sa bad financial move to pay with cash, right? Earning 6% on my money, interest rates around 3%...I just don't feel comfortable parting with so much money at once. It makes me feel sick.
I'm bummed out. I can't afford to rent (I can't save much money while renting) but using the bank's suggestion, I should try to raise my income and buy a house in three years. (In three years, I would have the cash to just buy it outright though, so what the heck?). Makes no sense.
You save and save and it still does no good. Sorry for the vent---what do I need to do, anything I need to try or places that do some unconventional qualifying for a mortgage?
I am so sorry this is a Debbie Downer. I didn't think someone with good credit and a lot of savings would have such a problem so I didn't start the pre-approval process until this week.
And I'm also thinking about when I was a teen and even now, when I'm in crisis mode, sometimes what you really want just for a moment is a hug. So before you have to go into full on get things done mode tomorrow, can you give her a hug and some encouraging words before school?
I think about a few times when I was really struggling with something and my mom didn't know really what...but she would say "want to stop at McDonald's?" with a little smile in her eyes or "I got you this!" when she came from the store, a little treat (doesn't have to be food, it could be a shirt or a little necklace or something). Or even "I saw that XYZ you made, it looks great" or "I was just thinking about that soccer game last fall you were in--you did awesome, don't know if I ever told you that."
I know that's a bandaid to the situation, and that's not really advice, just that maybe something little would also help keep the bond strong and help her open up to you.
I don't come from a family of huggers and I can remember the times my mom hugged me just out of nowhere and I loved it.
I'm so sorry you are dealing with this---being a teenager is always difficult and I'm so sorry she's struggling.
75k is not a whole lot, even if you don't have children. I work, we had no kids, and the funeral, flying people in, paying off debts, random bills and associated tasks (unfortunately, you may be responsible for clean up if there were to be an automobile accident or other death that is not an illness---and even an illness, you may have medical bills left over), it would have taken a lot of that 75k.
Also, do you use his income to pay any bills? It needs to replace all of that for at least a few years until you can downsize, get a better paying job, etc.
If you want to scatter his ashes anywhere special to the two of you (I want to scatter my husband's on this one bluff in Hawaii and at a special vacation spot we had in North Carolina), those trips will have to be paid for somehow.
And then of course, time off work, time for grief counseling, money to charity or a scholarship, etc.
I don't get why the rights to the photos or digital images weren't part of the original package?
Five years ago, this wasn't as standard as it is today to have the disc rolled in...five years ago, yes, there were image discs, but many people were still doing albums.
Now, it is more common to buy the digital reprint release upfront, however, some people do still decline it and want to purchase it later as a way to save $. They just get the online gallery and some prints or an album, and plan to purchase it later.
Some photographers also do not sell it until after the album is completed so that your more complicated album edits can be included on the disc.
It's not necessarily the best strategy for the clients to save money because of situations like this--for me, the cost of anything is the cost of purchase at the time of purchase, not a price locked in from years ago. Generally, things keep going up in price, so you can save money by going with it upfront than much later on.
I save all my wedding files forever in two separate locations (on site and off) and storage is really cheap these days, so I don't sell off my discs like that.
If he made a mistake in the email, that's one thing with the $200 versus $400 and I'd honor a mistake, personally. But if you just don't want to pay $400 because it isn't cheap enough to you, then don't.
I offer albums as a purchase and if a client came to me five years later to order one-I'd be sad to think there might be a thread out there about me saying: (kwynn) did okay on our photos but this ridiculous photographer wants $350 for the smallest album. I offered her $200 because it isn't worth that much! She said "albums are affordable" but I do NOT call $350+ affordable." She's pompous and I'm going to write her this email telling her what I will pay." Affordable or nominal to one per isn't to another person.
It's a business like any other. You are welcome to try to negotiate but we are welcome to say no and neither party should take it personally--it's just business.
That said, I'm generally not a big fan of negotiating with providers that have prices listed generally.
Thanks, @septimus! Is that because courts are busy in the morning?
I'm a little afraid of DIY legal---I'll probably screw it up. I thought my Googling said Florida required me to have an attorney? I don't mind paying at all, just don't want it to be more than the value of the account. I have to at least get a consult from a lawyer again to ask all my questions.
The attorney I used for my grandmother's estate only ran ~$1,000 for everything. She helped file the paperwork at the courthouse and close out the estate at the end of the process. I also emailed her a couple times with questions.
Thanks so much!
I'm afraid to be shamed or get in trouble for not handling this right in the beginning...I did ask and everyone told me it didn't seem necessary until this came up---everything else just became mine automatically through some kind of beneficiary designation? Like life insurance, checking account, his retirement...I don't know if I should have had an attorney do all that because a lot of those places just said "Send us a death certificate and we'll put it in your name."
Now I'm thinking that was wrong and I should have had someone probate this months ago but I did meet with someone as a free consult and they felt I was good to go on this.
I didn't even know there was paperwork or anything to close out the estate---I honestly have no experience and no one said anything.
I never ever want to be an executor of an estate ever again. My parents better live forever because I'm not ever doing this again. Also, I need to get a new will because I don't want to leave someone else with a mess like this should something ever happen to me.
I'm self-employed, so no EAP or employee discount or anything like that. No coworker recommendations either since I'm the only one that works here.
Shoot, this sounds like a total freaking mess.
I probably should have gotten an attorney when my husband died, but I didn't think I'd need one---the one I consulted with said, if everything was in both names or I was the beneficiary, I didn't need it. (Except for the car---but there was some kind of thing where I just had to bring a few papers to the DMV for that).
I hope I didn't mess this up---should I have put everything in probate because they already started moving money to my financial advisor? Or just the account that doesn't have both names on it?
I can't ask my financial advisor for a recommendation because he's in another state (he's in PA, I'm in Florida).
That one NAELA is for elder law---would that be a good place to go to (it's down for maintenance right now but I will check back) even if I and my DH are not elderly?
Thanks so much for all your help, everyone. My parents told me the attorney they used for my grandpa's estate took 10% and it was of the total estate, not just the stuff going to probate but the other beneficiary and joint accounts and there's just no way I can do 10% of everything I have, I'd just let the account go if that's the case because it's well under that, trust me.
This is the stupidest question, but what is the estate tax?
Also, would it be worth it asking the attorney to take a look again and make sure my name isn't on the account or my husband didn't have me as a beneficiary. It's VERY unlike my DH to not have me on the account--it's just so weird of him to forget that
I may DD this because it's long and has a lot of personal detail in it.
I realize I need to figure some things out.
Everything of my husband's (and mine too for joint accounts) was just sitting at banks, but some stuff has started to be be transferred by my financial advisor when they hit a snag---one account, there is no beneficiary and I'm not listed as joint--I didn't realize this, we were really careful to do joint and beneficiaries on everything, but I guess we missed one. I actually didn't even realize this was a separate account until the company told me about it. I thought it was part of our Roths but really it was a separate little investment account.
The lady on the phone said I need to probate it so they can give it to my financial advisor. I honestly don't even know what that means except I should go to the county courthouse and talk to them? And that I might not have to do it if it's *just* this account and it's less than a certain amount?
How are you supposed to know all this stuff as a layperson?
I need an attorney--I don't know anyone or where to even start to look---is there an Angie's List type thing for attorneys?
Is the fee really high for this? Is it a flat fee or a percentage? The account isn't worth that much and I'm wondering if lawyer fees would eat it all up.
I thought we had everything in both our names but we both overlooked this one until notified by that bank.
Will I need a court date and stuff? Will I be able to do this from out of state or do I need to do it here? Was there supposed to be a time limit on it-I just was notified about this.
Thanks in advance for non-specific, non-legal advice. Just wanted to know if anyone's ever done this before, if I need an attorney, how to find a good one, what to expect, and is this going to be a huge mess?
Is it bad that I get really frustrated at vaguebooking about deaths without mentioning the cause? I don't know if there's a tactful way to do that, but inquiring minds want to know, dammit.
The only vague-booked death announcement that I saw on Facebook was for a death that was probably a suicide.
I wrote about my husband's death on Facebook. I waited until every relative and friend had been contacted individually. I apologized for the horrible post but wanted to let ppl know as young ppl do not read the newspaper and wouldn't have known where the visitation was. I spent a few hours crafting the post.
It was a suicide and I didn't mention that at that time. I used "suddenly" and "very unexpectedly" as a subtle way to give the information.
FB is already so in your face that mentioning any kind of method of death seems harsh---most obituaries only hint as well ("after a long illness" or "donations can be made to MADD" or some other small hint). There's just no kind way to say most causes of death that aren't terrible, especially a young person.
I'm a wedding photographer, and I think the above poster talking about $1000 for a disc of files is about the going rate. $400 is a pretty good deal if you didn't originally buy the files upfront to have reprint rights, etc.
Walt Disney World does the same thing, the files are one higher price at the wedding, then drop a bit a few years after, but it's still over $400.
That said, of course it doesn't excuse the attitude and the haughtiness. He should have just stated the price and then did the deletion. Did you ask back during contract signing what the files run?
I encourage all my clients to purchase their files upfront if they'd like them as prices only go up over the years due to the cost of doing business increasing.
He could have been nicer about it---I realize one person's concept of "nominal" and another's are different, so I try to state "for a cost" rather than a value judgment (low cost/nominal/affordable/minimal are so loose and subjective).
Check your contract and see if there was any price stipulated in there?
I think this thread goes to show you there are all kinds of marriages that end with the death of a spouse, and so there's really no one idea on how to date a widower.
I think you just treat it like any other date and see how it works out. Some ppl want to talk about it and some ppl don't---and men are said to move on a bit faster than women after the death of their spouse.
Check out Abel Keogh's blog and books on how to date a widower, written by a widower.