Should I buy it?
I'm 20 years old, looking to buy my first house (To live in, and eventually rent out). I'm eligible for a VA loan (1 year in the Air Force), but even though I'm "Pre-approved" for a loan, I have a feeling they'll deny the loan last minute if I go through with it, since I don't have 2 years of job experience in one field, which they said could keep me from getting a loan. Dealing with banks and brokers is giving me a headache, and I have a feeling they're going to screw me last minute. I'd prefer to skip the banks if possible, at least until I have a more solid employment and credit history and feel more prepared to secure a loan. My credit's not bad, but just being so young I don't have the stability that most banks want before approving someone for a loan.
I started looking at FSBO homes, and found one that looked promising. 73k for a 2 bed/2 bath condo, 1173 square feet in Veags.
The bad:
Not the greatest condo or the greatest neighborhood.
Currently the market rate for those units are about 50-60k, and he's asking 73k.
The good:
He owns the condo outright.
If I bought it I'd be eligible for the tax credit (Roughly 7k).
He's willing to finance it for a couple years until I refinance it through a bank loan.
If I did buy it, he's flexible. He's willing to let me put down 3-4k, then put down maybe 2k after I get the tax credit back. He'd want maybe 600-700 (Not including association fees) per month while he financed it, then when i refinanced it would be either 400 or 550, depending on if it's a 30 or 15 year loan.
Does this sound like it may be a good deal? If he's not willing to budge on the price is it still worth it? Also, is it a good idea to consult a real estate attorney to draw up the contract, or should I do the research and do it myself? Just wanted to see what you guys think.
I have been reading up quite a bit on real estate, although being a first-time home buyer I'd still not entirely familiar with the process. I know I'd have to get an appraisal and inspection, but does anyone have any guide or can provide me with a little more info on what order to do everything in? Any recommendations on a source for what contracts I'll need? Is it required to have insurance for the first year to cover appliances?
I don't want anyone to hold my hand, but after reading book after book on real estate, I feel so lost going through all the information that now that I'm actually trying to buy a house, I have no idea what to do or what order to do it in.
Thanks in advance for any help.