Started To Buy Property

[oneshot]

Ok we already have a Small Lot with Cabin by Fairfield Ramp.

Found 4 1/2 acres South of there. Owner Finance $18K, 10% Interest for 20 years, $1K down. Pretty High $$ but thought hey more room and area I go to most time anyway.

We went looked at it today, drove down rough Drive, went past Trailer with Trash piled up all around it. Before we was trying to figure why this hadn't sold, decided this was probably it. Come to dirt, muddy Trail, ok no big deal we have lived with worse for years, deal with it, keeps unwanteds out. Get back to the property, all we thought it would be. My wife had us already moving there.

Get home call the Guy tell him we wanted it. Make arraignments to make Down Payment and closing. He then informs us in about 3 weeks would close at that time we will have to come up with $300-$400 for Closing Cost ????? Like I told my wife forget this, every time I have Sold or Bought property the Seller paid Closing. There is no way we already have our Cabin up there, just use the money to work on it.

Lord just looking out for me. If it was to be it would. I like our Little Cabin and enjoy staying there, never had a problem.

oneshot

[Ham]

Oneshot, man It's none of my business other than you posted it. The interest rate he wants is 2 1/2 times higher than it should be as well as the BS closing costs. If you wanted the land, I'd offer him the 18K and offer to pay closing costs, but go thru a bank instead. He'll get his money NOW and you'll save a ton of money and be the clear owner sooner.

You could likely find 4% from a bank, finance for 10 years. If you put the same $1000 dollars down, Your note would be $173. You would pay $3700 (or there abouts) in interest over the life of the loan.

HIs way has you paying $164 a month, but because of the higher rate and the 20 year term you would be on the hook for > $22,000 in interest.

I'm all about being happy where you are though. Just food for thought.

[oneshot]

Oneshot, man It's none of my business other than you posted it. The interest rate he wants is 2 1/2 times higher than it should be as well as the BS closing costs. If you wanted the land, I'd offer him the 18K and offer to pay closing costs, but go thru a bank instead. He'll get his money NOW and you'll save a ton of money and be the clear owner sooner.

You could likely find 4% from a bank, finance for 10 years. If you put the same $1000 dollars down, Your note would be $173. You would pay $3700 (or there abouts) in interest over the life of the loan.

HIs way has you paying $164 a month, but because of the higher rate and the 20 year term you would be on the hook for > $22,000 in interest.

I'm all about being happy where you are though. Just food for thought.

Thing is I have a Bad credit Report because I paid all my Loans off early. At the time I didn't realize it would have this effect. Plus getting a Loan on Raw Land is harder with a Bank.

I figure it worked out for the best. I'll have to Drive Pickup or Boat a little further but I can still hunt and fish the same area.

oneshot

[Ham]

I wouldn't have ever thought paying off a load early would hurt your credit, but I am not in the banking business. Credit reports are not static. They do go up and down. I might try to talk to a bank to see what your score is and how it could be improved.

Like I said before, I'm all about being happy where you are and your potential land acquisition was never any of my business.

[ness]

Not having a credit history is an issue, but if you had credit in the past, paid as agreed and paid things off it shouldn't hurt you.

That guy is screwing you on the interest rate and the closing costs. You can probably count on him to screw you in other ways too. Walk.

[oneshot]

Like I say we have a Small Cabin up there. It is paid for. We are building on, have Material here and up there.

Got a nice place here and go up there every so often, hang out around the Lake and Warsaw.

oneshot

[Ham]

Sounds great!

[shaker]

Sounds like a good move to me the trailer trash and bad road would have been enough to scare me off.

RB

[Phil Lilley]

I bought a new truck last year. First new vehicle I've ever bought. The dealer tried to put it in the resort's name first. They turned it down because of bad credit score. I had to co-sign for it.

We paid off the resort over 12 years ago. We have one credit card- then there's Lowes- many other vendors we have accounts with. But no loans. I think our score is 75!

I talked to my banker and she said to come in anytime and borrow. She said we'd have no problem with our bank since we have history with them. You might talk to your bank, especially if you know them personally.

System is broke for sure.

[fishinwrench]

System is broke for sure.

No kidding, I sure can't make sense of the credit score game.

I have been working towards restoring my score after living almost a full year on credit cards after a tornado ate my house and shop. Several went to judgment status but were paid in full as soon as the insurance checks started coming in.

I have had to take action and request myself that previously paid off and past-statute strikes against my score were taken off, otherwise I guess they would have just haug around forever.

So if you are trying to improve your score then get a report and make a few calls, you might be surprised how much of a boost to your score is possible just by rattling a few cages.

Credit Karma is a pretty good way to keep track of what's going on with your score. They kind of bombard you with emails all the time but making "the system" aware that you are keeping track of how they are scoring you seems to make a difference.