My indoor pool... (A rant with questions)

[bigbear]

Two weeks ago, I came home from work at 2am to find that a crack had formed in the foundation of my apartment building. Since I live in a basement apartment, that meant that I had a wet bedroom floor. I called the landlord, and he 'fixed' it.

Today at 8am, I awoke to the sound of rushing water, and watched helplessly as water again made my bedroom into a lovely pool, romantically reflecting the lights from above as I stood by. I again called the landlord, and after a nice discussion, (and I mean that, we were both gentlemen about the entire ordeal) we agreed that I would be able to move out without any ramifications on the lease.

So now I am trying to find a place, apartment, house, etc, within 10-15 miles of New Oxford / East Berlin. I am also thinking of just saying screw it and buying a house. Hence my questions:

This would be my first time buying a house. Is a down payment required? What the heck are points, and why would I have to buy them? Do I HAVE to buy them? And closing costs, does that have to be paid in cash?

Thanks in advance for advice.

[Curmudgeon]

Two weeks ago, I came home from work at 2am to find that a crack had formed in the foundation of my apartment building. Since I live in a basement apartment, that meant that I had a wet bedroom floor. I called the landlord, and he 'fixed' it.

Today at 8am, I awoke to the sound of rushing water, and watched helplessly as water again made my bedroom into a lovely pool, romantically reflecting the lights from above as I stood by. I again called the landlord, and after a nice discussion, (and I mean that, we were both gentlemen about the entire ordeal) we agreed that I would be able to move out without any ramifications on the lease.

So now I am trying to find a place, apartment, house, etc, within 10-15 miles of New Oxford / East Berlin. I am also thinking of just saying screw it and buying a house. Hence my questions:

Disclaimer: I am not an expert. If nothing else, this will serve as a bump!

This would be my first time buying a house. Is a down payment required? What the heck are points, and why would I have to buy them? Do I HAVE to buy them? And closing costs, does that have to be paid in cash?

Thanks in advance for advice.

Down payments are not necessarily required. Do you qualify for VHA or VA? A Realtor could help you determine this.

A "point" is equal to one percentage "point" of the finance price. In many cases, a buyer can purchase points to bargain for a lower interest rate. If you are looking to finance $120k at 7%, you might be offered the chance to pay points to lower the rate to, say, 5.5%. 1 point would be $1200 ( 1% of 120,000), 2 points would be $2400, etc. Points are considered a FEE, and are not tax deductible.

As far as I know, closing costs are always paid in cash (or certified funds) at settlement. However, there is no law that says the buyer must pay them. Find yourself a motivated seller, and ask that assistance with closing costs can be a part of the deal.

When my mom passed away and I was trying to sell her house, nothing was happening in the market, and her house was just sitting there. As the buyer I offered to pay all closing costs and the house sold the next day.

Hope any of this helps. Good luck. Market-wise, this is a good time to be a buyer.