First of all, I am thankful for any advice I can get from knowledgable people here. We are FINALLY ready to buy a house and of course Murphy's law hit -- interest rates skyrocketed so our previous downpayment won't make much of a dent. I am aware that we can refinance if / when interest rates go down but it would also be a costly process.
We have a very old 401K the overwheming majority of which we rolled over into a ROTH IRA and the rest to a tIRA. This money would be really helpful as a downpayment although I understand that's not what an IRA is for and also that we'd owe taxes on it as he is below 59. My question is:
1. Aside from taxes and penalities is there anyhing else we need to be aware of when it comes to liquidating a ROTH for down payment? WILL IRS allow us to set up a payment plan?
2. Are buyers able to get a copy of the original URAR form as part of the purchase?
3. I hear that "buyer's agents" have a "fiduciary duty" towards the buyer. BUT if their commission is dependent on the sales price of the house, why would they be inclined or motivated to get the buyer the BEST price? I would assume that their duty is to themselves first!
4. Are there any pitfalls with going with the salespeople (home inspector / contractor etc) that the agent recommends?
5. Now, this will sound paranoid. I believe the sales price of the home will have the agents' commissions built into it and that the seller pays this commission. BUT, is it ever possible that a seller reneges on the commission and then we (buyers) become responsible for it?
6. Do we get the docs we have to sign off on PRIOR to closing?
7. What does title insurance cover and what does it not cover?
I am very nervous as this is a HUGE purchase and I don't want to have a negative experience, or worse, feel scammed. I understand I've asked a lot of questions and am grateful for your time and feedback. We NEED a house and renting is no longer viable for us.
Thanks again for your help. Much appreciated.
We have a very old 401K the overwheming majority of which we rolled over into a ROTH IRA and the rest to a tIRA. This money would be really helpful as a downpayment although I understand that's not what an IRA is for and also that we'd owe taxes on it as he is below 59. My question is:
1. Aside from taxes and penalities is there anyhing else we need to be aware of when it comes to liquidating a ROTH for down payment? WILL IRS allow us to set up a payment plan?
2. Are buyers able to get a copy of the original URAR form as part of the purchase?
3. I hear that "buyer's agents" have a "fiduciary duty" towards the buyer. BUT if their commission is dependent on the sales price of the house, why would they be inclined or motivated to get the buyer the BEST price? I would assume that their duty is to themselves first!
4. Are there any pitfalls with going with the salespeople (home inspector / contractor etc) that the agent recommends?
5. Now, this will sound paranoid. I believe the sales price of the home will have the agents' commissions built into it and that the seller pays this commission. BUT, is it ever possible that a seller reneges on the commission and then we (buyers) become responsible for it?
6. Do we get the docs we have to sign off on PRIOR to closing?
7. What does title insurance cover and what does it not cover?
I am very nervous as this is a HUGE purchase and I don't want to have a negative experience, or worse, feel scammed. I understand I've asked a lot of questions and am grateful for your time and feedback. We NEED a house and renting is no longer viable for us.
Thanks again for your help. Much appreciated.