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Started By
Message
Buying a Home
Posted on 7/10/13 at 8:47 am
Posted on 7/10/13 at 8:47 am
My fiancé and I are looking to buy a home. We want a smaller starter home because we don't play on having kids anytime soon. We have 50,000 in savings. I'm currently in school year around and only making around 15k a year working part time. My fiancé is making 50k a year. She just graduated and has 7k in student loan debt. I have around 2 more years of school and will be making 50-60k once I'm done. My question is what do you money experts think we can afford? We are looking at homes between 75k and 110k. Also we don't have much credit so what's the best route to getting a loan?
6
Posted on 7/10/13 at 8:54 am to GeauxWarrior12
I'd say you would be safe going around the $150k range. Don't buy something that you will only be happy in for 2 yrs. once you start making $$, y'all would easy be able to cover the note on a $150k home.
Posted on 7/10/13 at 8:56 am to GeauxWarrior12
Rural Development Loan if you qualify. You have to be in a low income bracket and live in a certain area. Look into it, especially if this is just a starter you plan to be in for a few years. You can keep/grow your savings in better investments.
Posted on 7/10/13 at 9:26 am to GeauxWarrior12
What if you wanted two years until you graduate, paid off her student loan debt during that time, then buy something better once both of your incomes are significantly higher?
Posted on 7/10/13 at 11:52 am to fillmoregandt
quote:
What if you wanted two years until you graduate, paid off her student loan debt during that time, then buy something better once both of your incomes are significantly higher?
This...no real reason to buy a home for a few years, just rent one
Posted on 7/10/13 at 11:58 am to Tiger at Law
Mortgage payment would be cheaper than rent for a 115K home even if you finance it all. Plus, if the market keeps picking up for a few years, you get some of your investment back if not more.
This post was edited on 7/10/13 at 11:59 am
Posted on 7/10/13 at 1:09 pm to ell_13
Yeah not wanting to spend 800 a month on rent when a mortgage would be 500-600 a month especially when we can afford the down payment. Once I start working full time we would pay as much as we could afford each month on the mortgage in order to pay it off as quickly as possible.
Posted on 7/10/13 at 3:20 pm to GeauxWarrior12
Why do you have 50k in savings and 7k student loan debt?
Posted on 7/10/13 at 3:25 pm to GeauxWarrior12
quote:
I have around 2 more years of school and will be making 50-60k once I'm done.
Are you sure you are going to live in the same city after school? If you aren't 100% sure, I would wait until you finished school and landed that 50-60k job before buying a house. You don't want to be trying to sell a house to relocate in two years.
In your scenario I would wait until things were more clear in terms of income and location before buying. I would rent for the next two years.
Posted on 7/10/13 at 3:27 pm to GeauxWarrior12
I would definitely go ahead and pay off the student debt with the $50,0000. You would still have a nice down payment on a house.
Posted on 7/10/13 at 3:29 pm to ItNeverRains
quote:
Why do you have 50k in savings and 7k student loan debt?
Fiancé took out loan before we even met.
Posted on 7/10/13 at 3:54 pm to GeauxWarrior12
quote:
Once I start working full time we would pay as much as we could afford each month on the mortgage in order to pay it off as quickly as possible.
If this is just a starter home, you will most likely get more for your money if you invest it instead of paying down the mortgage because you will only be in the house a few years.
For example. Paying an extra $500/month on a mortgage for 4 years will cost you $24,000 but may only save you $1200 in interest, especially with rates so "low". But if you take that money and put it into a VERY "safe" account that only returns 3% per year, you're looking at closer to $1500.
But this obviously just an example. Your own situation may be different, but I suggest you look into how best to use your money.
Posted on 7/10/13 at 4:21 pm to GeauxWarrior12
quote:
Fiancé took out loan before we even met.
Ok, I assumed since "we" have 50k in savings, then "we" have 7k in student debt.
So you have 50k in savings and she has 7k in debt until married?
Posted on 7/11/13 at 8:43 am to ItNeverRains
quote:
So you have 50k in savings and she has 7k in debt until married?
I actually just wrote the check so we have 43k in savings.
Posted on 7/11/13 at 11:03 am to GeauxWarrior12
quote:
I actually just wrote the check so we have 43k in savings.
great move!Posted on 7/11/13 at 11:43 am to GeauxWarrior12
How on earth do yall have 50K in savings on 65k/year combined income?
Posted on 7/11/13 at 11:50 am to JohnnyKilroy
quote:
How on earth do yall have 50K in savings on 65k/year combined income?
THIS!..not impossible just wondering how
Posted on 7/11/13 at 12:13 pm to mightyjet
What's a reasonable amount to buy a home if you make around 90 a year?
Posted on 7/11/13 at 1:20 pm to JohnnyKilroy
quote:
How on earth do yall have 50K in savings on 65k/year combined income?
I worked from 16-22 before starting school.
Posted on 7/11/13 at 2:46 pm to ItNeverRains
quote:
So you have 50k in savings and she has 7k in debt until married?
I actually just wrote the check so we have 43k in savings
Smart man
My advice is buy the least expensive house that meets your needs in the nicest area possible. If you are a gambling man my hunch tells me when stock market settles rates will go back down. Good Luck!
This post was edited on 7/11/13 at 2:47 pm
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