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re: First time home buyer.. Questions
Posted on 5/18/15 at 8:38 pm to PeteRose
Posted on 5/18/15 at 8:38 pm to PeteRose
I agree with you. OP you for sure should move in with your parents if they will let you. You get a house now with your other debt and you will be living paycheck to paycheck. What would you do if you happened to lose your job? A mortgage right now for you is not something I would recommend
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Posted on 5/19/15 at 1:01 am to Athletix
I'd move in with the parents and save. A permanent home now could be in a very poor location to her future job.
Are there any credit debts in the mix?
Are there any credit debts in the mix?
Posted on 5/19/15 at 7:59 am to Athletix
If you want updated, you may have to increase your budget a little. You may be able to find new construction for 160K or so, but it will be DR Horton crap. I just bought a new home and will be selling my old house in Walker soon. The house is 6 years old, move in ready, and I am going to ask around $105/ft.
Posted on 5/19/15 at 1:15 pm to slinger1317
The risk of the wife not getting a job would be too great to not just wait 8 months or so. Additionally, stop paying extra on student loans until you have enough saved for 20% down payment. That will save you PMI and pay for itself immediately.
Posted on 5/19/15 at 2:18 pm to Athletix
quote:I've started multiple threads on this very topic and have researched in depth myself as I am currently looking. Where are you looking to buy? Bottom line, 150K will not get you a great location for an affordable house. The trade off is either better house, bad location or better location, bad house. That's really the only option you have at this price point.
We are looking to purchase a house under 150k
My wife and I share similar income to you, however we have less school loans combined (about 35-40K) and a higher credit score (both in the mid/low 700's). We can comfortably purchase a 200K house with a little room north of 200K. FWIW, we are likely going to buy a project home in a better area. Wise people have told me, you can fix the house but you cant fix the location. If you're in a desirable location and the house is manageable, renovating typically adds value and increases your chances of adding equity and potentially selling it for a profit.
My suggestion based on what you've said....Rent a small house and save more money for now. I'm almost 30, she almost 27, and we have no desire to rush. Get more cash to put down, pay down more debt, and get your credit score up a little more. It will drastically help your chances of getting approved for a better loan. Remember though, more often than not, you will get approved for more than you can afford so be smart when going through the process.
Posted on 5/19/15 at 2:32 pm to makersmark1
quote:
The lack of a mortgage will allow you to consider a wide variety of opportunities early in your professional career. You may get an offer in another city that leads to a big pay raise, etc.
To the OP, this is another large thing to consider as many have mentioned. I know you assume she will get a job near BR, but if New Orleans, or something further away, has an open position with the opportunity to make more money, you have now pigeonholed yourself to a house you just dropped a significant amount of cash on and will essentially get none of it back unless you can somehow break even.
Posted on 5/19/15 at 3:03 pm to cberni1
i mean this with no offense to the OP but i think he has gotten a little to sold on the american dream of owning a home, and a little too put off by the idea of renting (heard "dont throw your money away renting" too many times).
This, coupled with not having the down payment, and the wife not promised a job locally, and being soooo young
i would advise live with family, or rent for some time for flexibility and freedom. there is a lot of value that i think OP is ignoring in not being tied down.
This, coupled with not having the down payment, and the wife not promised a job locally, and being soooo young
i would advise live with family, or rent for some time for flexibility and freedom. there is a lot of value that i think OP is ignoring in not being tied down.
Posted on 5/19/15 at 6:11 pm to NoSaint
Hey thanks for all the responses! There is no doubt that this
No credit debts. Built some up during school.. Didn't have a choice, but they were the first thing I paid when getting out of school.
I appreciate the comments.
quote:has been somewhat of a motivator to find a home.
(heard "dont throw your money away renting" too many times).
quote:
Are there any credit debts in the mix?
No credit debts. Built some up during school.. Didn't have a choice, but they were the first thing I paid when getting out of school.
quote:This sucks but it is what it is... The more I look at it, the more it makes sense to wait until we are able to purchase in the 200+ range. It is so hard to wait, especially when I've lived without forever. I finally got the dream job, and it still isn't enough.. Patience pft it sucks
Bottom line, 150K will not get you a great location for an affordable house. The trade off is either better house, bad location or better location, bad house. That's really the only option you have at this price point.
I appreciate the comments.
Posted on 5/19/15 at 7:13 pm to Athletix
Glad I didn't step on the toes too badly.
Sounds like for you that buying a house is a benchmark for putting some of the past instability behind you... I hope if that's accurate that you realize you already sound like you've gotten there. You can buy the house now but youre in a spot with so much potential that you may not want to be tethered or held back by getting it now- when you may have great opportunities coming your way that signing a mortgage today might keep you away from.
Sounds like for you that buying a house is a benchmark for putting some of the past instability behind you... I hope if that's accurate that you realize you already sound like you've gotten there. You can buy the house now but youre in a spot with so much potential that you may not want to be tethered or held back by getting it now- when you may have great opportunities coming your way that signing a mortgage today might keep you away from.
Posted on 5/19/15 at 8:49 pm to NoSaint
quote:
Glad I didn't step on the toes too badly.
No way brother
quote:This could always be a possibility, but my career for the next 10 + years are here. I've pretty much maxed out for my degree and qualifications. So, with that mindset I've been thinking that purchasing a home in the area would be the best investment. A first home..something small. I'm starting to come to the realization that the first home (that we want) may be more expensive than what I thought it would be.. Therefore, we will have to stay with parents/rent until we are capable of putting 20% or have cash in hand to do renovations.
You can buy the house now but youre in a spot with so much potential that you may not want to be tethered or held back by getting it now
Posted on 5/20/15 at 7:37 am to Athletix
you have no idea how much money you will save by moving in with your parents for a little while. I would definitely wait until your fiance is settled into her new job before looking to buy. It looks like you have a lot of financial burdens on you right now (wedding, loans, and saving for a house). Living rent free with your parents would help you out tremendously. Estimate the monthly payment on your home and put away that much money every month until you have enough for a decent down payment.
Posted on 6/9/15 at 12:16 pm to Athletix
I got a house in a smaller city outside Baton Rouge in that price range. Doesn't need any work.
I'm about to put it up for sale on FSBO this week.
You want it?
I'm about to put it up for sale on FSBO this week.
You want it?
Posted on 6/9/15 at 12:39 pm to NoSaint
quote:
I mean this with no offense to the OP but I think he has gotten a little to sold on the american dream of owning a home, and a little too put off by the idea of renting (heard "dont throw your money away renting" too many times).
As someone of a somewhat similar age (28), I'd say the whole "throwing money away by renting" cliché is almost as bad as the "all credit is death and you should only pay in cash" motto.
I've already thought twice about buying a house and each time I passed. Thank God I did, either of them would have really strapped me given changes in jobs and/or locations. I know you think your career will be where it's currently at for the next 10 years, but you'd be stunned how often that's not the case, especially when you're younger.
Another thing someone mentioned, the outrageous success stories people tell about making money off their house are 1. extremetly rare and 2. almost never as high as they think once you factor in maintenance and upkeep. Renting at a lower rate, not re-roofing, painting, fixing drains etc and investing a set monthly amount can be almost as good if not a better investment and won't leave you as committed financially.
quote:
Remember though, more often than not, you will get approved for more than you can afford so be smart when going through the process.
This is maybe the most important thing in this thread so far. YOU need to do your budget calculations to see what you can and can't afford. I always laugh when I get my pre-approval amount. It's always ~15% higher than I would ever feel comfortable paying.
Posted on 6/9/15 at 3:22 pm to Athletix
You can get an RD loan on your income. 100% financing and very low PMI. You can take the cash you would have used for a down payment and use it fix up the house if you'd like. Look into the qualifications though, you're probably approaching the income limits.
Posted on 6/9/15 at 3:36 pm to Athletix
You'll be hard pressed to find a decent move-in ready home at $150k, in just about any market. Especially for two very picky buyers. The ones you do find will be generic, cookie cutter spec homes.
So you either lower your expectations now and get into a home you can do some improvements to with the hope of getting a return on those improvements when you sell, or sit tight for a couple of years and build a nice down payment on a move-in ready home that isn't in need of updating for a higher price. I'd sit tight. Save money, get those credit scores up, and let your wife get established in her career.
So you either lower your expectations now and get into a home you can do some improvements to with the hope of getting a return on those improvements when you sell, or sit tight for a couple of years and build a nice down payment on a move-in ready home that isn't in need of updating for a higher price. I'd sit tight. Save money, get those credit scores up, and let your wife get established in her career.
Posted on 6/9/15 at 8:54 pm to Athletix
A lot of what we call "Baton Rouge" and the area that could become St. George is eligible for rural development. There are many decent homes in decent locations for 130-150k in Old Jefferson and maybe parts of Shenendoah. You will likely have a nice 1300-1400 sq ft. house after spending $5,000 in renovations.
Posted on 6/9/15 at 9:14 pm to The Spleen
quote:
Save money, get those credit scores up, and let your wife get established in her career.
This is the plan we are following at the moment. Leaning heavily towards buying a cheap fixer upper around this time next year. Something around 100ish. Spend around 30-40, and have an updated "starter" home to live in until we are ready to build our "dream" home.
Maybe my area housing is much cheaper, but I've looked at houses around 90-100k. 1300-1500 sq ft, brick, needs new floors, bathrooms, kitchen, interior wall/brick paint.
All expensive fixes, but a completely updated 1500 sqft house for under 150-160 is a legit reality.
These houses are not in the hood. Just small country town homes
Posted on 6/9/15 at 9:16 pm to Athletix
But what about rising interest rates? Are you considering that at all?
Posted on 6/9/15 at 9:21 pm to bayoubengals88
quote:
But what about rising interest rates? Are you considering that at all?
Maybe i'm wrong but no not really. I can't buy now and I'll be ready to buy in a year or so.
Hypothetical: Next year i'm ready to buy and interest rates are 5..6%.. Maybe I reconsider and wait to have more cash in hand when I build the "dream" home.
However, I don't think I can see myself in an apartment for the next 5 years. Something different about the privacy a home brings
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