First time House Buyer....advice/ suggestions? | TigerDroppings.com

Posted byMessage
Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
24492 posts
 Online 

First time House Buyer....advice/ suggestions?



I've just made a year at my first job out of college and I think within the next year, the lady and I will be ready to start looking at purchasing out first house after having rented. I have a very good credit score, but am more wondering about down payment and monthly note amounts.
Obviously the higher the down payment the better, but what is the best percentage to have up front?
I know there's a lot of factors to this, but on a general basis, how would total price correlate to monthly payment? What I mean is, say you find a house for 200k, what does that mean monthly?

I'll be looking in WBR, Brusly specifically.







Back to top
Share:
Lsut81
USA Fan
Member since Jun 2005
65314 posts

re: First time House Buyer....advice/ suggestions?


quote:

I've just made a year at my first job out of college


May have to wait 2yrs depending on who you finance through...

quote:

say you find a house for 200k, what does that mean monthly?


There are plenty of mortgage calculators online and it all will depend on how much you put down...

But just guessing with only 3% down as required by FHA, I'd imagine you are looking in the neighborhood of $1300 after principal, interest, pmi, insurance, and taxes....






Back to top
Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
24492 posts
 Online 

re: First time House Buyer....advice/ suggestions?


quote:

But just guessing with only 3% down as required by FHA, I'd imagine you are looking in the neighborhood of $1300 after principal, interest, pmi, insurance, and taxes....

Wow, that's alot better than I thought. We're currently already paying 1200 for rent. Which is our main incentive to buy. For only 100$ more a month we could be homeowners. (Speaking generally of course)

quote:

May have to wait 2yrs depending on who you finance through...

I think by the time were ready to buy, I will have been at my job for just under two years and my lady just over a year.






Back to top
LSUSUPERSTAR
LSU Fan
TX
Member since Jan 2005
10109 posts

re: First time House Buyer....advice/ suggestions?


Look at the calculators on bankrate.com. Also, go conventional, FHA is changing their pmi rules. Google it to find articles. Good luck.





Back to top
  Replies (0)
ragacamps
LSU Fan
Member since Jan 2011
2239 posts

re: First time House Buyer....advice/ suggestions?


quote:

May have to wait 2yrs depending on who you finance through...


This isn't always the case. If your job is a reflection of your degree (sales--business major etc...), you should be ok if everything else checks out.






Back to top
Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
24492 posts
 Online 

re: First time House Buyer....advice/ suggestions?


quote:

If your job is a reflection of your degree (sales--business major etc...), you should be ok if everything else checks out.


I would say that I fall under this category. I work for a project management company and I graduated in Business Management.



So honestly I think biggest hurdle I have now is building up a down payment. I'm not as worried about the credit considering I know my score is good, and I just bought a car, so that should only help to build that up as well for the next 9-12 months.






Back to top
lsubandmom
LSU Fan
Lafayette
Member since Oct 2007
828 posts

re: First time House Buyer....advice/ suggestions?


Watch that you don't buy too much on credit or you may not meet the requirements for debt/income ratios. A large car note and buying furniture on time could keep you from being able to afford the note on the house you want.

Also, you want to make sure you have some slack to put away something in savings in case of an emergency/maint/repairs.






Back to top
  Replies (0)
novabill
LSU Fan
Crossville, TN
Member since Sep 2005
6216 posts

re: First time House Buyer....advice/ suggestions?


Time in school will be counted as time on the job, if the job is in same field as your degree.





Back to top
  Replies (0)
novabill
LSU Fan
Crossville, TN
Member since Sep 2005
6216 posts

re: First time House Buyer....advice/ suggestions?


Where do you want to buy? Outside of BR and you can get an RD loan, even if you do want to put some down, it is not required, you can.

If in BR you can go conventional with 3% down, which with good scores will be cheaper than FHA due to the lower mortgage insurance costs.






Back to top
ThirstyTigerLSU
LSU Fan
Baton Rouge
Member since Mar 2009
80 posts

re: First time House Buyer....advice/ suggestions?


Try to put down 20% if you can to avoid the PMI. I think the rule changes for PMI in April. Also, dont forget neighborhood HOA fees per year and yard upkeep. The first thing you should do is go and see what amount of loan you are allowed to have. That will determine the size of house you should look at buying. I would also bet your home insurance rate would be dermined by what kind of coverage you chose, so again, another payment added to the list.

and, the property taxes, they will get you too! I just recently bought a house in wbr. I got a 200k house at 15yr 4% and i pay almost 1400. if it gives you an idea.






Back to top
ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
6914 posts

re: First time House Buyer....advice/ suggestions?


Some good advice, while mom said watch your credit to debt, also make sure you are using those credit cards. One tank of gas a month and paying it off will keep that credit score tidy.

Also, for your first home, I'd buy something in a PUD. Your first home is rarely your last home, and in a Planned Unit Development while you and the misses are just starting out, finding like minded couples to build your network and having HOA take care of the overall aesthetics of the hood, as well as ease of reselling, I really like this idea for young couples. I know there's that one community on right across tracks coming off bridge from BR in Brusly, but unsure of demographics






Back to top
  Replies (0)
Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
24492 posts
 Online 

re: First time House Buyer....advice/ suggestions?


quote:

Where do you want to buy?

Looking at Brusly right across the river.

I've had a credit card since I was 19 and use it in a vey regular basis. Haven't paid interest on it yet.

I've heard there were some kind of rural development loans for house purchases outside of the city limits that help take care of closing costs and whatnot. But I don't remember if you had to make a certain amount or something like that.






Back to top
Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
24492 posts
 Online 

re: First time House Buyer....advice/ suggestions?


quote:

Try to put down 20% if you can to avoid the PMI. I think the rule changes for PMI in April

What exactly is this? Tried googling but came up with about 20 different things






Back to top
Dan
LSU Fan
Houston
Member since Dec 2006
2195 posts

re: First time House Buyer....advice/ suggestions?


PMI is mortgage insurance. If you do not have 20% to put down, a mortgage company is hedging their bet loaning to you by requiring a monthly insurance payment to them. Usually around $100.

If you go the conventional loan route, once you reach 20% (22?)equity in the home, you can eliminate the PMI.






Back to top
Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
24492 posts
 Online 

re: First time House Buyer....advice/ suggestions?


Got it, thanks





Back to top
BigBoyTiger
LSU Fan
Chicago
Member since Aug 2005
8762 posts

re: First time House Buyer....advice/ suggestions?


My advice from someone who bought his first place 2.5 years ago is if there is any way to avoid an FHA loan, do so. The fees and PMI are ridiculous. Save up 20% or greater and make a good down payment.







Back to top
  Replies (0)
Dan
LSU Fan
Houston
Member since Dec 2006
2195 posts

re: First time House Buyer....advice/ suggestions?


to reiterate what was said above:
If you instead choose an FHA loan (which usually requires a smaller down payment than conventional), you may end up stuck with the PMI for the life of the loan






Back to top
  Replies (0)
seawolf06
LSU Fan
Raleigh, NC
Member since Oct 2007
4386 posts

re: First time House Buyer....advice/ suggestions?


quote:

For only 100$ more a month we could be homeowners. (Speaking generally of course)


My advice is that is a very uneducated way to think about it. You will have maintenance year round and there will be things that break that you won't have to pay for in an apt. There's also the monetary value of your time that you will be giving up - that varies for every person.

Others here will be able to give you a better estimate, but I would say you should add at least another $100 or so a month for upkeep and fixing things plus the time that it will take you.






Back to top
seawolf06
LSU Fan
Raleigh, NC
Member since Oct 2007
4386 posts

re: First time House Buyer....advice/ suggestions?


DP


This post was edited on 2/28 at 10:52 am


Back to top
  Replies (0)
Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
24492 posts
 Online 

re: First time House Buyer....advice/ suggestions?


quote:


My advice is that is a very uneducated way to think about it.

Oh I'm well aware of that, and thats why I said speaking generally bc I wasn't focusing on that exact example.

Also, I'm not in a huge rush so building up a down payment isn't an issue.






Back to top
  Replies (0)


Back to top