Buying a Home - 7/10/13 | TigerDroppings.com
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GeauxWarrior12
LSU Fan
Hammond
Member since Jan 2007
2528 posts

Buying a Home

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?


guttata
LSU Fan
prairieville
Member since Feb 2006
20383 posts
Online

re: Buying a Home
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.


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ell_13
USA Fan
Member since Apr 2013
29492 posts
Online

re: Buying a Home
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.


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fillmoregandt
Ole Miss Fan
Over the Mountain,bro
Member since Nov 2009
6576 posts

re: Buying a Home
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?


Tiger at Law
LSU Fan
Baton Rouge
Member since May 2007
1525 posts

re: Buying a Home
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


ell_13
USA Fan
Member since Apr 2013
29492 posts
Online

re: Buying a Home
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 at 11:59 am


GeauxWarrior12
LSU Fan
Hammond
Member since Jan 2007
2528 posts

re: Buying a Home
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.


ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
7186 posts

re: Buying a Home
Why do you have 50k in savings and 7k student loan debt?



elposter
Alabama Fan
Member since Dec 2010
9114 posts

re: Buying a Home
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.


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arktiger28
LSU Fan
Member since Aug 2005
2154 posts

re: Buying a Home
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.


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GeauxWarrior12
LSU Fan
Hammond
Member since Jan 2007
2528 posts

re: Buying a Home
quote:

Why do you have 50k in savings and 7k student loan debt?


Fiancé took out loan before we even met.


ell_13
USA Fan
Member since Apr 2013
29492 posts
Online

re: Buying a Home
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.


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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
7186 posts

re: Buying a Home
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?


GeauxWarrior12
LSU Fan
Hammond
Member since Jan 2007
2528 posts

re: Buying a Home
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.


King of New Orleans
LSU Fan
In front of The Hungry Tiger
Member since Jul 2011
5522 posts

re: Buying a Home
quote:

I actually just wrote the check so we have 43k in savings.


great move!


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JohnnyKilroy
New Orleans Pelicans Fan
Member since Oct 2012
8675 posts

re: Buying a Home
How on earth do yall have 50K in savings on 65k/year combined income?


mightyjet
LSU Fan
New Orleans, La
Member since Nov 2007
380 posts

re: Buying a Home
quote:

How on earth do yall have 50K in savings on 65k/year combined income?


THIS!..not impossible just wondering how


CP3LSU25
LSU Fan
Lafayette
Member since Feb 2009
36550 posts

re: Buying a Home
What's a reasonable amount to buy a home if you make around 90 a year?


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GeauxWarrior12
LSU Fan
Hammond
Member since Jan 2007
2528 posts

re: Buying a Home
quote:

How on earth do yall have 50K in savings on 65k/year combined income?


I worked from 16-22 before starting school.


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ItNeverRains
LSU Fan
Franklin, TN
Member since Oct 2007
7186 posts

re: Buying a Home
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 at 2:47 pm


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