Buying a home???

Rent for now - DO NOT buy! Prices are declining and will continue to do so for AT LEAST another year (or two). With the expected drop in values, you risk ending up upside down on your mortgage. Do not listen to realtors or loan providers when evaluating the current market - they do not have your best interests at heart. There's no hurry regarding interest rates either, they will remain low for the forseeable future. When you do buy, do not get an ARM! Get as much land as you can (preferably farm land with rich soil) located far away from any metro area. Regarding house size, keep your costs (energy, furniture, etc) low by only buying what you need (smaller is better). Well & septic are ideal. Nearby flowing water also good (if not subject to flooding). In the interim, save your cash.

 

Blackwatertaco: This is just on paper and what on what info you have provided. Thats right about 150k with that amount of income you guys generate. Im just trying to say that you will be able to afford it as your total debt (house, cars, credit cards) is 34% of your income. A round number should be about 30% of your income should be your maximum going towards the house payment. The 34% includes both trucks and credit cards and house payemnt. the other 66% will go towards savings and utilities and living life!

But like what billyjoe said, wait it out as prices are still going to fall and rates will still be low. Iam waiting it out till next year and add 2 more homes on my roster of 6.

Its fun once you figure out the game! It can make you really wealthy! and it can make you really broke too! LOL! Just playing it smart and getting rich slowly will make you eventually financially free... land is always good but depending on where you buy it.

I have a cousin that bought along the colorado river 7 years ago and bought 15 acres for 30k and now developers want to buy her out to build housing by the river! She has great offers but will probably lease out the land and have it work for the generations to come in our family!

 

If it is built prior to i think, 1994 like the 2nd one, make sure it doesn't have PB plumbing. It is a grey plastic supply pipe. You would see it under the sinks and in the water heater closet.

The recall on it has come and gone and you will be on your own if/when if fails.

 

good thread, i'm actually in the same boat. i want to be married and have a house in the next year or two but budgeting is killing me. i got student loans, truck loans, gotta buy a ring, and somehow save up enough for a good down payment. i hate being an adult

 

Note to all of you. It may not work for all of you but... When I was 22-23 I drove a total POS truck, I slept on friends couches and paid for food (so that I could save for my down payment), I bought my first home at age 24 with a co-signer and a renter for the second room. I regret nothing. I had an 11 month stint of underemployment and borrowed a couple of payments from friends and family and paid that back within about 7 months of being employed. The only reason why I tell this story is that there are so many folks that live for today and have never looked at the long-term plan... ... but I'm just an old man that doesn't know your story or the one you hold on to. I just know if you spend less money on trucks and toys and more on traditional appreciating assets, you will not be repeating this same story in 10 years.

 

Things I went throughwhen buying my first house-20% down and no private mortgage insurance. Do NOT deposit more than $9999 in your bank account to write any kind of check for your house. Long story short, I was saving for 4 years and not depositing the money in the bank, I know not to smart, but anyway I deposited like $25000 at once no problem. Told them I was looking at houses and the banker said good for you and took my money. 3 months later I went to use my money for a down payment at the same bank my money was in and they said I couldn't. I said WTF they said that money wasn't in the bank long enough to use for a mortgage. I ended up getting a check for $9999 from my mom and $9999 from my dad to use for the down payment. I could write them each a check for the amount given to me from my account but not for my house. Bottom line there is always some loophole to jump through when buying a house. Besides that figure in taxes and homeowners liability into your monthly house payment. Other than that good luck.

 

The issue of 10k is about tax accounting and making sure you can show a trail ... people do it all the time. I have had clients get $60k from relatives. I know I need to unsubscribe this thread since I feel like I'm on the short bus - spend $100 - $200 and talk to an accountant or a lawyer. It's kind of like a front end alignment for the brain.