Dismiss Notice

Welcome To CK5!

Registering is free and easy! Hope to see you on the forums soon.

Score a FREE t-shirt and membership sticker when you sign up for a Premium Membership and choose the recurring plan.

How can i buy a house?

Discussion in 'The Lounge' started by y5mgisi, Oct 20, 2006.

  1. y5mgisi

    y5mgisi 1 ton status

    Joined:
    Aug 11, 2002
    Posts:
    17,156
    Likes Received:
    247
    Location:
    Portland Oregon
    I am 20 and going to be bringing home about 2200 a month which i realize is not alot. But id really like to get into owning a house as soon as possible. Im thinkin if i mabey save about 10,000 to 15,000 and get about a 175,000-200,000 dollar house Any tips? Howmuch do you pay a month for your house? How can i get a loan? Any help would be nice.
     
  2. 1976Blazer76

    1976Blazer76 1/2 ton status

    Joined:
    Apr 17, 2006
    Posts:
    552
    Likes Received:
    0
    Location:
    Ridgefield, WA
    I'm also 19 and looking to do the same thing here in a couple months after my blazer is done. I went and talked to a mortgage person and I got approved for $230,000, so I'm looking for around the price range you are. I'm looking at 3 and 4 bedroom houses, so I can rent them out to my friends and what not to have them help pay my mortgage. So, I'd say first off I'd go see how much you can be approved for, then try and save 20% of your total mortgage to put down.
     
  3. 73k5blazer

    73k5blazer Unplug the matrix cable from the back of your head Premium Member

    Joined:
    Dec 28, 2001
    Posts:
    4,987
    Likes Received:
    38
    Location:
    The Rustbelt
    Steer clear of the fancy loans, you know, no money down, low money down, interest free...all that. They are bad deals in the long run.

    Save the 20%, it's still the best thing going. If you get the 20%, you'll save $100/month in PMI (Private mortage insurace, lenders charge for this because you don't have at least 20% equity in the home and the insurance covers them incase the value of the house falls below what you owe on it.), that the lenders charge.
    Sometimes getting creative in the deal itself can be good. Your in the drivers seat being a first time buyer, no baggage to pawn off yourself. So you have options like 'I'll give you the asking price (or a little more than you want to pay) if you give me $XXXX at closing so I can make my 20%", or get the seller to pay closing costs. Or if the sellers need to sell but can't vacat right away(happens sometimes because they may have bought some other house, but can't close on it until those people buy something else), you can rent the house back to them for an agree'd amount of time.

    Do your research, and have fun.
     
  4. Bubba Ray Boudreaux

    Bubba Ray Boudreaux 1 ton status

    Joined:
    Jan 21, 2001
    Posts:
    20,716
    Likes Received:
    2
    Location:
    Undisclosed Location
    Figure out all of your bills, then what you can realistically afford for monthly payments. Even though right now I'm approved for a pretty decent amount, if I bought a house for that amount, I could not makes the payments and bills and expect to have anything left over for whatever.

    Also, housing market is nice. Our market here for awhile had a lot of stuff, but priced kind of high and we didn't find anything that suited us. Right now, there is nothing on the market (2 houses within my area that I'm looking and I'm not living in town. Unfortunately for us, it was just announced that we are getting a new plant down the road which means our housing market is going to skyrocket and I'm ****ed. :mad: :mad: :mad:
     
  5. Fubeca

    Fubeca 1/2 ton status

    Joined:
    Dec 18, 2002
    Posts:
    2,100
    Likes Received:
    2
    Location:
    Denver Area
    Fantastic advice!

    Make sure you can afford to pay the payments +insurance +taxes +maintenance. Very many people can qualify for a loan that will allow them to purchase a home far out of their true affordable price range.

    I also agree that you should be very careful with most of the creative financing options. Make sure you can afford the payment on a 30 year fixed loan - you may want to consider a 5 or 7 year ARM if you don't think you'll stay there long-term (On average most people don't live in their home longer than 7 years) - but don't get an ARM or an interest-only loan just to afford the payment.

    Good luck!
     
  6. y5mgisi

    y5mgisi 1 ton status

    Joined:
    Aug 11, 2002
    Posts:
    17,156
    Likes Received:
    247
    Location:
    Portland Oregon
    Good advice so far guys!

    1976blazer76, What is your monthly income and what company was it that you were approved with? And belive me ive sat down time after time after time taking my monthly income, subtracting water, garbage, electricity, food, insurane, gas, phone, bill, cable, and so on but ofcoarse its all been guess work. Im also trying to get a two or three befroom so i can rent one out to help with the payments. So if you all have anymore advice or real world dollar figures bring em on.
     
  7. y5mgisi

    y5mgisi 1 ton status

    Joined:
    Aug 11, 2002
    Posts:
    17,156
    Likes Received:
    247
    Location:
    Portland Oregon
    So i just did a little number crunching and it seems that if i could get a payment of 1,250 a month or less than i could pull it off. Do you think that is a realistic payment for a 185,000ish house?
     
  8. chevyfumes

    chevyfumes Court jester

    Joined:
    Feb 24, 2000
    Posts:
    38,584
    Likes Received:
    266
    Location:
    Watch for the muzzleflash!
    I'd look for the cheapest smallest house possible...
     
  9. boggerless

    boggerless 1 ton status Premium Member

    Joined:
    May 26, 2003
    Posts:
    22,728
    Likes Received:
    96
    Location:
    dearborn heights, Michigan
    plus if you buy when you are twenty and like your neighborhood. you can have that biatch payed off and live large when your fourty.it sounds like a long way off but my bro mike did it and he has more cash flow and toys than anyone i know that works for a living.and watch reliying on friends for rent.after awhile it could go sour.get what you can afford yourself and then if someone moves in its gold.but if they descide to move your not screwed.TRUST ME!!
     
  10. Can Can

    Can Can Pusher Man Staff Member Super Moderator

    Joined:
    Feb 17, 2000
    Posts:
    15,552
    Likes Received:
    136
    Location:
    Cochrane, Alberta, Canada
    First of all, if buying a house is a priority for you, you have to approach it as such. Start saving downpayment money TODAY. Look closely at what you spend your cash on- cutting out one can of soda or one cup of coffee a day can add up to $500 a year towards your savings plan. Imagine what $10 a day can do!!!

    Secondly, go into a mortgage with AS BIG a downpayment as possible. Every dollar you put into your downpayment fund will save you THREE dollars in interest payments, and gives you the ability to choose from two scenarios-

    A- A shorter amortization or

    B- A smaller monthly payment.

    Speaking of payments, plan on paying your mortgage off bi-weekly. This alone will help you pay off your mortgage 5+/- years faster. Think of the money you'll be saving in the long run.
     
  11. chevyfumes

    chevyfumes Court jester

    Joined:
    Feb 24, 2000
    Posts:
    38,584
    Likes Received:
    266
    Location:
    Watch for the muzzleflash!
    Thats why I say go as small as possible. The equity will never go down and you can always upgrade or just add on. Mitch you should be asking yourself what it is that you absolutely think you must have. Do you want a shop some day?I'd start making that list and then trimming it down to what you have to have...You've seen my place,I don't need most of it. There is always the bare land and build yourself deal too...;) Lots of options bud...
     
  12. boggerless

    boggerless 1 ton status Premium Member

    Joined:
    May 26, 2003
    Posts:
    22,728
    Likes Received:
    96
    Location:
    dearborn heights, Michigan
    or instead of bi-weekly ,just take one payment and devide it by 12 and add that to your principal and you get the same results without fear of a late payment.
     
  13. BranndonC

    BranndonC 3/4 ton status

    Joined:
    Mar 18, 2002
    Posts:
    8,591
    Likes Received:
    0
    Location:
    Anaheim, Ca
    I did talk to my friend about your situation, he didn't make the likelyhood of a loan sound good unless you have a good down payment. If you give me your phone number, I can have him call you monday and go into detail a little more.
     
  14. chevyfumes

    chevyfumes Court jester

    Joined:
    Feb 24, 2000
    Posts:
    38,584
    Likes Received:
    266
    Location:
    Watch for the muzzleflash!
    Oh yeah Mitch the most important thing you need to remember is never trust a real estate agent...:haha: :haha: :haha:
     
  15. 1976Blazer76

    1976Blazer76 1/2 ton status

    Joined:
    Apr 17, 2006
    Posts:
    552
    Likes Received:
    0
    Location:
    Ridgefield, WA
    If you want the number of the person I talked to, send me a pm and I'll get it to you, not sure the name of it, but our friend who is a realtor highly recommended her to me. I'm making almost 3k a month and should be making another $800 a month here in a couple months. For the 230K dollar loan, the payment would have been $1666 a month. Which is a little steep for me thats why I'm looking below 200k. I'm saving money as I go because all I have is a payment on my car and the rest goes to the bank. I would buy a house sooner, but I'm building my blazer first because I want to finish my toy while I still have money.
     
  16. y5mgisi

    y5mgisi 1 ton status

    Joined:
    Aug 11, 2002
    Posts:
    17,156
    Likes Received:
    247
    Location:
    Portland Oregon
    Once again exelent advice. It seems like its kinda hard to find the small SMALL houses. Ive looked a little bit and havent found a whole lot. Of coarse i havnt talked to any realtors yet either.

    1976blazer76, What do you do for aliving that you could bring home +/- 3k a month at only 19?!

    Its kinda hard thinking of saving 20% of even 150,000 which would be 30,000 right? If thats the case, It would take me exacly two years of puting away 1,250 a month to save that much money. 32 months at 1,250 if it was for 20% of 200,000. Kinda hard to concieve i guess. But i think what i will do is just get a direct deposit setup at this new job and just take money out for what i need. See where it goes from there.
     
  17. y5mgisi

    y5mgisi 1 ton status

    Joined:
    Aug 11, 2002
    Posts:
    17,156
    Likes Received:
    247
    Location:
    Portland Oregon
    one more question how do i figure out what my house payment would be a month? The way i figured it(excluding any intrest) i could pay a 150,000 dollar house off in 20 years for $625 a month. Am i missing somthing there also?
     
  18. Can Can

    Can Can Pusher Man Staff Member Super Moderator

    Joined:
    Feb 17, 2000
    Posts:
    15,552
    Likes Received:
    136
    Location:
    Cochrane, Alberta, Canada
    The problem with your calculation is that any amortization is 90% interest/10% capital for the first 3-5 years, depending on the term. To accurately calcaulate a payment and an amortization schedule, do a search for "amortization tables". That will give you a good indication of what your payment/interest/term will be for any given purchase........
     
  19. 1976Blazer76

    1976Blazer76 1/2 ton status

    Joined:
    Apr 17, 2006
    Posts:
    552
    Likes Received:
    0
    Location:
    Ridgefield, WA
    Well, I'm a foreman at a plastics reduction company. Started off at $8 an hour, 11 months ago and slowly climbed my way all the way to the top. It's a growing business, and we're getting more money all the time, its great!
     
  20. 89GMCSuburban

    89GMCSuburban 1/2 ton status

    Joined:
    Nov 15, 2001
    Posts:
    3,005
    Likes Received:
    0
    Location:
    Thornton, CO
    If you get an ARM mortgage...I will find you and kill you...before the payments do.........j/k:D

    Seriously, go for a fixed rate mortgage...don't do the ARM option, lots of coloradoans are going to lose their houses in the next few years when their payments skyrocket.

    Break it down on $260,000 financed based on average interest rates:

    50 year Fixed =$1,435 a month
    30 year Fixed = $1,525 a month
    20 year Fixed = $2,000 a month

    ARM Options would say about $800 of payment a month...but they don't tell you that interest is accruing at the time...so your balance is going UP all those years you're making payments...then they charge you something like $10,000 to get out of the loan. I'd do a 30 year, and if you can afford the payment of the 20 year...invest the difference and when you have enough invested to pay the house off...do it.
     

Share This Page