I'm 23 and i want to buy a House the only thing is I'm broke. but i have a really good job. i hate paying rent
Answers: No offense but you have no business buying a home if you have no savings or investments, which is what your descriptions sounds like. I'm not trying to be mean, but this is what's caused this whole sub-prime mortgage "crisis".
Owning your own house (even just owning property) is one of the American dreams, but people over the past few years have developed this sense of entitlement about home ownership.
People thought that they deserved a house, they decided to buy one that was much bigger than they couldn't afford, and then they financed it with these horrific sub-prime, adjustable rate loans. Now a lot of those people are feeling the higher interest rates and can't afford their houses anymore.
I'm not accusing you of these thoughts, I'm just saying that there were a bunch of people in your position a few years ago and they're in a lot of hot water right now, scared to death because they might lose their homes.
I can definitely see why you hate paying rent. Here's what I would do if I were in your situation:
1. If you have any debt list them smallest to largest.
2. Make a written budget and give every penny a destination.
3. Start paying on the smallest debt with every extra penny that you have. Once that debt is gone, start on the new smallest debt. Do this until all of your debt's are paid off.
This is the Dave Ramsey approach.
4. Assuming you have no debt or have paid it off, start saving for a hefty (HEFTY HEFTY HEFTY) down-payment. At least 20% of the cost of the house (to avoid having to pay P.M.I.). Also allocate about $1500 for use as an emergency fund (in case your car breaks down, auto accident, medical expenses, etc.)
5. Once you have over 20% of the price of the house you want the try again to get a loan.
With the extra down payment money, no debt, and a solid history of one-time rent payments you should have a much better chance of qualifying for a fixed-rate mortgage.
Good luck! Hope this helps!
What are you paying in rent now? My suggestion is this. What ever you are paying, double that and put it away. If you are paying 500 month in rent, than put 500 month back a month for 6 months. See if you can save it with out touching it. A house payment has property taxes, home owners insurance included in the mortgage payment, and there are always things that need fixed up. So do this for 6 months. See if you can handle the payments. Also, if you have any collections and judgements on your credit. Pay them off. To get the best rates on the market today, you need to go FHA and you can not have any late payments for 12 months. And judgements have to be paid if full. Collections sould be to, if they are new.
Good luck to you.
I think you already know that you will have to establish good credit and save regularly for your down payment. This is a very difficult time to be buying a house without GREAT credit and a high paying job and a good sized down payment.
Let's say you want to buy a $150,000 house. You will need at least $15,000 for your down payment. You will need a high credit score and a good job history (no jumping around during the past two years).
But have patience. You seem to have a very good attitude. There is no better way to make yourself a lot of money in the long run than by investing in real estate. I recommend that you start with your own house, perhaps a two or three-flat depending on what you can afford and WHEN you can get a mortgage.
I would stay away from fix-up homes unless you are quite handy.
It's a buyer's market and there are all kinds of deals out there to get people into houses. Sometimes if you live there for five years, they will forgive the downpayment. The problem is that you really can't afford a house. That's what the problem is these days. Not only did people buy houses they really couldn't afford, they went into the deal without enough income to be able to afford any problems that came along--you need a new roof, insurance goes up (and it will), taxes goe up (and they will) and then the stove goes out, the plumbing bursts, kids get sick, whatever and you don't have enough cash, get behind on your payments and then lose your house and forever mess up your credit. That's why reputable people sell houses to people that have the right amount of downpayment. They know how to save and have the $ they need.
If you're broke, you don't need a house, you need a savings account.
so go to a realtor and tell them that; i did that in '94, found a house i could really afford and bought it, the realtor found the lender and made it simple; there is a solution out there and some programs don't require a down payment. Credit plays a big part in getting approval right now with the mortgage loan problems (you need to be low risk). You need a good job that you have a history with, you need enough income to pay the payment (you said you're broke - but are you paying the rent each month?) and all the other debt you own (credit cards, etc). Shop around and find something that you can buy for around the same price you're paying for rent; it's out there - u may just have to look awhile.
If you have good credit you should be able to get a loan. Most states have some type of mortgage that are for first time home buyers and are still 95-100% loans. With some markets being slow, some sellers may consider helping with your downpayment of carrying a portion of the down payment. Talk to a loan officer that works with secondary money and is familiar with your state bond money's that may be available to you as a first time home buyer. Find a real estate agent you can trust and they will help you with your decisions. Good Luck!
This give somebody the third degree is for culture who hold gone through a foreclosure. Please do not answer if you haven't..thx.
I keep getting answers from race who haven't foreclosed and yes I know what the majority feel. I only want to know truthfully what happens after a foreclosure. For example: Lifestyle change, hardships...etc. gratitude!Answers: My sister and her husband had a house foreclosure contained by 1999 - the loan balance be 230,000 they lived in the house for 6 months formerly they were told to quit. Did it affect their credit, of course it did but it didn't ruin their lives. They bought another home surrounded by 2006. The bank be countrywide. Countrywide sold the house at auction for 270,000 and they were competent to get a message from countrywide showing the loan was salaried in full. It is no longer on their credit report. My sister be just competent to put it behind her and move one. They well-read a lot from that and so did the in one piece family.
After forclosure, and the house sell again, the difference from what you owed on the house and the amount it sold for if it was 20,000 more, you will bring back hit with a 1099 to supply to the irs and have to foot taxes on it,,Many lenders look at it as your debt free and in roughly 3 to 4 years you will be able to start getting some credit re-established. But be prepared to settle ungodly interest rates,, thats a pain,.. But lifestyle should convert,, Youve just get the big monkey off your wager on,,, ,
First house?
My fiancee and I are interested in buying a house surrounded by 2 years when he is done with arts school. We'll both be about 26. My interrogate is how old be you when you bought your first house and how much did it cost? I'm just curious to see what everybody did. My dad bought his first house 14 years ago when he be 30 for $90,000. He got a 3 bedroom 1 bathroom.Answers: I be 18 husband was 19, compensated 145,000 for a 3 bedroom 2 bath home within Van Nuys CA. We put down 15,000 and our payment be 900 a month. That was within 93. In 2006 we sold that house for 700,000 - amazing... We bought our 2nd home in 1995 surrounded by Acton CA for 335,000 4 bed 3 bath on 2 acres. We put down 100,000 and pocket money was 2361.17 It be my dream house... We sold that in 2006 for 1.2 mil -
I bought my first house when I be 24, $50,000. 2 bdrms, 1 bath. My mom and dad bought their first home when they be 25 for $9500.00 which was on the marketplace about 6 years ago and sold for $76000.00 it is 2 bedroom, 1 hip bath. Their second home was bought surrounded by the mid 1960's for $18000.00 and sold about 3 years ago for $86000.00 which be 3bdrm, 1.5 baths. Just though I would share the appreciation in the efficacy of buying a home. I wish we still owned adjectives 3. Buying a home is one of the best investments you will ever make..Good Luck to you guys!