buying a home?

[GracelynJoysMom]

So I'm Taylor, I'm 20 and a single mom. I currently live in a apartment complex and I hate it but it will do for now. I want to start saving up to buy a house. I know it will take a long time but I am willing in save up, plus I just paid my car off finally so I thought it would be a great time to start saving for a house since I No longer have any debt and No car payment. I have heard of people paying cash for there home and this is what I want to do.

This may sound like a dumb question but do they literally pay cash or just write a check?

Any tips on saving up for a home?

[HisSweetheart07]

I believe it's a cashier's check that's used. 

basically "paying cash" is just not going through a bank for the loan. so by check, money order, or straight cash. However, straight cash wouldn't be traceable and I wouldn't suggest it in the slightest of ways. Check's take up to 30 days to clear if they're over 1k so cashier's check/money order is probably the best way to go. 

My suggestion on saving up would be to get a seperate savings account - have the amount of your car payment automatically drafted from your checking account every month (just like if you were still paying it) then at the end of the month whatever money you had left in your checking account. If you're a cash user, keep a container in your room (or wherever you empty your pockets) and put all your $5 bills and your change in. At the end of the month - take that in and deposit into your savings account. 

Good luck hun!

[GracelynJoysMom]

My car is paid off now so I don't have to worry about that so now I plan on using that money that would normally be going to my car ($235) and put it in my savings. I do have a separate savings account at a credit union that I opened up for myself when I opened up my dd's saving account, which also build up a certain % of what I have in there. I also have been reading alot about Dave Ramsey's (I think that's how you spell it) envelope system and I'm going to give that a try!

Quoting HisSweetheart07:

I believe it's a cashier's check that's used. 

basically "paying cash" is just not going through a bank for the loan. so by check, money order, or straight cash. However, straight cash wouldn't be traceable and I wouldn't suggest it in the slightest of ways. Check's take up to 30 days to clear if they're over 1k so cashier's check/money order is probably the best way to go. 

My suggestion on saving up would be to get a seperate savings account - have the amount of your car payment automatically drafted from your checking account every month (just like if you were still paying it) then at the end of the month whatever money you had left in your checking account. If you're a cash user, keep a container in your room (or wherever you empty your pockets) and put all your $5 bills and your change in. At the end of the month - take that in and deposit into your savings account. 

Good luck hun!

[QuiltLover]

Dave Ramsey is amazing.....wish he had been around when I was young, but still used his methods to get out of debt...worth it? You bet...we were not in debt much but it hurried up the process of being debt free....

[GracelynJoysMom]

I have been doing a lot of research on his systems and everything since I found the envelope system on pintrest. I plan on starting this system yet month and paying off my medical bill debt and student loans even tho I'm still in school and my ultimate goal is to buy a home years down the road when I have enough saved. Money is tight because I'm a single mom only making alittle over minimum wage but I am working on my financial goals and I will meeting them one day!

Quoting QuiltLover:

Dave Ramsey is amazing.....wish he had been around when I was young, but still used his methods to get out of debt...worth it? You bet...we were not in debt much but it hurried up the process of being debt free....

[momofsixangels]

I have heard of this but not sure how they pay it.I would say by check

[Amy127]

We just bought a car and wrote a check. It cleared within 3 days.

[dawnnamarie]

When I bought my house, they wanted the downpayment in the form of a cashiers check :)

[elizabooks]

235$ times 12 is 2820. A decent house can be between $35000 & 150000. Depending on where you live. That is almost 14 years for the lowest number.
Is there any way to increase that amount to $500? That will shorten it to five years.
Now you can pay a good portion with cash/ check.
But while you can get a house after years of saving, why not get a 30 year loan? If you have a house at 35,000, pay $10,000 up front and then just double or trillpe the payments (putting it on the principle) you can still pay if all off on 5 years. It is a bit harder to do for higher priced houses, but it can be done.

[GracelynJoysMom]

I'm going to do my best to save up as much as I can every month. I might also move back in with my mom because my lease will be up in August on my apartment and that's where most of my money goes is my rent on my 2 bedroom apartment for my daughter and I. But it's over $5,000 a year in rent for my apartment so I might just move back home and save up more but I love being on my own and having my own place just might have to sacrifice that to save up for a house.

Quoting elizabooks:

235$ times 12 is 2820. A decent house can be between $35000 & 150000. Depending on where you live. That is almost 14 years for the lowest number.

Is there any way to increase that amount to $500? That will shorten it to five years.

Now you can pay a good portion with cash/ check.

But while you can get a house after years of saving, why not get a 30 year loan? If you have a house at 35,000, pay $10,000 up front and then just double or trillpe the payments (putting it on the principle) you can still pay if all off on 5 years. It is a bit harder to do for higher priced houses, but it can be done.

[gmadiane]

I'm not sure.