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Our First House

Posted by on Oct. 16, 2013 at 2:54 PM
  • 68 Replies

Lately df and I have been talking about saving the money to buy our own house. I know we have a little while of saving before we wil have enough to put down on one, but I am super excited just at the idea of having our own place soon. Plus he does construction so it won't be that bad if it needs some work too.

We're not sure yet what our limit is going to be to "how much of a house" we can afford. I'm thinking 200k MAX, but I don't know.

What did you pay for your house? And how much did you put down? Did you run into any problems? Share some pics if you want :).

by on Oct. 16, 2013 at 2:54 PM
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Replies (1-10):
MamaPeanut
by Kristy on Oct. 16, 2013 at 3:05 PM
1 mom liked this
As a rule of thumb, you want your house payment to be no more than 1/4 of your monthly income. (Remember your mortgage payment generally includes your yearly taxes and homeowners insurance).

So, think about what you can afford each month, times it by 12 (12 payments per year) and then times by 30 (if doing a traditional 30 year mortgage).

If possible, you want to put down 10-15% of the total cost of the home as a done payment, and have more in savings to cover closing costs (you may be able to negotiate with the seller for them to pay part or all of the closing costs, it just depends).
Some loans do not require any down payment, such as VA loans.

Credit score requirements vary on the type of loan and lender, but strive for no less than 720.

Definitely get approved for financing before going House Hunting. Good luck! :)
esox
by Bronze Member on Oct. 16, 2013 at 3:15 PM

We paid 103k for our first house, putting down 20k that my SO had left from a settlement he received after a car accident.

6 years later the house is only worth 65k. Talk about taking a loss! Wouldn't have minded the loss in value so much if we were still living in it. Thanks to his job relocating we aren't able to live there (haven't for the past 4 years). Also thanks to the drop in value, we are unable to find a renter willing to pay enough to cover the mortgage. 

Courtney610
by Courtney on Oct. 16, 2013 at 3:18 PM
Excellent advice!

Quoting MamaPeanut:

As a rule of thumb, you want your house payment to be no more than 1/4 of your monthly income. (Remember your mortgage payment generally includes your yearly taxes and homeowners insurance).



So, think about what you can afford each month, times it by 12 (12 payments per year) and then times by 30 (if doing a traditional 30 year mortgage).



If possible, you want to put down 10-15% of the total cost of the home as a done payment, and have more in savings to cover closing costs (you may be able to negotiate with the seller for them to pay part or all of the closing costs, it just depends).

Some loans do not require any down payment, such as VA loans.



Credit score requirements vary on the type of loan and lender, but strive for no less than 720.



Definitely get approved for financing before going House Hunting. Good luck! :)
k9l1c5
by Ruby Member on Oct. 16, 2013 at 3:27 PM

Ahhh thank you! This is so helpful! Yeah I have no idea what our credit scores are at the moment, but when we bought our car 2 and a half years ago we were both in the low 700s. Haven't been late on anything ever so it would be great if it went up since buying the car...

Quoting MamaPeanut:

As a rule of thumb, you want your house payment to be no more than 1/4 of your monthly income. (Remember your mortgage payment generally includes your yearly taxes and homeowners insurance).

So, think about what you can afford each month, times it by 12 (12 payments per year) and then times by 30 (if doing a traditional 30 year mortgage).

If possible, you want to put down 10-15% of the total cost of the home as a done payment, and have more in savings to cover closing costs (you may be able to negotiate with the seller for them to pay part or all of the closing costs, it just depends).
Some loans do not require any down payment, such as VA loans.

Credit score requirements vary on the type of loan and lender, but strive for no less than 720.

Definitely get approved for financing before going House Hunting. Good luck! :)


k9l1c5
by Ruby Member on Oct. 16, 2013 at 3:28 PM

That sucks :/. This is why I want to find one now though while the market is still low.

Quoting esox:

We paid 103k for our first house, putting down 20k that my SO had left from a settlement he received after a car accident.

6 years later the house is only worth 65k. Talk about taking a loss! Wouldn't have minded the loss in value so much if we were still living in it. Thanks to his job relocating we aren't able to live there (haven't for the past 4 years). Also thanks to the drop in value, we are unable to find a renter willing to pay enough to cover the mortgage. 


esox
by Bronze Member on Oct. 16, 2013 at 3:31 PM

They say its a buyers market. I would heavily disagree with that. While there are tons of houses to look at, most of them are already priced at the seller's rock bottom leaving very little to no negotiation room. I guess there would be lots of options out there for you though. Thats always a good thing! 

Quoting k9l1c5:

That sucks :/. This is why I want to find one now though while the market is still low.

Quoting esox:

We paid 103k for our first house, putting down 20k that my SO had left from a settlement he received after a car accident.

6 years later the house is only worth 65k. Talk about taking a loss! Wouldn't have minded the loss in value so much if we were still living in it. Thanks to his job relocating we aren't able to live there (haven't for the past 4 years). Also thanks to the drop in value, we are unable to find a renter willing to pay enough to cover the mortgage. 



Courtney610
by Courtney on Oct. 16, 2013 at 3:31 PM
We bought ours 6 years ago, and it has lost about 15k in value. The market here is definitely starting to rebound, though!

Quoting k9l1c5:

That sucks :/. This is why I want to find one now though while the market is still low.

Quoting esox:

We paid 103k for our first house, putting down 20k that my SO had left from a settlement he received after a car accident.

6 years later the house is only worth 65k. Talk about taking a loss! Wouldn't have minded the loss in value so much if we were still living in it. Thanks to his job relocating we aren't able to live there (haven't for the past 4 years). Also thanks to the drop in value, we are unable to find a renter willing to pay enough to cover the mortgage. 


k9l1c5
by Ruby Member on Oct. 16, 2013 at 3:34 PM

Yeah, I'm sure if someone wants to sell it badly enough they will take a lower offer. And sellers have to expect that buyers are going to want to negotiate.

Quoting esox:

They say its a buyers market. I would heavily disagree with that. While there are tons of houses to look at, most of them are already priced at the seller's rock bottom leaving very little to no negotiation room. I guess there would be lots of options out there for you though. Thats always a good thing! 

Quoting k9l1c5:

That sucks :/. This is why I want to find one now though while the market is still low.

Quoting esox:

We paid 103k for our first house, putting down 20k that my SO had left from a settlement he received after a car accident.

6 years later the house is only worth 65k. Talk about taking a loss! Wouldn't have minded the loss in value so much if we were still living in it. Thanks to his job relocating we aren't able to live there (haven't for the past 4 years). Also thanks to the drop in value, we are unable to find a renter willing to pay enough to cover the mortgage. 




k9l1c5
by Ruby Member on Oct. 16, 2013 at 3:36 PM

Yeah I'm hoping by the time we have enough saved for a down payment it will still be pretty low. I know we have at least a year of saving, maybe closer to 2 years.

Quoting Courtney610:

We bought ours 6 years ago, and it has lost about 15k in value. The market here is definitely starting to rebound, though!

Quoting k9l1c5:

That sucks :/. This is why I want to find one now though while the market is still low.

Quoting esox:

We paid 103k for our first house, putting down 20k that my SO had left from a settlement he received after a car accident.

6 years later the house is only worth 65k. Talk about taking a loss! Wouldn't have minded the loss in value so much if we were still living in it. Thanks to his job relocating we aren't able to live there (haven't for the past 4 years). Also thanks to the drop in value, we are unable to find a renter willing to pay enough to cover the mortgage. 



erin708
by Silver Member on Oct. 16, 2013 at 4:27 PM
We bought ours 6 yrs ago and its probably down my 20k. Mine was 235k but I'm in nj. Were officially stuck in this hell hole.
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