need some home buying advice

[Wingsfreak9 10+ year member]

I just turned 20 and I'm looking at purchasing my first home in the next 6 months to a year. I have decent understanding of how loans work and the whole credit thing and what not but being as young as I am and new to all this I'm a little nervous. Anyone have any advice for Someone in a situation like mine? Also I know a commission based income makes things a bit more challenging so anyone wanting to chime in with experience in that department would be appreciated as well.

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[jdawg90 10+ year member]

LOL WTF!? You just turned 20 and are gonna buy a house!? What do you do for a living?

I've never taken out a morgage but take this for what it's worth:

100k 15 year loan @ 3.75%= total of 130k after interest

100k 30 year loan @ 4.75% = total of 188k after interest

 

[Wingsfreak9 10+ year member]

that puts the life of the loan in perspective. Definitely would want to go for 15 year but on my income that wouldn't be the practical thing to do. I work at a ford dealership as a salesman in the parts dept. not loaded or wealthy by any means just not financially brain dead like a lot of people. And I learn a lot from my mom who owns her own business as a financial advisor which is helpful.

 

[naughtyca 10+ year member]

the problem of owning a home is the hidden cost that will hit you as soon as you own a home. unless you are married and have kids i would suggest just an apartment and use your money to have fun, but of course still save.

 

[Wingsfreak9 10+ year member]

the problem of owning a home is the hidden cost that will hit you as soon as you own a home. unless you are married and have kids i would suggest just an apartment and use your money to have fun, but of course still save.

I see Renting as a waste of a lot of money. I can't bring myself to dump 750-800$ a month into a ****** apartment when I could have a mortgage for close to or cheaper than that.

 

[basswiigee]

I just turned 20 and I'm looking at purchasing my first home in the next 6 months to a year. I have decent understanding of how loans work and the whole credit thing and what not but being as young as I am and new to all this I'm a little nervous. Anyone have any advice for Someone in a situation like mine? Also I know a commission based income makes things a bit more challenging so anyone wanting to chime in with experience in that department would be appreciated as well.

def. go 30yr and just pay over when you can, plus your out in the boonies so properties out there are alot cheaper, make sure to check what your buying, throughly, crawl under the house check foundation, everything ! I checked out a bunch of houses out there and found most looked good, they were doomed from the start, check how many layers on the roof, everything and if your buying a brand new home... you my friend are a boss and negotiate as low as possible, try to get them to pay closing costs and fees and everything else, go in there with a set number and try not to deviate from it, don't be afraid to tell em I gotta think about it and leave, you can always go back and you'll have the upperhand as you got the funds... remember you pay their salary so your the boss not them!!! oh and I got my homeowners and taxes rolled into my mortgage for one monthly payments so theres no hidden charges, best way to do it!!!

 

[jdawg90 10+ year member]

you could always find some college apartments to rent a room from. The ones around hear cost 500-550 a month furnished and are pretty nice. You share a kitchen/living room with two other people and utilities, cable, and internet are included. Shit's gonna add up if you buy a house... heating/cooling, cable bill, internet, property tax, etc. I'm 22 and can't imagine committing to buying a house.

 

[audiobaun 5,000+ posts]

Property Tax is the real killer, as well as Insurance That will be the determination of if the place is worth buying or not/school taxes are a killer,and paid weather you have one in the system or not.Location is key for a future sale in mind,as well as looking at the surrounding sales for $ per Sq ft sold,Flood Planes.Sometimes you may be able to find a foreclosure to bid on that will have equity just by purchase

 

[audiobaun 5,000+ posts]

Yet, as stated...A 30 yr note without a payoff penalty is way to go starting out.You can always pay upon principle monthly/yrly,to pay off sooner.Your interest rate may be a bit higher starting out, but you can refinance later on to get a lower interest rate as long as you keep your credit in good standings,and pay your mortgage on time to date.

 

[audiobaun 5,000+ posts]

I bought my first house in downtown area of a small town when I was 23, and Paid Cash for it.Saved my money ,was working 6-7 days a week for 4 yrs..Paid $26k for it..Nice house like you see in small town w wood floors,3 bd rms,big kitchen,1 1/2 bath,2 brick fire places Huge dining room,living,l shaped covered porch,2 car garage detatched,huge yard..should have kept it.Be worth some $ by now.Sold for 39k.Worked my *** off for that place,to call my home

 

[05fronty 5,000+ posts]

Interest is a tax deduction. My house gains value every year so when I sell it I will make a lot off for my next house

 

[Slo_Ride 5,000+ posts]

Dont invest in property below sea level.

Be prepared to put down a large down payment.

 

[Wingsfreak9 10+ year member]

def. go 30yr and just pay over when you can, plus your out in the boonies so properties out there are alot cheaper, make sure to check what your buying, throughly, crawl under the house check foundation, everything ! I checked out a bunch of houses out there and found most looked good, they were doomed from the start, check how many layers on the roof, everything and if your buying a brand new home... you my friend are a boss and negotiate as low as possible, try to get them to pay closing costs and fees and everything else, go in there with a set number and try not to deviate from it, don't be afraid to tell em I gotta think about it and leave, you can always go back and you'll have the upperhand as you got the funds... remember you pay their salary so your the boss not them!!! oh and I got my homeowners and taxes rolled into my mortgage for one monthly payments so theres no hidden charges, best way to do it!!!

Yeah I would hope that the inspector would take care of thoroughly checking out the foundation and roof and things like that. Typically you can tell the condition of the roof from just eyeballing it outside but I'd definitely have an inspector give that a look as well. I plan to put in a high offer on the house I want and then negotiate closing costs with the homeowner. That's the plan anyway I'm sure everything won't go perfectly smooth the way I want it to but that's part of the plan.

 

[Wingsfreak9 10+ year member]

Dont invest in property below sea level.
Be prepared to put down a large down payment.

Yeah the sea level thing won't be an issue but as far as a large down payment goes that means the car and toys have to go. Which ***** but I'm prepared for it.

 

[Wingsfreak9 10+ year member]

I bought my first house in downtown area of a small town when I was 23, and Paid Cash for it.Saved my money ,was working 6-7 days a week for 4 yrs..Paid $26k for it..Nice house like you see in small town w wood floors,3 bd rms,big kitchen,1 1/2 bath,2 brick fire places Huge dining room,living,l shaped covered porch,2 car garage detatched,huge yard..should have kept it.Be worth some $ by now.Sold for 39k.Worked my *** off for that place,to call my home

26k that would be perfect haha that sounds like a pretty nice house for the price

 

[Wingsfreak9 10+ year member]

Property Tax is the real killer, as well as Insurance That will be the determination of if the place is worth buying or not/school taxes are a killer,and paid weather you have one in the system or not.Location is key for a future sale in mind,as well as looking at the surrounding sales for $ per Sq ft sold,Flood Planes.Sometimes you may be able to find a foreclosure to bid on that will have equity just by purchase

Property taxes on the homes I've been looking at range from 1200 on the low end to 2700 a year on the high end. Around here it's dependent on location and the closer you get to a town the more expensive they are. Although I'd rather live in the country anyway. Taxes just make what I want less affordable. The last house I put an offer on had 2700$ per year property tax, this adds 225$ a month to my mortgage payment.

 

[denim 5,000+ posts]

Honestly, and this may be totally regional, but I have had a far superior return on investment with a combination of savings/IRA's/401k with the difference between my rent and what my mortgage was, then I ever had owning my house, not to mention there is no HOA fees / dealing with taking care of the house / cutting the lawn / upgrading or improving aging bits etc.

 

In my experience, yes, when renting I am not gaining anything on that money, but I am spending a GREAT deal less along with having a lot less work to maintain, all while saving much more and gaining far more on investments and having more time to work on SSA and personal things.

 

[Wingsfreak9 10+ year member]

Get a fucking realtor bro. All of that is their god damn job to explain to you.

I can not believe you're still here lol

 

[Wingsfreak9 10+ year member]

Honestly, and this may be totally regional, but I have had a far superior return on investment with a combination of savings/IRA's/401k with the difference between my rent and what my mortgage was, then I ever had owning my house, not to mention there is no HOA fees / dealing with taking care of the house / cutting the lawn / upgrading or improving aging bits etc.  

In my experience, yes, when renting I am not gaining anything on that money, but I am spending a GREAT deal less along with having a lot less work to maintain, all while saving much more and gaining far more on investments and having more time to work on SSA and personal things.

True. But With the housing market on the rise at the rate that it is I think if I can afford a house comfortably I'll be able to flip it and make a decent profit down the road. Provided the economy doesn't take a **** again or anything like that. That's my thought process at this point.