saving up money and getting a house!
Posted in the Newburgh Forum
#1 Mar 19, 2013
I see a lot of houses in Evansville. I always want the American dream. Is it best to save up $25,000 then go buy a house? My credit sucks by the way. But I'm. Almost out of debt! I feel like I'm throwing my money away by renting apartments? Ideas?
#2 Mar 19, 2013
you want to put at least 20% down on a house. so $25K you could put down on a 125K house.
the mortgage may be cheaper. but the cost owning is typically higher than renting. you have to fix stuff when it breaks. that said, yes, I would get a house you can afford. you are able to build equity into it a house you own. with renting you will never get that money back. If you sell the house you can get your money back out of it, typically.
just dont hang yourself with a mortgage you cant afford. many people think they can afford more than is reasonable. do not make this mistake, and you will be fine.
#3 Mar 19, 2013
and just because the bank approves you up to certain amount does not mean thats how much you should spend.
remember their job is to try and loan you as much money as they can. they make money off your debt.
buy what you can afford, not what the bank approves. those are always 2 different numbers.
#4 Mar 19, 2013
that is exactly what caused the banks to go under and the housing market was full of repos
#5 Mar 19, 2013
Keep the payment at or below 25% of ur take home pay. Make sure u keep 3-6 months of expenses as an emergency fund. Look up Dave Ramsey online. great advice from the guy.
#6 Mar 19, 2013
get preapproved at the bank. last thing you want to do is save the money, find something you like, then realize you have a credit problem. Plus once youre preapproved, it improves your negotiating position and since you are in no real rush to buy, you can really get a deal, set your timeframe goal, stick with it and work with a realtor that you can trust. sharon mcintosh at tucker was great for me.
#7 Mar 19, 2013
This is true. But they were federal subsidized loans, ie fanny may and freddie mac. They were not loans the bank would have approved otherwise. The government decided to push banks into questionable loans. The banks took the blame for this, but really it had more to do with Political policies.
Remember the banks lost their a$$ when the bottom fell out. They are not in the business of giving loans to people with terrible credit, low income, and no down payment. This risk for them is way to high. Without the subsidies these loans would never have been made.
The banks want push you to take on as much debt as you can make payments on. Thats different from giving loans to people who have no chance on paying it back, which is what those loans were. Which is why they were subsidized, because the banks didn't want to make the loans.
That's not to say that every fanny may loan is terrible, but end the end, many were.
#8 Mar 20, 2013
Habitat or a Condo Or a Mobile home
Just trying to help you find housing
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