Just curious to know from those who have experience in homebuying. What is a good percentage to have for a down payment on a house? I know there are options out there to pay lower down payments for first time home buyers but just curious as to what is a good amount to have in most situations?
As a stay at home mom of four kids, I've been selling on eBay for about ten years. I paid off my student loans in 18 months! It has been a flexible, lucrative option. Here are details of how you too can get started: https://sixonabudget.com/i-pai...-a-stay-at-home-mom/
Looking to invest in your first home and you just don't know where to start? The Penny Hoarder lays out exactly what you need to expect when buying your first home. Is this helpful? Feel free to share your first home buying experience with others in this thread! Learn more about buying your first home here: https://bit.ly/2H0mkIO
I am would like to buy a home in the near future it has just set in on me the importance and value of good credit and credit scores and good spending habits with very hard earned money any good suggestions are welcomed
My husband and I have been obsessed with tiny home living since we heard of it years ago. We always wanted to try it out, but then we had a kid and the thought of living in 200sq feet with a toddler sounds horrendous! But there are still "tiny" homes out there that are just big tiny homes! I'm talking under 1000sq ft for a family. It's not something people in the home-buying process usually look for, but it definitely intrigues us! Would you move to a 960 sq foot house?
I've been thinking about buying a home in the near future. I know there are tons of expenses that tend to appear while you are in the process of buying a home AND once you own it. What are some things I should be aware of?
Thanks! estatesales.net can be really helpful for this. You can buy in as large or small a quantity that way. Additionally, writing to consignment stores in your area and asking if they would be interested in selling any items in bulk that haven't sold and the original donors/customers have surrendered, can be a wonderful way! Obviously, garage sales too.
for a new comer like me...how should i approach the shipping aspect of e-bay...more specifically, do you own a scale to determine postage? trying to map my mind around the whole process. thanks everyone!
@Carlos Ortega I personally do a lot more estimating. I do however have a scale which I use sometimes. I generally charge FREE shipping so I just try to estimate a number into the price. One thing you can also do is if you are selling a similar item that other people have listed, if you go to their item and click on the "sell one like this" link, it will copy the weight and dimensions that person has set. This is not always accurate but you can get a ballpark number. For the most accuracy I...
That is awesome @Kendra Sanders , saving for a house is something I plan to start doing in the near future. What are some things you are implementing to save money? Are you currently earning money from a job, side hustle or business?
Thank you, both! @Alexis Grant , when you purchased your houses and had home inspections, how did that work? Did the bank set something up and the inspector provided you with a report? Or did you hire an inspector yourself and do a walk through with them?
Melissa, We are currently in the process of purchasing our second home and have hired an inspector ourself. We had the option of hiring separate ones that do the general inspection and then looking for ones that check the sewage system. I cost analyzed each and we saved a little bit of money by going with the inspector that does it all. We chose to have a general inspection, sewage, radon, water, of which the total cost is $1,240. Another cost to purchasing a home! We will do the walk...
@Melissa Honestly, it's been a while so the details are fuzzy. But I believe the realtor knew someone who could do the inspection (not the bank) and set that up for us. We weren't on-site for walk-through, but if it's an older house that might be a good idea. I remember being impressed my first time going through this how comprehensive / long the report was!
I just bought a house in the past year. My realtor gave me a list of inspection companies in my area, along with what each one inspected. He said that he was not legally allowed to recommend one. I went with the company who had the longest list of criteria inspected for (radon, mold, water damage, plumbing, electrical, structural, slope of yard, boundary line). I didn't want anything missed. IIRC, the inspection cost about $1300 here in Ohio, but it was the best money ever spent. There WERE...
@FreebiePharm Congratulations on your new home! You bring up some great points. I have no idea the fee would be that high. I'm sending good vibes to you, so everything will be smooth during the process to finalize the documents and get the keys to the house! Do you have any projects you would like to do on the house/ yard once you move in?
@AnnieB Wow, I love this! Thank you for the information, this is so helpful! Just out of curiosity, when you negotiated the repairs, did the sellers actually fix any of the issues themselves or did they calculate the cost to fix and enter that amount as a seller concession?
@Melissa - we had seller credits AND seller repairs. The seller had a faulty Federal Pacific electrical box (they are known to catch fire) that we demanded that they replace. (It was the main electric box. It involved the seller calling the electric company and having them pull the meter so the electrician could change the panel. I knew this since my father was an electrical contractor.) There was mold in the attic that we had them hire a remediation company for and show written proof it was...
I am closing on a home in Idaho on Tuesday so all of this is fresh in my mind! Some expenses could be: - Home Inspection: This cost us $250 - Closing Costs: We negotiated the sellers to pay this but they usually run 3-5% of the purchase price. If you look at the CD (Closing Discloser) it will break down all of the costs. From making copies of documents to paying title fees, lender fees, and appraisal, everything is charged. With the loan we used (conventional), we were able to have the...
It depends on the type of loan you will be using. Both FHA and Conventional (on good credit) will loan 97% of purchase price. Sometimes you can get a second loan to pay 2.5% of the purchase price which leaves you with .5% of purchase price to cough up for a down payment. Earnest money can go toward a down payment as well. If you pay anything less than 20% of the purchase price toward a down payment, you will have to pay a monthly mortgage insurance (MI). This can drop once you have 20%...
There are always two sides to a coin. FHA loans have served the first time Buyers well for years. these loans offer low down payment as the main lure, however they are not cheap and where they start at 97% loan, once one adds up the total costs of getting one it usually ends up as over 5% of the total price with only 3% going towards the actual equity. A Conventional loan appears at the outset to not be as appealing because it usually requires a minimum of 5% down plus costs. However I...
@Roy thanks for your helpful input! You are right about the downside of FHA, I went through the numbers with a banker and I was surprised by how much I would actually be paying for the home when it was paid off!
Thanks this was good info. I've finally found some one I can trust and buying my home from its small but i like it and allot cheaper than my other place. I wont be in my 80's and still paying off a home but i'll be in my 60's. I'm going to put some extra money down on the home when i get my taxes back.
Definitely something I would like to know more about as well. I have just started putting my info out to try and get more information on getting a loan for a house. What are some fees that one might not know about or may be a little hidden when it comes to getting a loan on a house?
A few pieces I learned from my own experience buying homes -- once in Virginia, another a few years later in Florida... You see realtor fees when you SELL a house, but not when you buy. When you sell, you have to pay a percentage to your own realtor and to the realtor of the buyer. I bring this up even though you're looking to BUY because my first time around, I didn't realize what a big hit this would be when we sold a few years later. Because this piece didn't affect us when we purchased...
20% is ideal because you avoid having to pay a low down payment penalty. That being said, a 10% or 15% downpayment can get you into the game and you can eliminate the penalty as you build equity in the home -- when you get to the 20% mark.
I've had a lot of experience in buying homes and your question, Moore Income, depends on so many other circumstances. It's ideal to put as much down as possible sometimes , ie if this might be your last home, or you get a better long term interest rate, or if that is the only way to qualify for a mortgage. However, if you tend to move a lot, or you are a young couple with limited cash reserves, or you do some juggling often with available investment funds, I always believe the least amount...
If you are a first time homebuyer, you can get away with as little as 3% down payment if you have a good credit score. Your payments will be higher, but if you can afford it that might be something to consider! Higher down payment is always more desirable, though.
Thank you for that information. It gives me more things to think about when I get my new house soon. I've already been approved through a lender for a loan, so now I have to make sure I have enough money saved up and find a house, hopefully soon. I also have a realtor I'm working with. Any tips before I buy let me know.
The government has a program called ABLE Accounts for people on Social Security Disability. Basically, if you meet certain criteria, you can put your money in an ABLE account and it won't be counted against your resource limit. The downside is if you die with any money in the account, the State gets the money. It also has limits on what you can spend it on. But it's better than nothing and may actually help some of us get off the dole.
I think its worth nothing about this new Startup company that will match a percentage of your savings DESIGNATED for home purchaes only. Check them out. But take note, you might have to work with their lender. https://digs.co/features/
We are currently saving up for our next house. I am watching every penny and even took on a side job of watching/transporting kids to school a few days a week. It is not much but it goes towards our food expense, which aside from housing costs, is our largest expense.
That's great @Six on a Budget , and congratulations on your success. Thanks for pointing out the " ten years later ", because people must accept the fact that it takes time to build a Castle. What I have done to make money from home? Blogging with affiliate marketing is what fascinates me most. Along with publishing articles and eBooks. But must admit that SEO nearly got the better of me. Luckily there's nothing that research and persistence cannot remedy.
If your credit is bad, your biggest priority should be to get that up when it comes to buying a home. Most banks will be very cautious of who they lend to and bad credit is not a good sign to them. If you have good credit, when going to purchase a home, there may be pressure to purchase a home that is more than what you actually need. It is a good financial fitness practice to always live below your means. Banks are in the business of making money, so if they think they can get more money...
I have incorporated a "side hustle" mindset into my every day routine. If I am cleaning out my closet and ready to donate some clothes, I'll first take them to a consignment shop where I can get cash on the spot for them. If I a moving, I'll list my items on Facebook Marketplace before donating them or passing them along to a friend.
I had a 978sf house ... which included 2-Br/2-Ba, eat-in kitchen, living room, dining room, W/D, attached garage, attic, and a front and back porch. It was a lot more house than I really needed, but I bought it anyway because the price was right and the location was great. Right now, I live in a 480sq.ft. Studio Apartment, and its a little crowded, but still liveable, even luxurious at times. I could adjust to a 200sf Tiny House with little problem, but what I'd really like to have is a Tiny...
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