Home buying decisions

[mvbighead]

OP, if your dad has offered to help with the down payment, it would be in good interest to take him up on it. Just do right by him and pay him back as soon as you can.

Personally, it sounds like your head is on straight, and buying a house is something that you are serious and completely reasonable about. It may not hurt for you to consider house even further below your price point that have items that need attention. (That is, if you're comfortable learning how to fix things yourself). You can save yourself a lot of money, and possibly build the value of the house for when you get ready to sell in the distant future.

A house can be a very good investment if you take the time to make it one, and make a good decision in purchasing it. IE - Don't buy a house in a flood zone, or in a run down part of the neighborhood. Find a house in a good neighborhood that needs work that you can manage.

But follow the advice of others here and avoid PMI at all costs. You want your loan to be right from day one. If it means owing your dad a few thousand for a short while, do it. He offered to help, and I am sure he'd be proud to help you do it (it's why he offered I would be willing to bet).

 

[roguerower]

Maybe you wrote it down somewhere and I missed it, but why do you "feel" like you should be in a house vs. renting?

I'm 24 and will probably be renting for another 10 years until I stop moving for work. I've considered picking up a house in the town where I went to school and turning it into a rental but haven't aggresivelly looked into that option. Nothing wrong with renting unless you know that you're going to be in one area for a extended period of time (6+ years in my book).

 

[piasabird]

I would say save up at least $10,000. Also keep in mind you will also have to pay insurance and taxes around $200.00 a month or so in escrow usually. They add this to your monthly payments making it increase. It is a good idea to include this in the monthly payment. If you get hail damage, normally the insurance company will pay most of the cost for a new roof. Closing costs on a $100,000 house may be as much as $5,000.00. That means the day you sign for the house, you give them a big fat check you will never see again!

You need to keep money on hand for repairs. Any time something breaks like a window, Air conditioner, Heater, Refrigerator, Stove, water heater you get to pay to fix it.

If you want to buy a house check out the neighbors first. You will be stuck with them for a long time. Some neighborhoods are fanatical about lawn care. They expect you to mow your lawn all the time. Some areas in the southwest may not let you water grass much. Maybe they prefer a rock garden or cactus patch. Home owners expect you to mow your grass and upkeep your yard! You can always hire someone to do it if you dont mind the expense too much.

You could get a room mate to keep you company. If you want to play loud music you may want a house that is more out and away from the neighbors or is on a really big lot.

 

[yh125d]

Maybe you wrote it down somewhere and I missed it, but why do you "feel" like you should be in a house vs. renting?

I'm 24 and will probably be renting for another 10 years until I stop moving for work. I've considered picking up a house in the town where I went to school and turning it into a rental but haven't aggresivelly looked into that option. Nothing wrong with renting unless you know that you're going to be in one area for a extended period of time (6+ years in my book).

I strongly dislike apartment living. I like to listen to music while I work around the house, and I can't do that in an apartment. Growing up I was great at getting things done and cleaning and junk around the house because I could just crank my dads stereo and get it done. It was a great motivator for me.

I can't do that in an apartment. If I turn anything up loud enough to hear while I'm cleaning the bathroom or doing the dishes, its way too loud and I'll get noise complaints pretty quickly. I've had a lot less motivation the last 6 months to do much of anything

I have great neighbors. They keep to themselves and are quiet. My apartment is great, cheap, and in one of the best neighborhoods in town. My complex is great, landlords are good. Basically I have the "perfect" apartment situation, and I don't like it. I'm not cut out for apartment living. I grew up in the country with no houses.

The houses I grew up in were not great. In fact they weren't much good at all. I don't have a family, I don't plan on having one anytime soon, but I want a house to my own. Whenever I go to the houses of friends, I'm constantly wishing I had a nice house too.

I want to host. I want to have parties and BBQs and holidays at my house. I can't do any of that in an apartment. I want to spread out. I want to have a man-cave, I want a big kitchen to cook in.

I want to stop paying $400 ($480 starting in april) on an apartment that is perfectly nice, but not for me.


Basically, I hate living in an apartment, I can afford to buy, want to buy, it's a great time to buy, so I'm gonna buy. I'm trying to decide how long I should put up with apartments before I do so.



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And I should clear something up - I don't just have a job that pays well. I have a career that I'm 3+ years into and loving every second. That's not going away

 

[Exterous]

2. You're going to need a decent amount of money to set yourself up with everything that you need when you move in. Lawn equipment, furniture, appliances, etc...

Keep in mind that it is likely more than just appliances - its basic things too that most home owners already have. Want to paint a room? Seems simple and cheap right? Well, you need a drop cloth or three, paint brushes/rollers, roller arms, tape, paint, paint pans etc. Does it snow there? You might need a snow shovel or snow blower and probably salt and so forth and so on

As a recent first time homeowner take this example below and repeat about 100 times:

Did that one thing break? Oh its a simple fix - all you need is this tool and these parts - which you don't have

Wait another year, save up more money. You're only 21, there's nothing wrong with renting right now. New homeowners ALWAYS underestimate the expenses that come with home ownership.

Yep - you never quite realize all the one time (or once in a very long time) purchases you need to make when you first buy a house.

Not that I would go back to appartment/townhouses if I could help it (I lvoe my basement) but just something to keep in mind

 

[yh125d]

Keep in mind that it is likely more than just appliances - its basic things too that most home owners already have. Want to paint a room? Seems simple and cheap right? Well, you need a drop cloth or three, paint brushes/rollers, roller arms, tape, paint, paint pans etc. Does it snow there? You might need a snow shovel or snow blower and probably salt and so forth and so on

As a recent first time homeowner take this example below and repeat about 100 times:

Did that one thing break? Oh its a simple fix - all you need is this tool and these parts - which you don't have



Yep - you never quite realize all the one time (or once in a very long time) purchases you need to make when you first buy a house.

Not that I would go back to appartment/townhouses if I could help it (I lvoe my basement) but just something to keep in mind

Actually I should be pretty set for most of that stuff. Between my dad and my grandpa I have just about any tool I'd ever need at my disposal. But yeah, I'd definitely need some stuff, particularly lawn mower/weedeater at a minimum

For snow all I'd need here is a good shovel for $20

 

[OILFIELDTRASH]

Quit trying to scare the guy. Yes being a homeowner is more expensive but it's not that bad.

Sounds like you have a steady job and you can afford it so what's the problem? Pmi comes off after 20% of the loan is paid for. With the new FHA rules it also cannot come off before 5 years of making payments. So just have the 20% paid around the 5 year mark and you're good. I don't know what the guy was talking about having to have your house reappraised to remove pmi? That's bologna. I know because I had pmi on my first house and it was dropped after the 20% was paid.
F@ck apartment living. I've had a house since I was 22 years old and I'm on my second one at 30.
Buy the house already. You'll probably live there about 5 years and then you'll move on to the next one.

 

[roguerower]

I strongly dislike apartment living. I like to listen to music while I work around the house, and I can't do that in an apartment. Growing up I was great at getting things done and cleaning and junk around the house because I could just crank my dads stereo and get it done. It was a great motivator for me.

I can't do that in an apartment. If I turn anything up loud enough to hear while I'm cleaning the bathroom or doing the dishes, its way too loud and I'll get noise complaints pretty quickly. I've had a lot less motivation the last 6 months to do much of anything

I have great neighbors. They keep to themselves and are quiet. My apartment is great, cheap, and in one of the best neighborhoods in town. My complex is great, landlords are good. Basically I have the "perfect" apartment situation, and I don't like it. I'm not cut out for apartment living. I grew up in the country with no houses.

The houses I grew up in were not great. In fact they weren't much good at all. I don't have a family, I don't plan on having one anytime soon, but I want a house to my own. Whenever I go to the houses of friends, I'm constantly wishing I had a nice house too.

I want to host. I want to have parties and BBQs and holidays at my house. I can't do any of that in an apartment. I want to spread out. I want to have a man-cave, I want a big kitchen to cook in.

I want to stop paying $400 ($480 starting in april) on an apartment that is perfectly nice, but not for me.

Basically, I hate living in an apartment, I can afford to buy, want to buy, it's a great time to buy, so I'm gonna buy. I'm trying to decide how long I should put up with apartments before I do so.

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And I should clear something up - I don't just have a job that pays well. I have a career that I'm 3+ years into and loving every second. That's not going away

Gotcha. That's cool. I definitely know what you're talking about as far as music goes. I turned on some when I was cooking at my old apartment and about 45min later got a visit from the cops. Fucking douche didn't even come down and ask politely first.

Unfortunately, it just doesn't make sense for me to buy a place and then sell it a year later.

Rock out dude. You go get yoself yo house.