How did you buy your first home?

Question

My dream is to buy a house, but here in Southern California houses are costing at least starting pricing at 500K.

Answer 1

We bought a house in So. Calif in 1997, when prices were down. We paid $240k for a 3 bdrm, 2 1/2 bath, 1750 sq ft. I borrowed from my 401k for the down payment. In 2005 we sold it for $695k. Never been so happy in my life. We retired and moved to Washington, where prices were a little more nomal. The only place that I know of that still has decent prices is Oklahoma City. Also, Spokane, Washington isn't too bad either.........just high property taxes, but no state tax. Hope you find your dream home!!!

Answer 2

I bought with my fiance just prior to getting married. Living in a metro area, we bought a much more modest home than many of our friends and are having fun doing home improvement projects, painting etc. A lot of my friends seem house-poor because they bought their 'dream home' early. Unless you have a very high income, I would recommend buying once you are married, because the increased buying power of two is a lot. Consider a nice condo or small home. For now you can make mutual fund investments that can grow a future down payment. Since the housing market is flat right now you don't want to get 'stuck' somewhere because you might have little or nothing down and can't sell.

Answer 3

This is SO not going to help. My first home was bought with a minimum down payment ($475) and monthly payments of under $400 ... loan payment only, taxes, insurance, etc raised it to $800. Of course this was in 1966, the house cost $18,900.

Lease with option to buy is one way to get into a house. Budget and save $$ for a down payment.

Good Luck

Answer 4

Hi - Is it just your income alone to qualify you? What are you confortable in paying in a mortgage payment? There are now 40 yr and 50 yr terms to lower a monthly payment, since most people do not live in their home 30,40, 50 years. There are also interest only programs that lower your payment considerable. BUT remember you are paying on interest only and nothing on principle. Not highly recommended, but some are going that way (especially in the Calif. market) to afford a home.

For instance:
500,000 at a 6.5 rate Fixed - 30 yr is 3160.34 P & I only (no taxes or homeowners insurance.

6.50 40 yr is 2927.28

6.50 50 yr is 2818.58

Where as on a interest only at 6.5 percent your payment based over a 30 year, but the interest is, interest only for the FIRST 15 years.

2708.33 month

Your payment is $2,708.33 with an interest rate of 6.500%.

Your payment of $2,708.33 is fixed for 15 years while your mortgage payments are interest only. After 15 years of interest only payments, your monthly payment will increase to $4,355.54. This will pay off the loan balance in full after a total of 30 years (this does not include any prepayments).


Interest Only Mortgage Summary
Payments 180 monthly payments of $2,708.33
180 monthly payments of $4,355.54
Loan amount $500,000.00
Interest rate 6.500%
Interest only term 15 years
Total Term
(Including interest only period) 30 years
Total payments $1,267,141.06
Total interest paid $771,495.71

This is just an idea, for you to do some research and see what best fits your situation. Good luck to you, and Happy Holidays

Answer 5

Take care of your credit, the highest the score the lower your payment be.
you could get your house with 0 down, and because of the hard market, you could even get closing cost paid by the seller.
For more information about getting in a new home you could contact me at any time at 707-206-2307

J.Barreto
Realtor
Access Realty & Loans
Santa Rosa Ca.

Answer 6

You might want to consider relocating. I bought a 4 bedroom, 2 bath, 2,000 sq ft rambler, with 2 car garage and small yard and back deck for 135,000 back in 2002 in a small town in Washington state. You don't have to move out of California, just a less populated portion of it. Do some real estate research. Knowledge is the key.

Answer 7

Look into lease options. There are so many homes that are not selling right now that people are trying to be creative with financing. You could propose to lease for a couple of years and then buy it at a pre-determined price that benefits both parties.
Look for homes that have been on the market for months.

Answer 8

It relies upon on what kind the asbestos is in. If that's basically pressed asbestos tiles, like the siding on my residing house, it poses no threat. If that's fibrous insulation, then there's a severe ability for severe health complications. employ a house inspector, and get his opinion. no matter if that is risky, it may be fee-prohibitive to fix it. good success!

Answer 9

Built up my credit, saved money for a big down payment, and researched, researched, researched