First time home buyer.....any advice?

Question

My husband and I were approved for a home loan but we haven't found a house yet. What should we get...a small house and pay it off in 10 yrs and then buy our dream house....or get our dream house now???



What other advice can you give me? We're in our early 20's and know nothing!!

I don't know why this ? showed up in diet and fitness!

Anyways, I'm in school right now so we will be making more money in about 1 year. Should I base my home buying on that income or on our present income?

Answer 1

I say make a checklist pf everything that you want in your house, such as granite countertops in your kitchen, big backyard, walkin closets, jaquzzi tub, built-ins, and etc. What is important to you and your husband, what can't you live without?

After you make a list, figure out your budget, what can you afford mortgage-wise each month? Don't forget to take into consideration, Property Taxes, Home Owners Insurance, and all other bills that come with buying a house.

Search the internet, see what is out there in the neighborhoods you like.

Hire a real estate agent to help show you around and tell you which neighborhoods are good/bad. Show them your list of what's important, and they should be able to tell you what price range you are looking at. Make sure that fits within your budget.

Don't go get that Dream House right away. How many people do you know that got their dream house right away? Most people don't unless they are super wealthy. Just make sure you are living within your means and you stay with your budget. Don't be a slave to your mortgage, make sure you can still afford some nice things when you are all done buying your house. You want to be able to landscape your yard, add a few touches to your house, add furniture...all that takes money, so be aware of everything when you make your final decisions.

Base your decision on your current income, cuz that is what the mortgage broker will look at. They don't care about your "earning potential", they want to be sure you can afford your payments NOW. They will also take into consideration how much you owe on your school loans.... Just be careful, don't go into unneccessary debt.

Happy House Hunting! It's a fun and stressful time in your lives. Make sure you compromise and work together. Good luck!

Answer 2

First of all, your 1st house is never your dream house, ESP if you are in your 20's...you just cant afford as much and there are always things you want to do that you cant.
First of all, get pre-approved and see what you can afford- dont go beyond that b/c all the extra stuff that you want to do in your house will def. add up. Esp. when you make your 1st few mortgage payments- you always think it sounds easy like "oh, $2000 a month for mortgage, thats a piece of cake"- but after paying it a few times....it can be a hassle. That said, buying a house is a HUGE investment, even though you are in debt- look @ it as good debt. Depending on what area you are from- Id say look around for something you can afford and watch interest rates- they are very high right now and that means ur mortgage is going to be high- which will suck if you get a 30 or 40 year mortgage- its not a great time to buy right now....I doubt you will pay off your home in 10 years- but if you do, awesome! You can rent it out and buy something else- or sell it, and with some other money you have saved up- buy your dream home, something your kids can grow up in.
Think about the area you want to live in- do research on it- see what house prices are in that area- dont ask real estate agents b/c their primary job is to SELL to you- they want ur money- (which isnt a bad thing, but you may rush into a purchase)-
Hope this helps!!

Answer 3

The answer to this question all depends on your current income and your prospects for future income! Your combined incomes will determine how large a loan you can qualify for which will tell you which home you can get. Make sure that whichever home you decide on will fit within your budget. Take into account the annual property tax you will have to pay.(people always forget about that). Don't buy such an expensive home that you're strapped with the house payments and have to struggle. Start with a smaller home that won't bury you so that you can get used to the payments. This will allow you to do a lot of other things, like travel, while your young. If you, later, find that you can afford a larger house, you can always just sell and upgrade.
Good Luck!

Answer 4

I bought my first house 2 years ago, at the age of 23. My (then, fiance) husband and I chose a small home that is just big enough for the both of us. I call it the perfect first home. In a few years, after I'm done with school and we're ready to start a family, we'll sell our small home for one more suitable to the new lifestyle we'll live.

I suggest starting off with a small house if you don't already have children. Small houses = loud noise. If you have a small house, your kids won't be able to play and have fun without disturbing the peace in your home. The same is true for pets, dogs especially.

The type of house you need depends on the current style of life you have, and also the style of life you plan to have in the next several years. Make sure you factor in your financial situation as well. Small houses generally cost less. Not only will the mortgage note be smaller, but your utilities will be smaller, too.

THE PRICE OF YOUR HOME SHOULD REFLECT YOUR CURRENT INCOME. Use your current financial situation to figure out how much you can afford. You can't base your mortage note on what you think you think you can afford after college.

Answer 5

Listen to some financial analysts on financing homes and debt. Some will say purchase a smaller home, pay off any debt (credit cards, student loans, vehicles) first, then pay off your home as quickly as you can. Once you pay off your home, the property value will more than likely appreciate and you can sell higher.

Some advice, look for homes in areas of growth, they will have a higher appreciated value in a few years. If you plan on having children, look for homes near an elementary school you and your husband like. Hire a GREAT inspector before signing any papers. Be sure the roof, foundation and ceilings don't have cracks or rot and that the pipes and electrical wiring are good. Don't be intimidated or afraid to check out EVERY minute detail of a home. Any good realtor will give you ample time to study the house. You want to make sure there aren't details or problems that will cost you big after purchasing.

Good luck to you and your husband. I can't wait until my husband and I can purchase a home.

Answer 6

Get a property inspection on any home you want to buy. It'll cost a few hundred dollars out of your pocket but can potentially save you thousands.

When we were shopping for our first home we chose a 100 year old farm house, got in inspected and realized there was a TON of work we couldn't afford to do. Because a satisfactory inspection was a condition of our sales contract we were walk away from the deal. The house we bought later was also inspected and we got a detailed list of the house's condition, even including minor things like "replace the wax ring on the toilet."

A lot of first-time home buyers skip the inspection and wind up in a house that's falling down around them.

Good luck.

Answer 7

Really depends on what you want. Do you want what the Jones have....a big beautiful home with no furniture and a mortgage that does not allow for vacations and such. Or a smaller home in your budget now that will allow you to live your life and enjoy it.
It depends on your income..base it on your income NOW..not what it will be in 10 years. You can always move up as your income does. I've seen too many people house poor and unhappy. Hope this helped

Answer 8

Hi,

When we bought our first home, we bought a "starter" home that needed repairs. It was priced very low so it helped us build equity. After about 4 years, we were able to take the money we made on that house to buy a nicer home. Right now, it's a
"buyer's market" so can probably find a good deal on a starter home.

Good luck with whatever you decide.

Answer 9

Don't buy your dream house first, get a small starter home and learn all you can about home maintenance and repair. Figure out before you buy your dream house what it is you want in a dream home, learn to take care of it yourself, learn to paint and tile and wallpaper, fix plumbing, change light fixtures, etc. You'll be glad you did.

Answer 10

You know If I were you I would Buy My Dream House first !!!!!! cause buying a house that you dont want will not make you happy but buying the house that you want will surely make you happy!