want to buy a house? but hardly have enough money left after bills and miscellanous expenses?

Question

i want to clean up my credit so i can buy a house. im tired of renting. but after bills and stuff, i dont have a lot of money left. right now, im renting a house with my girlfriend. i mean rent is 825 a month. then im paying utitlies. i just wish i had a house. but it seems like there is no way to accomplish this goal

Answer 1

You need to grab a pad of paper, all your bills and figure out where the money is going. Cut back everywhere you can. Lose the expanded cable. Stop your magazine subscriptions. Buy cheaper groceries. Ride your bike to work. Delete emails from your favorite shopping places. Don't call for pizza, open a box of macaroni and cheese.

Little things add up, every dollar counts. Find the leaks and plug them up. Know your weaknesses and avoid them. We all have them. Decide what is important, going out and spending $50 for dinner and drinks or a house. A new gismo or a house. That cool shirt or a house. New fishing lures or a house. Put up signs around your home, leave a note in your wallet, to remind you that we are saving for a house.

Do whatever it takes to get the spending reined in and the savings to increase.

Answer 2

Well, there's so many different factors that are involved with your question that can vary the answer. Similar to what the other people have said, recognizing your income "sinks" would be a great start. Cut out literally 100% of all unnecessary purchases. One way to think about it is... "Will I still be alive if I cut this?" So, I'm not sure where you're located, but $850 or so is like a 1-2 bedroom place, I say you get a studio or even move back with your parnets (if possible).. you'll live. Also, cut out everything that's not necessary from your food... you'd be surprised on how much poeple spend on money. Of course, make sure all your debt is paid off, esp. the high interest rates.

Also, you can sorta choose what you want your monthly payments to be for your future house... that's all dependent on your downpayment. The greater the down, the less the mo. payment. There's also different payment options you can do to save $ over the long term portion of your loan, but that's besides the point.

Anyways, read "Automatic Millionare" by David Bach, he will give you a really good idea on how to purchase a house. His main point is... ie, set up a direct deposit into an account you do NOT touch and cut all possible costs. I can rant forever on this topic, but that should give you a good idea.

Answer 3

Think about it this way...You may not have much left over but that $825 will go toward a house payment (I don't know where you live but that would be an average house payment where I'm from). Most importantly, you need to start trying to save. Clip coupons from the paper (I know it sounds stupid but I've saved $20 on my grocery bill before), collect your change (it really adds up), don't eat out as much (its cheaper to cook at home), take what little money you have left over at the end of each month & put it in a savings account. Any little thing can really add up when it comes to savings. Also, pay off any credit cards you have- creditors really look at those things. Hope this helps some! Good luck! Having a house of your own is one of the greatest things!

Answer 4

If you are currently struggling with $825 rent payments, do not consider purchasing a house. You will be paying considerably more than that in monthly mortgage payments, insurance, property taxes, plus utilities.

You either need to increase your income substantially, lower your other spending and/or eliminate bills you are currently paying.

Answer 5

the above answers are good . lets explore a few other things . give what u said u would be foreclosed on with in 2 yrs off buying a house. why? credit not good equals subprime variable (up only) rates. payment would increase far beyond ability to pay.
u need to visit library - read understand and ACT on
'48 days to work u love'
'what colour is ur parachute'
'financial peace revisited' and apply the info,
increase ur ability to earn more and reduce ur expenses.
get 'house buying for dummies' understand.
visit daveramsey.com to learn what bankers pray you never ever leran or worse - apply to ur life. how to own ur money not be owned by it. don't buy until it can be a blessing not a curse.
u buy it or she buy it not both unless married. that is a big can of worms.

Answer 6

You need to eliminate unnecessary items from your bills and stuff category of your budget. Do you have cable? Do you have internet service? Do you have cell phones? The main question is how badly do you really want to buy a house?

Answer 7

Check out the houses on http://www.biddingshark.com