Hello, looking for advice here. I'd like to buy my own house because I don't like the idea of throwing away money every month (not to mention all the other downsides of apartment living)....but I'm not sure that I'm ready yet. I'm 22, on a $2400 a month salaried job, still in college. Never rented/owned on my own because I was married, but my ex has good credit that I would share. No kids, no debts. Have good credit history with my credit card (had it since I was 18) and have paid off a $6,000 loan. I don't have bad credit, just maybe not a whole lot. I'm thinking of renting for a year or so to see how I do while building more credit. Is this a good idea, or should I take the plunge and look for houses?
2007-10-01 14:07:34 · 6 answers · asked by MamboMama 2 in Business & Finance ➔ Renting & Real Estate
I would say you probably aren't ready yet.
I would wait until I had been out of college for at least a year. Maybe when you finish college you are going to want to move somewhere else to work? Maybe your job will change and you will have more $?
You need to check your credit score and history and know it thoroughly before you start.
Your salary is a little light. $2400/month is just under $29,000 per year. A general rule of thumb is to pay between 2x and 3x your annual salary for a house. That would mean somewhere between $60,000 and $90,000 for you. Many areas that doesn't go very far.
It sounds like you have been very responsible with your money. Congratulations and keep that up!
Good luck!
2007-10-02 02:16:00 · answer #1 · answered by Rush is a band 7 · 0⤊ 0⤋
If you are confident you are looking in the right area, and it is something you can do, buy a house. You are right thinking you are just throwing money away renting. Right now, the home prices are low, and achieving a loan shouldn't be a problem with your criteria. Meet with a mortgage loan adviser at your bank, and find out what you will be approved for. Good Luck!
2007-10-01 14:17:32 · answer #2 · answered by MontagueMom 3 · 0⤊ 0⤋
Are you kidding?! I purchased my first apartment a yr and a part in the past while I had slightly grew to become 21. Dont believe approximately age. If you've got well monetary status, and it appears such as you do, purchase a apartment and permit it be just right for you. If you have been to attend, by the point you progress out of mum and dad's, your house might have made you $10,000. Besides, do you fairly wnat to are living together with your moms and dads till youre 25? Your credit score ranking is superb for anybody your age and you don't have any charges. What makes you believe you cant manage to pay for a apartment? You'll frequently be accredited for extra than simply $two hundred,000 with that credit score ranking. Just dont purchase a condominium, they dont have fine resale importance. Tomorow morning, start interviewing a minimum of 3 truly property dealers. Choose the person who you believe will absolutely appear out on your quality pursuits, no longer simply their fee investigate. You'll understand which one to decide on by way of the form of questions they ask. An well agent will ask individual questions approximately your monetary trouble and so much importantly, your targets. They must care for you to the fullest, feed you knowlege and supply you steering and recommendation to higher make a choice for your self, NOT to make choices for you. Once you discover a truly property agent, they must be in a position to support you with the relaxation... creditors, appraisers, inspectors, and so on. and to not point out- a apartment. haha. I'll be comfortable to reply any questions for you aswell :) Good Luck!
2016-09-05 14:13:30 · answer #3 · answered by magoun 4 · 0⤊ 0⤋
As you sound like a responsible adult, I would say go for it You have the income, you have the right idea about not throwing money away to pay someone else's mortgage.
And at your age, you can be all done paying for your house by the time you're 45. Possibly younger.
2007-10-01 15:29:31 · answer #4 · answered by TygerLily 4 · 0⤊ 0⤋
Here are many first time home buyers programs available. You may start by calling the city Housing Office in your city or the county housing officemortgage brokers or institutions that are authorize to administer the program. These agencies are normally listed on a pamphlet.
2007-10-01 14:51:35 · answer #5 · answered by Sandy R 1 · 0⤊ 0⤋
"The sellers are still looking at the price their neighbor got two years ago, and the buyers are looking for the mythical 30 percent price cut and they're both wrong," he said. "It'll take some time for the stalemate to end.
2007-10-02 07:24:44 · answer #6 · answered by Leo F 4 · 0⤊ 0⤋