With a not so great home life, and not enough money to get an apartment on his own.. my 18 yr old brother told me yesterday hes 'going to buy a house' in about 2 or 3 months.
Now hes got i THINK one credit card, no money, and chances of him actually getting a loan are slim to none, but that doesnt mean he wont TRY, and with todays slumming home economy, i dont want him getting tricked into buying a sh!tty home with 50% interest on his loan.
Please, make it mean & leave nothing out, let me know what it costs to purchase a house (inspection, closing costs etc etc) i want to try and deter him away from such a ridiculous idea (he cant even afford a car). Hes the kind of person who can def. be taken advantage of, and i dont want some real estate scum telling him he can afford a home no problem!
Thanks in advance.
2007-10-27 06:54:44 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
He won't get one. Subprime loans are getting hard to get and an owner would be crazy to carry the loan with him having nothing in the deal. Since he is probably single and low income and no credit he has nothing to offer.
If I owned a small home and he were to offer twice what it was worth he couldn't get a mortgage since they won't loan more than the appraised amount. He would need to spend hundreds on the appraisal to be told it wasn't worth that much.
He would first need earnest money of about $5K to get someone to take a house off the market while he tried to get financing. Then he would need 20% down or to pay PMI. Also at closing he would have cost of several months property taxes and a year and some months homeowner's insurance.
So before he could move in he would need 5K or more plus the down payment.
After moving in he would want to turn on utilities and water, phone, gas and electric might all have deposits he should budget another thousand for that.
Does he have appliances, drapes, shower curtain, waste baskets, garbage cans, garden hose, shovel, rake or furniture? Does he think his parents will give him the furnture they have in his room at home? Will he want a TV or computer, internet connection, cable TV or other things the parents are paying for now? Has he got a clue what it cost to pay the basic bills for a house like heat, or air conditioning?
My basic bills are about $400 a month and I heat with a wood stove. He should count on $600 just for keeping the house warm and the house functioning like a house.
Then he will need an emergency fund, houses get leaking roofs, bad hot water tanks, broken windows, trees falling. Most of this stuff needs fixed right away so you can't wait then save.
He will be at the hardware store every week the first year suddenly realizing he needs a ladder to clean the gutters or a step stool to change a light bulb or wheel barrel to put the fall leaves in or lawn mower in the spring or garden hose to wash down the sidewalks.
Without a car these hardware store trips will be hard to do to imagine bringing a lawnmower home on the bus.
2007-10-27 06:57:44 · answer #1 · answered by shipwreck 7 · 1⤊ 0⤋
he cant, if he doesnt have enough to afford an apartment, he definitely wont be able to buy a home. you have to have either really good credit or several thousand dollars saved up just for a down payment and to have a low monthly payment. now at 18 he is just starting to build credit history and one credit card isn't enough. to have decent credit u have to have at least an apartment lease that u completed and did not break. go on to any online website, it will tell u the exact same thing.
2007-10-27 14:07:59 · answer #2 · answered by Anna 6 · 0⤊ 0⤋
I never thought it possible....single mom with literally 5.00 in my savings account. barely enough money to pay my rent.
The only thing I had going for me was I didn't have a lot of debt. I hadn't gone crazy with credit cards. and what little debt I had I made sure to pay on time.
zero down first time homebuyers and fanny mae approved allowed me to buy a house. This just happened this last week. I haven't even started moving yet.
Everyone thinks he/she can't afford it, but you can. You just have to learn that number 1 - you can't afford that mansion on the hill, and learn to live within your means. I was only approved for $130,000, but made it work. if I take care of it it will grow in value and I can resell in about 5 years and do it all again and continue to move up - doubt I will ever make it to that mansion, but who cares !!!!!
Be supportive of you brother - why don't the two of buy a place together - wouldn't have to be forever, just a couple of years !!
Best of luck you to both
Shiela
2007-10-27 14:19:56 · answer #3 · answered by Anonymous · 1⤊ 0⤋
He may not even be old enough to buy a home. Some states require that a person be 21 or over to enter into a real estate contract.
2007-10-27 22:37:27 · answer #4 · answered by LILL 7 · 0⤊ 0⤋
simple answer...same as snowball in the nether regions
No credit, no job history and no savings. no one is going to give him a loan for a house.
2007-10-27 14:25:37 · answer #5 · answered by Bob D 6 · 0⤊ 0⤋
What's his income? Unless he's inherited a few hundred thousand dollars, he won't be able to buy a home.
2007-10-27 13:58:41 · answer #6 · answered by npk 7 · 1⤊ 0⤋