Author Topic: Ready to buy a house or at least I think I am  (Read 1021 times)

mamabear18

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Ready to buy a house or at least I think I am
« on: February 16, 2019, 04:07:57 PM »
First time home buyer.
Financially - would like to know how much do I need outside of a down payment?  I want to be financially responsible.

I want to buy a house that is between $300,000 to $350,000.
Any advice would be really be appreciated.  Happy to provide more info if needed. Thank you.

MilesTeg

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Re: Ready to buy a house or at least I think I am
« Reply #1 on: February 16, 2019, 04:13:40 PM »
First time home buyer.
Financially - would like to know how much do I need outside of a down payment?  I want to be financially responsible.

I want to buy a house that is between $300,000 to $350,000.
Any advice would be really be appreciated.  Happy to provide more info if needed. Thank you.

Would need a lot more information to provide any reasonable advice.

You could be buying a new construction house with no yard and 10,000 sqft of landscaping to do and not even window coverings, or a 150 year old house that needs a complete remodel, or a 5 year old house that's entire "living ready", or many other possibilities.

mamabear18

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Re: Ready to buy a house or at least I think I am
« Reply #2 on: February 16, 2019, 07:19:25 PM »
Meant to include that - sorry I missed it.
Planning to buy a new house that will need some landscaping.

seemsright

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Re: Ready to buy a house or at least I think I am
« Reply #3 on: February 16, 2019, 08:40:05 PM »
owning a house is stupid expensive! Do not buy anything unless you have a 'oh shit' fund. How much in that fund...as much as possible!

Things will go wrong, will break, need fixing, need something at the most inconvenient time.

A furnace one day and the next day it will be a massive wind storm and your roof will need to be replaced ASAP while you were hopping to get another year out of it. The washer will fail and cause your kitchen to rain, the stove will short out and just randomly be on during Thanksgiving. The door will need a new lock, the windows will fail...that one was fun..

I am so over owning a house. My suggestion is to rent a good place and let the landlord deal with this kind of thing. I cannot wait till DD graduates and the for sale sign is out front...I am flat out over it.

leavesofgrass

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Re: Ready to buy a house or at least I think I am
« Reply #4 on: February 17, 2019, 02:48:43 PM »
You need to include a lot more financial/life/house details for anyone to give you any sound advice.


Altons Bobs

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Re: Ready to buy a house or at least I think I am
« Reply #5 on: February 17, 2019, 03:03:02 PM »
You want to have some emergency fund ready for any repairs. Since you're buying a brand new house, you will have the new house warranty that you can use, so you won't need a lot of emergency fund yet. You will need to spend some money on stuff like yard equipment, if you're doing your own yard work, or fund available to have a gardener do it for you. And also household stuff like vacuum cleaner, towels, washer/dryer, refrigerator, etc.  If you're not sure, or if you're tight financially, list out everything you think you'd need to live, and see if you have the funds. If you're tight, you probably don't want to buy yet.

mamabear18

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Re: Ready to buy a house or at least I think I am
« Reply #6 on: February 17, 2019, 04:51:58 PM »
Thank you for commenting. Owning a house sounds scary.
What additional info do you need?
Letís just say the house will cost $350,000.
I would like to put down either 10 or 20%. I know about PMI- donít mind paying for that if it means having the cash for emergencies.
Iím married- single income- 2 kids.
Live frugally. Currently rent. 45 years old. Good job.
Based on this- how much do I need for closing costs or any other cost associated with buying a ho w? If itís a new house- how much do I need to have for a repairs- are there any other types of funds or accounts I should have or prepare for?

Linea_Norway

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Re: Ready to buy a house or at least I think I am
« Reply #7 on: February 18, 2019, 02:27:37 AM »
Aren't closing costs something you can ask the broker for or look up on the internet? There must be some number that is generally known to be the closing costs, like 10% of the sum.

I would very much advice you to not buy a house that you can bare afford. And even if you can buy it cash, be careful to buy more house than you absolutely need. We bought a big and expensive house 4,5 years ago and paid cash. The 2 years following the purchase, the stock market has been growing very hard, while my money was all in that house. The value of the house has not gone up as much as the stock market. In general you can count on house prices to follow inflation, after reducing the maintenance costs.

We bought a relatively new house, 5 years old. When we moved in, there were lots of cupboard either missing or being incomplete. We have bad to invest in new cupboards and cupboard doors in the same (expensive) style as the rest of the house. Plus extra drawers.
We have had 3 cases against the previous owner for flaws on the house that he had forgotten to tell us about. That caused a lot of stress. We have also had the paint the entire outside of the house and the entire (big) terrace around the whole house.  We repaired a leak in the roof, near the chimney. We installed an extra microwave/oven. All in all quite some investment in both cost, time and energy in the last 4,5 years. And that was for a relatively new house. In our last house we had to do a lot more, like roofing and drainage, and renovations of almost all rooms.

Indeed, a house is a lot of work. If you or your spouse are a bit handy, there is a lot you can do yourself and you can keep costs down. But if you need to hire people for repairs and renovations, it will soon become very expensive. I think the people on this forum who own rental properties, count with 1% of the value in maintenance costs per year. For you own house, you might make that a little higher.

MrThatsDifferent

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Re: Ready to buy a house or at least I think I am
« Reply #8 on: February 18, 2019, 02:39:38 AM »
Thereís a whole real estate section.

catccc

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Re: Ready to buy a house or at least I think I am
« Reply #9 on: February 19, 2019, 09:29:13 PM »
It doesnít sound like you are ready to buy.  ďGood jobĒ and ďlive frugallyĒ say nothing about what you can really afford.  If you canít put 20% down without raiding your emergency fund, you arenít ready.  If you think it sounds scary to own a home, you arenít ready.  If youíve done so little research that you need to ask a forum how much closing costs and R&M will be, you arenít ready.  Go save some more $$ and do some more research before you buy.

six-car-habit

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Re: Ready to buy a house or at least I think I am
« Reply #10 on: February 19, 2019, 11:57:41 PM »
  Figure on 3% to 4% of the purchase price for closing costs as a buyer, unless you have negotiated for the seller to "cover" your closing costs, or are using a Vets Admin. [VA] loan where some closing costs are not allowed to be the responsibility of the buyer. Unless otherwise stated in the purchase contract, usually legal fees are split 50/50 , and the seller pays for  "title insurance" for the buyer.  At least in this state.

AMandM

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Re: Ready to buy a house or at least I think I am
« Reply #11 on: February 20, 2019, 09:18:01 AM »
There's a rule of thumb that says that you should budget 1% of the value of the property per year for maintenance/upkeep. Some years you won't spend that much (presumably the first years of owning a new house would be low), but then there will come a year when you'll need a new roof or furnace/AC. The link below says to set aside 2% in the first year because of having to buy equipment--though you can probably beat that if you acquire equipment from craigslist etc.

https://homeguides.sfgate.com/first-time-home-buyer-expense-checklist-2638.html
Also possibly helpful:
https://www.investopedia.com/articles/mortgages-real-estate/08/ten-worst-mistakes.asp

Those pages also have links to other helpful articles.