Author Topic: She is going to do it anyway....  (Read 3369 times)

rockstache

  • Walrus Stache
  • *******
  • Posts: 5797
  • Age: 2015
  • Location: Northeast
She is going to do it anyway....
« on: August 15, 2014, 12:59:15 PM »
Hi Everyone,

My friend is going to buy a house. She is not mustachian in any way, but she does live within her means and not keep any debt besides a car payment. I have done my best to make her come around to mustachianism, but she's just not ready, and I get that and I am not going to (and can't really) push her. So now, she has decided to buy a house for herself and her son, and she has asked me a few questions, having absolutely no idea about the process, and looking up to me as someone she trusts with her finances.

I am looking for a post or two that I can point her to that shows some really basic things about how to buy a house. She doesn't really like to read much, so it would have to be something realllly simple, that would help explain in brief terms about why PMI isn't ideal, why you should have a down payment and how much it should be, why you shouldn't borrow more than you can afford etc... Ideally she would go look for the answers herself, but she just probably won't, and I would like to help her avoid making a HUGE mistake if I possibly can. I was wondering if anyone knew of a good article like this that I could point her to in good conscience (IE MMM, Jcollinsnh, etc). Thanks!!
« Last Edit: November 14, 2016, 10:51:35 AM by rockstache »

Weedy Acres

  • Bristles
  • ***
  • Posts: 278
Re: She is going to do it anyway....
« Reply #1 on: August 15, 2014, 01:20:16 PM »
You might try some Dave Ramsey on her.  He keeps things pretty simple. 
http://www.daveramsey.com/articles/article-list/category/lifeandmoney%5Fmortgage/

schimt

  • Bristles
  • ***
  • Posts: 308
  • Age: 32
  • Location: New Jersey
Re: She is going to do it anyway....
« Reply #2 on: August 15, 2014, 01:37:40 PM »
If she is not a reader, you might want to consider suggesting some podcasts, she can listen from any smart phone or on the computer.

The Rough Roller Podcast is one I listen to regularly, I skimmed through his list of shows and found the following three in reference to home buying. #36, #59 and #76

http://www.doughroller.net/mortgages/6-mortgage-tips/
http://www.doughroller.net/mortgages/should-you-rent-a-home-or-buy/
http://www.doughroller.net/investing/is-a-home-a-good-investment/

Cheddar Stacker

  • Magnum Stache
  • ******
  • Posts: 3714
  • Age: 41
  • Location: USA
Re: She is going to do it anyway....
« Reply #3 on: August 15, 2014, 01:49:26 PM »
Neither of these are simple, and neither address your specifics, but they might give you some good discussion points. They also might lead you to other posts. I know JL Collins has a lot of housing posts.

This post doesn't discuss the items you specifically mentioned, but it's a good read on what mindset you should have, and what the most important considerations should be when selecting a house:
http://www.mrmoneymustache.com/2013/09/04/how-and-how-not-to-buy-a-house/

This might scare her enough to not buy in the first place:
http://jlcollinsnh.com/2013/05/29/why-your-house-is-a-terrible-investment/

Sblak

  • 5 O'Clock Shadow
  • *
  • Posts: 42
  • Age: 39
  • Location: Arizona
Re: She is going to do it anyway....
« Reply #4 on: August 15, 2014, 02:23:53 PM »
Here is something really basic, that I keep as a link to show people the basics.  It goes into some more details if desired in links.

http://michaelbluejay.com/house/basics.html

TrMama

  • Magnum Stache
  • ******
  • Posts: 2909
Re: She is going to do it anyway....
« Reply #5 on: August 15, 2014, 02:31:05 PM »
Point her to MMM's post on the true cost of commuting so she doesn't buy a house that gives her a commute. I honestly think location is more important than how the house is financed.

SummerLovin

  • 5 O'Clock Shadow
  • *
  • Posts: 63
Re: She is going to do it anyway....
« Reply #6 on: August 15, 2014, 04:23:18 PM »
A fairly simple overview of buying your first home.
http://theeverygirl.com/feature/property-101-everything-you-need-know-about-buying-first-hom

The hidden costs of home ownership that she should be aware of financially.  Not a comprehensive list but a good start to go in with eyes open. It is much different going from an apartment or condo into a house. The "equipment" costs for maintenance alone are shocking.
http://www.cnbc.com/id/40458216#.

You could also start a thread on "What you wish you knew before you bought your home?" and to get more specific reader input, then consolidate that for her.