Friday, February 16, 2007

Could this be the year I finally become one????

A homeowner that it! I am really hoping that this is the year that I become a homeowner and stop renting. I wanted to have done this by the time I turned 35, but since that will be happening in a couple weeks, I know that won't happen. But, I made the first step yesterday. I have an appt in a couple weeks with a mortgage friend of mine to see where I am at, what I need to do and what I can even look at realistically. I recently pulled my credit score and it was 796 which I am happy about, so I know that will help me out. Now I am looking at my budget to see where I can make any and all cuts to save money for my down payment. I have no idea how much I should even think about having for a down payment. Any one have some ideas? So far I have about $7000 saved. I am looking at buying a condo or townhouse since I live alone and don't want to deal with a yard and maintenance. Does anyone have any helpful advice, words of wisdom, things I should do, shouldn't do or anything? Thanks! I will keep you posted on how it is going.


Anonymous said...

if you are looking at a condo/townhome before you decide to buy check & double check the dues and how many HOAs there are. We just moved out of a condo that had 2 HOAs. Lots of$$ every month.
Also check and see what each one pays. One of ours paid our water so that helped

Sense to Dollars said...

thanks, leanne! I appreciate the kind words.

Jennifer said...

If I were you I'd try to find out as much as I could about the HOA before buying. I lived in a small condo complex with only six units and the HOA was a nightmare. There's always one crazy person that makes managing the complex hard for everyone else. I hated it.

Bailey said...

Normally they say you should have about a 10% to 20% down payment.

SMB said...

Hi--I've been meaning to come by for weeks, it seems, to answer your comment on my blog! (And thanks for leaving it!) So far Seattle is treating us VERY well, so much so that we hope to buy a house this spring/summer. I'll be watching your blog to see how you're doing with the same issue! :)

Escape Brooklyn said...

In addition to our savings, my husband and I took money from our Roth IRAs to buy our co-op. You can take out up to 10k with no penalty if it's to buy a first home. We also borrowed 10% from his dad, then took out a home equity loan after we closed to pay it back (the co-op required 20% down). The h.e. loan has a crappy interest rate of around 8.75%, however.

If you can get a gift from a relative (up to 12k is a tax deduction for an individual; 24k for a married couple) or negotiate a low interest repayment schedule directly back to the family member (5% would be fair, for instance, especially if they have extra cash in a savings account anyway), that's probably best.

My sister borrowed from her 403(b) plan to buy her apartment, but I don't think that's as good an idea because she had to pay it back with after tax money at a relatively high (like 6-7% two years ago) interest rate.

Other folks I know financed 100% by doing an 80/20 mortgage, which I recently did for my investment house. Although we avoided PMI, the 20% mortgage is a high variable interest rate of around 9%, so definitely not ideal.