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happytobreathe
The Lazy Days of Summer
Member since 10/06 1413 total posts
Name:
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First time home buyer
I have a dilema, I would love your wonderful advice.
I am getting married in March. We are looking to buy a home. We WILL have about 10,000 to put down in March. Should we wait until we have even more to put down on the house or should we buy now when the market is low? Also, what are the pros/cons to a zero down finance package??
Thank you so much.. it is all so confusing to me!
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Posted 10/27/07 12:55 PM  |
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Arieschick29
aries+cancer= pisces&gemini
Member since 3/06 4268 total posts
Name:
Jen
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Re: First time home buyer
We are in the process of buying our first house....we saved 60,000 over the last 2 years since our wedding and its still not enough to keep living the way we are with a mortgage and down payments and closing costs.
We are going to need to cut corners for a bit until we adjust (no vacations, no unnecessary shopping) but I'm sure it gets better
If you dont put down 20% you'll have to pay PMI (insurance) which from my understanding is not very good.
I read Homebuying for Dummies (seriously) to learn all the finance stuff I've learned over the last month
Good luck!
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| Posted 10/27/07 1:58 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: First time home buyer
do you only have $10K in total or do you have extra $$ for closing costs and emergency repairs??
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| Posted 10/27/07 2:37 PM |
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happytobreathe
The Lazy Days of Summer
Member since 10/06 1413 total posts
Name:
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Re: First time home buyer
We have extra..and don't know what we might get from the wedding, but I do not want to rely on it.
I guess we will stay in the apartment longer.
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| Posted 10/27/07 11:42 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: First time home buyer
Posted by happytobreathe
We have extra..and don't know what we might get from the wedding, but I do not want to rely on it.
I guess we will stay in the apartment longer.
well that might not be too bad, it depends on how much $$ you make to pay for the mortgage. but if you want to sell in the next few years, house prices may not appreciate alot (or at all) so if you have little equity now it may be hard to sell.
DH and I put 10% down and paid our own closing costs, w hich was over $50K. we didnt have much $$ left, but like you then we got married and all the gifts went back to our savings.
good luck!
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| Posted 10/28/07 8:34 AM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: First time home buyer
Posted by happytobreathe
We have extra..and don't know what we might get from the wedding, but I do not want to rely on it.
I guess we will stay in the apartment longer.
Everyone's situations are different. There are many financing options out there. If YOU can afford it, then it is fine, there is nothing wrong with not putting 20% down. There are loans out there where you will not have to pay PMI.
You have to assess your financial situation and decide what is best for you. You will see a lot of people on here who will tell you now to do 100% or 95% or whatever financing, but there are MANY MANY people on here who did just that and are FINE. Putting down 20% on LI is very hard..20% is the magical number that the bank world came up with decades ago, and things -especially here on LI- have changed.
If you don't put down 20%, no you will not have as much equity as people who did. But as you start living in your house, making improvements, and letting time go by, you will start to gain equity.
So, the bottom line of what I am trying to say here is if you and your FH can handle making mortgage payments and whatever other bills you have, then not putting down a lot is ok.
Of course, this is all my opinion.
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| Posted 10/28/07 9:20 AM |
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MrsS2005
Mom of 3
Member since 11/05 13118 total posts
Name:
B
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Re: First time home buyer
I would go to a bank and get preapproved or prequalified. This way you can crunch the numbers and see how much you can afford and if buying makes sense financially right now. $10,000 is not a lot to put down, but depending on your salaries and the mortgage amount, it may be ok for you. Just be aware that it could be difficult to get a mortgage with almost 100% financing. Good luck.
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| Posted 10/28/07 9:29 AM |
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happytobreathe
The Lazy Days of Summer
Member since 10/06 1413 total posts
Name:
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Re: First time home buyer
Thank you everyone!!!! So much stuff I did not even know..I think I need that Homebuying for Dummies book!
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| Posted 10/28/07 10:48 AM |
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Re: First time home buyer
I would highly recommend reading "Mortgages 101.' The author is a mortgage broker and breaks it down for you in simple language...good luck!
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| Posted 10/28/07 11:22 AM |
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greenfreak
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Member since 9/06 11483 total posts
Name:
greenfreak
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Re: First time home buyer
There are options that will allow you to put as little as 5% down, no PMI, and you still get a decent rate.
That's what we are doing, but we saved another 20k+ over the downpayment for closing costs and other associated costs.
Just like getting married, there are a lot of other costs that don't get mentioned as much, but still need to be paid. Like $300 to $500. a pop for inspections.
We went to LI Housing Partnership to get free counseling on what we could afford. We made a spreadsheet of our current monthly spending and figured out a range that we could afford, depending on taxes and the montly payment.
We stayed in our apartment a full year past what we wanted to, to save more money. We wanted to stay on the safe side, buy under our budget, and ensure we had enough money for all the "what ifs" even after you move in.
Good luck with your search, and hit us up for anything you want to know. We're a helpful group! 
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| Posted 10/28/07 4:39 PM |
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happytobreathe
The Lazy Days of Summer
Member since 10/06 1413 total posts
Name:
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Re: First time home buyer
Thank you ...all of you. I guess I will be back on this board after the wedding!
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| Posted 10/28/07 7:42 PM |
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