So, you have decided you want to buy a house.
Good for you! What helped you make that decision? You must have put a lot of thought and emotion into it, right? Right? RIGHT?
Hmmmm.......well let's see. "My parents told me that since I am paying $550 a month in rent, I should be putting that money into a house payment instead." Ok, I get that
"Interest rates are still at historic lows." Ok, I get that too.
"Uncle Johnny and Aunt Lula bought a house for $15,000 and there was hardly anything wrong with it. Really? Ok.
"I want to get a dog and they don't allow them in the apartment I live in." Ok, let's talk about this.
Have you talked with a bank or lender yet? "No, we just want to see what's out there". Really, you should talk to a lender first and see how much of a house you can qualify to buy. You might be surprised. "I don't think I'll have any problems, my credit score is probably ok by now." Hmmm...... "Yeah, I got in a little trouble when I quit my last job, but I've been working steady now for four months." Oh, good, where do you work? "I'm a sandwich artist and they said I would be going full time next month."
So, do you have any money in savings? "Well, a little." Do you think you would have enough for a down payment or closing costs? "Aunt Lula said I could get all that rolled into the loan." I see.....
What about money for the home inspection and the homeowner's insurance....... "Well, I have $125 saved up."
What price range were you thinking about? "Well maybe around $15,000 to start.....
Let's start over......So, you want to buy a house because?