My turn: 1st time home buyer and want to see what advice you guys have

[Torch10th]

The loan calculator gives you the gross mortgage cost. In your home payment each month you will have that along with your escrow payments which cover PMI, property taxes, homeowners insurance, possible HOA fees etc. Although the principle and interest cost on a 230K home will be around 1200 per month, your total payment due each month is going to be significantly higher based on the additions in your escrow.

You're a first time home buyer and there's just some ignorance to how it works and what the true costs are. That's okay and you learn by asking of course. The first thing you have to do here is to not make assumptions. Talk to people that have gone through it and meet with lenders that will explain the process and terminology. You need to hear the hard truth about your situation, but in a manner that's not insulting.

That truth is that right now you simply don't make enough money and don't have enough saved to afford what you're looking at. I'm not a lender, but based on the information you provided and some basic number crunching, I would peg your affordability limit at around $125,000 and that will deplete 100% of your savings.

You like your car and I would never tell you to sell it, but you should realize it's greatly limiting your purchasing power. The sooner your sell it or pay it off, the sooner you'll be able to afford a house.

 

[svtfocus2cobra]

Here's the bottom line from what I have learned, especially from the more informative members here that have offered great advice: That even without my car payment I would still be hard pressed to be in a good position to comfortably own my own place with the mortgage and extra costs that come with it. I simply do not make enough to do this without being tight or where they suggest you should be financially comfortable, the numbers just dont work.

Some of you guys I dont think understand the area where I live and how expensive it is. I live about a half hour out of Seattle where they have figured that to live just comfoetably there you need to be making at least 87k a year. That's Seattle obviously but outside of the city it isn't much different, I would think that number is probably 65-75k around here which Im obviously not even close to being at.

Everyone I know that has been able to purchase a home and who Im pretty sure make less than me have done it because there are two incomes for the household. One of my old 22 year old painters/preppers who couldn't have made anymore than 38k/year bought a home for 190k, but he was also married.

So if anyone is trying to figure out my logic on why Im not selling the car yet it is because I have pretty much come to this realization. When the time comes that I am actually within stones throw away from being able to get into a home then I will be much more willing to part with all of the toys. For now all I feel I can really do is save like I have been and get in a better position with the GT500 to where Im not under it, but Im either going to have to get married or make considerably more in order to get something worthwhile.

I initially felt like I was in a position to be able to afford something cheaper, but I realize now that I'm really not.


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[Torch10th]

It sounds like you're wishy washy on wanting the house in the first place. That's okay, there's nothing wrong with not owning. There are advantages and disadvantages to each situation.

re your final paragraph there, if you're at all serious about being a home-owner, you need to make that decision then devote 100% to it. If you remain on the fence and wait, prices will only continue to rise along with interest rates, which continues to price you out of the market.

You need to act decisively in that direction, or forgo it all together. Right now for you, it's going to probably be all or nothing unless you have a major uptick in salary or move to a location that is far cheaper.

 

[nxhappy]

if current apartment rent is $1000-1500 I would say a house is totally doable. You just need to crunch your monthly bills. For a first time house I would stay in the $100,000-200k range if possible. Payments jump quite a bit once you crack 300k. also, DON'T buy a "fixer upper". Some homes can come with major baggage. You are better off buying a turn key house since you are a first time buyer.

 

[13COBRA]

You're not ready to buy, and I mean that in the most respectful way possible. Wait, you'll thank yourself down the road.

 

[svtfocus2cobra]

It sounds like you're wishy washy on wanting the house in the first place. That's okay, there's nothing wrong with not owning. There are advantages and disadvantages to each situation.

re your final paragraph there, if you're at all serious about being a home-owner, you need to make that decision then devote 100% to it. If you remain on the fence and wait, prices will only continue to rise along with interest rates, which continues to price you out of the market.

You need to act decisively in that direction, or forgo it all together. Right now for you, it's going to probably be all or nothing unless you have a major uptick in salary or move to a location that is far cheaper.

I honestly think an uptick in salary is the most likely thing to happen and what needs to happen. Im not trying to sound wishy washy, it's mostly just a loss of enthusiasm I guess because of what Im making for salary and because I feel like I make enough to pay for a mortgage but the numbers show I dont so Im backing away from what I thought would be something feasible. Im also thinking further down the road. My girlfriend and I have talked about marriage so it's something I have to consider as well. 3 years of law school is going to be expensive but she will be making more as long as she lands a good job and by then I have to be making more or Im screwing myself by staying where Im at. That's obviously not a sure thing but it is something I have to consider. I'll most likely just get an apartment with her and save up fir when she finishes school.

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[svtfocus2cobra]

You're not ready to buy, and I mean that in the most respectful way possible. Wait, you'll thank yourself down the road.

I agree at this point. I understand the position I need to be in so I'll just work towards getting to that for now.

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[13COBRA]

I agree at this point. I understand the position I need to be in so I'll just work towards getting to that for now.

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Good for you. You'll appreciate it, I promise.

 

[KingBlack]

OP

In all seriousness, your not asking the right questions and looking in the wrong places.

 

[nxhappy]

like I said, if your current rent is $1200, and you can comfortably pay it, a house would be doable.

 

[rotor_powerd]

Some of you guys I dont think understand the area where I live and how expensive it is. I live about a half hour out of Seattle where they have figured that to live just comfoetably there you need to be making at least 87k a year. That's Seattle obviously but outside of the city it isn't much different, I would think that number is probably 65-75k around here which Im obviously not even close to being at.

You sound like a former member, thomas9374 or something, who always seemed in disbelief that anyone could comprehend how expensive houses are and how anyone could ever afford a house. Houses on either coast are generally pretty expensive because that's where the majority of metro areas are. Metro areas all over the country are very high priced, because higher paying jobs are more so located there. I'm an hour and a half west of D.C. "in the country" and any decent modern house on a little bit of land here is $450,000-$500,000. The hard truth is just that people buying those houses make more money or have family money or some other source. My wife and I have pretty much always been a single income family, when we got married we lived in Fairfax, VA in a 700 sqft apartment that was $1700/mo. That was 6 years ago. I was getting paid about 3 times what you are now and with minimal debt it was comfortable but not exactly like we had money pouring out our ears. A year later we bought the house we are in now and while the monthly payment is slightly cheaper than that rent was, expenses ultimately went way up due to just having to take care of things. I would strongly not recommend buying a house if you cannot afford to spend several thousand dollars at any given time without it causing major financial duress. Granted that's not likely to happen in a condo, but the relatively high HOA fees associated with a condo will offset that.

My best advice is just to focus on your career for now and focus less on spending money on mods for a financed car etc. That sort of thing is what gets people trapped in a hole that takes years and years and years to get out of.

 

[13COBRA]

like I said, if your current rent is $1200, and you can comfortably pay it, a house would be doable.

Initial cost, taxes, fixes, taking care of a yard, etc etc etc...

He needs to save up some funds before he jumps in.

 

[Torch10th]

like I said, if your current rent is $1200, and you can comfortably pay it, a house would be doable.

I take it he doesn't actually know if that is comfortably doable or not. It sounds like he's still living with family or parents at little or no expense. It sounds like rent in the area is around $1400.00 though.

The monthly payment on a 230K house isn't going to be $1200 though. That's the cost of the mortgage. Once the escrow gets added in, depending on his PMI payment, taxes, insurance and HOA, he's probably looking closer to 1700-1800 per month. I'm assuming he probably brings in around 3500-3700 monthly net after taxes. Between his car and the house, there goes 50% of his take-home each month and he hasn't paid for utilities, food, fuel, insurance, phone/cable.

He'd only be "affording" it and with his savings likely wiped out in closing costs or getting the house functional, he's one minor incident away from starting to miss payments. He would remain in that situation without being able to save much if anything until his salary improved, he paid off his car or both. That's called being house poor and you're relying on luck to not get caught by something out of your control.

 

[svtfocus2cobra]

You sound like a former member, thomas9374 or something, who always seemed in disbelief that anyone could comprehend how expensive houses are and how anyone could ever afford a house. Houses on either coast are generally pretty expensive because that's where the majority of metro areas are. Metro areas all over the country are very high priced, because higher paying jobs are more so located there. I'm an hour and a half west of D.C. "in the country" and any decent modern house on a little bit of land here is $450,000-$500,000. The hard truth is just that people buying those houses make more money or have family money or some other source. My wife and I have pretty much always been a single income family, when we got married we lived in Fairfax, VA in a 700 sqft apartment that was $1700/mo. That was 6 years ago. I was getting paid about 3 times what you are now and with minimal debt it was comfortable but not exactly like we had money pouring out our ears. A year later we bought the house we are in now and while the monthly payment is slightly cheaper than that rent was, expenses ultimately went way up due to just having to take care of things. I would strongly not recommend buying a house if you cannot afford to spend several thousand dollars at any given time without it causing major financial duress. Granted that's not likely to happen in a condo, but the relatively high HOA fees associated with a condo will offset that.

My best advice is just to focus on your career for now and focus less on spending money on mods for a financed car etc. That sort of thing is what gets people trapped in a hole that takes years and years and years to get out of.

Lol trust me, Im not in disbelief. Im not envious or feel like Im not getting a fair shake. All of my decisions are mine and mine only and the situation Im in is because of me and no one else . I worked out of high school instead of going to college and then I joined the Marines instead of still going to college. I dont regret any of it, but I do wish I had grasped onto a worthwhile skill earlier on. I basically set myself back with those decisions and just need to work and work until I'm where I should be. Im basically in the position someone in their mid 20s would be in if I take away my time in service because that time didn't really benefit me professionally or by advancing any career choice, so it makes a little more sense from that perspective. I just need to keep working and advancing, that's all I can say.

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[Rct851]

Cut bait on the Shelby man. It will be liberating. Tell your shop owner to **** himself and he can carry 40k in car debt to help "advertise" for his shop that in your eyes under pays you.

I'm in the same boat. Renting sucks cause it's expensive and if you're on this forum you are probably into toys that are best suited for someone with a serviceable garage etc.

Just get focused. Sure I'd like one of those bitchin factory edition ktm's or a viper (I really need to stop following a certain persons Instagram), and when the time comes I'll have them both if I desire, parked in MY GARAGE.

 

[13COBRA]

I just need to keep working and advancing, that's all I can say.

You have a good head on your shoulders.

Cut bait on the Shelby man. It will be liberating. Tell your shop owner to **** himself and he can carry 40k in car debt to help "advertise" for his shop that in your eyes under pays you.

I'm in the same boat. Renting sucks cause it's expensive and if you're on this forum you are probably into toys that are best suited for someone with a serviceable garage etc.

Just get focused. Sure I'd like one of those bitchin factory edition ktm's or a viper (I really need to stop following a certain persons Instagram), and when the time comes I'll have them both if I desire, parked in MY GARAGE.

I know you're not talking about me as I don't have an Instagram, but I loved my KTM. It would have looked good in my garage next to my ACR lol

 

[DHG1078]

You have a good head on your shoulders.



I know you're not talking about me as I don't have an Instagram, but I loved my KTM. It would have looked good in my garage next to my ACR lol

I'm hoping to buy a street bike and a new dirt bike over the next 2 years. Both will probably be KTM.

 

[13COBRA]

I'm hoping to buy a street bike and a new dirt bike over the next 2 years. Both will probably be KTM.

I loved my RC8R...Most enjoyable bike I've ever ridden. I just had too many close calls and it wasn't worth it.

 

[svtfocus2cobra]

Anyone looking for a 2011 848 Evo, stealth black, possibly first Evo to hit US shores? Lol, I mean that has to be worth something extra, right?

And thank you 13COBRA. That's one thing I have to say my parents and the Marine Corps provided me.

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[13COBRA]

Anyone looking for a 2011 848 Evo, stealth black, possibly first Evo to hit US shores? Lol, I mean that has to be worth something extra, right?

And thank you 13COBRA. That's one thing I have to say my parents and the Marine Corps provided me.

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I'll give $4k for it.