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Pauline Said:

What do I need to to before I even look at purchasing a house?

We Answered:

i know that buying your first home can be very intimidating, but remember it isn't as complicated as it seems, and there are alot of industry people and resources to help you out. home buying for dummies was the book that i used and it was super helpful. i bought my house a couple years ago in the middle of the housing bubble and it is harder to get financing now. the good news is that the prices have come down very low....

my advice would be:


make sure your credit is good, and do whatever you have to to get it lower because your interest rate will be a reflection of how good your credit is. also make sure you have at least 5% of the cost of the house in cash because you will likely need it at closing, but not always.... make sure you have a few extra thousand dollars because most people find that they have immediate repairs, expenses, etc. related to the house as soon as they move in. you would be surprised....

i bought a house that needed a little work, and i saved some money. but i am the kind of person that likes to fix stuff and renovate, etc. ......

look at as many houses as you can, and make sure your home inspector is reputable. a lousy home inspector will cost you much money down the road believe me! play hardball when it comes time to bargain. don't let your realtor tell you the seller won't come down any lower if you feel that they in fact will.....remember your realtor is making a percentage of the total cost of the house, so a lower price means less money for them! get a realtor that you trust, and maybe even one that is recommended by a friend.....

good luck!!!!!!!!!!!!!!

Chad Said:

Will I be able to afford living on my own?

We Answered:

If you add up just what you have listed you won't have much left
at the end of each month. This only includes a single payment and not a triple payment on your college loan! It adds up to $3426! That leaves you with$74 at the end of each month. Here are all the other things you will be responsible for--

1. Food
2. Gas and insurance for your car
3. Heating for your home
4. Electric bill
5. possible dental and medical expenses
6. Incidentals like housewares--towels, curtains, pots, dishes, furniture etc etc etc!!!

For "Pete's Sakes" didn't you sit down with someone before you made this decision? That $45,000 will go fast! You will probably need to get rid of that car first off and get a cheaper one. There will be no entertaining or vacations. You will probably even at that need to get a second job or a room mate.

Melinda Said:

When all is said and done, in 30 yrs, how much does it really cost to own a home that cost 100k?

We Answered:

Your figures look pretty legitimate. Your loan will cost 3 X or 3.5 X of the Mortgage over 30 years. Your insurance and taxes are understated by failing to account for inflation.

Your cost figures are not simply the summation of costs because it depends upon the general rate of inflation and the specific inflation in property value. (Yes...properties long ago appreciated in value and will do so again after a few years)

The issue further fails to account for your interest deductions on tax returns. This value depends upon your income tax bracket.

All in all if you are looking to compare and contrast a real estate purchase to long term property leasing, you will be better off through purchasing a home.

Good luck.