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My husband and I want to buy our first home. We live in a small town, where you can get a decent house for about $ 100,000 or less. However, we only just graduated, and our current jobs only pay about $ 3,000 a month total. Would we e able to buy a house with income that low? Our credit scores are only okay, not great but not terrible. What is the best amount to put down? Surely wealthy people with perfect credit arent the only ones who can buy houses. I’m just looking for estimates, on maybe a $ 90,000 house. What might our mortgage payment look like?

2 Thoughts on Buying a house in Texas?
  1. Reply
    May 25, 2013 at 9:11 am

    I understand you want a house but it is one of the biggest things you will ever buy. Before you buy there are several things you need to do. First you need to save up a nest egg and that is more than just a down payment. You need to save on a regular basis and then you need to save extra for that down payment. Put yourself in a position that no matter what happens you have plenty to fall back on. People get sick, accidents happen, your house will need big repairs, you lose your job, you get pregnant and have a special needs child, or just get pregnant and the extra cost can be huge…whatever you don’t want to lose your house. Second you really need to figure out what you can afford…not what you would like. You still want money to have fun and live good so buy carefully and don’t let anyone else tell you what you can afford…you make that decision based on how you live. Third, take the time to learn all about loans and what they cost and the differences in them. I would never buy a house with a thirty year loan. I bought a smaller house that I actually paid off in 15 years and parlayed that one into a better one and some other property. Fourth invest in how to books. Long ago I bought the Time Life series and I have never regretted it. You save a fortune if you are handy and those books pretty much give you the information you need. If you aren’t handy, they will at least put you in a position to know if what you are being told by a repairman or contractor is what you need and/or the truth. And last, don’t buy a big expensive car….when you are getting started by a nice safe but pretty car but not the top of the line. Those big car payments will slow down your plans way too much. And another one…do a budget. I’m not saying don’t live and enjoy but just don’t throw money away. The little things you do like buying gas at the lower priced stations add up or use coupons, shop often at different shops to pick up the sales…it goes on and on. Almost forgot…if you don’t know how to handle money…don’t use credit cards. Always pay off the balance at the end of the month. If you can’t, you shouldn’t have bought it. Interest is wasted money. If you can handle money, then use them to your advantage. I put everything on my one card and I get 1 point for $ 1 spent. At 2500 points I get $ 25. That’s just another example of watching what you do with your money. And never not put anything into your long-term savings. And while you do all this…look around and don’t fall in love with any house you see. Look for that bargain. I bought my house from someone that moved out of state. They had rented it and there was a lot of damage and upkeep needed and they so needed to sell. I made an offer so low I had to fire my realtor because he told me he would be embarrassed to present it. I got a new realtor and I got the house at that price. Bargain hard…it’s your future.

  2. Reply
    May 25, 2013 at 9:36 am

    to start visit library , get & read
    “house buying for dummies” a great intro book on subject.
    Start by renting for 1-2 yrs , keep your expenses low, drive cash cars,
    work extra jobs and save like crazy. Given today’s mortgage demands
    u want to have as much cash as possible.
    go to ‘mortgage calculators’ on web . put in numbers and play with them.
    u want to keep ur mortgage payment at 1week take home pay not more.
    reason? Taxes, HOA, insurance, water/sewage , trash, electricity, heat,
    house repairs, empty-house-syndrome, these can increase your house costs by as much as 35%. more than 2weeks pay to house each month.
    save so u can have at least 10% down (u will have to pay PMI) and 5%
    for closing costs.

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