Article Score0

I’m 21, I have absolutely NO credit at all and I still live at home with my parents. My goal is to buy my first house within the next two years. How much money should I have in my savings account to have a chance of becoming a home owner. Is $ 1,000 enough or too little?

6 Thoughts on Buying your first house?
  1. Reply
    Ariaread
    June 11, 2012 at 7:54 pm

    You need a down payment and closing costs. Closing cost alone are over 6,000. Borrow a book from the library about buying your first home. You also need to build credit.

  2. Reply
    Kyle
    June 11, 2012 at 8:42 pm

    I really hate to break bad news. The money in your account is not important. It’s the no credit. Mortgage lenders look at your credit history first and foremost. You would even have a hard time renting with no credit. You must have some credit? Cell phone or credit card? If not i would atleast apply for a credit card asap to build something. As for money in account. After a down payment you would probably want at least 5k in your account to cover any immediate issues. 1000 dollars would barely cover a window or 2. First step is getting some credit.

  3. Reply
    Wayne Z
    June 11, 2012 at 9:33 pm

    No……$ 1000 will not be enough.

    When I bought my first home, I needed to bring close to $ 11,000 to closing. When I bought my second house, I needed to bring around $ 27,000 to closing.

    You need a down payment plus closing costs. Closing costs start around $ 3000 and, if you can qualify for FHA, you will need 3.5% of the purchase price as a down payment.

  4. Reply
    Shane, heidi Rossman
    June 11, 2012 at 9:34 pm

    The money part is only one part of buying a home. You need to make it a must to test your home for methamphetamines before you purchase a home. I’ve had way to many horror stories of people who have bought a home that looked nothing like a typical meth home, kids started coughing, and to make a long story short, they ended up having the home tested for meth and it came back at a pretty high level. High enough I believe being in the business as long as I have, it was probably used as a meth lab not just meth use. The people had to spend thousands of dollars to get the home decontaminated for meth, then put in new carpet and paint in a few areas where the paint had peeled. This home is now decontaminated but they had to pay way more than they thought they were going to have to. It’s cheeper to just get the home tested for $ 100 and find out before hand then pay thousands of dollars after the fact. We can test your home for you so you know what your buying. Check us out on the web at http://www.globalenvironmentalcleanup.com or give us a call at 801-347-0659 for any other questions or concerns you may have.

  5. Reply
    Mamma2
    June 11, 2012 at 9:54 pm

    In order to purchase a home, you must have a solid credit score with several years of making payments on time every month with both revolving and installment loans. You will have to have at least 20% of the cost of the home as a down payment unless you qualify for an FHA loan which would be 3.5% of the cost of the home. Then, you would need closing costs which tend to be at least $ 10,000. The total cost of the home you wish to buy can not be more than 28% of your total debt to income ratio and that includes all debt.

    So, to buy a home your credit should be no less than 700 (and that is really pushing it if possible in today’s economy) be solid over several years and with a purchase price of, say, $ 100,000, you will need $ 20,000 down in cash (FHA = $ 3500) with closing costs around $ 8000 and an income of about $ 3500 per month. You will also have property tax, utilities, HOA if applicable, a “poor house” fund for fixing things, insurance, etc. Also, the less you put down, the higher your monthly payment which raises you debt to income ration and means less house you can buy.

    First thing you need to do is get a secured credit card to start building credit through a credit union. After 6 months, turn it into an unsecured and the CU will do it if you used it responsibly and paid it off every month. Then ask for a loan either for a car or a small personal after using the unsecured card for the next 12 -18 months. Continue using the credit card and paying it in full every month (revolving credit) while paying on the other loan (installment). Keep using and keep paying. Put money away as you can especially since you live with your parents. Once you are able, get your own apartment. That will also help, but know you have to make 4 times the monthly rent. So, if rent is $ 500 per month, you have to make $ 2000 per month and they will want current pay stubs. When you rent you will have utilities in your name. Pay them on time! One late payment will hurt your score no mater what it is on. After a few years, depending on how you do and how much you have saved, you may be in a position to buy your first home.

    Good luck!

  6. Reply
    alice
    June 11, 2012 at 10:25 pm

    Go to your bank and see what their requirements are, my boyfriend and i brought our first home at 20 with only 15,000 deposit, it was less then 5% deposit at the time, but we meet all the other bank requirements, then two years later when we sold we didnt need a deposit for our second home because of our credit rating. Its more about the credit rating then the money the bank wants to see if you can make payments.

    Good luck!!

    Leave a reply

    Register New Account
    Reset Password