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I met this girl at work and she’s 23, 4 years younger than me and she owns a home already. She just purchased it too because she was sick of apartments. I don’t get it. She’s not wealthy. She was the receptionist before me and works part time at a pet hospital and goes to school. Either she is a really savvy saver or is in debt. Is it really that easy to own a home.

4 Thoughts on How come people make house buying look so easy?
  1. Reply
    Uncle Duke
    April 8, 2013 at 7:58 pm

    yes its that easy. i owned my first place when i was 21, i’m on my 3rd place now, on this one, I found it and bought it in less then 2 months. she is probably both savvy saver and in debt with a mortgage, thats how home buying goes. all you need is good credit and 10-15% downpayment and your good to. save up and go to a bank and get pre-approved for a mortgage.

  2. Reply
    April 8, 2013 at 8:12 pm

    Almost every home buyer uses a mortgage loan to buy a house. FHA is the most common with a first time buyer. You have to put 3.5% down and then your monthly payments include some principal payback plus interest on the loan balance and some money to put into a special account to pay your yearly property tax bill and hazard insurance bill. If you are currently renting then you may want to look at how comfortable it is to pay that monthly rent. Don’t make a huge jump. But if she was putting away money each month to save up for the down payment and any other costs then she may have prepared herself ahead of time for the house payment. That is pretty smart.

  3. Reply
    April 8, 2013 at 8:41 pm

    All you need is cash in the bank which this young lady could have saved, inherited or been gifted.
    Many people are frugal and live below their means. They do without such as fancy cell phones, cable, eating out and buying new clothing to save the down payment. If you can’t figure out how to cut expenses and save does not mean others can’t.

  4. Reply
    April 8, 2013 at 9:34 pm

    It actually can be fairly easy.

    It helps to have good credit–something in the 680 range or higher.

    With FHA loans, you only need 3.5% down. There will be some other costs, so assume at least 5% total. That means on a $ 200,000 property, you’d need about $ 10,000 in cash.

    And on that loan, at today’s interest rates, your principle and interest would be about $ 840. With taxes and insurance, it’d be higher–maybe around $ 1,050 a month.

    What’s tripping most people up today are the credit scores and credit history in general. Lenders have gotten a lot more picky about making loans. So they don’t like to see unpaid credit cards, or outstanding student loans, or a car repossession.

    Tips: Clean up any credit glitches. Pay down your credit cards. Don’t try buying a short sale or foreclosure. Just an ordinary, regular sale. Use a good Realtor.

    Hope that helps.

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