Buying my first house?

So I have never done this before and I have no idea where to start. First of all I live with my mother and grandmother. We live currently in a 3 bedroom apartment. We’re looking to move because every apartment we have had has seriously sucked (neighbors, vandalism, broken appliances, bugs ect.) and they are super expensive in rent (Over $1500 per month in Ohio). I’m 26 and my mother does not have good credit at all and my grandmother doesn’t have a lot because she has no credit open and she’s 90. I didn’t want to buy a house because I wanted to move away from them but that’s not happening anytime soon as both need my help. But anyway my credit score is over 730 but my problem is I have a car loan and student loans against me as well as small credit card debt. I’m not sure if I qualify to even apply for a mortgage due to my debts. I’ve worked at my job for over 4 years and average only 40k per year. Our lease isn’t over until April 2021 so I have some time but what do you suggest I do? 

12 Answers

  • 3 weeks ago
    Favourite answer

    I doubt  you'll be able to get a house within the remainder of this year, or even next unless you make a few changes. You have too much debt and too little income.  However, you need to start saving for a down payment NOW if you want to move in two years. 

    In Ohio--at least in my NE Ohio area--there may be quite a few houses you would be able to afford--if you have $10-15K in down payment funds, and get some of your other debt paid off, (not the student loans, obviously, but the other stuff) or paid WAY down. Your score isn't bad. Mortgage lenders want to see job stability, good payment history (no late payments within a couple years of application for the mortgage), low debt-to-income ratio and a decent amount of down payment. You can start now and begin to accumulate all these assets if you work at it. 

    Look for foreclosure houses--they are often far less expensive than new houses or high-end houses. You may have to do a few repairs or updating. But they are also negotiable in most cases. You won't get a seller's warranty there, but you might find a great deal. Make sure you get anything you're interested in inspected THOROUGHLY. In our state, there are a couple things you need to be cautious about: radon and the age of the furnace. If the furnace is 25 or more years old, you'll need to get a new one. You know how our winters can be here. 

    There are a lot of programs around for home-buyers in our area, too--you can get BIG rebates from the Electric company and Gas company for getting a new furnace, new doors, new windows, new hot water heater, and insulation. 

    I wish you luck--I think you'll do okay--if you are diligent now and pay down some debts and start saving.  

  • 3 weeks ago

    I'm also not sure if you'll be able to get a decent mortgage in your situation but you are managing to pay $1500 per month so it seems reasonable that you could afford a mortgage of $1000 or more.  I'm not sure what kind of house you could get for that sized mortgage and also not sure if you have any savings to pay for closing costs and moving costs, and whatever else.  So, my advice is to start by visiting a mortgage borker and just see that they think you could afford and if they think you could get a loan.

  • Anonymous
    3 weeks ago

    I think that a lot of people want to either live in an apartment, or condo, or even a house.

    Currently I am living in a house, but I will eventually be moving into something that's smaller.

    The problem is the bigger home someone wants to live in then it's going to cost more money to buy the home, and to maintain it too.

    The house that I am living in belongs to my my step father's father, and I think he might give the house to my step father. I heard of how much money my step father he has invested in the house that I am living in, and how much labor he has put into maintaining the house.

    I think based on everything that I heard, and seen, and done in the home that I am living in that it's not worth living in it.

    I realize you are not happy with living in an apartment, but what makes you think that you will be happy living in a house?

    I am not happy living in a house, and I am thankful that my step father showed me that it's not, for me to live in a house. My step father, and mother are fine living in a house, but not me.

    I am considering to live in an apartment, and yes I am already aware of some cons of living in an apartment. I was actually thinking of buying my own home too, but it won't be a house.

    Believe it, or not, but currently I can actually buy two, or maybe three homes. I didn't realize that until today. :) I think I am going to start off with buying one, and see how that that goes, for me.

    I am going to try to get my own apartment, but if I don't get one then I will buying my own home. Frankly I would like to have both, but if I can't have both then I am fine with just buying my own home.

    Remember I am looking, for a smaller home. NOT a larger home. I already know where to look to buy my home, so I just have to contact the owners, so I can go see it.

    "(neighbors, vandalism, broken appliances, bugs ect.)"

    I will tell you something that you probably don't understand. If an appliance gets damaged, or breaks in a house then either YOU are going to have to fix it, or pay, for someone to fix it, for you, or replace it with a new one. Bugs well I already lost count of how many bugs I saw in the house that I am living in. Yes, there are bugs where I live, and it's in a house.

    You might not be happy with the neighbors you get after buying a house, so this is something that you should carefully think about. A house can't be moved, so if you were to buy a house then you will be stuck with your neighbors whether you like them, or not.

    I put a great deal of thought into where I want to live. If I were to buy my own home then I won't have to worry about having good, or bad neighbors, or vandalism, and probably bugs too. Well I might be sort of concerned about my neighbors, but it's like I would be stuck living beside them.

    Well I might see some bugs, but I don't think it's going to be as bad as the amount, and type of bugs I saw in the house that I am living in now. Regarding the appliances if something gets damaged then either I am going to have to fix it, or I would have to hire someone to fix, for me. I think there is no way around this issue, so you would have to do the same thing as me regarding the appliances.

    If an appliance breaks, and it can't be fixed then it would have to be replaced with a new one.

  • Eva
    Lv 7
    3 weeks ago

    At your income level, it's going to be tough for you to get a mortgage for much more than 50-60k.  You'll also need a cash down payment unless you qualify for one of the first time home buyer's programs.  Work on paying down your debt. If your debt to income ratio is more than 30%, the banks won't even talk to you.

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  • 3 weeks ago

    Can you buy a house probably.

    Is there anything in your note that suggests you should buy a house = no

    A house is a commitment - you don't want a housing commitment.

  • 3 weeks ago

    The only person able to tell you if you can get a mortgage, and how much, is a mortgage broker. So you need to see one and take it from there...

    But in a nutshell, to qualify for a mortgage you need the following:

    - good credit and steady job

    - money in the bank to put down at least 10% of the asking price as a deposit.

    Debts don't stop you getting a mortgage, but could seriously impact on how much you can borrow.  So try and clear the credit card debt if nothing else.

  • Maxi
    Lv 7
    3 weeks ago

    Even without any debt, you would be able to loan x3 your salaray, so $120k and you would need at least 10-20 % down payment as a deposit... so savings of around $10-25k .if you do not have them then you are not in a position to purchase a home.... add your debt and you do not have a chance of getting a mortgage.

    Get your debt repaid, start saving a deposit and once you have done that you are at the starting gate

  • Anonymous
    3 weeks ago

    Plan on renting.   You can't afford to maintain a house let alone buy one. 

    40k and in debt up to your eyeballs and I'm guessing you don't have a down payment or closing costs either.  

    Mortgage is not happening for you.

    You need to talk to some homeowners about how much it costs to actually own a house.   Can you afford things like appliances, lawn mower, ladder, tools, furnace, roof, windows, flooring, electrical, plumbing, decking, fencing, masonry/concrete work, cabinetry, siding, gutters, side sewer or septic....all ongoing expenses of owning a house.   The house may be in tip-top shape when you buy it, but your house begins to decay from day one.   If you don't maintain and upgrade, it will literally fall apart over time. 

  • Anonymous
    3 weeks ago
  • 3 weeks ago

    Start with a mortgage broker and get a pre qualification letter.  This will establish the maximum mortgage you qualify for.

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