Is it better to rent or own your home in this economy?

Question

Me and my girlfriend are looking into getting a house within the next year. We have a baby boy coming in two months and she already has a daughter. We need more space so we are looking into a three bedroom place to live. How much should we have saved (atleast), what are some do's and dont's involved with first time home buying, and what are some links for first time home buyers?

Answer 1

AS A 6 TIME HOME PURCHASER, I SUGGEST THAT U WAIT APPROX 6 MONTHS BEFORE BUYING A HOUSE.  UNLESS---U ARE SURE THAT THE HOUSE IS A GREAT BARGAIN - IF U ARE HANDY AND HAVE A CARPENTER IN URE FAMILY IT WILL BE WISE TO LOOK INTO BUYING A HOUSE AND "FLIPPING" IT - THAT MEANS DOING RENOVATIONS AND SELLING THE HOUSE FOR MORE THAN U PAID FOR IT PLUS THE COST OF RENOVATIONS.  IF U CAN REPEAT THIS ON 5 HOUSES, U SHOULD HAVE A PAID-FOR HOME FOR U. THERE IS A LOT TO INVESTIGATE PRIOR TO BUYING A HOUSE TO FLIP - LOCATION - LOCATION - LOCATION.  A FORTUNE CAN BE SUNK IN THE KITCHEN ALONE. HOMES CAN BE PURCHASED FROM BANKS (THOSE FORECLOSED ON )  FOR WHAT IS OWED ON THEM SOMETIMES. GET SOME GOOD ADVICE REGARDING ANYTHING U PLAN TO BUY.  IN SOME CASES, HOMES IN FORECLOSURE CAN BE RENTED CHEAPER - DON'T EVER BUY THE HIGHEST PRICED ONE THE NEIGHBORHOOD.

Answer 2

Go to FHA.com and read up, its always better to own a home because houses build equity. I would save at least 2000 dollars to have when you move in. I would say dont buy the first thing you see and like, look around and find what you want, compare prices, and also think about insurance costs.

Answer 3

first get married. The reason I say this is so both of you will have a vested interest in keeping the house up and paid on time and no one can just walk away. I see that on this sight so much. Then have at least 6 months living expenses saved in a seperate account. Then have your 3% down payment saved as well as closing cost on a new home or ask the seller to pay for it. Also have at least 2 additional months of expenses in your savings account. Yes it sounds like a lot of cash but that is the thing that causes most couples to fail in their commitments to each other and creditors. These emergency funds  are just that and if ever dipped into should be replaced pronto. Make sure your credit is clean and then get a local mortgage person to prequalify a loan and find a realtor and go home shop[ping the rest with these experts help will make you  happier home owners. And I also recommend that you buy less home than you qualify for as you still need room in your monthly budget for the unforseen things in life plus fun. Don't fall in love with a home. Stay in love with each other and enjoy your family

Good luck and God Bless

I am a mortgage banker in TN & KY