What do i need to start doing to work towards buying a house in the next few years?

Question

like as far as building up credit, and how much should i try to save up for a down payment?

i know everything is dependent on how much the house is, but i'm just starting to think about it now.

i have a car loan out, it's gonna be paid off in about 4 years.

i'm 20 years old, i want a house by 25 at latest. i hate pissing away money on my apartment. & i don't want a tiny little house either. i don't know.

i live in DE now, but i may consider moving to PA. or MD, maybe.

I don't know if that matters.

thanks for any / all advice........

Answer 1

Scary advice out there!

Being your first home, start small, my first property was a one bed, one bath I paid $58,000 for.  It is now worth $280,000 and I rent it out for $1200 per month. I took cash out of that one and bought a duplex in Texas and on and on and on! real estate is the best investment you could make. I was only 18 when I bought that property in 1979! Here is the real deal, on a government loan you can get a non-profit to provide you with BOTH the down payment and the closing costs!  All you need is $1500 to $2800 depending on when you close escrow. This program will only be around until October 2008, so move fast, get a bank owned property, live there for 1 or 2 years, rent it out and buy another!

Answer 2

Most realtors will tell you that you should have 20% of the total cost of the house as a downpayment, and your credit rating should be fairly clean, now that so many homes are in foreclosure its getting harder and harder to qualify...

don't ever be late on payments and get a few knicknacks on a card or two to raise your credit score

Answer 3

Number one, create a budget that will have you living at no more then 65% of your income by the time you are ready to buy. Two, ensure that you will have lowered you debt to income ratio to no more than 20% of your income, by the time you are ready to buy. Three, save up at least 6 months of living expenses. Four, save up at least a 10% down payment.

There are other ways to buy houses, but for the average buyer, this is what they need to do.

Answer 4

of your gross pay [per annum or monthly]

whatever you take home, the lenders

will allow you to pay a max of 25% of that

to mortgage payments.

Also, seek out the annual tax sales that

each county in the nation has in their

treasury dept/accessor dept.

12 of our 50 states have tax certificate

sales--but after 3 yrs, one can wind up with the property!  

IF you use county sales, you can

have your house next spring!  [at

sometimes 1/10th the going price

that normal sellers want!]