What steps do you take to buy a house?

Question

I am a college student looking for housing in Oshkosh WI. A lot of places I called about renting from want between $400-600 plus utilities. I know! Anyway, I searched some house listings, and there are a number of houses for sale in the $65K range. A 30 year mortgage for a house like this with no money down is around $400/month. So I figured I should buy a place rather than rent. My financial situation is like this:

I don't have any money for savings that can be used for this house, as all money goes to school.

I have $11K+ in money in my retirement fund that works through my company I work for.

I have $2,500 in a IRA

This is my last year at school, it will take up $8K+ in tuition

I work 25-35 hr./wk making $14/hr. during the school year.

What do you think I should do? Try to buy a house or not? If you think that buying the house makes sense, where do I start?

Answer 1

piece of cake; skip the institutional purchase lending-borrowing

approach at this stage.  Find a nice home you like and

negotiate for a LEASE -purchase.  YOU get what is called

equitable interest but no equity till you do a real purchase.

YOU can negotiate anything in a lease purchase; such as

a loan for the downpayment, when you will buy, the carryback

if applicable, who pays for repairs, etc.

Robert Allen made himself famous ages ago, by showing the world

how to get sellers to CARRY their mortgages [if debt free, this

works fine].  

I would not even seek bank $ till I was working happily at least

2 yrs at a job.

Available to guide you further.

Answer 2

You are ready.  You can do this.  Here is what the mortgage company needs:

good credit

good job

good track record of saving.    If you have all 3 you get a 30 year loan at 6 percent.   Since you have only 2 of them today, you will pay 7 percent.  Do it. /

Answer 3

You should go to a loan agent or a bank to get your loan pre-approve first.  But it's quite difficult to qualify with no money down or bad credit now. Your budget will be very tight even you can qualify one. Remember you also have to add the property tax and maintenance cost, insurance, etc...

Answer 4

When you are buying a home, surely you do not want to get just any home. You want to get the best type and kind of property available in the market. Buying a home is a huge financial step that you attained through hard work and a lot of savings through the years. You really ought to have a new home worth all those efforts.