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  #1 (permalink)
: So now I am in my early 20s and the list of things that it would have been nice to have been taught in school over how to graph polynomials is becoming bigger everyday.



I have no idea how to buy a house! I've looked through some websites and I've seen things about the subject, but I am still confused. I'm still freaking out over the fact that my car is $15,000. How do I figure out my price range? I see things about putting 10-20% down on a house. That is thousands of dollars in cash? I have seen many people my age buying houses. Did they really have that much saved? I am completely lost and sick of apartment life.

Thanks in advance for any help.
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  #2 (permalink)
: I'm 18 years old and all I have to say is....

If you are 20 years old and still don't know the proper steps to getting a house, then you REALLY are not mentally mature enough to make the decision to buy one.

Just so you know though.... buying a house involves good credit and taking out a loan to buy the house with.
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  #3 (permalink)
: relax.
find your library.
get, read ,study, take notes
then apply info from
house buying kit for dummies, e.tysen
total money make over, dave ramsey
both will save u 10,000s$ by learning
from others dumb mistkes, not your own.

those buying at your age are often
OVER extended and house poor.
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  #4 (permalink)
: First you need savings. As much as possible
Then you need a good credit rating.

Then you see a bank, use a mortgage calculator or see a mortgage broker and ask how much they would lend you.

Then you have your price range. you see a realtor and ask to see properties in that range.

When you like one you make an offer. (At least 10% below asking price, subject to a building inspection, finance and approval of your solicitor)
If you and the vendor can agree on a price subject to those conditions you then take a copy of the contract to the bank and to a solicitor. Then you organise the building inspection from a reputable company (ask your bank or solicitor or realtor)

If the building inspection is good, the bank will lend the money and the solicitor says it is an ok deal. THEN on the settlement date. You end up with a huge negative bank balance and a home. Congratulations!
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  #5 (permalink)
: First you need savings. As much as possible
Then you need a good credit rating.
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  #6 (permalink)
: Kate, Go to Barnes and Noble and get a good paperback on 'how to buy a home.' Watch out for any 'get a home cheap' schemes you read about online, that kind of thing. Unfortunately, unlike in my day (we bought our first home in 1975), banks allow people to over-extend themselves--with our 1st home, we had to have minimum 20% down, plus prove that our income could support our mortgage, or we could not have purchased a home. Period. That's the way it should be. But now people are allowed to overextend, and many end up going bankrupt and losing their homes.

Many young people borrow or are gifted money by their parents. We helped our daughter, in fact, at around age 30. But she and her husband also saved very hard, plus my daughter inherited some money indirectly from her grandfather. I know that's not what you want to hear, and I feel sorry for young people these days that can't get help from their parents or grandparents. But owning a home at a very young age has its drawbacks, too. For one thing, it ties you down in an age where more people move and change jobs in their 20s and 30s than they did decades ago. My other two children don't own homes for that reason.
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  #7 (permalink)
: You are not alone. American education generally ignores being a consumer in the biggest consumer nation on earth. My neighbor teachs consumers ed in high school in Orange County CA - an upper income district. Go figure.

As others have written the library has books on the steps involved. No two transactions are ever alike but they do have elements in common
-avoid the get rich quick mentality
-determine where you want to live and can afford to live and become an expert in that area or areas of your town. Location location location. You can change the color of the exterior from teal green to white but you can't relocate the railroad tracks on the other side of your back yard fence or the freeway onramp etc.
-Look forthe potential in a property - potential to add value. If you are not interested in fixing then ignore that advice.
-Trust but verify. Lenders are there to make money. They do that by promising you a loan at X rate and just before the deal is set to close they tell you the rate has increased "due to the market". Lock in an interest rate and if the seller stretches out the deal be certain the increased cost is on him/her.
-Have a property inspection with a licensed inspector you select. The agent wants one who won't find diddly to close the deal which is when they get their commission. After that you are on your own and they are unlikely to return calls.
-Have a fall back position. If you loose your job or are transferred can you rent it out and cover your costs or is there a large negative?
-Get pre-approved for a loan. That isn't the end but short of an all cash deal it provides the seller with an assurance that you are not wasting his time. Of course the lender must appraise the property so a pre approval is conditional.
-Get your credit score up to or above 720, the line presently for the preferred interest rate.
-Don't obsess on interest rates. You can always refinance if rates go down [assuming your keep your credit score up] but you can never change the price of a house you paid too much for. Getting a decent price is really important in a market where there is a frenzy.
-In other words, get out there without any intent to buy and ask lots of questions, learn, learn who is BSing you, see enough to know a value when it appears.
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  #8 (permalink)
: With a good paying job.... and a mortgage

If they can afford the down payment they are still paying off their house its technically not their house but the banks till the loan is paid off

"Your car" isnt yours.... your parents probably bought it for you

Simply save and budget till you get situated
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