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Ok Lending Guru's. I have a serious question. What is a person like myself to do. I just graduated college and have a basic salaried job like most college grads. I have recently, due to circumstance out of my control, moved back home after graduation with my father, but I am wanting to buy my own place now. I am not married so that takes away the option of 2 incomes splitting a house note. I do not have $20-30 thousand sitting around to put down on a house. I do not want to waste my money renting an apartment. What do I do? Save up for 15 years and live with my dad. I don't think so. I can get a roomate, but do not want to depend upon them.

General rule of thumb..

Your house note should be no more than 25% of your take home pay for a 15 year fixed rate loan..
You should save up to put down at least 20% of the cost of your home.

Yes you may have to live with your Dad for awhile till you save up the money.. But If you can do this now, it will pay off huge in the future.. But if you have to rent for a while then do it until you can save up the money..

You should be able to quicly save up the 20% providing you do not have any additional debt such as car payments, student loans or credit card payments.. I have been through some financial training so if your interested shoot me a pm and I will work with you.. Take my word for it now is the time to plan.. I wish I could go back 15 years and start all over with what I know now..

GENTLEMEN:

My two cents...

You are describing in vivid detail the bursting of a speculative bubble...I have anticipated thsi for a couple of years, sold my rental property and got on the sidelines.... And, I have been on PAYGO since way before Dave Ramsey got rich off of it for a very simple reason: I dont sleep at night when I owe money- any money- to anybody...So I am like a buzzard circling, waiting for good prices before I come back in and buy...

Not to hijack the thread but to take it in a slightly different direction, my question for you is this: When will the speculative bubble in hunting land/hunting leases bust?

It is not conjecture that there are fewer and fewer hunters every year so the demand side is decreasing...At the same time, federal and state agencies are buying more and more public land and opening it to hunting, so the supply side is increasing...

The only plausible economic basis for the run up in land prices may be that (A) land is being developed to the tune of 5000 acres per day nationwide so hunters may be rational in buying hunting land now before it is all developed or (B) global warming and alternative energy uses for land may push land prices up across the board as more land is used to generate fuel and sink carbon....Given hunter attitudes expressed on this and other boards, that seems unlikely...

Even if that were true, the counter argument is that you make your money when you buy and the kind of prices I am seeing for land currently make me very doubtful whether you can make money at the prices being paid currently...

More power to the brokers and sellers that are capitalizing on this phenomena at present but my money stays in my pocket for now...If I am wrong so be it- I love to hunt but at some point as the prices continue to escalate, you say screw it, go on a few nice hunting trips every year and find something else to do.

cwinkler wrote:General rule of thumb..

Your house note should be no more than 25% of your take home pay for a 15 year fixed rate loan..
You should save up to put down at least 20% of the cost of your home.

Yes you may have to live with your Dad for awhile till you save up the money.. But If you can do this now, it will pay off huge in the future.. But if you have to rent for a while then do it until you can save up the money..

You should be able to quicly save up the 20% providing you do not have any additional debt such as car payments, student loans or credit card payments.. I have been through some financial training so if your interested shoot me a pm and I will work with you.. Take my word for it now is the time to plan.. I wish I could go back 15 years and start all over with what I know now..

Dave, is that you???

deltadukman wrote:Ok Lending Guru's. I have a serious question. What is a person like myself to do. I just graduated college and have a basic salaried job like most college grads. I have recently, due to circumstance out of my control, moved back home after graduation with my father, but I am wanting to buy my own place now. I am not married so that takes away the option of 2 incomes splitting a house note. I do not have $20-30 thousand sitting around to put down on a house. I do not want to waste my money renting an apartment. What do I do? Save up for 15 years and live with my dad. I don't think so. I can get a roomate, but do not want to depend upon them.

Marry a rich chic! problem solved

rustypjr wrote:Well I don't know much about mortgages or real estate. All our land is family land and I just signed a mortgage on my new house. I just completed my house and signed a mortgage on it Friday. IS there something need to know.

All this is hindsight now, but the only advice I can offer is to do your homework. i.e. - What are your credit scores?, How much debt do you have currently? and of what type?, How long do you plan to stay in the property? (Do you know that your company is going to transfer you every three years? or are you now in your 'dream job'? etc.), What are your future personal plans?, How much do you make?, How stable is your income?, What if the bottom falls out from under you? etc.

My $0.02

Jelly wrote:

cwinkler wrote:General rule of thumb..

Your house note should be no more than 25% of your take home pay for a 15 year fixed rate loan..
You should save up to put down at least 20% of the cost of your home.

Yes you may have to live with your Dad for awhile till you save up the money.. But If you can do this now, it will pay off huge in the future.. But if you have to rent for a while then do it until you can save up the money..

You should be able to quicly save up the 20% providing you do not have any additional debt such as car payments, student loans or credit card payments.. I have been through some financial training so if your interested shoot me a pm and I will work with you.. Take my word for it now is the time to plan.. I wish I could go back 15 years and start all over with what I know now..

Dave, is that you???

Not Dave... But I have taught his class a couple of times.. Made a big difference for me and my wife..

jacksbuddy wrote:

rustypjr wrote:Well I don't know much about mortgages or real estate. All our land is family land and I just signed a mortgage on my new house. I just completed my house and signed a mortgage on it Friday. IS there something need to know.

All this is hindsight now, but the only advice I can offer is to do your homework. i.e. - What are your credit scores?, How much debt do you have currently? and of what type?, How long do you plan to stay in the property? (Do you know that your company is going to transfer you every three years? or are you now in your 'dream job'? etc.), What are your future personal plans?, How much do you make?, How stable is your income?, What if the bottom falls out from under you? etc.

My $0.02

Credit scores good, one truck is the only bill I have, I plan on living here until the good Lord calls me home or my kids put me in a retirement home, my company will not transfer me (my dad is my boss), I make enough, if the bottom falls out I will start over.
The Lord has blessed me and my family. I have built this house myself with family help. Her dad is a contractor, my dad used to be a carpenter, my brother and here brother are carpenters, one of her uncles is a plunber the other is an electrician. I buitl it on family land that has been in my name for a while. I have been extremely blessed. I just hope I do right on the paperwork side.

cwinkler wrote:

Jelly wrote:

cwinkler wrote:General rule of thumb..

Your house note should be no more than 25% of your take home pay for a 15 year fixed rate loan..
You should save up to put down at least 20% of the cost of your home.

Yes you may have to live with your Dad for awhile till you save up the money.. But If you can do this now, it will pay off huge in the future.. But if you have to rent for a while then do it until you can save up the money..

You should be able to quicly save up the 20% providing you do not have any additional debt such as car payments, student loans or credit card payments.. I have been through some financial training so if your interested shoot me a pm and I will work with you.. Take my word for it now is the time to plan.. I wish I could go back 15 years and start all over with what I know now..

Dave, is that you???

Not Dave... But I have taught his class a couple of times.. Made a big difference for me and my wife..

Just messin with ya. I agree with a lot of what he says but don't agree with all of it. He's helped a lot of people that couldn't figure out hwo to get out of debt.

rustypjr wrote:

jacksbuddy wrote:

rustypjr wrote:Well I don't know much about mortgages or real estate. All our land is family land and I just signed a mortgage on my new house. I just completed my house and signed a mortgage on it Friday. IS there something need to know.

All this is hindsight now, but the only advice I can offer is to do your homework. i.e. - What are your credit scores?, How much debt do you have currently? and of what type?, How long do you plan to stay in the property? (Do you know that your company is going to transfer you every three years? or are you now in your 'dream job'? etc.), What are your future personal plans?, How much do you make?, How stable is your income?, What if the bottom falls out from under you? etc.

My $0.02

Credit scores good, one truck is the only bill I have, I plan on living here until the good Lord calls me home or my kids put me in a retirement home, my company will not transfer me (my dad is my boss), I make enough, if the bottom falls out I will start over.
The Lord has blessed me and my family. I have built this house myself with family help. Her dad is a contractor, my dad used to be a carpenter, my brother and here brother are carpenters, one of her uncles is a plunber the other is an electrician. I buitl it on family land that has been in my name for a while. I have been extremely blessed. I just hope I do right on the paperwork side.

Sounds like your doing alright.. Now just pay that truck off in a hurry..

Then Put 3-6 Months of bills back in a savings account..
Then put 15% of your pay in Mutal Funds for retierment
Then start saving for college..
Then pay that house off early..

Jelly wrote:

cwinkler wrote:

Jelly wrote:

cwinkler wrote:General rule of thumb..

Your house note should be no more than 25% of your take home pay for a 15 year fixed rate loan..
You should save up to put down at least 20% of the cost of your home.

Yes you may have to live with your Dad for awhile till you save up the money.. But If you can do this now, it will pay off huge in the future.. But if you have to rent for a while then do it until you can save up the money..

You should be able to quicly save up the 20% providing you do not have any additional debt such as car payments, student loans or credit card payments.. I have been through some financial training so if your interested shoot me a pm and I will work with you.. Take my word for it now is the time to plan.. I wish I could go back 15 years and start all over with what I know now..

Dave, is that you???

Not Dave... But I have taught his class a couple of times.. Made a big difference for me and my wife..

Just messin with ya. I agree with a lot of what he says but don't agree with all of it. He's helped a lot of people that couldn't figure out hwo to get out of debt.

Biggest help to us was to get my wife and I to start talking about our finances instead of arguing.. We had a basis to start off with.. We knew what we should be doing based on what Dave said. Then tweaked it to meet our individal needs.. We are now debt free except our house. Got our Retirment plans set up and are going to start on College and paying the house off early..

Biggest problem I had was that I had not built any credit, when I purchased a house. I had only been out of school 6 months and only employed 6 months. I have always bought trucks, toys, etc... with cash. I wish now that I would have built some kind of credit. I got stuck with some kind of PMI crap after I put a nice down payment on my home. Did not know it till I was closing and after the headache to get it financed I did not argue.
I was under the impression say 100,000 home was bought and you put down 20K that you would not have PMI. They did a 100% financing on we'll say the $80,000 that was left. I don't know much about mortgages, but I thought that putting a large down payment would have helped my interest % and payment. I will do my home work before the next purchase.

Faithful Retrievers wrote:Biggest problem I had was that I had not built any credit, when I purchased a house. I had only been out of school 6 months and only employed 6 months. I have always bought trucks, toys, etc... with cash. I wish now that I would have built some kind of credit. I got stuck with some kind of PMI crap after I put a nice down payment on my home. Did not know it till I was closing and after the headache to get it financed I did not argue.
I was under the impression say 100,000 home was bought and you put down 20K that you would not have PMI. They did a 100% financing on we'll say the $80,000 that was left. I don't know much about mortgages, but I thought that putting a large down payment would have helped my interest % and payment. I will do my home work before the next purchase.

You just got a chitty mortgage broker or rep. He/she should have advised you better.

rjohnson wrote:You just got a chitty mortgage broker or rep. He/she should have advised you better.

Family friend of my in-laws.
I learned the hard way on that one, I think.
She has not contacted my in-laws since our last heart to heart.

Faithful Retrievers wrote:

rjohnson wrote:You just got a chitty mortgage broker or rep. He/she should have advised you better.

Family friend of my in-laws.
I learned the hard way on that one, I think.
She has not contacted my in-laws since our last heart to heart.

If you put at least 20% down you should not have to pay PMI.. If you are paying PMI check the value of the property if it appraises for more than what you paid you may be able to get out of the PMI..