Save for a house.... how?

[kork13]

Okay, so I've been thinking about this for a while and decided to just throw it to the wolves and see what you all have to say...

I'm looking to start saving for buying a house of my own. I don't know where, or exactly when (probably no earlier than 3-4 years from now, probably more), but my question focuses on HOW, or perhaps WHERE to save the money for it.

My question in short.... what would be the best way for me to start saving for buying a house? Not certain exactly when I'll actually buy, but I want to be ready for it when the time comes.

[okaythen]

you need good credit score, so starting gettign good credit score. With good credit score you can get more at a lower rate.

yup start saving, start looking at which area do you want and what's the price range that you want/can afford and work toward that goal.

Maybe you can consider borrow money from parents, relatives for a downpayment, that's one pissibility.

If you really don't have that much money consider moving to a cheaper states with cheaper houses and living expenses, like for CA the housing is really expensive and living expenses are high, where in TX housing is much cheaper so are the lviing expenses. I think TX is pretty decent I am thinking about moving there actually. Or if you live in downtown or some expensive area consider a little longer commute and living in suburb or somewhere that's cheaper in housing and living expenses

good luck

[jIM_Ohio]

You need to look at houses without making a decision on anything. Window shop if you will.

What wife and I did is take a Saturday or Sunday, then take a drive and tour a few different models by builders. Even if you don't build, this will be eye opening- you will be surprised at what you decide you need or do not need.

You will also see how much things cost in a given area. Price the same model out in two different locations- that will give you a location cost.

If you choose to buy an existing house, you will be able to use the info from what a builder charges to your advantage (this option costs $x over base price).

Make it a point to set aside a given amount per month.

If you think mortgage will cost $2000/month and you pay rent at $800/month- set aside the $1200/month difference in a cash account and use that for the down payment.

Plan on 20% down.

Plan on about 10k to close (in addition to down payment).
If you have credit score issues, fix them now (time heals a credit score).

Have fun and make good decisions. Houses are illiquid- if you have one you don't want, it's not easy to get rid of.

[momof1in150]

Most Realtors know that it is taking 6-12 months to buy/sell a house. Call a realtor and meet with them and have them show you what is out there so you can get a good idea of what you can afford. The simplest way to determine what you can afford is multiply your gross income times 3. Of course, you will need some for a down payment and good credit but it is a good motivator when you have an idea of what you want.

[Ima saver]

Start saving using the $20 challenge on this forum!!

[disneysteve]

what would be the best way for me to start saving for buying a house?

I'm not sure if you are asking where to put the money or how to come up with the money.

If you are asking where to put the money, I'd say that for a short-term goal, less than 5 years, you need to keep the money safe and secure in a high-yield MMA or CDs. You can't take stock market risk with that short a timeline.

I also agree that now is the time to check your credit reports from all 3 bureaus and correct any errors you find. If your FICO score (myfico.com) isn't up to par, do your best to get it up as high as possible before you go looking for a mortgage.