Buying a House?

[Starry436]

We currently rent a town home in which rent just keeps going up (now $800) and we feel the town home is not worth this just by its location, the neighbors, and its very small. Rent was month to month after the first years lease and now they've did away with that and have sent us a new lease to sign for a year. We just bought a new car about a month ago, and I had credit with the last car that we traded in - but this is my fiance's first thing towards his credit.

After this new lease is up next summer, we wanted to look at buying a cheap house to avoid having to stay here any longer. Now, I don't know how much credit it's going to take to get approved for a house, or what our income needs to look like. I'm a full time student only working part time, and my income right now is wishy washy. My fiance works full time but has only been with his employer for almost a year now but his income has been steady. Can anyone tell me what it may take and how to go about getting approved for a home loan, or what our best bet is going to be? Will being married help any with getting approved? Our wedding is set for next year, but is after when our lease will be up.

Thanks

[jpg7n16]

From what you've said here, I don't think you should buy a home.

Questions around paying for the home:
How much would you have for a downpayment?
How much would you have for furnishings + paint + repairs?
How much for the unknown repairs that pop up in a few months?
Who'd take care of the yard? What would that cost?
How much are property taxes + insurance?

Questions about your financial situation:
Do you have a 3-6 month emergency fund set aside?
How much do you owe on the car? How much is that per month?
How much will the wedding cost?
How much student loans will be out there?
What other debt do you have?

I don't see many good answers to those questions based on the context clues in your post.

I also wouldn't worry about the effect of getting married on your credit. If you are going to get married, you're going to get married. The credit situation will be what it is.


I believe you should keep on renting. You should focus on school. You should enjoy your new marriage. You should begin a retirement fund. And you should worry about getting a house later.

[actonwilliams]

Buying own house now, not very good decision at this moment as you have discussed your financial status. I recommended to stay at rental apartment for some more time as far as your financial conditions improves.

But still want to go for your own house then search online, there are many mortgage lending companies offering free mortgage calculator which will helps out to calculate the current financial payments and you will get rough ideas about your installments. Afterwards easy to decide whether go for a mortgage or not.

With Regards,
Acton Williams

[bjl584]

As jpg said, probably not a good idea. For a more detailed answer as to what you should do if you want to buy a house, then post some more detailed information about your situation. Let's see some numbers.

[dczech09]

Are you sure that your reasoning for wanting to buy a house is sound? It almost seems like you are considering this because it is what is "expected" of you. You also seem to let the external forces (which you cannot control) have too much power.

Do you meet these criteria?

1. Have an emergency fund of 3 to 6 months
2. Have a sizeable downpayment so that you can start with at least 20% equity in the house
3. Have no other debt except MAYBE a small amount of student loans (payments not exceeding 10% of income)

If you do not meet these criteria, then home ownership should not be on your mind. Yes, you could certainly get a house without meeting these criteria, but doing so will set you up for some stress and being "house poor."

Don't be in too much of a rush. If you are not happy with your current renting situation, then search for a new renting option. Is your current landlord charging fairly according to the market in your area? You say they keep increasing the rent; is everyone else in the area doing that?

I am going on to my third year in my apartment and the rent has not changed.