[3 Stripes]

Originally Posted by My335iTT

Sounds like you are doing a couple things backwards, student loans then buying a car, should paying off student loans, getting settled into a house then buying a nice car.

Since plenty of people have brought it up (and i see why you would) - I have never had a doubt in my mind that i am going to be married to my girlfriend and that she will be there to help me. It seems backwards to me to invest in a property later in life rather then doing it while you are young. Getting married is a bad investment at this age. It is literally money that will be thrown away and delay us from getting a property - with nothing in return but pleasing family. We both have already agreed on this.

[LACSTER]

[MrRoboto]

Whats your net income?

[chumley]

I would reiterate what was already said that you should pay close attention to the other costs such as property taxes, homeowner's insurance, association fees (if any), and maintenance. Renting exempts you from all of that.

I have no idea what the Chicago area is like but good insurance coverage + property taxes here is SWFL is over $10K annually on houses in the $500-$600k range - practically another mortgage.

[LACSTER]

Originally Posted by chumley

I would reiterate what was already said that you should pay close attention to the other costs such as property taxes, homeowner's insurance, association fees (if any), and maintenance. Renting exempts you from all of that.

I have no idea what the Chicago area is like but good insurance coverage + property taxes here is SWFL is over $10K annually on houses in the $500-$600k range - practically another mortgage.

+1

The OP said he wouldn't mind paying another $200 or so. If that's the case he would need to find a home in the $150k range to have a PITI around $1200.

[f30nynj]

What is your contingency plan?

1. If you lose your job? Do u have savings
2. What if you breakup with ur gf? Just a hypothesis. Blindly saying "we are meant to be together and nothing can part us is sheer ignorance."
3. Have you talked to your gf about legal matters if things don't work?

All I am saying be prepared for the worst, then you'll be alright.

[jlstyle]

Originally Posted by 3 Stripes

Thanks for the all the positive and negative feedback guys!

To add to my original post -
I am aiming for about 200k. I live about an hour away from chicago already and plan to stay here! You can get something really nice for 200k.

Here is an example:


As far as my "no money in the bank" statement - Income tax season is around the corner. Based on what I got last year and what my girlfriend has in the bank - We can put 10% down on 200k. Not much - But our real estate broker said it would be enough. Since our real estate broker is family - she will be giving us the money she makes if a sale is struck. That can then go back in to the original down payment.

Even with that being said - I still have 65k of loans under my name. Not sure how the bank feels about that. All i have to show is my Credit score and that i can keep up with the payments (even without my gf) with my current salary.

I know i'm young and can still wait for a home. Say i wait another 5 years until i have my car paid off and 3 years left on my school loans. The housing market will likely be back up - And this 200k house can potentially go upwards of 250k. Here is a pricing chart for the house mentioned above:

I will have to borrow more from a bank - but will have less loans to my name. Keeping the fact that it has the potential to move up to 250k - I will profit even more because the value of my property will go up and will have 5 years of payments - as well as having paid off my car and 3 years left on my school loans. The bank will have to lend me roughly the same amount (with or without waiting) at the end of the day don't you think?

Ok now we can talk more since you are aiming for 200k range.
I don't know why people are saying that you can't afford the house because of your car and school loans. As long as you have enough income to cover, lender should be ok with it.
I assume you are making over $75k a year. If not, I doubt you will be qualified.

As for the down payment, if you are looking to buy a house soon after you receive your tax return, mortgage lender most likely will not count your tax return as valid source since it's not your average regular income.
You will have to wait about 2 months (depends on the bank) so they don't question the source of money. Or, you could give that money to your parents and have them pay you as a gift for the home.

Down payment rates depends on type of property assuming you are going with conventional loans. Lender will require 20~25% down payments for townhouse and condos, but you can buy the single house with 10% down without a problem. So factor that in.

Also, check the property tax. In some areas where taxes are high, they become huge additional payment to your mortgage.

As far as your comment about gaining value in your property, you are not thinking about mortgage interest. You can say your property value went up $50k but you should have also paid ALOT for your mortgage interest.

Since you are young, if you are thinking of moving within 7years, you can always buy a house with 7 yr ARM instead of 30 yr fixed. By going with 7 yr ARM, your mortgage payment will be reduced and you can sell the property before rate unlocks.
Difference in mortgage payment should level off the PMI you would be paying.

Lastly, don't try to get a mortgage from a big box banks. With your conditions, I doubt any of major banks will qualify you. You should hire a mortgage broker and get your loans from wholesaler. Big banks are hard to work with, and slow to work with. They are just PITA.

[NemesisX]

Originally Posted by MrRoboto

Whats your net income?

You realize this is almost certainly a parody/joke thread right

I mean he practically gave it away here:

I'm 24. Just bought my BMW 5 months ago. I have no money in the bank! (Have been spending what i have on car parts :/ Young and stupid hehe). I have two major loans - 25k left on my bmw and 40k left on my school loan.

[Boben5]

Lets be real here: your not going to be able these days to get a loan-YOu have no money in the bank! Thats the first place mortage co's. look at your bank acct. On the bright side, lets say you do get married and you and your wife put money in the house together and she has a change in heart in being married (flip of a coin,50/50) , at least all she would get is the house because you dont have any money in the bank.

[Whostheboss]

Originally Posted by LACSTER

+1

The OP said he wouldn't mind paying another $200 or so. If that's the case he would need to find a home in the $150k range to have a PITI around $1200.

Your Car is sick.

[grimlock]

If you know you're only staying a certain length of time, then there should be a calculation that you can do that takes into account rent/tax/etc. to see if it is a good 'bet' (in terms of appreciation/depreciation) to buy since that is what it is if you know you will sell at some point.
If you have plans to stay somewhere it's a little different.

[SLOWER]

Originally Posted by My335iTT

x100,00,00,00,000

should be paying off student loans, getting settled into a house then buying a nice car.

Fanastic advice right here.

[3 Stripes]

Update:



I decided to pull the trigger on a fixer upper in July. You can get a better bang for your buck in the suburbs outside of chicago! 2,300 sf, 3 bedrooms, 2.5 baths, unfinished basement. It came with new appliances, washer & dryer, new furnace, and new water heater. The buying process was a little stressful but easier than I thought. I didn’t really have any problems getting approved for a loan under my name even though I already had a lot of debt. The house was valued under market due to the condition of the house and came well below my budget of $200k. I gave a lower down payment in order to do some renovations. From August-September the house underwent some renovations. We decided to get laminate flooring, new carpet, new paint, and 18 new windows. We have paid under $20k for material and labor due to the fact that my uncle’s company did most of the contracting work (except for the windows). As it stands, I have gained a lot of equity in the home in a short amount of time. In the coming months I will be re-doing the family room and kitchen.

[kevinbahnz]

thats a fixer upper? looks nice , and congratulations. I bought a fixer upper last year and its been a headache. WE're settled in right now but there's alot of work left to be done to this 60 year old home.

[ASAP]

Damn... Chicago is cheap compared to DC. Congrats!

A house like that close to me, you couldn't steal for $350K.

[SLOWER]

$20k for laminate flooring, carpet, and paint?

[UncleWede]

and 18 windows

[bimmerfrk]

Pics of said gf.....?

[gtron]

Originally Posted by ASAP

Damn... Chicago is cheap compared to DC. Congrats!

A house like that close to me, you couldn't steal for $350K.

that's not chicago. that's some city in illinois.

you couldn't buy a house or condo in chicago for $350k unless it was near some housing projects.

[Kwando]

Cute house. Invest in some camera operating lessons. Gave me a headache.

[MrPrena]

1. Housing near Chicago Surburbs are so beat up even now that it will most likely to go up. It is cheaper than Denver Metro area. Denver metro and surburb area housing price is much higher than 2006-7 now.
I would rather live in a huge 4500+ sq-ft house in Chicago burbs than 300sq-ft trailer home at Palo Alto CA for a same price.

2. BMW? You already bought it. Keep it, unless your debt/income needed to be leveraged.

3. BOLD HIGHLIGHT- DO NOT do that, unless you guys are engaged. GF? you kidding? rent free. have her pay off the debt. no way.
I had friends' former gf bailed on them for richer guy after they paid off debt and saved enough cash.

Originally Posted by 3 Stripes

So I recently accomplished one of my life time goals - buying my brand new bmw ! It's time to move on to the next big purchase - a place I can call home! I currently live in a 1 bedroom apartment and am paying 1k a month on rent :/ I feel like that money is definitely going to waste! My girlfriend and i have been talking about buying a property (house/condo/town house). I know little about this subject and thought this would be a good place to start!

I'm 24. Just bought my BMW 5 months ago. I have no money in the bank! (Have been spending what i have on car parts :/ Young and stupid hehe). I have two major loans - 25k left on my bmw and 40k left on my school loan. I have a pretty good credit score (780). My girlfriend (21 years old) has been living with me for over a year now. I don't need her to help me out financially at this point because i am letting her pay off some of her debts (she has horrible credit - got declined on her first credit cart application) since she just started her career as a massage therapist and finally reaping the rewards of hard work. She agreed to help out once we buy a home.... I'm living comfortable in a nice suburb outside of Chicago. For the amount of rent I'm paying - I'm better off paying another 200 dollars more a month and be living in my own home.

Ive received some good advice so far! I'm looking at foreclosed homes - but don't necessarily have to stick to that. My girlfriends grandmother can help us out in the buying process - she is real estate broker and has several properties. Ive also heard of first time home buyer grants, but i wouldn't know where to start!! HELP!!!!



Update:



I decided to pull the trigger on a fixer upper in July. You can get a better bang for your buck in the suburbs outside of chicago! 2,300 sf, 3 bedrooms, 2.5 baths, unfinished basement. It came with new appliances, washer & dryer, new furnace, and new water heater. The buying process was a little stressful but easier than I thought. I didn’t really have any problems getting approved for a loan under my name even though I already had a lot of debt. The house was valued under market due to the condition of the house and came well below my budget of $200k. I gave a lower down payment in order to do some renovations. From August-September the house underwent some renovations. We decided to get laminate flooring, new carpet, new paint, and 18 new windows. We have paid under $20k for material and labor due to the fact that my uncle’s company did most of the contracting work (except for the windows). As it stands, I have gained a lot of equity in the home in a short amount of time. In the coming months I will be re-doing the family room and kitchen.

Check out the vid below!

[Flying Ace]

Originally Posted by MrPrena

1. Housing near Chicago Surburbs are so beat up even now that it will most likely to go up. It is cheaper than Denver Metro area. Denver metro and surburb area housing price is much higher than 2006-7 now.
I would rather live in a huge 4500+ sq-ft house in Chicago burbs than 300sq-ft trailer home at Palo Alto CA for a same price.

2. BMW? You already bought it. Keep it, unless your debt/income needed to be leveraged.

3. BOLD HIGHLIGHT- DO NOT do that, unless you guys are engaged. GF? you kidding? rent free. have her pay off the debt. no way.
I had friends' former gf bailed on them for richer guy after they paid off debt and saved enough cash.

yeah, totally agree on "rent free". She needs to pay and learn from Mr. Prena....DO NOT, and I repeat DO NOT, sign over the Avalon's title to said g/f, until you put a ring on it, and she's put out.