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We haven't gone to the bank yet, and we definitly will. I am currently swamped at work coz some guy quit and it is our buissiest week of the year. The math I listed was my math, going by adverages that I found in home guides, and I know how much repairs, utilities, ect. can cost. My roommate suggested that my Boyfriend (of 2 yrs) move in with us to help with the bill. When she gets a boyfriend, I don't mind if he moves in too. We arn't looking at anything with less than 3 bedrooms (one for each of us) Were getting something with alot of space in case something like marriage happens.

Also, even though morgages are for 30+ yrs, Im sure one of us will be in the area for a good amount of time after we graduate in three yrs. She wants to teach in either Ill or Ky which are bolth a 10 - 15 drive from here, and I am rather keen on this area anyway.

My math looks like this by the way ($58,000 home)

Morgage: $300 - 400 (House Guide said closer to $300, but I am going on the safe side)
Taxes: $100?
Utilities: $100 - 200 (It would most likely be $100, again safe)
Phone/TV/internet: $80 + -
Repairs: @ least $200/mo.

Am I underestimating anything or leaving anything out?

Inky

1. Go see a mortgage broker BEFORE you even consider buying a house (or seeing a realtor). That way you can get preapproved for a certain amount (all depends on a number of factors), and you can walk in with a preapproval notice. Gives you more power, and the seller doesn't think "gee, will they have that amount for the house".

2. Have at least 5% of the loan amount as a downpayment. (which, on a $60,000 loan would be $3000). That amount CANNOT be borrowed. That is $3000 in CASH.

3. Have enough to cover the closing costs on the house. That can vary anywhere from $3000 - $5000. And once again, that is CASH. Not Borrowed. Unless you can get the seller to cover the closing costs, which, on a house that much, would be unlikely.

So before even looking, have enough saved. Anywhere from $6000 - $8000 depending on what you can get.

And because you're so young (what, 20yrs old), your interest rates (or monthly payments) would likely be higher as you're a higher risk than someone that is married and has two incomes. (Living together as two single people may sway the lender in the wrong direction).

another factor to look into is the amount of credit either of you two have from previous.... im not sure, but i don't think they will take into account a second income, unless you're married...... thats the problem i'm having now.. i have the good credit but not the income.... with my spouse whom im not yet married to, i would have the income, but we're not married, so they won't take into account his income..

your best bet is to see a broker BEFORE.. it seems like you're planning on doing this REGARDLESS of anyone elses' opinions...

i also think your math looks a little on the cheap side.
your mortgage payment will most likely (differing one amount of down payment and credit) be way higher than $400... usually its the amount of a good months rent in a rent house.
property taxes are crazy where im at im not sure in your area
utilities are WAY more than $200 for me, and i live in a 3 bedroom house thats 1300 sq ft.. its small by most standards
our water bill is about 50 a month(all those damn fishtanks!)
our gas bill is about 70 in the summer and has been in the past 200 in cold months
the electric bill is about 100(we've got it averaged)
phone-cable-internet 120

so theres my final monthly expenditures... like i said before definatly talk to a broker before final decisions are made... and also when you do decide on a house.. have it inspected for anything that you could miss that the untrained person might not see.

*Chelle*
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I love the fishes cuz they're SOOO delicious...

The cable/phone company i go with right now offers a MUCH cheaper rate then that! We pay $30 right now for TV/Phone (no discounts from our complex) It is $20 more for cable and another $30-40 for internet, but we can always do a cheap dial-up service

When we were looking at apartments they all said that utilities in this area are about $60 - 100, if we have the home I think that they would be as much as double, even though we arnt home half the time.

I have 2 jobs, my room mate is looking into a second job, and my bf will be looking into a new job we have an income

Inky

yes, but from a lender's perspective a house with three non-related individuals is a higher risk than a couple with even one income.

According to your original figure 'we have paid'.
You've paid half of that, $350. a month approx for the last year. This is squat. It's a long jump from that to buying a home. Triple what you've paid, you begin to get it.

Almost guaranteed if you buy with a 'school chum' it will turn into a major headache. I've seen this happen a few times. You and your b/f will probably want your own space and privacy in the future too. If things don't work out, it's hard to get out of a long term financial contract which is what you're looking to sign.

I agree on how buying a home is better then paying rent,
but there's also a time to do so, now is not it. You're not even done school yet !

Good luck either way though, at least you're weighing your options and thinking.


The Amazon Nut...

We plan on getting a home with a good amount of space for the money. If me and my bf want more space, we can make the basement our little home or something. We'll cross that bridge when we come to it. I don't think that it will turn out to be a major headache unless something MAJOR happens to one of us, which is always a possibility. If one of us backs out, we still have 2 people able/willing to pay for the house.

Inky

just a random question, but why did you ask for all of our opinions if you're not taking into account what anyone thinks?

whatever you do, good luck. you'll most likely need it.

*Chelle*
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I love the fishes cuz they're SOOO delicious...

It could be we are a 'sounding board', and that is ok.
Our 2 cents were asked for and we did our part

The Amazon Nut...

werd.

*Chelle*
_______________________________________________
I love the fishes cuz they're SOOO delicious...

I am taking it into account. I have honestly considered your opinions, and they have been most helpful. I would have never thought to go to a bank first, ect. If I sounded rude, I appologise. I'm pretty set on moving now, but I am still debating it and I am leaning twords waiting now though, but since Ive never bought a home or anything before, I wanted a variety of opinions to help my decision or cover anything that I may have missed, and help me rethink things. Yall helped me with that and I really apreciate it. Thank You ^_^

Also, DaMossMan, what do you mean by triple my $350? Do you mean that it will be over $1000/mo for all of us or each of us?

Inky

well this is for sure a good place to get opinions from around the world... i also did not mean to sound rude, but it did seem like no matter what anyone told you, you had your mind set on buyin a house. if anything, you should talk to the parents here and get honest opinions from them, they've probably been there too.

*Chelle*
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I love the fishes cuz they're SOOO delicious...

If one of us backs out, we still have 2 people able/willing to pay for the house.

It is unlikely that it will quite work that way. The person leaving will want the dosh they have sunk in. If they have paid $20 thousand and the property has now appreciated they will want that as a pay out. So when the person is no longer paying the mortgage your repayments not only go up you have to give them a chunk of dough so you own less of the property than if you all stayed in the deal.

This is the sort of scenario that occurs when a marriage ends and one partner buys the other one out.
own $100,000 of the house
still owe the bank $80,000
partner leaves and you have to give them 1/2 what is owned (ie $50,000)
so on paper you now owe the bank 50,000 that your partner took and the outstanding amt of $80,000.
total now owed is 130,000 and you have to cover the repayments on one less wage.

Go and talk to the finance peeps. That way you will know what they are looking for. You may find they send you away and tell you to come again when you have saved xxxx amount of money for a deposit.

Once you have finance you can look at houses in your price range and are in a better position to make an offer with pre approved finance. If you still want to go ahead with friends.





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~~~ My fish blow kisses at me all day long ~~~

My math looks like this by the way ($58,000 home)

Morgage: $300 - 400 (House Guide said closer to $300, but I am going on the safe side)
Taxes: $100?
Utilities: $100 - 200 (It would most likely be $100, again safe)
Phone/TV/internet: $80 + -
Repairs: @ least $200/mo.

Am I underestimating anything or leaving anything out?

This loan is for a long, long time. You will be paying back student loan, car loan, medical expenses.
Repairs on the house (roof, driveway, tiling, hot water system/heating/cooling etc)
Buffer for ongoing maintenance (fridge dies, back steps need replacing)
Council rates (may be diff in your country)
annual land tax (may be diff in your country)
Food
Entertainment
Travel to visit family if they do not live in your area (Thanksgiving/xmas/family weddings or bdays)

You will be limited in the jobs you take as you are committed to staying in that area for a period of time (min 5-7 yrs). Have both you and your b/f thought of this?

Once you finished college did you want to travel at all. back pack around Europe for a few months? Have you travelled overseas at all? Once you buy a house it is limiting the capacity to travel.

I am not going anywhere for a while - I have a mortgage that I am paying on my own. I am not saying it is impossible but the timing is really important.


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~~~ My fish blow kisses at me all day long ~~~

"what do you mean by triple my $350? Do you mean that it will be over $1000/mo for all of us or each of us?"

In hindsight, the cost depends on a few things.
It can really vary.

1. Number of people splitting the bills.
2. Area you live in / real estate values.
3. Property Taxes.
4. Cost to maintain your property.
5. Utilities
6. Food
7. Insurance - you would each want your own policy
covering your share of the property, unless you
can get some kinda joint policy... BUT you would
want the value of your personal items covered too.

$800. to $1200. just for the mortgage payment.

Partners tend to come and go, you cannot take someone for granted. What if one or two people leave ? Wish-ga makes a great point.. Can you and your friend pick up the slack say $800. or so apiece all costs in ? Or would you sink ?

Talk to an advisor at your bank, and get your friends to do the same.. The first thing that will happen if being considered for a mortgage is your credit ratings will be investigated. How does everyone stand ? Any debts ? Alot of students these days have an incredible amount and already have credit cards maxed, not to mention student loans to be repaid and tuition costs. Do you have a mortgage downpayment saved up as a group, say $10,000. ?
If not, start saving now. Do you have a personal emergency fund for yourself saved up also on top of that? Say $5000. ? I've really learned something the hard way. Be prepared for emergencies of any type. Rule #1 is CYA. (Cover Your.....) Then, cover it again.

Not trying to scare you at all, and I'm quite glad you are trying to look at all the angles. That is wise. Hoping this helps you.



The Amazon Nut...

I don't have that much saved up YET. I try to put a little in the bank every chance I get. I should have a couple thousand saved by the time I move in, if all goes well with my job. Out of the three of us, Im the only one with debt other than student loans ($350 Credit) Due to the fact that when I was unemployed, I charged everything like an idiot But that included my emergancy trip home ($150) when my aunt died.

Do you think we could find someone who would pay closing costs? Is that few and far between or only with tiny homes that run for under $15000?

I have always paid for everything in the past 2 yrs. My parents have helped out a little (they forwarded me money for food while unemployed, and paid my first semester's tuition) other than that I am on my own. Me and my roommate have always paid our own food bills and other expences. (We share food when each other needs help, but we generally go shopping seperatly since we are on different scheduals, like right now I get free food at work and work almost everyday, so my food bill has been about $5 - 10/week) Point is, Im used to being on my own, sos my roomy. We have been through some tough times, and we bolth have okay jobs (Ones that pay like $6/hr, but have GREAT advancement opps, and Im still getting calls from all the apps I put in a month ago) Again, not trying to sound rude, but I have been on my own for awhile ^_^

Inky

Do you think we should just try and find a bigger apartment? If all three of us chip in evenly we can easily afford a bigger one and wind up SAVING money (we pay $700, he pays $500) so if we get one for like $900, we would all win right? Do you think we should do that instead of getting a house?

Inky

Inkling that is a good idea. Take a look at doing that and you will still be able to save towards your goal of home ownership.

You and your b/f can pool dosh to put towards meals.

Still make sure that if someone moves out the other two can cover the rent until you get another person in.

If it is a two bedder and your b/f moves out (sorry to mention it) then you and your roomie have to cover the entire $900 bec both bedrooms are occupied and you can't get a 3rd person in. Think about this with the lease.

I like that you are exploring all the options. I hope you are happy in your new nest soon. It is so important that your home is a little haven.

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~~~ My fish blow kisses at me all day long ~~~

Thanks for all the advise! It has been very helpfuk!

Inky