Housing news has been bad lately and you may feel confused about whether of not you should buy a house. First, I'd say there is not as much doom and gloom as the media would like you to believe. After all bad new sells... This is a great time to buy because there is a lot to choose from and sellers are more willing to negotiate. That just means you get to buy a house you like for a fair price.
Two years ago we were bombarded with the idea that you needed NO MONEY DOWN to buy a house. Buying a house is not like buying a TV or a cell phone - there is a lot more to it than that. What they didn't tell you is that it costs money to buy a house and money to maintain a house and if you put NO money down the payments were higher than if you DID put money down. Saving for those events is a MUST.
So lets look at what you Need to Have.
You will need the following:
Money to pay your closing costs which will be somewhere between $3000-$5000.
Money for a downpayment (there are still 100% loans out there, but you must pay a higher interest rate, so aim for putting some money down). Plan to have 5% of the purchase price of your home (If you want a $100,000 home, that is $5000).
Also you should have money for moving costs, having utilities turned on and some extra cash say to buy something to cover the windows so everyone can't see right into your house.
So you look at this and say oh my gosh, I'll never have 10K. Well, yes you CAN save for a house if you make it a priority. First of all, get rid of spending on all the non-essentials. Write down everything you spend your money on in a month. Most people are suprised at where their money goes and how much they waste. Ask yourself tough questions like do I NEED that coke out of the coke machine (at $1 per coke, how much is that a month). Do I NEED to eat out everyday or can I bring my lunch to work. Do I NEED the newest and latest cell phone. Can we carpool to save money on gas....Make a plan to save an amount monthly to acheive your goal. Some employers even let you have money automatically deducted from your paycheck and sent to savings so you never have the money in your hands. You'll be suprised how quickly it ads up and if you are used to saving, once you own the house you'll be able to save some money for those home repairs.
Seems like a lot of work, but you'll be able to have a home, be able to take care of it and build equity in Real Estate which equates to building wealth for the future.
Good Luck
If you want to ask any questions about Buying A Home in Hoover, or the greater Birmingham,AL area, please contact me at www.ToniBird.com
