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Old 03-26-2007, 06:05 PM   #1
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Default I need older peoples advice about buying a house please help this is real life

Ok so I am 18 years old fresh out of high school, it is time for me to go out in the world and stop living with mommy and daddy. I work as a coil winder now and am starting off at 10 an hour and will get a raise after a month depending on how well I work and function. What do I need to do to buy a house I have already bought me a car payed off I figure the next step to becoming an adult is to buy a house. How does it work? can I take out a loan my first time? I really don't want to seem stupid just walking into a bank asking for a loan, I have me a house picked out I would like to buy, it is 80,000 asking furnished I know it could go for cheaper I have furniture in my room that is decent sized that would actually fill the house. What would the procedure be? Is it even capable of me not getting charged out the roof on interest? I figure making 10 an hour is plenty to pay off this house if I can negotiate down to 70,000 but I don't want to be paying a 300 grand interest loan. So this is where I ask for help.
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Old 03-26-2007, 06:37 PM   #2
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Default Re: I need older peoples advice about buying a house please help this is real life

I'm guessing from your spelling that you are in America?

I can't say for sure how it happens in the US, but in Britain it's not all that simple to just get a loan or mortgage to buy a house.

first you'd need to have a deposit, it's difficult, (and more expensive overall) to get a 100% loan for a house.

most banks will want to see serious employent history, and bank statements to see how you manage your money. just starting work won't likely be enough to convince them that you arn't a libility to loan money to.

it may be that you have to rent for a few years and hold down a job to be able to proove to the bank that you are safe and sound before they'll give you money.

most banks will also look at what you earn now to decide if yuo can feasibly make repayments...


all in all moving house is one of the most stressfull things that you can do in your life, and a big part of that stress is the money and paperwork!
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Old 03-26-2007, 06:51 PM   #3
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Default Re: I need older peoples advice about buying a house please help this is real life

Because you are only 18 your credit history is going to be quite short. I can guarantee as it is right now you will not be able to walk into any bank and pull out an 80 000 dollar loan. You will need someone with a good credit rating that will cosign a loan agreement so should you ever fail in making a payment the bank will use that person as collateral. If you were making more money then your chances of getting a loan would be much better but even making a mortgage payment earning only $10/hr is still probably going to be difficult to do unless you can setup a loan agreement that will give you a long time to pay it off. Of course the downside to that is the longer you take to pay it off the more interest you will have to pay in the end.
At this point all I can suggest for you is that you go to your bank and sit down with someone to discuss what's required to get this loan. Don't sign anything you are unsure about signing though.
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Old 03-26-2007, 07:04 PM   #4
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Default Re: I need older peoples advice about buying a house please help this is real life

First off, good luck buying a house.

Try either renting or getting an apartment. You'll simply be over-budgeting if you try to buy a house. trust me, been there, done that. It doesn't work. Get an apartment. $10 might seem good, but that's just because you're fresh out of highschool. $10 isn't nearly enough to buy a house. Hell, most families who make $30 combined an hour can't even afford to buy a house.

Buying a house requires roughly an income of something around $40,000 - $45,000 a year. Because of expenses, fixed and random. You have to be really mindful of what to budget.
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Old 03-26-2007, 07:05 PM   #5
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Default Re: I need older peoples advice about buying a house please help this is real life

As D88 said, you have no credit right now so getting a loan is pretty much out of the question.

Why don't you just see about renting an apartment for now until you work a while and save some money up. And get a credit card and use it then pay it off right away to build up your credit for the future. At 18, I wouldn't be worrying about buying a house, just worry about getting out on your own for now.
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Old 03-26-2007, 07:07 PM   #6
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Default Re: I need older peoples advice about buying a house please help this is real life

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Originally Posted by Tommy Boy
And get a credit card and use it then pay it off right away to build up your credit for the future.
Wrong.

You don't build credit that way. What you do is pay off somewhere between 80% - 90% of each bill. For roughly 4-5 months, then, when you get a credit score it will increase, THEN you start to pay the full bill.

Economics ftw.
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Old 03-27-2007, 02:20 PM   #7
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Default Re: I need older peoples advice about buying a house please help this is real life

Dude what are u talking about! lol $10/h....that is very little. DO NOT BUY A HOUSE!!! you not thinking of a big picture, do u think that the house will be ur only expanses? I mean u sad u have a car right? so i assume u pay insurance, you woud have to buy food for ur house, pay gas, pay for water + unexpected expanses + u prob want to have some money to like go out right? + maybe save up some money as well....etc ...etc ...etc you see where im going with this? Even if you could get a loan, and thatís a BIG if, you need to be 100% sure u can pay it back, or you will ruin ur CC history for God knows how many years...

My advice RENT!!! get a roommate. DD

Cheers.
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Old 03-27-2007, 02:56 PM   #8
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Default Re: I need older peoples advice about buying a house please help this is real life

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My advice RENT!!! get a roommate. DD

Cheers.
You're right, that is his best option. I mean, I can see why he wouldn't want to rent because he would be investing his money into something that will never pay off in the long run but until you can get a better paying job and build up some good credit history (for example, by using credit cards responsibly) then renting is really your best option if you don't want to be extremely poor and barely making ends meet.
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Old 03-27-2007, 03:20 PM   #9
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Default Re: I need older peoples advice about buying a house please help this is real life

Just get an apartment. Get a room mate. Much easier to budget and plus you have someone else to rely on if you have unexpected funds come up. Buying a house at 18, yeah, not happening. Or if you do, I give it less then a year before he gets the boot.
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Old 03-28-2007, 06:14 AM   #10
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Default Re: I need older peoples advice about buying a house please help this is real life

id rather buy a crappy house and make payments on that because when your done with it at least you can sell it for SOMETHING when you rent an apartment you dont get anything in return.

i suggest live with your parents or whoever you live with now until you can go to a 2 year college bunk there for a year or two and save up some $$$ youll get a lower interest rate if your going to college and you get good grades
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