First time homebuyer

posted 1 week ago in Home
Post # 2
Member
5534 posts
Bee Keeper

graced :  I think that’s a great plan if it works for you. We lived together, but I bought our house before we were married until we were married and joined finances my husband paid me rent. It worked out perfectly. 

Post # 3
Member
2071 posts
Buzzing bee
  • Wedding: September 2018

Are you sure you’d qualify? Do you have savings? Do you have a down payment? Steady job? Steady income?

Post # 6
Member
390 posts
Helper bee
  • Wedding: October 2019

Just make sure you’re buying in an area that you intend to stay in for a bit.  My FH and I both bought our own condos at almost the exact same time…and then met each other 6 later, lol.  So now I’ve only lived in my home that I love for a short time but I’ll be selling soon because we’re going to move in together at FH’s place (his place is better for driving to work for him).

That, and be sure to ask SO MANY QUESTIONS to your realtor about how much your mortgage will cost you all told, fees that will sneak up on you during the process (I had to pay for 3 inspections and they’re not cheap), etc.

Also, since you’re in grad school, I imagine you’re not making payments on student loans yet.  If you have loans, just remember that you don’t get to decide how much you pay on them per month – it’s decided for you.  Factor that into your future monthly costs for if you take on a mortgage, HOA fees, savings for emergencies, etc.

 

ETA: Just saw you have no loans.  Yay!

Post # 7
Member
279 posts
Helper bee
  • Wedding: July 2018

Get pre-approved for a mortgage first, this way you know if your plan is possible or not. Normally as a first time homebuyer you don’t need much of a downpayment, but you might have to have enough in savings for closing costs. You also have to have a certain credit score and proof of a steady income – be at your job for 2 years or if you switched jobs, be able to prove with pay stubs that you did not have gap between jobs over the last 2 years. 

 

Just saw your comment! Sounds like you’re pretty set financially! So you’re plan sounds good, I’d definitely get pre-approved before you start looking so you can put an offer in as soon as you like something and then you won’t miss out on a good opportunity!

 

Post # 10
Member
5534 posts
Bee Keeper

graced :  it sounds like this is well planned out on the buying side (although I would want more than $10k in the emergency fund as a homeowner, but it’s certainly a great start especially given your savings rate). How does your fiance feel about it? Will you charge him market rate or will he pay the mortgage and utilities? My husband had wanted to stay in our rental apartment for another year and couldn’t afford more so I only charged him what we would have been paying in rent to stay at the apartment. It meant I was paying more to live in the same house, but it’s also my house lol. Once we married and joined finances though the rent went away because we started paying all bills from the same account.

Post # 12
Member
975 posts
Busy bee

The only thing I’d suggest since this would be a starter home is to buy with an eye towards resale value.  What’s the neighborhood/schools like?  Is it an up an coming/transitional/established neighborhood?   What’s the location? Is it in a walkable area? Near shopping?  Is it near transportaion (that could be good or bad depending on the area)

The stuff you look for will be pretty similar to future buyers wants/needs.  You’ll want to be able to sell for top dollar or if you decide to keep the property, you’d probably get a decent rent rate for it as well.

Post # 15
Member
1505 posts
Bumble bee
  • Wedding: July 2011

Sounds like you’ve a good head on your shoulders so if you can afford it you should buy a townhouse. 

BUT! If he’s going to live there and pay you rent until you’re married make sure you have a proper tenancy agreement drawn up and that you have everything in writing and a legal agreement. You’re not married yet and couples are always happy until they’re not. Best to work out what happens if you break up now and have your investment protected. I’d also consider a prenup when you marry, at least to protect this property until you are in a position to buy something together. 

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