My fiance and I are looking to buy a house. We live in the midwest and we have a monthly income of around 4,000. The only debt we have is his car loan and the payment on the engagement ring. We were thinking maybe getting a 100,000 house or a little more. What were the amounts of your first homes?

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  • Andrea

    April 18, 2016

    My first home cost $116,000 and i had a $525 month mortgage.

    Reply
  • I_luv_sr8889

    April 18, 2016

    You might be happier if you have financial room to breathe. It might be better to buy a duplex and live in it a few years while renting out the other half and preparing for your next purchase. Then you can rent out both halves, and pay for 2 houses.Think about the return you can get.$100k doesn’t seem unreasonable to me for the midwest, but I would hope you would put that money to work.Remember these thoughts:Sell the house before you buy it (think about the future selling possibility, and be realistic).Never buy the most expensive house on the block.Size up the neighborhood. Will the house sell in a few years?My own house has increased in value by $30k in less than 2 years.

    Reply
  • Eden_Silk

    April 18, 2016

    Obviously it depends where you live. But I believe the latest national average for a single family home is approx. $210KAnother way to look at it is to consider your income. The monthly payment on your home should not exceed 25-30% of your gross income.One other thing to consider. I paid 250K form my home 7 years ago it is now worth $700K. Even if the bubble bursts it was the best investment I ever made. Good luck.

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  • Heather

    April 18, 2016

    your mortgage payment and total outstanding loans should consume less than 40% of your monthly GROSS income (not take-home pay) so that you have a little cash flow and you are not living on the edge. Someone else in this thread wrote that you should go a little smaller than what you could afford – good advice. You can always upgrade to a larger home later. Don’t over extend yourselves right out of the gate.

    Reply
  • Danielle M

    April 18, 2016

    Ask yourself what you are paying for rent? Can you afford that or a little more? Don’t get in over your head, but you will come out so much better buying over renting. Even at tax time. I bought my first house for $85,000 and sold it 7 years later for $145,000. The house I currently cost $210,00 are my payments are less than the first! Why? Because I had a healthy down payment from selling the 1st house and my rate is considerably lower.Good luck to you.

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  • Bo

    April 18, 2016

    House costs vary so much from area to area. I’m not sure what they are in the mid-west, but it’s possible that there are houses for $100,000. A house is a wonderful investment. If it’s just the two of you, you could start with a small house or even a condo. You would want at least 2 bedrooms, 3 if you can afford it. Remember, it’s usually better to buy the smallest house in a better neighborhood than the largest in a cheaper neighborhood unless you are really planning to live there for a long time. Get a house that you can improve cosmetically (paint, new countertops, new carpet/floors) over a period of time. But watch out for older home. They could have electrical or plumbing problems that could be very costly. Fixing a house up can increase it’s value. Try to stay away from trendy colors though in expensive things like counter tops and carpet. Use your flare for more exotic colors in paint that’s inexpenive to change.Shop around for the best loan you can get (best interest rate). A home of your own, especially your first one, is more than just an investment. This could be where you start a family. You will make many memories here. Shop around and choose carefully. Trust that when you walk through the door of your new house for the first time, you will know it’s right for you. It will feel like coming home.

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  • HOEMYJIZM

    April 18, 2016

    You have received alot of great answers here. One person said something about searching for the best loan….(interest rate). Not really advice I recommend. Interest rate is not everything and quite frankly, all companies are going to be in the ball park when it comes to rate. Be sure that you are happy with your loan officer and your Realtor. This is VERY important. Make sure that questions are answered at all times and that you feel comfortable and not rushed.I would recomend a home no more than $140,000.00. Be sure to give yourselves some room to save money. Train yourselves to live on only 80% of your income. That way you will always have 20% to do other things with.If you would like a quote on a mortgage, I am a Residential Mortgage Specialist and I specialize in first-time homebuyers. You can contact me at [email protected]. or go to my website at http://www.americanhm.com/timothy.kaz ee. I would be happy to give you all the tips you need to buy your first home. You can also call my FREE 24 HOUR Recorded Message Line and get a FREE report about the 12 mistakes most home-buyers make. That number is 1(866) 667 1645 Ext 1200. Follow the prompts.This is a great question and if you have more and would like more involved answers. please feel free to call me with no obligation. Tim Kazee

    Reply

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