First time home buyer here. Would like suggestions.

[V6UnderPressure]

I will have about 30k to put down on a house. But I have a bit of credit card debt. Lets just say 10k would pay mine and my fiances credit card debt. Would it be wise to pay the high interest credit cards off and then use 20k as a down, or is it better to just put the 30k down and try to swing it?

 

[SGRIM]

As a lender I would like to see the CC debt paid first. If you are using a local bank or lender go talk with them and get their suggestion.

Personally I would pay the CC off to get rid of the interest rate. What ever you get on a house will be much lower than a CC!

Good luck!

 

[sandmann]

^what he said. get rid of the cc. put the rest down. and with the market the way it is, you most likely can get the seller to cover all closing costs. i just bought one a few months ago and it worked for me.

 

[DCVING 6]

Where are you looking for a house?

 

[V6UnderPressure]

Where are you looking for a house?

new lenox

 

[ChavoLC2]

Credit Card debt

Get rid of Credit card debt, you know how long it would take to payback 10k at 22% .especially if you only ended up paying the minimal payment. Lets say you put 30k down on su' casa, then you and your soon to be bride decide you need furniture and other household nessicities you then compound that on top of your 10k CCD you'll be playing catchup from day one. Plus if you don't have all that debt you have room to put alittle Buick stuff on the card :biggrin: or for any emergency that may come up.

 

[TexasT]

The first think I'd ask myself is how long did I intend to stay in this house.
Is the school system good/great in the area?
Does the area seem to be "up and coming" or has it seen better days?
Real Estate = Location, location, location and timing means a lot.

If you intend to stay 5-10 years I'd put as little down as I could and invest the rest into some thing. Apreciation in that amount of time should get you out of being "upside down"(Owing more than it's worth). Having some ready cash is crucial to life when big changes in life come along that are out of your control(Job loss, death, having children, getting married/divorced).

Hard to say what your situation is but I'd have to agree with the rest here and pay off the cc debt and make the commitment not to charge anything else. Nothing gets you in over your head faster than 14-28% interest. Nothing is more satisfying to me than Paying cash for my purchases. Especially big ones that involve a hand full of the "Franklin Brothers".

Get a debit card to handle things you can't pay for in cash is my advise. I just keep the account it is tied to at a minimum and at a different institution than my main bank so they don't automatically transfer funds. Kind of a hassle but it gives my control.

 

[V6UnderPressure]

Yes, it is in a good neighborhood with excellent schools and I plan on being there well beyond 10-15 years as long as the neighborhood doesnt go downhill, which I don't expect it to. Building a huge mall around there.

 

[John Wilde]

Good luck be careful and don't get an adjustable rate mortgage.

 

[DCVING 6]

Yes, it is in a good neighborhood with excellent schools and I plan on being there well beyond 10-15 years as long as the neighborhood doesnt go downhill, which I don't expect it to. Building a huge mall around there.

Sounds like near my sisters house. She is actually in Lockport, near Cedar and Division.

New Lenox has some of the best schools in the state. My sister and my mom actually both teach in the district.

 

[saywin]

Advice

Good school district like said before
Good neighborhood, make sure you like the looks of the homes around you
fixed mortgage like stated before, do a 15 or 20 year note if possible and get the best rate available
Drive around the neighborhood in the evenings and mornings to get a feel for it
Check out surroundings, airplanes, trains, highways for a quiet stay
get what you want and the most you can afford, you will be happy later
Make sure you can grow into the house and not out of it
Existing homes usually have the curtains, blinds, and all the little touches versus the new homes when you have to buy all the extras. Buying new can be a very expensive start, so be carefull. There are alot of things to think about.
Question the age of appliances, A/C, plumbing etc. Get a good inspector to look it over and watch the roofing, it may need to be replaced
Talk to neighbors, about the home. Neighbors have no reason to usually hide anything
Check with insurance for flooding possibilites or other types of disasters
Look to see what updates you and yours would like to make
take $10,000 and pay off the credit cards, take $7,000 and buy some new furniture, and put $5,000 down on the house and the rest in a savings like ING or something.
Take the extra money you were going to pay to your credit cards each month and apply it to your mortgage, this will pay it down much quicker even on a 30 year note

Just remember what ever you buy now will probably seem really expensive, but 15 to 25 years from now you will be laughing at the mortgage payment!

Happy Hunting!!!!:biggrin:

 

[Pronto]

My Dad said, "Don't buy a house at the bottom of a hill." I figured I would pass that along to you.

 

[dizzlesturbo6]

put 10k towards the cards and cut them all up but one. do 100% financing on the house. remodel the kitchen with the other 20k.two reasons.kitchens genrate the most equity for the buck. 2. kitchens sell homes(should you decide to sell and move on.) six months into your mortage you should be able to refi your home with enough equity to avoid a pmi payment.

 

[saywin]

Right

My Dad said, "Don't buy a house at the bottom of a hill." I figured I would pass that along to you.

Your dad has good advice, when it rains where does the rain go? To the bottom of the hill

Also a corner lot is always nice, just one neighbor!

 

[JoeNational]

I will agree with everybody here. Also, lenders look at debt to income ratio.. Meaning are you paying out more a month then you make. You also want to make sure that you get your credit card debt to 50% of what the max is on it. So for a 10,000 limit you want to have no more then 5,000 on the card.

 

[V6UnderPressure]

put 10k towards the cards and cut them all up but one. do 100% financing on the house. remodel the kitchen with the other 20k.two reasons.kitchens genrate the most equity for the buck. 2. kitchens sell homes(should you decide to sell and move on.) six months into your mortage you should be able to refi your home with enough equity to avoid a pmi payment.

I thought you had to put at least 20% down to avoid pmi? I've been told this by "some people". Is this true?

 

[DCVING 6]

I thought you had to put at least 20% down to avoid pmi? I've been told this by "some people". Is this true?

Depends on the lender, we put 10% down and our mortgage guy got rid of the PMI for us... that was part of the "family discount".

I could give you his number if you don't already have someone.

 

[V6UnderPressure]

Depends on the lender, we put 10% down and our mortgage guy got rid of the PMI for us... that was part of the "family discount".

I could give you his number if you don't already have someone.

Sure thing Glen, Thanks! PM it to me if you'd like.

 

[injdinjn]

The problem with corner lots is that usually one street is a busy street, not kid friendly. And there is more frontage to mow.
A plus is easy access to the back yard.
If you have kids the best place is a lot on a cul-de-sac or a dead end street that can never be extended.

 

[saywin]

Corner lot

Yeah those things are true about a corner lot, but I sure like mine. As for the money down, I forgot about PMI. I used the VA benefits, that sure helps out alot.