Dumb with Money

You would be suprised at what little you need to put down to get started on new home these days.  My main advice is to make sure you have at least 15% saved before you go purchasing a new home.  10% of that will go to the downpayment.  The remianing 5% goes to closing costs.

 Here is some of the serious considerations you need to make before you even start looking at buying a house.  Nobody ever things about these:

1. Are you buying a starter house, a for now house, or your dream house?  How long will you be living in this thing? 

If it’s a few years, you can live without a few things.  If you’re 30 years old and you expect to die in this thing when you’re 85, it better have a great deal to offer.

2. How many people will be living in this mother? 

Is it just you? Do you and your spouse expect kids?  Will your deadbeat brother be crashing often?  You have to throughly plan that out.

3. Do you want your kids to go to school in that school district?

If you have to buy a house, could possibly live there for 20 years?   When you’re young, you never think about this.  But, stuff happens all the time.  You may be 25 and not even have kids in your hemisphere of thinking, but you should ponder this.   Also, school districts lead to resale value.  If you know your school district is headed for the crap-er because a drunken sailor is now superintendent, consider your other options. 

 

4. How are the neighboors?

Are you buying a house next to the next Manson family.  Knock on some doors. Do respect these people or are they going to drive you nuts?

 

5. Why are they selling the house?

9 times out of 10 they never tell you the truth.  Bother the realtors to get you the real story.   Do a little research, in some states ask them to fully disclose this to you in writing.