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Subject Anybody in real estate?

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[quote:Anonymous Coward 7736082:MV8yMDY3OTQ5XzM0Nzk2Mjk5XzhEMDhDRkFF]
[quote:Tex 20929967:MV8yMDY3OTQ5XzM0Nzk2MjA4XzJCQ0Q0NDcx]
[quote:Anonymous Coward 4555299:MV8yMDY3OTQ5XzM0Nzk2MDc4XzY3MDgwNkQ4]
Not a Real Estate Agent here but have been through the process several times.

First of all, I cannot imagine anyone wanting to be a home owner at this particular time because of economical and other reasons (Fiscal cliff, Tax increases or loss of home owner deduction), etc.  Much better to hold tight and rent untill things get better.

If really firm on wanting to own then you might consider buying a house that is headed for foreclosure.  Motivated sellers there.

Another option would be to buy a foreclosed house for 10-15 thousand and spend the rest of your savings putting it back in livable condition.  Most have been vandalized (copper plumbing, wiring, air conditioner unit, etc.).

Things to think about.
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Actually at this price level this person wouldn't have enough interest to offset the standard tax deduction.

That said,  the credit issue should be fine.  Better than most - bankrate.com has mortgage calendars to see what the payment would be.  20% down on a $70,000 loan is $14,000.  That leaves a mortgage in the amount of $56,000.

56,000 at 3.5% for 30 years is $251.47
56,000 at 3.0% for 15 years is $386.73

You need to add Property taxes and homeowners hazard insuance to that amount.

With the 20% down you are not obliged to pay mortgage insurance.

You should never pay a realtor to talk to them.

My first home was a bank repo - they supplied the mortgage since I was purchasing one of their homes.

Keep the rest of your cash for savings.  You never know what might happen in the future - to the home or to you.

When looking at the mortgage interest rate - take into account the points that they are charging on the loan.  You have to add the interest rate of the loan with the origination points charged for the actual loan.

For example:
a 3.25% loan with a 2 point origination fee actually costs you 5.25%

a 3.75% loan with no origination fee actually costs you 3.75%

a 4.0% loan with a originatio fee of -.50 (yes some loans pay you for taking a higher interest rate) will actually cost you 3.50%

Hope this helps.

Tex
[/quote]

More great advice. I'm actually shocked at some of the knowledge here. I will keep this thread updated during my search and maybe post some links to some homes once I start getting serious with a few options.
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Original Message I officially now have $30,000 saved up to buy a new home howeber I have very little credit. I only have one Visa card that I've had about 2 years. I get many offers in the mail just havn't followed up on getting a second one yet.

But If I'm looking for homes priced around $60,000 to $80,000 and put up around $20 to $25,000 for a downpayment (including closing costs) does my credit score really matter? My goal would be to have my morgage around $350 a month or cheaper. I take home after taxes about $1,400 a month.

First time home buyer so any help GLP can offer I would greatly appreciate it.

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