Trying to buy first house

Andrew Pezzo · 03-22-2005, 08:39 AM

My wife and I got married about a month ago and now we are looking to buy our first home. As a couple we do fairly well, just breaking the $100k level, and have a excellent credit. I contacted my bank about a pre-approval just to see what we could get and it was a decent, $275k with no money down.

Now the rant begins. Like I said, my wife and I do ok as a couple and the payments (with taxes and insurance) came out to about $2,100. Normally that should seem doable but becasue we had to put ourselves through college we pay over $1,000 month in student loans and thats not going to change for 20 years. For the same reason we have not been able to save much for down payment/closing costs. In fact, we will be able to cover closing costs but thats it. As you can imagine that seriously cuts into what we can afford for a mortgage. To make matters worse, we live in area where real estate prices are totally out of control. Unless we want to commute 2+ hours a day(which I have beeen doing for 5 years and need a break) we cant afford anything in our area. Even places that we can afford we will have no money left over should the house need repairs. Not a good situation as houses in our range will need some work. Every place we looked at wont even fit my RPTV in the living room, let alone the rest of my HT equipment.

I just dont get that here we are, an upstanding young couple that works very hard, put ourselves through school, dont do illegal things, and are honet completely gets the shaft. Its almost like a penalty becasue we didnt have rich parents that spolied us. And how do other people affrod it? I just dont get it. Its like going to college hurt us more than its helping. I know thats not the case as I wouldnt have to the job I do now but you get my point.

We are exploring all of our options but becasue on paper we do well and our middle class there doesnt seem to be much out there for us.

I needed to get that off my chest. Its very depressing, all I want is a place to call home where I will feel comfortable raising kids and having good schools for them.

SteveA · 03-22-2005, 08:47 AM

You live in a very expensive part of the country. Have you thought about moving somewhere more affordable?

BrianB · 03-22-2005, 08:54 AM

Quote:

I needed to get that off my chest. Its very depressing, all I want is a place to call home where I will feel comfortable raising kids and having good schools for them.

Then you need to move to a more affordable part of the country or wait until you've paid off your school loans & can afford a bigger payment.

Jeff Ulmer · 03-22-2005, 08:59 AM

I can understand your frustration, but you are in the same boat as the vast majority of people out there. Like Steve, I would take a serious look at whether moving to a different area of the country is an option. Yes, this requires finding new jobs, possibly giving up proximity to family and friends and so forth, but is your current job and the financial stress you will be under buying locally or (more realistically) dealing with long daily commutes really worth it to you?

Even if moving meant a lower paying job, a lower housing/cost of living/less stressful life may make it worthwhile. You do have options. Getting yourself into a situation where you are financially overburdened, especially if the housing market is in a bubble, is just asking for disaster. Perhaps the universe is trying to tell you something. Ask yourself what you really want out of life. Are you happy? If not, change can be a good thing.

Matt Butler · 03-22-2005, 09:06 AM

Andrew, Im in the same boat brother. Im single make about 32k a year but am having a hard time getting into a house. Sacramento (or CA in general) housing is obscene price wise.

Im probably going to move to Nevada soon. Yes Ill be away from friends and family but Id like to live more comfortably.

I have heard from a finace advisor that its useless to save for a down (or try). Theres so many loans for first time home buyers and the prices flux so much its almost impossible to save for a down.

**HTF Ads**

Andrew Pezzo · 03-22-2005, 10:17 AM

I am attached to the area I live in and dont want to move. In fact, my entire family moved to FL over the past few years and I have no desire to join them. I love the Northeast. The only other place I would consider living is Boston area and real estate prices are just as bad. Besides, being the Yankee fan I am I need to be within driving distance to the stadium (priorities).

Quote:

wait until you've paid off your school loans & can afford a bigger payment.

Definately an idea but I dont want to wait 20 years to buy a house. I am almost 30 and would like to have kids by 35 and have a house for them. I grew up in a big house on river front property and the relaiztion that I will probably never be able to afford something like that hurts. But I am ok with a small house, if I could just find one.

I know there are many other in this situation but I see lots of young couples buying big houses in the area. One thing I am going to teach my kids is marry wealty so they dont have to go through the same crap I did.

MarkHastings · 03-22-2005, 10:21 AM

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And how do other people affrod it?

I ask myself the same question all the time. I just bought a condo (in CT) because there was no way I could afford a home. I make a VERY decent pay and I just can't believe how much homes are. I live in one of the more affordable areas of CT and STILL the houses are riddiculous!

I have NO loans and I've saved enough to put down 20%, but I still can't manage a home.

I have a 50 mile commute because there is no way I'd be able to buy a home near my work place (Norwalk). It absolutely amazes me how people do it. I have friends who (combined with their spouces) make less than I do. They have kids and STILL are able to manage. How the heck are they doing it??????

Mort Corey · 03-22-2005, 10:26 AM

Like the old Stones' song, ya can't always get whatcha want. Hang loose for a while, property values are more than likely due for a serious correction. I've been through two or three valuation cycles with my house of 20 years. As you seem to be aware, it'd be insane to purchase property that would require all your available funds for payments alone....spit happens, and usually when you least expect it and can least afford it.

Cripes, be a little patient. My wife and I rented for six years until we could save up enough for a down payment on our first house and every cent we tucked away was a struggle. Good luck....perservere.

Mort

Mark Sherman · 03-22-2005, 10:29 AM

Quote:

How the heck are they doing it??????

The one thing that comes to mind is that ad with the guy talking about all the great stuff he has.

The he says how do I do it? "Im up to my ears in debt, I cant even pay the finance charges"..........some one please help me"

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