I have $0 saved for a down payment. I want to buy a home in five years. What should I do? Go:

[Manki1028]

I got a credit card when I was 18 (easier to get one as a student) .. First one was a $500 limit. I've never paid a dime to the credit card companies.. They typically pay me $2K per year. I always payoff the statement balance every month. I love credit cards because it gives you a firewall between your actual money and spending. Current credit score is like 830 with the Citi double cash being my main card. Basically time and consistent payments is what makes a good credit score. I monitor my credit closely and know my score every week... opening a new card affects by around 15 points and it rebounds in 3 months. I typically open 2 new cards a year for getting the bonus and then close it. I literally have purchased a redbox movie for $1 and got a $500 bonus before 😋

[Mammadaisy]

Lots of good advice already but I would add that many companies offer as part of their benefits membership in a discount program. Many times there are offers on mortgages. Check with your employer if you're not sure if they offer one of these programs for their employees.

[Mammadaisy]

I hear you. I feel the same way.

[Mammadaisy]

Said "not looking to" in regards to 1M home. I had to read that twice too.

[Jose nieves 54]

Yo tengo 0$ salvados en pagos bajos

[Tina1]

I think struggling is a sad thing especially if there is nothing to fall back on because living somewhere and dont love where you live can also be a potential problem as well.

[Carl]

Privacy in a new home is always the first issue. If you and the spouse can't cover the windows that first night when you "christen" the bedroom, that could make you as the "new neighbors" on the block, the talk of the neighborhood in a way that's not going to feel very welcoming or comfortable.

[Gidgamoe]

The coulda/woulda/shoulda is don't buy everything up front. Just buy the basics to get by. The house is a life time commitment even if you stay up to five years in your first place. Buy as you go and try to pinch pennies as often as possible. It will never be perfect so take your time nothing is worse than over spending on things you can wait on. Nothing is an emergency unless it interferes with cleanliness of the household, Ie. The water heater is broken. Fix most things yourself to not only save money but to make you feel better.

[Gidgamoe]

Divide your 20% by 60 to give you an idea of how much to save each month. Use all means at your disposal to quantify any increases in house prices in the area you want to buy. Moving away from big cities means the price of the house is cheaper, usually. The drive will be longer so take that into account of car values and such. Keep expenditures down don't live like you have to prove anything to anyone. We all start somewhere and move up and down in house sizes and prices.

[Bassffman]

You also have to remember about closing costs and escrow fees. Closing costs are about 1 to 2 percent of the sale price. And escrow fees can vary from place to place. I suggest going to a lender and asking them. It's better to have a lender who is in town and can answer the phone when you call. Plus your agent will thank you!

[DukeTheCloser]

The second half of this makes no sense. Are you moving from your parent's house for the first time in this scenario? How tf do you not own any furniture, plates, pots, pans or clothes hangers? I mean **bleep**, do you throw away all your food before you move too?

[NMcCormack]

See if USDA loans are available where you're looking. They are 0 down.

[ssimba777]

First congratulations on planning to buy a house. As one year old homeowner, I can encourage to build a fund for down payment. Build it like a debt payment. Establish an index passive fund, the commission fee is lower. Make direct deposit either from your checking account or a direct deposit from your paycheck.
2- Track down the area you aim to live from trulia.com or zillow.com or realtor.com. This will keep you motivated during the process. If you are engaged or married, enroll your partner in this process. If not, consciently or not your plan will get delayed.
3. Assign a percentage for your down payment. 5%, 6%, etc.
4- Work on your debt, or avoid them. This will help you obtain a better interest rate on your mortgage.
Marketers will flood your boxmail with looking good offer for personal lawn. Do not take the bait. This is a trap to eat up your ressources.
4- When you are ready, shop around for morgage lawn. An interest of 3.45, instead 3.15 would increase your mortgage by hundred or thousand dollars.
It requires discipline and commitment. Good luck and congratulations.

[Mowmanmark]

Excellent! 👀

[Dwoods]

Also.. aside from irrelevant things like curtains, you can take out money from your 401k from work to use to your primary residence if you have access to it and need to. Many companies match your contributions to a certain point.

Another big this is when think you're ready to get preapproved soon, DO NOT move money around that cant be easily explained. And it's better just not to have to explain. Try to keep your "books" as simple as possible for the prior at least 3 to 6 months if you can.

Example, you found THE house and its a little out of your preapproval range, so you got 10k cash laying around or your parents want to pitch in 10k...underwriting will want to know where it came from. If its a gift from your relatives or something then you're volunteering them to divulge all their bank statements too. Maybe yours wont care but many other people out there would not be happy to have to do that. If it's your 10k cash that you threw in...you best have a paper trail or you may hit a wall in your loan process. And don't go and buy a vehicle or furniture on credit until you've actually closed on the house. That could break your loan on closing day. Don't let that happen.