670 score, 16k, want to borrow 700k

[Anonymous]

Anonymous wrote:OP - Although you want to, I don't think you are ready to buy a home yet. There are a lot of issues that go with buying a home.

First, when you are buying with less than 20% down, you will be paying PMI (private mortgage insurance). Basically you are paying an extra fee to insure that should you fail to pay and the lender has to foreclose on your house that the lender is insured for monetary losses which can be substantial. It's not a lot, but it is a monthly payment added on to your payment, which decreases the amount of money that you pay each month towards principal. As another PP mentioned, the first 2-3 years of payments, you will be paying virtually nothing towards equity, but will primarily be paying heavily up front on the interest payments against the loan. Last, the closing costs can be significant and range between 5-15% of your home cost (the most expensive the house, the lower the percentage). You are probably looking at around $8K-20K worth of closing costs You can roll some or all of the closing costs into the loan, but that increases your loan.

The less you put in for a down payment, the higher your interest rate will be. So it will increase the amount of money that is taken up front in the first few years and extend the period when you are earning virtually no equity in the house. Also, your credit rating will likewise increase the interest rate you are paying. When you hear all of those great rates on commercials and ads, those are essentially for people who are putting 20% down and have a credit rating 750+. You will not get those rates in your situation.

Another big issue is that unless you are buying a very solid home, either one well-cared for by the previous owners, or a flip where most things are new, you can expect some costs in the first year of ownership. There are always things ranging from appliances (d/w, w/d, stove, oven, water heater, HVAC, fridge) to electrical to plumbing, vents, that need repairs or maintenance in the first year. And if you don't do maintenance on these things (like doing a spring-time inspection/cleaning of the AC or the fall inspection/cleaning of the furnace/heat pump) then you run the risk that something could happen and leave you without that appliance when you get into the season. A little money up front often prevents a lot of money later, especially at the wrong times (e.g. furnace going out during a cold snap or A/C going out during a heat wave). I general, it is conservatively recommended that you have 1% of the purchase price of the home to account for the unexpected during the first year or two of home ownership. There always seems to be something that comes up that you need to deal with. The older the appliances and components of the house, the more likely you'll have issues (although there often seems to be a cap at around 60 years, things were built to last much longer in pre-1960 homes.

Additionally, although might be included in the 1%, you might find the additional accessories for home ownership may run over that. For example, if you buy, you may be responsible for a yard, or landscaping or plants. When you rent and there is a problem with that, usually the landlord takes care of a lot of those costs, but when you own you have to pay for all of that. You have to be responsible for clearing your sidewalk or shoveling a driveway or parking space. I've had many friends who didn't realize all of the things that they'd need to buy to take care of a house. As renters, when many problems came up, they called the landlord or property management and had them take care of things. But when you are a homeowner, you have to deal with things yourself or you have to hire someone to do it for you.

Like others, I would recommend that you consider relocating to a less expensive home for a few years and get much more of a savings before you go into home ownership. I just don't want to see you spending everything to get into a home and then finding in the first two years that you just can't afford to live there. Home ownership is a lot of work beyond just the mortgage payment and it can be pretty expensive. In the long run, you'll get more out than you put in, but it does require a lot of time and money investment up front.

That should be 1-3% of the cost. So for a $700K house, you should plan for $7-21K worth or home maintenance or costs in the first year+

[Anonymous]

Anonymous wrote:OP - Although you want to, I don't think you are ready to buy a home yet. There are a lot of issues that go with buying a home.

First, when you are buying with less than 20% down, you will be paying PMI (private mortgage insurance). Basically you are paying an extra fee to insure that should you fail to pay and the lender has to foreclose on your house that the lender is insured for monetary losses which can be substantial. It's not a lot, but it is a monthly payment added on to your payment, which decreases the amount of money that you pay each month towards principal. As another PP mentioned, the first 2-3 years of payments, you will be paying virtually nothing towards equity, but will primarily be paying heavily up front on the interest payments against the loan. Last, the closing costs can be significant and range between 5-15% of your home cost (the most expensive the house, the lower the percentage). You are probably looking at around $8K-20K worth of closing costs You can roll some or all of the closing costs into the loan, but that increases your loan.

The less you put in for a down payment, the higher your interest rate will be. So it will increase the amount of money that is taken up front in the first few years and extend the period when you are earning virtually no equity in the house. Also, your credit rating will likewise increase the interest rate you are paying. When you hear all of those great rates on commercials and ads, those are essentially for people who are putting 20% down and have a credit rating 750+. You will not get those rates in your situation.

Another big issue is that unless you are buying a very solid home, either one well-cared for by the previous owners, or a flip where most things are new, you can expect some costs in the first year of ownership. There are always things ranging from appliances (d/w, w/d, stove, oven, water heater, HVAC, fridge) to electrical to plumbing, vents, that need repairs or maintenance in the first year. And if you don't do maintenance on these things (like doing a spring-time inspection/cleaning of the AC or the fall inspection/cleaning of the furnace/heat pump) then you run the risk that something could happen and leave you without that appliance when you get into the season. A little money up front often prevents a lot of money later, especially at the wrong times (e.g. furnace going out during a cold snap or A/C going out during a heat wave). I general, it is conservatively recommended that you have 1% of the purchase price of the home to account for the unexpected during the first year or two of home ownership. There always seems to be something that comes up that you need to deal with. The older the appliances and components of the house, the more likely you'll have issues (although there often seems to be a cap at around 60 years, things were built to last much longer in pre-1960 homes.

Additionally, although might be included in the 1%, you might find the additional accessories for home ownership may run over that. For example, if you buy, you may be responsible for a yard, or landscaping or plants. When you rent and there is a problem with that, usually the landlord takes care of a lot of those costs, but when you own you have to pay for all of that. You have to be responsible for clearing your sidewalk or shoveling a driveway or parking space. I've had many friends who didn't realize all of the things that they'd need to buy to take care of a house. As renters, when many problems came up, they called the landlord or property management and had them take care of things. But when you are a homeowner, you have to deal with things yourself or you have to hire someone to do it for you.

Like others, I would recommend that you consider relocating to a less expensive home for a few years and get much more of a savings before you go into home ownership. I just don't want to see you spending everything to get into a home and then finding in the first two years that you just can't afford to live there. Home ownership is a lot of work beyond just the mortgage payment and it can be pretty expensive. In the long run, you'll get more out than you put in, but it does require a lot of time and money investment up front.

You are way too kind to write all this for OP, who isn't even trying to let us help him/her. They are giving us the absolute bare minimum of information and won't even answer why they need a 700k house nor why they haven't saved anything. Don't entertain the troll anymore.

[Anonymous]

The thing that first-time home buyers sometimes miss about buying a house is that it's a short-term money drain. Yes, long-term, home ownership often makes more financial sense than renting. But that's only after at least 5-10 years, when the home has gained value, the mortgage payments start putting more than a trivial amount of money into principal instead of interest, and rent would have increased. Short term, owning a house is expensive. It's not just the down payment and closing costs (although those are significant, and more than OP has saved right now), it's maintenance, insurance, property taxes, and a "rainy day" fund for when things in the house need fixing or replacing.

So while buying a house is a worthy goal and absolutely makes long-term sense, it's a really bad idea for someone who has cash flow problems and very little money saved up.

OP, if you want to buy a home, the best advice I can offer is to save some money and get your finances (and spending) straightened out. Cut your expenses and save as much as you can with a goal of buying a house in one or two years. That's your best path to home ownership.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP - Although you want to, I don't think you are ready to buy a home yet. There are a lot of issues that go with buying a home.

First, when you are buying with less than 20% down, you will be paying PMI (private mortgage insurance). Basically you are paying an extra fee to insure that should you fail to pay and the lender has to foreclose on your house that the lender is insured for monetary losses which can be substantial. It's not a lot, but it is a monthly payment added on to your payment, which decreases the amount of money that you pay each month towards principal. As another PP mentioned, the first 2-3 years of payments, you will be paying virtually nothing towards equity, but will primarily be paying heavily up front on the interest payments against the loan. Last, the closing costs can be significant and range between 5-15% of your home cost (the most expensive the house, the lower the percentage). You are probably looking at around $8K-20K worth of closing costs You can roll some or all of the closing costs into the loan, but that increases your loan.

The less you put in for a down payment, the higher your interest rate will be. So it will increase the amount of money that is taken up front in the first few years and extend the period when you are earning virtually no equity in the house. Also, your credit rating will likewise increase the interest rate you are paying. When you hear all of those great rates on commercials and ads, those are essentially for people who are putting 20% down and have a credit rating 750+. You will not get those rates in your situation.

Another big issue is that unless you are buying a very solid home, either one well-cared for by the previous owners, or a flip where most things are new, you can expect some costs in the first year of ownership. There are always things ranging from appliances (d/w, w/d, stove, oven, water heater, HVAC, fridge) to electrical to plumbing, vents, that need repairs or maintenance in the first year. And if you don't do maintenance on these things (like doing a spring-time inspection/cleaning of the AC or the fall inspection/cleaning of the furnace/heat pump) then you run the risk that something could happen and leave you without that appliance when you get into the season. A little money up front often prevents a lot of money later, especially at the wrong times (e.g. furnace going out during a cold snap or A/C going out during a heat wave). I general, it is conservatively recommended that you have 1% of the purchase price of the home to account for the unexpected during the first year or two of home ownership. There always seems to be something that comes up that you need to deal with. The older the appliances and components of the house, the more likely you'll have issues (although there often seems to be a cap at around 60 years, things were built to last much longer in pre-1960 homes.

Additionally, although might be included in the 1%, you might find the additional accessories for home ownership may run over that. For example, if you buy, you may be responsible for a yard, or landscaping or plants. When you rent and there is a problem with that, usually the landlord takes care of a lot of those costs, but when you own you have to pay for all of that. You have to be responsible for clearing your sidewalk or shoveling a driveway or parking space. I've had many friends who didn't realize all of the things that they'd need to buy to take care of a house. As renters, when many problems came up, they called the landlord or property management and had them take care of things. But when you are a homeowner, you have to deal with things yourself or you have to hire someone to do it for you.

Like others, I would recommend that you consider relocating to a less expensive home for a few years and get much more of a savings before you go into home ownership. I just don't want to see you spending everything to get into a home and then finding in the first two years that you just can't afford to live there. Home ownership is a lot of work beyond just the mortgage payment and it can be pretty expensive. In the long run, you'll get more out than you put in, but it does require a lot of time and money investment up front.

You are way too kind to write all this for OP, who isn't even trying to let us help him/her. They are giving us the absolute bare minimum of information and won't even answer why they need a 700k house nor why they haven't saved anything. Don't entertain the troll anymore.

I understand that OP may be a troll or may not be worth the time, but after over 11 years on this site, I have seen how other readers will come back to a thread weeks, months or even years later and value experience that was conveyed. Heck that's happened to me when something didn't matter much to me when it was written, but later, I come back and find some old thread with some helpful advice that helps me (most often advice about children...when my children were younger, certain advice didn't make much impact, but when my children got older, that advice from a few years ago, by a parent a few years ahead of me in the parenting game was golden). So, if not OP, then maybe some other FTB will find the advice helpful now or in the future.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP - Although you want to, I don't think you are ready to buy a home yet. There are a lot of issues that go with buying a home.

First, when you are buying with less than 20% down, you will be paying PMI (private mortgage insurance). Basically you are paying an extra fee to insure that should you fail to pay and the lender has to foreclose on your house that the lender is insured for monetary losses which can be substantial. It's not a lot, but it is a monthly payment added on to your payment, which decreases the amount of money that you pay each month towards principal. As another PP mentioned, the first 2-3 years of payments, you will be paying virtually nothing towards equity, but will primarily be paying heavily up front on the interest payments against the loan. Last, the closing costs can be significant and range between 5-15% of your home cost (the most expensive the house, the lower the percentage). You are probably looking at around $8K-20K worth of closing costs You can roll some or all of the closing costs into the loan, but that increases your loan.

The less you put in for a down payment, the higher your interest rate will be. So it will increase the amount of money that is taken up front in the first few years and extend the period when you are earning virtually no equity in the house. Also, your credit rating will likewise increase the interest rate you are paying. When you hear all of those great rates on commercials and ads, those are essentially for people who are putting 20% down and have a credit rating 750+. You will not get those rates in your situation.

Another big issue is that unless you are buying a very solid home, either one well-cared for by the previous owners, or a flip where most things are new, you can expect some costs in the first year of ownership. There are always things ranging from appliances (d/w, w/d, stove, oven, water heater, HVAC, fridge) to electrical to plumbing, vents, that need repairs or maintenance in the first year. And if you don't do maintenance on these things (like doing a spring-time inspection/cleaning of the AC or the fall inspection/cleaning of the furnace/heat pump) then you run the risk that something could happen and leave you without that appliance when you get into the season. A little money up front often prevents a lot of money later, especially at the wrong times (e.g. furnace going out during a cold snap or A/C going out during a heat wave). I general, it is conservatively recommended that you have 1% of the purchase price of the home to account for the unexpected during the first year or two of home ownership. There always seems to be something that comes up that you need to deal with. The older the appliances and components of the house, the more likely you'll have issues (although there often seems to be a cap at around 60 years, things were built to last much longer in pre-1960 homes.

Additionally, although might be included in the 1%, you might find the additional accessories for home ownership may run over that. For example, if you buy, you may be responsible for a yard, or landscaping or plants. When you rent and there is a problem with that, usually the landlord takes care of a lot of those costs, but when you own you have to pay for all of that. You have to be responsible for clearing your sidewalk or shoveling a driveway or parking space. I've had many friends who didn't realize all of the things that they'd need to buy to take care of a house. As renters, when many problems came up, they called the landlord or property management and had them take care of things. But when you are a homeowner, you have to deal with things yourself or you have to hire someone to do it for you.

Like others, I would recommend that you consider relocating to a less expensive home for a few years and get much more of a savings before you go into home ownership. I just don't want to see you spending everything to get into a home and then finding in the first two years that you just can't afford to live there. Home ownership is a lot of work beyond just the mortgage payment and it can be pretty expensive. In the long run, you'll get more out than you put in, but it does require a lot of time and money investment up front.

You are way too kind to write all this for OP, who isn't even trying to let us help him/her. They are giving us the absolute bare minimum of information and won't even answer why they need a 700k house nor why they haven't saved anything. Don't entertain the troll anymore.

I don’t NEED a 700k house. I just need a good school and two bedrooms. -op

[Anonymous]

I am with many others on this thread that think it is not the right time for you to buy. You need to spend some time fixing the current state of your finances.

If you insist on buying, there is no way in hell that you need to borrow $700,000 to get a safe, two bedroom place in a good school district.

[Anonymous]

No way! You need to live cheaper and save better.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP - Although you want to, I don't think you are ready to buy a home yet. There are a lot of issues that go with buying a home.

First, when you are buying with less than 20% down, you will be paying PMI (private mortgage insurance). Basically you are paying an extra fee to insure that should you fail to pay and the lender has to foreclose on your house that the lender is insured for monetary losses which can be substantial. It's not a lot, but it is a monthly payment added on to your payment, which decreases the amount of money that you pay each month towards principal. As another PP mentioned, the first 2-3 years of payments, you will be paying virtually nothing towards equity, but will primarily be paying heavily up front on the interest payments against the loan. Last, the closing costs can be significant and range between 5-15% of your home cost (the most expensive the house, the lower the percentage). You are probably looking at around $8K-20K worth of closing costs You can roll some or all of the closing costs into the loan, but that increases your loan.

The less you put in for a down payment, the higher your interest rate will be. So it will increase the amount of money that is taken up front in the first few years and extend the period when you are earning virtually no equity in the house. Also, your credit rating will likewise increase the interest rate you are paying. When you hear all of those great rates on commercials and ads, those are essentially for people who are putting 20% down and have a credit rating 750+. You will not get those rates in your situation.

Another big issue is that unless you are buying a very solid home, either one well-cared for by the previous owners, or a flip where most things are new, you can expect some costs in the first year of ownership. There are always things ranging from appliances (d/w, w/d, stove, oven, water heater, HVAC, fridge) to electrical to plumbing, vents, that need repairs or maintenance in the first year. And if you don't do maintenance on these things (like doing a spring-time inspection/cleaning of the AC or the fall inspection/cleaning of the furnace/heat pump) then you run the risk that something could happen and leave you without that appliance when you get into the season. A little money up front often prevents a lot of money later, especially at the wrong times (e.g. furnace going out during a cold snap or A/C going out during a heat wave). I general, it is conservatively recommended that you have 1% of the purchase price of the home to account for the unexpected during the first year or two of home ownership. There always seems to be something that comes up that you need to deal with. The older the appliances and components of the house, the more likely you'll have issues (although there often seems to be a cap at around 60 years, things were built to last much longer in pre-1960 homes.

Additionally, although might be included in the 1%, you might find the additional accessories for home ownership may run over that. For example, if you buy, you may be responsible for a yard, or landscaping or plants. When you rent and there is a problem with that, usually the landlord takes care of a lot of those costs, but when you own you have to pay for all of that. You have to be responsible for clearing your sidewalk or shoveling a driveway or parking space. I've had many friends who didn't realize all of the things that they'd need to buy to take care of a house. As renters, when many problems came up, they called the landlord or property management and had them take care of things. But when you are a homeowner, you have to deal with things yourself or you have to hire someone to do it for you.

Like others, I would recommend that you consider relocating to a less expensive home for a few years and get much more of a savings before you go into home ownership. I just don't want to see you spending everything to get into a home and then finding in the first two years that you just can't afford to live there. Home ownership is a lot of work beyond just the mortgage payment and it can be pretty expensive. In the long run, you'll get more out than you put in, but it does require a lot of time and money investment up front.

You are way too kind to write all this for OP, who isn't even trying to let us help him/her. They are giving us the absolute bare minimum of information and won't even answer why they need a 700k house nor why they haven't saved anything. Don't entertain the troll anymore.

I don’t NEED a 700k house. I just need a good school and two bedrooms. -op

For those requirements, there are 16 condos in Bethesda with 2 BR between $180K-400K that might work for you. The good thing about condos is that a lot of the external costs for home ownership (snow equipment, lawn equipment, outdoor maintenance, etc) are taken care of for you and you won't incur those expenses.

These might be a good option for you to consider. The important thing is whether you can get approved under your situation for a mortgage with your credit rating and low cash in hand.

I think that like others have pointed out that you might be better off actually renting someplace smaller and less expensive for a year or two to get yourself more financially stable. There are many options for 2 BR rentals in Bethesda that are zoned for good public schools and that you can get for $2000-2500. Start with those, start saving aggressively and get your cash in the bank, for both emergency fund and for future down payment, closing costs, and maintenance costs up and then plan to buy one of the less expensive condos in Bethesda. You can metro to work easily from Bethesda and also save costs on parking downtown.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP - Although you want to, I don't think you are ready to buy a home yet. There are a lot of issues that go with buying a home.

First, when you are buying with less than 20% down, you will be paying PMI (private mortgage insurance). Basically you are paying an extra fee to insure that should you fail to pay and the lender has to foreclose on your house that the lender is insured for monetary losses which can be substantial. It's not a lot, but it is a monthly payment added on to your payment, which decreases the amount of money that you pay each month towards principal. As another PP mentioned, the first 2-3 years of payments, you will be paying virtually nothing towards equity, but will primarily be paying heavily up front on the interest payments against the loan. Last, the closing costs can be significant and range between 5-15% of your home cost (the most expensive the house, the lower the percentage). You are probably looking at around $8K-20K worth of closing costs You can roll some or all of the closing costs into the loan, but that increases your loan.

The less you put in for a down payment, the higher your interest rate will be. So it will increase the amount of money that is taken up front in the first few years and extend the period when you are earning virtually no equity in the house. Also, your credit rating will likewise increase the interest rate you are paying. When you hear all of those great rates on commercials and ads, those are essentially for people who are putting 20% down and have a credit rating 750+. You will not get those rates in your situation.

Another big issue is that unless you are buying a very solid home, either one well-cared for by the previous owners, or a flip where most things are new, you can expect some costs in the first year of ownership. There are always things ranging from appliances (d/w, w/d, stove, oven, water heater, HVAC, fridge) to electrical to plumbing, vents, that need repairs or maintenance in the first year. And if you don't do maintenance on these things (like doing a spring-time inspection/cleaning of the AC or the fall inspection/cleaning of the furnace/heat pump) then you run the risk that something could happen and leave you without that appliance when you get into the season. A little money up front often prevents a lot of money later, especially at the wrong times (e.g. furnace going out during a cold snap or A/C going out during a heat wave). I general, it is conservatively recommended that you have 1% of the purchase price of the home to account for the unexpected during the first year or two of home ownership. There always seems to be something that comes up that you need to deal with. The older the appliances and components of the house, the more likely you'll have issues (although there often seems to be a cap at around 60 years, things were built to last much longer in pre-1960 homes.

Additionally, although might be included in the 1%, you might find the additional accessories for home ownership may run over that. For example, if you buy, you may be responsible for a yard, or landscaping or plants. When you rent and there is a problem with that, usually the landlord takes care of a lot of those costs, but when you own you have to pay for all of that. You have to be responsible for clearing your sidewalk or shoveling a driveway or parking space. I've had many friends who didn't realize all of the things that they'd need to buy to take care of a house. As renters, when many problems came up, they called the landlord or property management and had them take care of things. But when you are a homeowner, you have to deal with things yourself or you have to hire someone to do it for you.

Like others, I would recommend that you consider relocating to a less expensive home for a few years and get much more of a savings before you go into home ownership. I just don't want to see you spending everything to get into a home and then finding in the first two years that you just can't afford to live there. Home ownership is a lot of work beyond just the mortgage payment and it can be pretty expensive. In the long run, you'll get more out than you put in, but it does require a lot of time and money investment up front.

You are way too kind to write all this for OP, who isn't even trying to let us help him/her. They are giving us the absolute bare minimum of information and won't even answer why they need a 700k house nor why they haven't saved anything. Don't entertain the troll anymore.

I don’t NEED a 700k house. I just need a good school and two bedrooms. -op

For those requirements, there are 16 condos in Bethesda with 2 BR between $180K-400K that might work for you. The good thing about condos is that a lot of the external costs for home ownership (snow equipment, lawn equipment, outdoor maintenance, etc) are taken care of for you and you won't incur those expenses.

These might be a good option for you to consider. The important thing is whether you can get approved under your situation for a mortgage with your credit rating and low cash in hand.

I think that like others have pointed out that you might be better off actually renting someplace smaller and less expensive for a year or two to get yourself more financially stable. There are many options for 2 BR rentals in Bethesda that are zoned for good public schools and that you can get for $2000-2500. Start with those, start saving aggressively and get your cash in the bank, for both emergency fund and for future down payment, closing costs, and maintenance costs up and then plan to buy one of the less expensive condos in Bethesda. You can metro to work easily from Bethesda and also save costs on parking downtown.

I just want to point out that there are many places with good schools where rent can be less than $2000. Even in Arlington if OP would prefer to stay in the area they are in!

[Anonymous]

Anonymous wrote:The thing that first-time home buyers sometimes miss about buying a house is that it's a short-term money drain. Yes, long-term, home ownership often makes more financial sense than renting. But that's only after at least 5-10 years, when the home has gained value, the mortgage payments start putting more than a trivial amount of money into principal instead of interest, and rent would have increased. Short term, owning a house is expensive. It's not just the down payment and closing costs (although those are significant, and more than OP has saved right now), it's maintenance, insurance, property taxes, and a "rainy day" fund for when things in the house need fixing or replacing.

So while buying a house is a worthy goal and absolutely makes long-term sense, it's a really bad idea for someone who has cash flow problems and very little money saved up.

OP, if you want to buy a home, the best advice I can offer is to save some money and get your finances (and spending) straightened out. Cut your expenses and save as much as you can with a goal of buying a house in one or two years. That's your best path to home ownership.

Thank you

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP - Although you want to, I don't think you are ready to buy a home yet. There are a lot of issues that go with buying a home.

First, when you are buying with less than 20% down, you will be paying PMI (private mortgage insurance). Basically you are paying an extra fee to insure that should you fail to pay and the lender has to foreclose on your house that the lender is insured for monetary losses which can be substantial. It's not a lot, but it is a monthly payment added on to your payment, which decreases the amount of money that you pay each month towards principal. As another PP mentioned, the first 2-3 years of payments, you will be paying virtually nothing towards equity, but will primarily be paying heavily up front on the interest payments against the loan. Last, the closing costs can be significant and range between 5-15% of your home cost (the most expensive the house, the lower the percentage). You are probably looking at around $8K-20K worth of closing costs You can roll some or all of the closing costs into the loan, but that increases your loan.

The less you put in for a down payment, the higher your interest rate will be. So it will increase the amount of money that is taken up front in the first few years and extend the period when you are earning virtually no equity in the house. Also, your credit rating will likewise increase the interest rate you are paying. When you hear all of those great rates on commercials and ads, those are essentially for people who are putting 20% down and have a credit rating 750+. You will not get those rates in your situation.

Another big issue is that unless you are buying a very solid home, either one well-cared for by the previous owners, or a flip where most things are new, you can expect some costs in the first year of ownership. There are always things ranging from appliances (d/w, w/d, stove, oven, water heater, HVAC, fridge) to electrical to plumbing, vents, that need repairs or maintenance in the first year. And if you don't do maintenance on these things (like doing a spring-time inspection/cleaning of the AC or the fall inspection/cleaning of the furnace/heat pump) then you run the risk that something could happen and leave you without that appliance when you get into the season. A little money up front often prevents a lot of money later, especially at the wrong times (e.g. furnace going out during a cold snap or A/C going out during a heat wave). I general, it is conservatively recommended that you have 1% of the purchase price of the home to account for the unexpected during the first year or two of home ownership. There always seems to be something that comes up that you need to deal with. The older the appliances and components of the house, the more likely you'll have issues (although there often seems to be a cap at around 60 years, things were built to last much longer in pre-1960 homes.

Additionally, although might be included in the 1%, you might find the additional accessories for home ownership may run over that. For example, if you buy, you may be responsible for a yard, or landscaping or plants. When you rent and there is a problem with that, usually the landlord takes care of a lot of those costs, but when you own you have to pay for all of that. You have to be responsible for clearing your sidewalk or shoveling a driveway or parking space. I've had many friends who didn't realize all of the things that they'd need to buy to take care of a house. As renters, when many problems came up, they called the landlord or property management and had them take care of things. But when you are a homeowner, you have to deal with things yourself or you have to hire someone to do it for you.

Like others, I would recommend that you consider relocating to a less expensive home for a few years and get much more of a savings before you go into home ownership. I just don't want to see you spending everything to get into a home and then finding in the first two years that you just can't afford to live there. Home ownership is a lot of work beyond just the mortgage payment and it can be pretty expensive. In the long run, you'll get more out than you put in, but it does require a lot of time and money investment up front.

You are way too kind to write all this for OP, who isn't even trying to let us help him/her. They are giving us the absolute bare minimum of information and won't even answer why they need a 700k house nor why they haven't saved anything. Don't entertain the troll anymore.

I don’t NEED a 700k house. I just need a good school and two bedrooms. -op

For those requirements, there are 16 condos in Bethesda with 2 BR between $180K-400K that might work for you. The good thing about condos is that a lot of the external costs for home ownership (snow equipment, lawn equipment, outdoor maintenance, etc) are taken care of for you and you won't incur those expenses.

These might be a good option for you to consider. The important thing is whether you can get approved under your situation for a mortgage with your credit rating and low cash in hand.

I think that like others have pointed out that you might be better off actually renting someplace smaller and less expensive for a year or two to get yourself more financially stable. There are many options for 2 BR rentals in Bethesda that are zoned for good public schools and that you can get for $2000-2500. Start with those, start saving aggressively and get your cash in the bank, for both emergency fund and for future down payment, closing costs, and maintenance costs up and then plan to buy one of the less expensive condos in Bethesda. You can metro to work easily from Bethesda and also save costs on parking downtown.

I just want to point out that there are many places with good schools where rent can be less than $2000. Even in Arlington if OP would prefer to stay in the area they are in!

Where?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't think you'll be able to borrow $700k with only $16k to put down. That $16k is only a bit over 2% of the amount you want to borrow. Most lenders want you to put down at least a 5% down payment. Zero-down mortgages do exist, but they require good credit.

Also, you really don't want to be cash-strapped and paycheck-to-paycheck after buying a house. Houses break and are expensive to fix.

Is there hope for you? Sure—for the future. You make good money, so you can save. Take a year or two to lower your expenses, save up for a larger down payment, and get your credit in better shape. Then you'll be in a better position to buy.

Even with two moves? Leave 4500k and leave where ever I rent next to my own place?

If the cost of an in-town move is in any way a consideration, you don’t have enough money to buy a house. I’m not being snarky here—it is just reality. Stuff goes wrong with houses all the time. You have to assume 1% of the purchase price per year in maintenance (that is $7k in this hypothetical—and you don’t have that $7k). And the 1% is if you are lucky. HVAC, roof, needing to replace a sewer line—all of those will be WAY over that.

Don’t buy a house that is going to burden you more than it blesses you.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You might get a mortgage but you’re not going to get a great rate. 16K isn’t a lot for a down payment. Do you have other savings already? I think that mortgage is way too high...I’d say tighten up your spending discipline before jumping into a mortgage...

Can’t I refi for a better rate a year or so in?
At least 4500 would go toward actually equity and then interest would be tax deductible right?

Serious question. What do you think “tax deductible” means to you in dollars? Say you pay $17k/year in mortgage interest. How much do you think you “save” on taxes as a result of that?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP - Although you want to, I don't think you are ready to buy a home yet. There are a lot of issues that go with buying a home.

First, when you are buying with less than 20% down, you will be paying PMI (private mortgage insurance). Basically you are paying an extra fee to insure that should you fail to pay and the lender has to foreclose on your house that the lender is insured for monetary losses which can be substantial. It's not a lot, but it is a monthly payment added on to your payment, which decreases the amount of money that you pay each month towards principal. As another PP mentioned, the first 2-3 years of payments, you will be paying virtually nothing towards equity, but will primarily be paying heavily up front on the interest payments against the loan. Last, the closing costs can be significant and range between 5-15% of your home cost (the most expensive the house, the lower the percentage). You are probably looking at around $8K-20K worth of closing costs You can roll some or all of the closing costs into the loan, but that increases your loan.

The less you put in for a down payment, the higher your interest rate will be. So it will increase the amount of money that is taken up front in the first few years and extend the period when you are earning virtually no equity in the house. Also, your credit rating will likewise increase the interest rate you are paying. When you hear all of those great rates on commercials and ads, those are essentially for people who are putting 20% down and have a credit rating 750+. You will not get those rates in your situation.

Another big issue is that unless you are buying a very solid home, either one well-cared for by the previous owners, or a flip where most things are new, you can expect some costs in the first year of ownership. There are always things ranging from appliances (d/w, w/d, stove, oven, water heater, HVAC, fridge) to electrical to plumbing, vents, that need repairs or maintenance in the first year. And if you don't do maintenance on these things (like doing a spring-time inspection/cleaning of the AC or the fall inspection/cleaning of the furnace/heat pump) then you run the risk that something could happen and leave you without that appliance when you get into the season. A little money up front often prevents a lot of money later, especially at the wrong times (e.g. furnace going out during a cold snap or A/C going out during a heat wave). I general, it is conservatively recommended that you have 1% of the purchase price of the home to account for the unexpected during the first year or two of home ownership. There always seems to be something that comes up that you need to deal with. The older the appliances and components of the house, the more likely you'll have issues (although there often seems to be a cap at around 60 years, things were built to last much longer in pre-1960 homes.

Additionally, although might be included in the 1%, you might find the additional accessories for home ownership may run over that. For example, if you buy, you may be responsible for a yard, or landscaping or plants. When you rent and there is a problem with that, usually the landlord takes care of a lot of those costs, but when you own you have to pay for all of that. You have to be responsible for clearing your sidewalk or shoveling a driveway or parking space. I've had many friends who didn't realize all of the things that they'd need to buy to take care of a house. As renters, when many problems came up, they called the landlord or property management and had them take care of things. But when you are a homeowner, you have to deal with things yourself or you have to hire someone to do it for you.

Like others, I would recommend that you consider relocating to a less expensive home for a few years and get much more of a savings before you go into home ownership. I just don't want to see you spending everything to get into a home and then finding in the first two years that you just can't afford to live there. Home ownership is a lot of work beyond just the mortgage payment and it can be pretty expensive. In the long run, you'll get more out than you put in, but it does require a lot of time and money investment up front.

You are way too kind to write all this for OP, who isn't even trying to let us help him/her. They are giving us the absolute bare minimum of information and won't even answer why they need a 700k house nor why they haven't saved anything. Don't entertain the troll anymore.

I don’t NEED a 700k house. I just need a good school and two bedrooms. -op

For those requirements, there are 16 condos in Bethesda with 2 BR between $180K-400K that might work for you. The good thing about condos is that a lot of the external costs for home ownership (snow equipment, lawn equipment, outdoor maintenance, etc) are taken care of for you and you won't incur those expenses.

These might be a good option for you to consider. The important thing is whether you can get approved under your situation for a mortgage with your credit rating and low cash in hand.

I think that like others have pointed out that you might be better off actually renting someplace smaller and less expensive for a year or two to get yourself more financially stable. There are many options for 2 BR rentals in Bethesda that are zoned for good public schools and that you can get for $2000-2500. Start with those, start saving aggressively and get your cash in the bank, for both emergency fund and for future down payment, closing costs, and maintenance costs up and then plan to buy one of the less expensive condos in Bethesda. You can metro to work easily from Bethesda and also save costs on parking downtown.

When I search Bethesda I don’t see these places. What zip codes actually work with school and price? Thnks

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP - Although you want to, I don't think you are ready to buy a home yet. There are a lot of issues that go with buying a home.

First, when you are buying with less than 20% down, you will be paying PMI (private mortgage insurance). Basically you are paying an extra fee to insure that should you fail to pay and the lender has to foreclose on your house that the lender is insured for monetary losses which can be substantial. It's not a lot, but it is a monthly payment added on to your payment, which decreases the amount of money that you pay each month towards principal. As another PP mentioned, the first 2-3 years of payments, you will be paying virtually nothing towards equity, but will primarily be paying heavily up front on the interest payments against the loan. Last, the closing costs can be significant and range between 5-15% of your home cost (the most expensive the house, the lower the percentage). You are probably looking at around $8K-20K worth of closing costs You can roll some or all of the closing costs into the loan, but that increases your loan.

The less you put in for a down payment, the higher your interest rate will be. So it will increase the amount of money that is taken up front in the first few years and extend the period when you are earning virtually no equity in the house. Also, your credit rating will likewise increase the interest rate you are paying. When you hear all of those great rates on commercials and ads, those are essentially for people who are putting 20% down and have a credit rating 750+. You will not get those rates in your situation.

Another big issue is that unless you are buying a very solid home, either one well-cared for by the previous owners, or a flip where most things are new, you can expect some costs in the first year of ownership. There are always things ranging from appliances (d/w, w/d, stove, oven, water heater, HVAC, fridge) to electrical to plumbing, vents, that need repairs or maintenance in the first year. And if you don't do maintenance on these things (like doing a spring-time inspection/cleaning of the AC or the fall inspection/cleaning of the furnace/heat pump) then you run the risk that something could happen and leave you without that appliance when you get into the season. A little money up front often prevents a lot of money later, especially at the wrong times (e.g. furnace going out during a cold snap or A/C going out during a heat wave). I general, it is conservatively recommended that you have 1% of the purchase price of the home to account for the unexpected during the first year or two of home ownership. There always seems to be something that comes up that you need to deal with. The older the appliances and components of the house, the more likely you'll have issues (although there often seems to be a cap at around 60 years, things were built to last much longer in pre-1960 homes.

Additionally, although might be included in the 1%, you might find the additional accessories for home ownership may run over that. For example, if you buy, you may be responsible for a yard, or landscaping or plants. When you rent and there is a problem with that, usually the landlord takes care of a lot of those costs, but when you own you have to pay for all of that. You have to be responsible for clearing your sidewalk or shoveling a driveway or parking space. I've had many friends who didn't realize all of the things that they'd need to buy to take care of a house. As renters, when many problems came up, they called the landlord or property management and had them take care of things. But when you are a homeowner, you have to deal with things yourself or you have to hire someone to do it for you.

Like others, I would recommend that you consider relocating to a less expensive home for a few years and get much more of a savings before you go into home ownership. I just don't want to see you spending everything to get into a home and then finding in the first two years that you just can't afford to live there. Home ownership is a lot of work beyond just the mortgage payment and it can be pretty expensive. In the long run, you'll get more out than you put in, but it does require a lot of time and money investment up front.

You are way too kind to write all this for OP, who isn't even trying to let us help him/her. They are giving us the absolute bare minimum of information and won't even answer why they need a 700k house nor why they haven't saved anything. Don't entertain the troll anymore.

I don’t NEED a 700k house. I just need a good school and two bedrooms. -op

For those requirements, there are 16 condos in Bethesda with 2 BR between $180K-400K that might work for you. The good thing about condos is that a lot of the external costs for home ownership (snow equipment, lawn equipment, outdoor maintenance, etc) are taken care of for you and you won't incur those expenses.

These might be a good option for you to consider. The important thing is whether you can get approved under your situation for a mortgage with your credit rating and low cash in hand.

I think that like others have pointed out that you might be better off actually renting someplace smaller and less expensive for a year or two to get yourself more financially stable. There are many options for 2 BR rentals in Bethesda that are zoned for good public schools and that you can get for $2000-2500. Start with those, start saving aggressively and get your cash in the bank, for both emergency fund and for future down payment, closing costs, and maintenance costs up and then plan to buy one of the less expensive condos in Bethesda. You can metro to work easily from Bethesda and also save costs on parking downtown.

When I search Bethesda I don’t see these places. What zip codes actually work with school and price? Thnks

https://www.apartments.com/bethesda-md/2-bedrooms-2000-to-2500