Reply To: How to afford a house

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#771800
anon1m0us
Participant

I bought my house for about $450 and made around $70K at the time.

1) NO Credit Cards!!!

2) All extra money you earn, put it into savings. Don’t bother buying expensive suits or hats. Put all extra money in savings.

3) Cut down on all your bills, as much as possible. Hence, I got rid of cable.

4) You will need to save for a few years. You should have enough for 20% AND closing fees which can range from 10-20K. You could probably put down less for a down payment, but pay PMI. Speak with a lender.

5) Shop around for the BEST rate, no matter if your friend does mortgages too. Be educated.

6) Do NOT move to Brooklyn or any densely related areas because the housing prices are high. Look for frum neighborhoods where you can get relatively cheap houses, like Monsey.

7) When you are ready to buy a house, increase your allowances on your W4 to receive more money back in your paycheck. I increased mine to 12. The end result is you will be receiving a less of refund at the end of the year. But who cares? You need money NOW.

8) Learn to be handy. Do not call an electrician to scrrew in a light-bulb or change an outlet. Home Depot sells great books that teaches you how to do it yourself. Yes, something you need help, but there are a lot of things you can do yourself.

Good luck and have fun!