Saving to buy a house! Tips!

[TheDisneyDoll]

I've recently been put on a medication that will (hopefully) extend my life, which means my dream of owning a house near Disney World in Orlando may come true.
I currently live with my parents and my income is pretty limited. I am lucky that the only bill I don't have right now is one for housing. I am getting rid of my car in December and it's my goal to go as long as I can without one to save up some money.
I have been slowly scoping out the market and doing research about buying your first home, and like the average person my eyes are bigger than my wallet at this point in time.

I know the recommedned down payment is 20%+ so I'm looking up some tips for earning extra money to reach that goal or what are some methods y'all have used when you purchased your houses?

I don't at this time have any plans for a family of my own, but I do plan on renting out any extra rooms I could have.
I do swagbucks, shopkicks and ebates right now.


I am slowly down on my vacations and working off all my debts, but I am pretty much on a fixed income and i'm only allowed to make so much legally a year (i prefer t be legal). I have considered selling my stuff on ebay but that is only going to get me so far if you know what i mean.

Oh this post turned into a mess! What methods have you used to save money long term?

I want to get something that I can take care of for now and leave to my family in the future.

 

[mousehockey37]

It sounds as though you have a lot more on your plate than just buying a house, and I'm coming to you as someone who's in the market for my own 1st home. A fixed income isn't going to stop you from getting a home, but it's not necessarily going to help you either (remember, when you buy a home, you're responsible for EVERYTHING! so you have to have some sort of emergency money that's set aside for that). There's home owners insurance, flood insurance and for you in Florida, Hurricane Insurance and taxes... lots of taxes... Keep that in mind as well.

The programs you're doing right now are what I would equate to getting gift cards for vacations or something like that. They're not going to be funds to get you a home.

As far as the monies to buy a home, there are properties that can qualify for full financing, HUD homes, there's the FHA loans (where you can do as little as 3.5% down), but they'll want to see an employment history for this stuff. 20% is still the goal though if you want to eliminate the PMI (Mortgage Insurance). As far as Florida, I have no idea, you'd have to talk to a Realtor or something to see if your dream could even be a reality.

I hope that you can find a home near WDW to live your dream but with the minimal amount of details you gave, it seems it might be a rather long, rough road. Again, hopefully not impossible, but you're going to need more than your fixed income, more than likely, to move into your own home.

I'd talk with your parents and see what they say (they're your best resource for right now because well, they've been down the homeowner road) and if they say to see what you can do, then go talk with a Realtor.

 

[disney144]

What about trying to live down there, without owning?

 

[TheDisneyDoll]

It sounds as though you have a lot more on your plate than just buying a house, and I'm coming to you as someone who's in the market for my own 1st home. A fixed income isn't going to stop you from getting a home, but it's not necessarily going to help you either (remember, when you buy a home, you're responsible for EVERYTHING! so you have to have some sort of emergency money that's set aside for that). There's home owners insurance, flood insurance and for you in Florida, Hurricane Insurance and taxes... lots of taxes... Keep that in mind as well.

The programs you're doing right now are what I would equate to getting gift cards for vacations or something like that. They're not going to be funds to get you a home.

As far as the monies to buy a home, there are properties that can qualify for full financing, HUD homes, there's the FHA loans (where you can do as little as 3.5% down), but they'll want to see an employment history for this stuff. 20% is still the goal though if you want to eliminate the PMI (Mortgage Insurance). As far as Florida, I have no idea, you'd have to talk to a Realtor or something to see if your dream could even be a reality.

I hope that you can find a home near WDW to live your dream but with the minimal amount of details you gave, it seems it might be a rather long, rough road. Again, hopefully not impossible, but you're going to need more than your fixed income, more than likely, to move into your own home.

I'd talk with your parents and see what they say (they're your best resource for right now because well, they've been down the homeowner road) and if they say to see what you can do, then go talk with a Realtor.

Yes easy definitely isn't how it will be, but nothing worth it ever is
My main focus this year has been reducing my credit to debt ratio. But I had a bad spell and I was out of work for 3 months.

 

[TheDisneyDoll]

What about trying to live down there, without owning?

I am in a better position right now to save money towards a permanent residence. Renting wouldn't be bad temporarily, but i think if the long term goal is to stay there that it is better to bide time and save now.

 

[mousehockey37]

Looking at that 3 months you were out of work, that's something as well. You need to make sure you have a fallback in case it happens again for some reason, that way you don't lose your dream home.

Depending on what type of fixed income you're on, there are programs out there to help. A simple google search can do wonders.

As far as putting money away, I'd try and keep expenditures as low as possible then when you get your next installment of fixed income, to just put away whatever was leftover from the prior installment. That would be longer term. In the shorter term, it sounds like the method I mentioned would be good for getting your credit debt down.

Before you go selling off your transportation, make sure you know that you're not going to need it. If you're not making payments on it right now and own your car, the "upkeep" is still a small hassle compared to a brand new or new to you car payment.

 

[TheDisneyDoll]

Looking at that 3 months you were out of work, that's something as well. You need to make sure you have a fallback in case it happens again for some reason, that way you don't lose your dream home.

Depending on what type of fixed income you're on, there are programs out there to help. A simple google search can do wonders.

As far as putting money away, I'd try and keep expenditures as low as possible then when you get your next installment of fixed income, to just put away whatever was leftover from the prior installment. That would be longer term. In the shorter term, it sounds like the method I mentioned would be good for getting your credit debt down.

Before you go selling off your transportation, make sure you know that you're not going to need it. If you're not making payments on it right now and own your car, the "upkeep" is still a small hassle compared to a brand new or new to you car payment.

My car is a lease so keeping it isn't an option. I will need to get one down the road eventually, but for the moment it isn't necessity. I have it for another 4 months and as far as lease goes i've paid ahead so it's mostly paid off until then.
My plan for that is to just go as long as I can without a car payment and use the time to keep an eye out for a used car that I want and is worth the time to put effort into. I am fairly car savvy so fixing something like that up wouldn't be difficult if the price is right.
I'm just more interested in how people were able to put money away and where they were able to pinch there pennies.
My methods to acquiring gift cards are not huge savers, but they definitely add up. I don't really spend money on things other than traveling. I am cutting back on the traveling drastically next year so that will be a lot more in my pocket too

 

[CalDisneyMomof2]

Do you get a tax refund typically? Do you have good credit? Maybe a credit card that maximizes cash back(only if you're good with credit cards)?

If you're on a fixed income I would look for homes in the very bottom of your price range so you can put more money away for savings each month. Don't count on rental income as consistent income.

 

[mousehockey37]

My car is a lease so keeping it isn't an option. I will need to get one down the road eventually, but for the moment it isn't necessity. I have it for another 4 months and as far as lease goes i've paid ahead so it's mostly paid off until then.
My plan for that is to just go as long as I can without a car payment and use the time to keep an eye out for a used car that I want and is worth the time to put effort into. I am fairly car savvy so fixing something like that up wouldn't be difficult if the price is right.
I'm just more interested in how people were able to put money away and where they were able to pinch there pennies.
My methods to acquiring gift cards are not huge savers, but they definitely add up. I don't really spend money on things other than traveling. I am cutting back on the traveling drastically next year so that will be a lot more in my pocket too

I'd just find a way to cut all the extras then. If it isn't essential, and you can go on without it, then do it. Find a savings account that gives a decent interest rate (CapOne360 is one) and put your extra money there. Let it grow while you keep feeding it what you can, whether it's $10 or $100 or whatever you can do.

For Swagbucks, use the coupons! Biggest saver for me and also, buy stuff in bulk (Sam's, BJ's, Costco). It'll cost you upfront, but when you only have to go out for certain perishables or whatnot, you'll see the savings longer term.

 

[TheDisneyDoll]

Do you get a tax refund typically? Do you have good credit? Maybe a credit card that maximizes cash back(only if you're good with credit cards)?

If you're on a fixed income I would look for homes in the very bottom of your price range so you can put more money away for savings each month. Don't count on rental income as consistent income.

I have fairly good credit (it can always be better right?) I usually have a small tax refund.
Renters would only be a source of income I definitely wouldn't commit to something in that sense that I couldn't afford independently. I am a bit of a scrooge when it comes to money and the thought of not being able to afford a monthly payment would make me way to anxious.

 

[TheDisneyDoll]

I'd just find a way to cut all the extras then. If it isn't essential, and you can go on without it, then do it. Find a savings account that gives a decent interest rate (CapOne360 is one) and put your extra money there. Let it grow while you keep feeding it what you can, whether it's $10 or $100 or whatever you can do.

For Swagbucks, use the coupons! Biggest saver for me and also, buy stuff in bulk (Sam's, BJ's, Costco). It'll cost you upfront, but when you only have to go out for certain perishables or whatnot, you'll see the savings longer term.

I haven't been able to figure out swag bucks coupon thing yet, i've looked at it a handful of times though. I'm still fairly new to it, I opened an account years ago and forgot about it and started using it again at the beginning of August.

 

[mousehockey37]

I haven't been able to figure out swag bucks coupon thing yet, i've looked at it a handful of times though. I'm still fairly new to it, I opened an account years ago and forgot about it and started using it again at the beginning of August.

Coupons are simple. It's coupons.com through swagbucks. Just go on, find and print the coupons you want to use and use'em. Later, after redeeming them for use in the store, you'll get rewarded 10 SB's for EACH coupon, once everything goes through on the business end that is.. and that takes up to 12 weeks, but it works. It saves you money in the store and eventually you get SB's out of it.

They've had some really good ones lately and I use them when we go to BJ's. Example: We get the All Free and Clear detergent. There was $1.50 off on SB and then a $3.00 coupon in the mailer, so we got $4.50 off in total for the huge bottle.

 

[bababear_50]

Great Goal,,Now PLAN
Set up a realistic budget--realize your potential % ability to save.
Set up a separate account and have work direct debit a percentage each pay.
Pay off all debt.
Cut the everyday extras like coffee lattes, magazines, eating out,etc.--redirect into "House Fund"
Ask for money as a gift for Christmas and Birthday--redirect into "House Fund".
Everytime I use my debit card a $1 goes automatically into a separate savings account--at the end of the month I transfer it into another account.I'm Canadian so I don't know if you have this type of account available.
My credit union has been great on helping me have clear paths and goals for things I want . I am single--raised three sons-put them through College, University,bought my own home,and BELIEVE if you really want something you can make it happen.
Think things through--get advise and make a plan, reward yourself along the way.--even if that is a special cup of chai tea.
Hugs Mel

 

[TheDisneyDoll]

Coupons are simple. It's coupons.com through swagbucks. Just go on, find and print the coupons you want to use and use'em. Later, after redeeming them for use in the store, you'll get rewarded 10 SB's for EACH coupon, once everything goes through on the business end that is.. and that takes up to 12 weeks, but it works. It saves you money in the store and eventually you get SB's out of it.

They've had some really good ones lately and I use them when we go to BJ's. Example: We get the All Free and Clear detergent. There was $1.50 off on SB and then a $3.00 coupon in the mailer, so we got $4.50 off in total for the huge bottle.

Oh that is really interesting. Do you have to show receipt or anything? I'm confused how swag bucks knows you've used the coupons.

 

[TheDisneyDoll]

Great Goal,,Now PLAN
Set up a realistic budget--realize your potential % ability to save.
Set up a separate account and have work direct debit a percentage each pay.
Pay off all debt.
Cut the everyday extras like coffee lattes, magazines, eating out,etc.--redirect into "House Fund"
Ask for money as a gift for Christmas and Birthday--redirect into "House Fund".
Everytime I use my debit card a $1 goes automatically into a separate savings account--at the end of the month I transfer it into another account.I'm Canadian so I don't know if you have this type of account available.
My credit union has been great on helping me have clear paths and goals for things I want . I am single--raised three sons-put them through College, University,bought my own home,and BELIEVE if you really want something you can make it happen.
Think things through--get advise and make a plan, reward yourself along the way.--even if that is a special cup of chai tea.
Hugs Mel

I've not heard of an account like that but i will definitely look into it! I'm not sure if we have anything like that in the U.S.
I'm usually a good saver it's the traveling that always busts me. I've been told for so long I wouldn't have a long life so i've always just said screw it and gone on the adventures I could.
This is my first time really thinking i might have a chance to live long enough for a house to be a worthy investment It's exciting!

 

[Sarah Brozdonis]

You can always talk with a financial adviser, too, they will be able to look at your income, dent, etc. and help you figure out exactly how much you can afford in terms of house loans, payments, etc. (that is my next step as I search for a house!).

 

[SM101]

Be honest about your monthly expenses - can you afford a mortgage AND HOA fees AND insurance AND taxes AND maintenance (lawncare, a new roof, fix the dishwasher, etc) AND heating/water/electric/cable AND put away money for capital improvements AND still save money?

Meanwhile, buy your next car rather than lease - leasing is a huge waste of money. Brown bag lunch to work. Make coffee rather than buy it. Minimize expenses. Couponing and other promos are great to save a bit but they won't pay the mortgage. Talk to a financial advisor to see what your best course of action is.

 

[Clawdya]

I've recently been put on a medication that will (hopefully) extend my life, which means my dream of owning a house near Disney World in Orlando may come true.
I currently live with my parents and my income is pretty limited. I am lucky that the only bill I don't have right now is one for housing. I am getting rid of my car in December and it's my goal to go as long as I can without one to save up some money.
I have been slowly scoping out the market and doing research about buying your first home, and like the average person my eyes are bigger than my wallet at this point in time.

I know the recommedned down payment is 20%+ so I'm looking up some tips for earning extra money to reach that goal or what are some methods y'all have used when you purchased your houses?

I don't at this time have any plans for a family of my own, but I do plan on renting out any extra rooms I could have.
I do swagbucks, shopkicks and ebates right now.


I am slowly down on my vacations and working off all my debts, but I am pretty much on a fixed income and i'm only allowed to make so much legally a year (i prefer t be legal). I have considered selling my stuff on ebay but that is only going to get me so far if you know what i mean.

Oh this post turned into a mess! What methods have you used to save money long term?

I want to get something that I can take care of for now and leave to my family in the future.

Before we purchased our home, I used to listen to Suze Orman a lot. She used to say to pretend like you have a mortgage already, put that money in a savings for at least 6 months. You should save what you estimate your mortgage will be plus 40% (for utilities). So, if you think your mortgage payment will be $1,000, then you need to save $1,400 every month. If you are comfortable with making that payment for at least 6 months then you know you can afford a mortgage and at the end of the 6 months you will have $8,400 saved up to assist with your down payment or to accessorize your new home. If, however, you have trouble keeping up with the pretend mortgage payment, then you will see that you can't afford it and now you have whatever money you were able to save to spend or pay down some debt elsewhere. We did this for 1 year and we knew we were ready. I saved $2,000 per month (the $2k plus what we were already paying in rent equaled the estimated payment + 40%) and had $24,000 when it was all said and done. Best advice ever followed (at least IMHO).

 

[brazzledazzler]

If you are trying to save, my advice:
www.youneedabudget.com

I probably sound like I'm preaching this, but it works. It's a computer application and website that pretty much works as a financial planner. They have these 4 rules, like
1) Give every dollar a job (every dollar you earn, put it towards sometime, allocate it)
2) Save for a Rainy Day (medical expenses, holidays, vacations, unemployment, car repair...life happens, be prepared)
3) Roll With the Punches (It's ok if you go over in certain categories, things happen, just make sure you adjust the budget accordingly, YNAB deducts overspending from next month's budget)
4) Live on Last Months' income --->This is pretty much a major goal of YNAB.

I only found this website due to my DH. When he found it, he was in lots of credit card debt and we were starting to talk about marriage. It was important for us both to start our future together bad-debt-free. 2 years later, he paid off his credit card debt, improved his credit score and we're now house hunting.

For Buying a Home:
I am not sure what your income is, but you should really read articles on Zillow, trulia, and other real estate websites. Get an idea of how much a mortgage is going to cost you, how much will you have to put down, how much you need to save for home repairs, HOA, utilities, how much are taxes, etc etc. Those numbers will give you a rough estimate of what you need to have to afford a home.

Also, don't buy a home you can only afford if you rent it out. If you can't afford to live their on your own, it's not in your budget. Renters can come and go, and getting a renter is not a guarantee. Plan as though you won't have one.

 

[LJSquishy]

I agree with all of these tips! I also agree with Clawdya's suggestion of "paying the mortgage" into your savings account starting now and making that a priority as if you really had a mortgage.

I find Zillow's mortgage calculator to be very accurate (within $50 or so) when playing with the house purchase price, down payment, PMI, etc. It will tell you the estimated final amount per month you will be paying with everything included (utilities excluded of course).

We are saving for our 2nd house now after selling our starter home almost exactly a year ago. We moved into my in-law's basement which is a full separate residence/apartment in order to maximize our savings goals since we are also saving for adoption. We're extremely thankful they offered to let us move into their basement even though it's been pretty rough for us at times since we lived alone for so long. By this winter/early spring we will have met our savings goals and will be ready to build our house or buy an existing one (if we find one we like...no luck thus far). Anyway, what I wanted to say was that we've had a few months of overspending where we kind of buy whatever we want since our financial obligations are so minimal right now...so do NOT do that! We are ultimately still on track, but it all adds up. It's worth holding off on vacations and other material items right now. We had our upcoming October trip planned and paid for before we sold our house so we're still going (we need a break anyway!), but if we wouldn't have had it arranged already we would have just saved that money.

I'm a housewife so we only have one income and I do little things to save money like Receipt Hog and Ibotta. I need to get back into Swagbucks (which I always redeemed for Amazon gift cards) but it's more time consuming than the other two. I make almost everything from scratch...granola, homemade Lara Bars, vegetable broth, yogurt, salad dressing, etc...all from scratch. I even make our own unsweetened coconut milk. We do spend a lot on groceries because we eat almost exclusively organic, but I've been noticing we're spending way more than we really need to on empty 'junk' like tortilla chips which we just don't need. I realized that the reason tortilla chips are making it into the cart is because we're out of homemade muffins in the freezer (I try to always have them in the freezer) as well as frozen homemade Lara bars (well, I make mine into balls because it's easier). So, not eating out and exclusively eating at home will help you save money.

Really think about the items you do buy and whether or not you really need them. Clothes is a big thing for a lot of people...this year I've spent a lot of money on clothing because I lost almost 40lbs...before I lost the weight, I hadn't purchased any clothing in several years. I'm now trying to restrict clothing purchases to items I really do need and just buy a piece here and there rather than several things at once. I do need shoes but I'm trying to space that out as well.