What are the steps into buying your first home?

My husband and I want to buy our first house in a year or so and we are interested in a house around 90,000 but no more. He makes about 35,000 a year and I'm a stay at home mom. I want to know more about how the whole process works. How to budget when you buy a house which includes utilities and groceries and bill's like car insurance etc.

Also what do people do for furniture when they buy their first house do they take out a credit card to pay for it? Just curious.

11 Answers

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  • DEBS
    Lv 7
    6 months ago
    Favorite Answer

    Budgeting should be very similar to how you do it today. The only difference is that instead of having just rent, you have mortgage, home owner's insurance, and property taxes as fixed recurring expenses. Often people will include those in their monthly payment to their mortgage company which will keep track of the balance and pay the appropriate entity when the bill is due.

    Other than that, know that eventually you'll need to do some maintenance so you should make sure you have savings allocated to that.

    As for furniture, this should be thought of before you purchase. If you don't have enough furniture for the size house you purchase, then you need to be able to buy what you want with cash. That means having extra savings or getting by with what you currently have until you save enough to get more. It is extremely unsmart to plan on putting purchases on a credit card you can't pay 100% when the statement comes. You'll be in debt the rest of your life and may end up losing your house.

    The other items you mentioned, like car, groceries, & utilities, should all be things you currently budget and pay for. If they aren't, then it sounds like you're not renting on your own right now. The smart thing to do would be to make sure you can handle this on your own first for a year or two before you purchase. It will also give you time to save more.

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  • 6 months ago

    The first step is contact your bank or a mortgage broker and get pre qualified. Depending on your debt you may qualify for the $90,000 home.

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  • 6 months ago

    when we bought our house we WENT TO STORE and bought furniture and electric appliances. and paid with BANK DEBIT CARDS. u also need downpayment to get a loan. which should be your own money, not also borrowed as another loan. in case u do not have money saved on your bank account - nowadays they have lots of thrift stores or u may buy from the site on internet - where i live we have a site where people post everything they want to get rid of for almost no money at all.

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  • 6 months ago

    The first step is going to your bank and getting qualified. I highly doubt you two qualify. I can't see $35k plus $zero qualifying for any loan, even if you find a house for $90k.

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  • 6 months ago

    wow, I live in Oregon and a decent house STARTS at $300,000

    • DEBS
      Lv 7
      6 months agoReport

      Relevance?

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  • Judy
    Lv 7
    6 months ago

    Keep your credit squeaky-clean and your debt low. You'll need 7000-8000 saved for a down payment and closing costs. good luck. Live for awhile with your current furniture, filling in with used pieces from a thrift store if necessary - do NOT use a credit card.

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  • Anonymous
    6 months ago

    < Just curious. >

    Then you can easily spend some time with google

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  • Greg
    Lv 7
    6 months ago

    The first step to manage your finances, with or without a house, is to track ALL of your expenses. Write down everything you spend, earn, and is deducted from paychecks. There are plenty of online calculators for mortgage costs and mortgage qualification. You will need a substantial down payment. Do you have $30,000 to use for a down payment and closing costs?

    • No Mercy
      Lv 7
      6 months agoReport

      30 k for dowpayment on a 90 k house? u dropped from a bed on your head or smth?

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  • Anonymous
    6 months ago
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  • Mandy
    Lv 5
    6 months ago

    You are not being realistic in thinking about purchasing a home and your husband makes 35K/year and you do not work.

    • Amber6 months agoReport

      We live in Ohio by the way

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