Young guy with a dream (Just getting started)

[Anonymous]

Thank to all the great advice here on the forums I've started taking a good look at my finances. (Finally right?)

In the next year or two I would like to seriously start thinking about a home.  I have no idea where to start, so here are a few of my questions:

How much home can I afford realistically? (I'm thinking less than $150k)

How much cash should I have on hand to buy said home?  I know FHA loans need at least 3%, but how much else should I have on hand for closing costs and surprises?

I'm willing to spend disgusting amounts of time researching neighborhoods, and looking for deals or short sales in areas I want to buy.  I've though about going door to door (when I'm seriously ready to buy/offer) to homes that look like the owner is in financial trouble (Bad landscaping, poor maintenance etc) and trying to get to know the folks and see if they need to sell. Any other tips for finding great deals?

Any other general advice? 

A little about me: 

I'm 28, gross income is about 40K, no debt, no car loan, no rent payment nothing.  Fico scores are down a bit at the moment because of Inq., a new trade line and some business expenses that haven't worked their way though yet.  I think I could get to 760+ without a sweat.

Been at the same job for 10+ years.

DW No job history, clean credit history (She is from another country).  Her fico should be very good as well because she is an AU on all my accounts.

[Anonymous]

You should be able to get a loan without much of an issue from the sounds of it.

Now.. FHA is 3.5% now,  so keep that in mind.    Above that,  you need to have a couple of grand on top of that in the bank

as reserves anyways.  Try to work all closing costs into the deal, and your set. 

[kai_1103]

I wrote letters to people and actually got a few bites.  Look up who owns the house, say you are interested in buying your first place in the area and thought you would ask around.  I found the ones in distress not helpful, suprisingly.  Too much trouble.  But the people who happens to be selling soon is good.  I would look for people who bought their house a long time ago and don't appear to have a second mortgage or recent refi- meaning they likely don't owe far too much.  Its all in public records ususally.

Good luck!!

Message Edited by kelaykay on 10-21-2009 10:21 AM

[ShanetheMortgageMan]

Yeah with no debt, $40k of income, and $150k sales price you should be in great shape as long as you have the down payment.  Closing costs can be negotiated in your purchase contract to have the seller pay for them, or if you don't ask for it then figure you'd need to come up with closing costs too, and those would be anywhere from 3-5% of the $150k sales price.  Gifts from family/relatives can be used for the down payment & closing costs as well.