Read “Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money–That the Poor and Middle Class Do Not!”. If you want an e-copy, PM me. I haven’t read it yet, but one of my good friends told me to jump on it right away. She told me that she and her husband have completely changed the way they manage their finances after reading this book.
Also, don’t worry about the 20%. Just bite the bullet and get an FHA loan. If you’re in a decent market and have a good mortgage broker, you can refinance in just a few years and do an 80/20 loan (20% being a HELOC). At that time, try to position yourself to do a 15yr. mortgage rather than a 30yr… Most people do the 30 because that’s all they think they can afford. Howevever, if you can pay just a little more, the 15 yr. is so much better for getting some serious equity in your house.
Ah hell, I gotta reboot, but I’ll revisit this topic. I have a Real Estate license in KS, so I know a little (not a lot).
Nate Dogg wrote:
I keep trying to look into buying, and every time I do, I get disappointed because the amount I can afford is not enough to buy jack shit (even with awesome credit)! And since I don’t have much money to put down (I’d be a first-time home buyer with little to no money down), it makes it even harder.
How in the world do most people manage to even save 20% if you are already renting and also have other loans (car, school) and bills (utilities, food, insurance, etc.)??? It blows my mind. I’m currently trying to pay off my credit card and minimizing other bills, but it still doesn’t leave much to buy the type of house/condo I want since the prices have skyrocketed. And it would take YEARS to save up for 20%.
I may end up just renting again because buying seems impossible.
I’ve heard (haven’t substatiated) that there is no evidence that the guy that wrote rich dad, poor dad was wealthy before writing that book, although he certainly is now. Not that he’s wrong about anything (I haven’t read it), but just a heads up. The real secret to getting rich is pretending you have a secret to getting rich, and making other people pay you to hear it.