how do you come up with a down payment?

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  • Poncier
    Poncier Posts: 17,892
    GraySaturday wrote:
    It sucks because we can afford a real nice place downtown, but its the down payment that we just don't have up front.

    .
    If you can afford a nice place in downtown Chitown, then I assume between you you make a decent living. If thats the case, then you can also afford to save for a down payment. You just have to take a hard look at where your money goes, trim some spending for a time and set up a separate account that you won't withdraw from and put that excess in there.

    Its not easy, but since mortgages are a little harder to get these days, you'll need something. Renting is just pissing your money away.
    This weekend we rock Portland
  • Brain of J.Lo
    Brain of J.Lo Posts: 3,259
    GraySaturday wrote:
    I live in Chicago. The places we are looking at are around 250k give or take. Its hard because we're not looking at big places, I mean these are 1 bedrooms!

    Its depressing, I mean I just took out 16k for my first year of Grad school in September and thats not even going to cover it all. I just don't want to have crazy loans, so I am trying to use loans and my own money. But I feel like I will never get ahead. Catch 22, I need school to get a great job, and I need loans to go to school..

    argh!

    Yeah, I'm contemplating going back to school in 09 to become a teacher and the thought of taking out loans to pay for it makes me queasy... I'm stressing myself out about saving money/planning our life/whether or not we'll have another kid/what kind of career am I going to have?/where do we want to live when Annabelle starts school?

    It seems like everything I want to do takes money, which we don't have enough of....and will we ever???!!!! This is my one major complaint about having a kid about 3 or 4 years before we'd planned to. I was hoping to have this stuff figured out!

    But, I digress. The point is, I feel you on the catch 22 thing.
  • AmentsChick
    AmentsChick Posts: 6,969
    StateOfLoveBoatCptn. wrote:

    people on here attack for anything :D

    Exactly!!
    This is the greatest band in the world -- Ben Harper

  • CityMouse
    CityMouse Posts: 1,010
    Get_Right wrote:
    ten years of savings
    and you can buy with 5% down if you have good credit

    yeah but do you really want to do that?

    and still 5% of $350K is $17,500!
  • markymark550
    markymark550 Columbia, SC Posts: 5,217
    When my wife and I made the decision to buy our house, we took a slightly higher interest rate and the PMI in lieu of a down payment. We might could have come up with half of it, but after looking at our finances and figuring we could make the higher mortgage payments we decided not to completely wipe out our bank accounts.

    Honestly, if the down payment is keeping you from purchasing a house, talk to the mortgage officer at whichever bank you go to and they will try to help you find ways around it. After all, as long as you can make your payments, they want your business.
  • CityMouse
    CityMouse Posts: 1,010
    Brain of J.Lo wrote:
    Yeah, I'm contemplating going back to school in 09 to become a teacher and the thought of taking out loans to pay for it makes me queasy... quote]

    student loans are a fact of life. who can pay a year of grad school out of pocket? it's nearly impossible. my grad program was 2 years and even with my $12,000 scholarship tuition alone was about $45K...plus you have to live at the same time so you need loans for rent, food, and just living.
  • Get_Right
    Get_Right Posts: 14,127
    CityMouse wrote:
    yeah but do you really want to do that?

    and still 5% of $350K is $17,500!

    dont forget another 10k in closing costs

    instead of paying rent? yes.

    I know. It takes time to save up for the down payment. Set the goal and work hard to get there. It will happen.
  • Brain of J.Lo
    Brain of J.Lo Posts: 3,259
    Phantom Pain wrote:
    Finally taking my advice about stripping

    ;):D

    Yeah, I start at Cheerleaders next week. :D;)
  • Poncier
    Poncier Posts: 17,892
    CityMouse wrote:
    yeah but do you really want to do that?

    and still 5% of $350K is $17,500!
    $112 a week for 3 years and the down payment is there.
    Cut out one dinner out a week, a few less new pairs of shoes and drink Sam's cola instead of Pepsi and you'll be staring at that white picket fence in no time.
    This weekend we rock Portland
  • AmentsChick
    AmentsChick Posts: 6,969
    Brain of J.Lo wrote:
    Yeah, I start at Cheerleaders next week. :D;)

    Well, you already have a fan it sounds like. LOL!
    This is the greatest band in the world -- Ben Harper

  • GraySaturday
    GraySaturday Posts: 2,878
    CityMouse wrote:
    well perhaps you just need to enjoy renting for a while longer. really a house is just a "thing." as long as you have shelter over your head, you're all good.

    In the Boston Area, you're looking at $350-$400K for a very small condo (most likely with no parking, that's separate).


    Oh I know! I am a former east coaster (Philly area) and part of the reason we moved to chicago was because we wanted to live downtown in a large city, and Boston and NYC were just not an option! We'd never afford a place.

    I am okay with renting for as long as it takes, however, in this market its so temping to be able to get a deal since its a buyers market, you know? The problem is, the rents in chicago have really gone through the roof since the economy took a nose dive because people aren't buying. Our place is just a bit too small for us, and after our lease is up next year, I'd hate to waste money moving to a new place to rent, but I don't think we can keep going here after this year.
  • Brain of J.Lo
    Brain of J.Lo Posts: 3,259
    CityMouse wrote:
    Brain of J.Lo wrote:
    Yeah, I'm contemplating going back to school in 09 to become a teacher and the thought of taking out loans to pay for it makes me queasy... quote]

    student loans are a fact of life. who can pay a year of grad school out of pocket? it's nearly impossible. my grad program was 2 years and even with my $12,000 scholarship tuition alone was about $45K...plus you have to live at the same time so you need loans for rent, food, and just living.

    Yeah, and I have a kid so that's an added expense!!! And then my original student loan (plus my husband's). Why didn't I just do education the FIRST time around? ARRRGGGHH!!!!

    *sigh*
  • Poncier
    Poncier Posts: 17,892
    Get_Right wrote:
    dont forget another 10k in closing costs
    10K??
    You got taken to the cleaners. ;)
    This weekend we rock Portland
  • Brain of J.Lo
    Brain of J.Lo Posts: 3,259
    AmentsChick wrote:
    Well, you already have a fan it sounds like. LOL!

    I expect Phantom Pain to show up with a large wad of cash on my first day! :D
  • GraySaturday
    GraySaturday Posts: 2,878
    Brain of J.Lo wrote:
    CityMouse wrote:

    Yeah, and I have a kid so that's an added expense!!! And then my original student loan (plus my husband's). Why didn't I just do education the FIRST time around? ARRRGGGHH!!!!

    *sigh*

    do you KNOW how many times I have said that exact statement..

    I was an education major for a year and 1/2 too in college.. but NO a major in Painting and Drawing was SO much better..

    Not a day goes by I don't kick myself.. hard.
  • CityMouse
    CityMouse Posts: 1,010
    Poncier wrote:
    $112 a week for 3 years and the down payment is there.
    Cut out one dinner out a week, a few less new pairs of shoes and drink Sam's cola instead of Pepsi and you'll be staring at that white picket fence in no time.

    yeah right, if only that was the solution.

    ick though! white picket fences? where am I buying this house, the middle of nowhere? have you seen my screen name?
  • Get_Right
    Get_Right Posts: 14,127
    Poncier wrote:
    10K??
    You got taken to the cleaners. ;)

    actually, for my purchase it was more like 17K
    damn westchester taxes and fees
  • Brain of J.Lo
    Brain of J.Lo Posts: 3,259
    GraySaturday wrote:
    Brain of J.Lo wrote:

    do you KNOW how many times I have said that exact statement..

    I was an education major for a year and 1/2 too in college.. but NO a major in Painting and Drawing was SO much better..

    Not a day goes by I don't kick myself.. hard.

    I hear you...it's so frustrating. I wish I could just have a "do over" on my college major!
  • Get_Right
    Get_Right Posts: 14,127
    Poncier wrote:
    If you can afford a nice place in downtown Chitown, then I assume between you you make a decent living. If thats the case, then you can also afford to save for a down payment. You just have to take a hard look at where your money goes, trim some spending for a time and set up a separate account that you won't withdraw from and put that excess in there.

    Its not easy, but since mortgages are a little harder to get these days, you'll need something. Renting is just pissing your money away.
    this is good advice
    it takes hard work and sacrifices to get there
    but so worth it
  • GraySaturday
    GraySaturday Posts: 2,878
    Brain of J.Lo wrote:
    GraySaturday wrote:

    I hear you...it's so frustrating. I wish I could just have a "do over" on my college major!


    and my parents paid for college. I had NO loans.. no expense.. Makes me what to shoot myself..

    but its not like a graduate degree is useless! haha.. hopefully I will land a great job..

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