# I need help? or more so advice? hmm..



## DanCurrier (Feb 8, 2008)

I am 21 years old, and my credit is not the best, but could be a lot worse.

I am currently unemployed, but am going to start looking for a job, and paying off bills, than also going to save up enough money to hopefully buy a house, and do better in my life, by home steading.

I know that this will take a lot of time, to do something like this, but with the market crashing, I figure that there really is no better time to do it either, but that might just be because I am ignorant in this subject.

my credit can be fixed, easily I only have two bank accounts that I need to pay off and a credit card, I think in total I only owe about 600.00 or so but due to the fact that the banks, along with the credit card company will probably work with me, I will be able to pay that off quickly.

I see a lot of people talking about foreclosures, and loans from the bank, and this thing, and the other thing but all they are to me are words, and I do not have any knowledge about them, anyone care to explain?

I'm sorry if perhaps I might have posted in the wrong board, or this might not make too much sense to many of you, but you guys seem nice with very little bashing so any words of wisdom, or stories or whatever will be much appreciated.


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## Dutchie (Mar 14, 2003)

DanCurrier said:


> I am 21 years old, and my credit is not the best, but could be a lot worse.
> 
> I am currently unemployed, but am going to start looking for a job, and paying off bills, than also going to save up enough money to hopefully buy a house, and do better in my life, by home steading.
> 
> ...


It would really help to know where you are located. Much of the answers will depend on that


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## DanCurrier (Feb 8, 2008)

Oh I am sorry, I thought my location would have came up, much like yours does near the posts and date joined, I am from New Hampshire.


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## deaconjim (Oct 31, 2005)

My advice would be to focus on working, saving, and paying off debt. Rent a home and land for awhile, and save up your money so that you can purchase real estate without going into debt. I don't know about your job skills, but now is the time to be going to school and/or developing skills and abilities that you can market to potential employers.

Get the book "Rich Dad / Poor Dad" and read it.


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## DanCurrier (Feb 8, 2008)

so foreclosures, and loans are a bad option for someone to get into?


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## deaconjim (Oct 31, 2005)

DanCurrier said:


> so foreclosures, and loans are a bad option for someone to get into?


Forclosures can be a good deal, but they can also be a nightmare. People who are about to be forclosed on won't or can't spend money on routine maintenance, and quite often they deliberately damage the property. You could wind up spending more on repairs than you save on the purchase.

Go to one of the mortgage calculator sites and figure a $100,000 mortgage for 30 years at whatever the current interest rate is. Then take a look at how much you are paying back, principle plus interest, over the life of that loan. It is a bunch of money. 

For now, I would rent (since your needs are pretty simple while you are single). Rent in the country if you want to start the homesteading life. Get some experience under your belt so that, when you are prepared to buy, you have a better idea of exactly what to buy. Save your money and put it into something that will make money for you (reading the book I recommended would help you there). Practice living frugally now, and make it a lifelong habit and you will get much more out of what you earn, and in the long run you'll have more to show for it. Pay cash whenever humanly possible, and treat credit like something very dangerous, which it is.


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## Betho (Dec 27, 2006)

THere's also a different perspective on this too. I want to get in a house as soon as our credit will allow, which will be about next year. I will then finally be able to grow food in a garden, and hopefully live rural enough I can also raise chickens for meat and eggs. I would also have enough space in my home to stock up properly so I would do a lot more preserving, canning, and stocking up on items when they are on sale. I can't imagine the amount that will save me... living in an apartment makes it difficult to have any sort of longterm storage of anything. I can't keep large quantities of anything on hand, and so I end up paying more for items because I can't store them. I don't have room for a second freezer. If I had a house, I'd put in a second freezer and buy a side of beef. 

Now, that's me, domestic lil lady speaking, but that in itself is a good reason to think about buying a house. The way I figure it, if I can be in a house for what I'm paying to rent, it would be foolish. Even if only $100/month of my monthly payment was going towards principle (a major underestimate) that's $100/month more than what's going right now with me paying rent to a landlord!


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## bloogrssgrl (Jan 20, 2008)

Dan,

Right now you have two strikes against you - lack of employment and the credit issue.
As you take care of these things, you will become a better prospect for a loan. However, with the regulations being tightened as a result of the sub-prime fiasco, it will be difficult for you right now and might take a little longer than you are expecting. Lenders usually want to see a bit of an employment history - the time period will vary but 6 months is pretty common.

A forclosure property is a possible way to get a good deal on a home but there are some definite hurdles. When a property goes into forclosure, the bank that had the mortgage on it will eventually take ownership of the property. Once they do this, they usually have all the utilities shut down and winterize the home to avoid damage to plumbing and heating systems. This becomes a problem for potential buyers that need to use a lender because the lender usually requires the ultilites to be on for the appraisal. The bank that now owns the home will very rarely do this so the buyer must do it at their own cost and then pay to shut everything down again and re-winterize the property. As a result, foreclosure properties are often bought by cash investors -at least in my area.

My first advice would be to start with a lender. My second advice would be to avoid internet lenders and brokers. They will promise you the world but they seldom deliver. Find someone local who is willing to work with you and guide you through the process. This person would be someone who understands that this is going to be a long-term goal for you, not something that will happen overnight. Your local bank might be a good place to start. You would probably even be able to set up a savings account that you can designate as your "future down payment on a house" account. 

Also, there are many, many programs available for first time home buyers. Ask around. Some areas also offer classes to people who are buying their first home and, if you complete the class, you can earn grant money towards closing costs on the home you buy.

Be proactive and show that you want to be a good, responsible home owner and I am sure you will find someone willing to work with you.


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## GrannyCarol (Mar 23, 2005)

As far as home loans I really recommend getting a bank account with a good Credit Union. We've had superb service from ours and have all of our credit through them. I think the housing market will continue to be weak for a time, so get a job, get your credit straight and you should be in a better position to buy. 

In the mean time, if you want to homestead, try renting a more rural property. It should be cheaper, you'll get a feel for what you like and don't like and if that is the life for you. Early on when we had bad credit, we "rented" a farm house that needed a caretaker very cheaply. Some of our rent was in labor keeping things fixed up and the yard in good shape. That was a great way to get started and we were way out in the country. There are disadvantages to that life style as well as advantages, we eventually bought in town (all 250 people of our small town!) for the convenience, but loved living out in the country. (The farmer decided he needed his house back for his son when said son got out of college, so we had to move.)


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