Working on buying a house

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Question, I have a year left on my lease and I’m trying to buy a house. I just got approved from the bank yesterday! I know exactly what I can afford to buy now.

Whoo hoo! I have about $4K in savings already. I bring home $2500 after all bills are paid every month. I’m trying to buy this without my Dad’s help on a down payment.

I want to put away $1500 every month! My goal is to have $15k saved up a year from now.

Is $1000 a month too little to live on?
Can I go lower than that? Is it worth it to get a second small part time job?

I got rid of all excess spending like my F45 and Cyclebar memberships.

Not going to lie I spend a lot of money on food and will drop a couple hundred at the farmers market on impulse buys.

I need help figuring out how to live on $1000 a month and not give into impulse buys!

Thank you!
 
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Use your future home as motivation.

Start meal planning and budget accordingly.

Create a realistic budget. You can still eat out but limit to once a month or so.
Living on 1k or less is very doable.

I believe in you. You are already on the right path. Congratulations!!!!
 
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Is there a reason you don’t want your dad to help with the down payment? I don’t know your circumstances, but consider accepting his help. If not the down payment, then maybe new furniture, fresh paint, or something like that.
 
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Is there a reason you don’t want your dad to help with the down payment? I don’t know your circumstances, but consider accepting his help. If not the down payment, then maybe new furniture, fresh paint, or something like that.
I’d like to keep my Dad as a resource for just in case or get him to pay off my student loans for me.

I just want to say I bought this house 100% on my own. My Dad is good but you know how people like to sometime hold things over you.
But maybe he can build the fence if it doesn’t have one already hahaha! Good idea!
 
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As for groceries, household items, and beauty products, I like to coupon and buy on strategic days. I also buy what's on sale instead of going for a brand name I'm used to.

Sometimes you can start a membership with the store, reap the discount benefits, and then cancel it before the free trial ends.

If I ever find myself in a situation where I might need to eat out, I bring my water from home instead of buying a drink.
 
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Only you know what you can live on. Is 1k enough for your basic needs ? You need to save room for emergencies month to month or at least have a cushion somewhere.
 
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Question, I have a year left on my lease and I’m trying to buy a house. I just got approved from the bank yesterday! I know exactly what I can afford to buy now.

Whoo hoo! I have about $4K in savings already. I bring home $2500 after all bills are paid every month. I’m trying to buy this without my Dad’s help on a down payment.

I want to put away $1500 every month! My goal is to have $15k saved up a year from now.

Is $1000 a month too little to live on?
Can I go lower than that? Is it worth it to get a second small part time job?

I got rid of all excess spending like my F45 and Cyclebar memberships.

Not going to lie I spend a lot of money on food and will drop a couple hundred at the farmers market on impulse buys.

I need help figuring out how to live on $1000 a month and not give into impulse buys!

Thank you!
So proud of you OP! You can do this! I’m in a similar boat and food is my main expense as well. Start cooking! It will save so much. I know you want to do this yourself but, if your father is able to help you please take to help. It is hard to climb the mountains alone and a lot of times people who are able to purchase homes get help from family. So if you can except the help but if not continue on your path! Good luck!
 
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I think trying to reorganize your budget is a good start but you also have to be mindful of emergencies and think about what would be sustainable for the long-term. I started to save to buy a house last year. I reached my savings goal and realized I hadn't accounted for furnishing a home, any maintenance within the first year, or any non-house related emergencies.

If you're planning to buy a year out from now, have you looked into NACA? What about any first-time homebuyer programs in your area? These programs might relieve you from some of the financial responsibilities that come in the initial purchase.
 
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I’d like to keep my Dad as a resource for just in case or get him to pay off my student loans for me.

I just want to say I bought this house 100% on my own. My Dad is good but you know how people like to sometime hold things over you.
But maybe he can build the fence if it doesn’t have one already hahaha! Good idea!

Girl that's your daddy ... unless you have a toxic relationship with him take the free money. When I go to buy a house my parents will be giving me money unless I buy with my husband AND you know what Imma do ... take that money and say thank you mommy and daddy. The hell you turning down free money ... they not on the deed so they can say I gave you X all they want. You think others turning down free money? Get money.

Shoot, I would get student loan money and house money. Don't sell yourself short.
 
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Question, I have a year left on my lease and I’m trying to buy a house. I just got approved from the bank yesterday! I know exactly what I can afford to buy now.

Whoo hoo! I have about $4K in savings already. I bring home $2500 after all bills are paid every month. I’m trying to buy this without my Dad’s help on a down payment.

I want to put away $1500 every month! My goal is to have $15k saved up a year from now.

Is $1000 a month too little to live on?
Can I go lower than that? Is it worth it to get a second small part time job?

I got rid of all excess spending like my F45 and Cyclebar memberships.

Not going to lie I spend a lot of money on food and will drop a couple hundred at the farmers market on impulse buys.

I need help figuring out how to live on $1000 a month and not give into impulse buys!

Thank you!
All these other races their parents help their kids buy a house. Please take advantage of your dads help. You are so blessed! Or just ask him to pay your students loans.
 
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I don't think it ever hurts to have multiple streams of income so a second part-time job isn't a bad idea if you think you won't become burnt out.

As for $1k being enough to live on, that's something only you know. You'd need to budget food expenses each week (cooking is the way to go), gas, beauty and take into account rainy day situations. I think you can do it but you'd just have to seriously adhere to your budget!
 
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Girl that's your daddy ... unless you have a toxic relationship with him take the free money. When I go to buy a house my parents will be giving me money unless I buy with my husband AND you know what Imma do ... take that money and say thank you mommy and daddy. The hell you turning down free money ... they not on the deed so they can say I gave you X all they want. You think others turning down free money? Get money.

Shoot, I would get student loan money and house money. Don't sell yourself short.
Thank you! It’s true! I’m definitely taking his help! Maybe for my loans! Or we can go half on the down payment! So true don’t be afraid to take the help!
 
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I think trying to reorganize your budget is a good start but you also have to be mindful of emergencies and think about what would be sustainable for the long-term. I started to save to buy a house last year. I reached my savings goal and realized I hadn't accounted for furnishing a home, any maintenance within the first year, or any non-house related emergencies.

If you're planning to buy a year out from now, have you looked into NACA? What about any first-time homebuyer programs in your area? These programs might relieve you from some of the financial responsibilities that come in the initial purchase.
Thank you! Such a great idea! Spot on! I’m told that I need to keep at least 10000 in the bank for housing emergencies like HVAC!
So my real estate agent is putting me in contact with someone who helps
people finance loans. I’m getting the FHA loan.
 
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Thank you! Such a great idea! Spot on! I’m told that I need to keep at least 10000 in the bank for housing emergencies like HVAC!
So my real estate agent is putting me in contact with someone who helps
people finance loans. I’m getting the FHA loan.
You definitely need an emergency fund, and I’d say more than that. On the cost of living in NE, 1K might not be enough, but if you factored in all the things OP talked about, including utilities, taxes (if there are any), yard maintenance (because 1-4 acres is a lot to do yourself) , I would up it to 1500 a month needed. Just in case. Then try living a life that would leave me that extra. That might mean not eating out at all, no new clothing, and perhaps even a second job.
 
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Thank you! It’s true! I’m definitely taking his help! Maybe for my loans! Or we can go half on the down payment! So true don’t be afraid to take the help!
Don't tell him what you got or what your goal is. Let him give what he can cos you can be missing your blessing. What if he was about to give you 20k and you say let's go half and he gives you 10k. Don't even include that in your downpayment if he gives you a nice coin. I would save aggressively and use my dad's money as my emergency fund unless it's more than you saved. If that's the case, I would reverse it. #Getmoneyboo!
 
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Question, I have a year left on my lease and I’m trying to buy a house. I just got approved from the bank yesterday! I know exactly what I can afford to buy now.

Whoo hoo! I have about $4K in savings already. I bring home $2500 after all bills are paid every month. I’m trying to buy this without my Dad’s help on a down payment.

I want to put away $1500 every month! My goal is to have $15k saved up a year from now.

Is $1000 a month too little to live on?
Can I go lower than that? Is it worth it to get a second small part time job?

I got rid of all excess spending like my F45 and Cyclebar memberships.

Not going to lie I spend a lot of money on food and will drop a couple hundred at the farmers market on impulse buys.

I need help figuring out how to live on $1000 a month and not give into impulse buys!

Thank you!

Congrats!!!

There has been some really good advice already given in this thread, but I'd like advise you to ALSO allot yourself extra money to be set aside for any home repairs that may be needed along the way..

Maintenance, Labor, and Materials can be EXTREMELY expensive..

Also, if you're black it would be beneficial for you to use a BLACK real-estate agent during your home buying process, in some cases it makes a HUGE difference..

Good Luck!!
 
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Congrats OP! I’m rooting for you. If you don’t want your dad’s help toward the down payment, why not ask him for financial help until your lease is up? Because I think going from $2500 to $1000 is a stretch and you will end up not sticking it with it. I’m saving up as well for a large purchase and drastically cutting my budget has driven my anxiety up.

I would ask for at least $6,000 up front aka an extra $500 a month. That gives you a little cushion monthly from your normal budget. Plus you should def get a small part time just for this year if it doesn’t burn you out. Also coupon and use cashback apps and receipt apps like Fetch, Swagbucks, Ibotta etc. Every penny counts and it will be a struggle to downsize.
 
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You need more savings before you to buy. I personally wouldn’t feel confortable taking on a mortgage with the amount of savings you’ve mentioned. Don’t spread yourself financially thin trying to purchase a home, there’s absolutely no need rush into home ownership.

Banks give approve lines of credit with little regard; don’t get caught up please.
 
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You need more savings before you to buy. I personally wouldn’t feel confortable taking on a mortgage with the amount of savings you’ve mentioned. Don’t spread yourself financially thin trying to purchase a home, there’s absolutely no need rush into home ownership.

Banks give approve lines of credit with little regard; don’t get caught up please.
Thanks for this advice! That is a good point! I approved for up to $400K however my price range is $200K - $300k!

The reason I need to buy ASAP is because I live in Nashville and the market is one of the fastest growing in the nation. If I don’t get in now I won’t be able to find the places with land like I want. I want 2-5 acres! If anything I’ve messed around too much as it is! I’m looking a property right now new refinished house on 3.5 acres for $244K! It will be gone in a week I tell ya! Plus I want more land to resell that later and make $$$!

I just found out that I also qualify for the USDA loan too apparently with 0% down.


I should say that I want to homestead and need acres to do so! I need space for farming and livestock eventually!

Unfortunately everyone else from America has realized this! My Dad said $15K is a good start with what I want. Especially if I get a recently renovated house with a good warranty! (however I always have him as backup and this is why I don’t want to use him just yet).
 
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Congrats!!!

There has been some really good advice already given in this thread, but I'd like advise you to ALSO allot yourself extra money to be set aside for any home repairs that may be needed along the way..

Maintenance, Labor, and Materials can be EXTREMELY expensive..

Also, if you're black it would be beneficial for you to use a BLACK real-estate agent during your home buying process, in some cases it makes a HUGE difference..

Good Luck!!
My mortgage officer is black! But thanks good advice!
 
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You are already making strides by focusing on building savings to have a down payment. Do not forget you need minimum required funds to close in addition to the down payment. Budget wisely and try to trim the fat wherever possible. Have you looked into first time home buyer programs that offer down payment assistance? Often, the assistance comes in the form of forgivable loans or silent liens that can be removed after you have lived in the home for a specific amount of time.
 
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Hey! Congratulations! Check out thda.org That is Tennessee’s home development agency and they provide down payment assistance for first time buyers. They also will help with closing costs.
Wow thank you! This is good to know!!!!
And I realized all the houses I’m looking for qualify for the USDA loan too so this is all good information !
 
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Look into buying a duplex live on one side rent the other...use the rental to pay as much of the mortgage as possible ..that should help with your savings goal
 
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Shop around for your mortgage loan.
Be aware, banks/lenders will initially say "ayyy go by a 600k" house and you start looking. But it's a whole other team that looks at your finances, income, and spending in order for you to make it to closing. They'll look at who's helping with what, where your money is going, future earning potential, etc.
A realtor who is worth their salt can help you with this.

Another reason to shop around, banks offer incentives for you to reinvest in your community. Federal loans are great too (we got to see the benefits of that during the pandemic), but weigh your options.

Beware of down payment assistance outside of family. That's a 2nd loan unless specified otherwise.

10k seems like a lot to have saved up. But you can never have too much, so rock on. Keep in mind, most of your emergencies can be covered by a decent warranty company or insurance. Get a good one for both. If you're lucky, negotiate it at your closing for at least a year coverage.

Look into local property tax programs. We have one that discounts your property taxes if you're living in the home you own. Secondly, it's worth paying the extra money in your monthly payments so that funds go into an escrow that handles your taxes and your insurance yearly payments. Less stressful.

Good luck to you! I know you're excited and I hope it all works in your favor! And I agree with above, take all the free money you can!

Eta: Sorry, to answer your question though.....1k/mo in TN can be done. Just watch your habits and weak spots!
 

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