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Young couples have it tough

June 12th, 2015 at 08:50 pm

WE got an offer on our spec house for sale. It is a young couple and they really want the house. It would be their first home.
They were turned down by the bank. They only have 5% to put down and their payment would be about $1300 a month. She makes good money, but he is self employed and cannot prove his income. I don't have any idea what their credit score is like.

I bought my first home at age 21. My monthly payment was $96.00
I might mention that I made $1 an hour and my husband made $1.25 back then. The house was new and cost $12,000. Because of that house, I became mortgage free at age 32 and have never had a mortgage payment since then.
The bank also wants about $7000 in closing costs. I have no idea what that is for, but we were going to pay the closing costs for them. I feel bad for them; they were so excited.

Posted in Uncategorized | 2 Comments »

2 Responses to “Young couples have it tough”

  1. snafu Says:
    June 13th, 2015 at 01:05 am 1434157549
    1434157549

    I don't think first time buyers realize how much risk and stress they create for themselves when buying a house with only a 5% downpayment. There are so many initial and unanticipated expenses they are unprepared for feeling 'house poor.'While I've no idea of their other debts, I wonder if the young couple would meet with more success at a Credit Union. I think everyone involved needs to question 'closing costs,' what is included, and whether charges are commensurate with service performed.

  2. Single Guy Says:
    June 14th, 2015 at 11:06 pm 1434323182
    1434323182

    I don't know what "good money" is, but $1300 doesn't sound that bad for someone with good pay (for what I am used to seeing anyway). It probably has to do with their lack of earnings history. And if his self employment is an issue, they should buy on her earnings only and not talk about him at all. I did that with my current home, as my ex had a terrible credit score (mine was excellent). Once she was ignored, everything worked out fine.

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