One Day I want To have a Home Here. Seems like wishful thinking.

Submitted by THROWAWAYHELLLLL t3_yqz9uu in newjersey

I work for a Bank, about 41000 a year in south jersey. I saw a home for 129000 in a relatively nice area near my work. But I know I'd never make it work, I have a car loan of 11000 and have enough savings to hopefully pay it off in the next 2 years of not sooner. My credit cards are basically paid off though so at least there is that.

I hope in the next few years I can find something that will let me build a future in this state, because a lot of places that are cheaper have little to no protection for LGBTQ people like me. NJ isn't perfect but at least they have regulations.

Hopefully by the time I'm 30 I'll have enough saved for something. Any advice on saving?

I'm located in Salem County.

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BacktotheFutureTmw t1_ivr2rzy wrote

I'm a Realtor in your area...there are grants available and you can do an FHA loan which requires 3.5% down. I have worked with people who are in a financially worse place than you are. My advice is to cut out all unnecessary spending (take out, expensive clothes, etc.) and just sock away the money as much as you can. If you have a goal of home ownership, you will attain it as long as you keep moving towards it!

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THROWAWAYHELLLLL OP t1_ivr4tdz wrote

The only thing I have problems with is take out because buying groceries is tougher on paper then it is eating a $1 meal in McDonalds, but I'm working on curbing that.

It really is nice to hear that people who are way off worse can buy a house here, I've seen so much in this sub saying it was impossible and I kinda felt dejected. I love my state and I want to build a life here, so hearing this from an actual realtor gives me a bit of hope. Saving as much as I can, hopefully I can put more down then 3.5% when it finally comes time to it. My goal is homeowner ship, I want to have a place I call my own, without fear. It's my one dream.

Kinda sappy I know that my only big dream is to have my own little home but whatever lol. Thank you so much!

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BacktotheFutureTmw t1_ivr6bfc wrote

I've sold houses in the $150k range. Granted, some need a little work but if you're not looking for a fully updated house, then it's attainable. I sold one in Alloway for less than $220k last month that was fully updated.

It's hard right now with inflation and groceries being so expensive, but I would suggest only buying items on sale that week and stocking up on them when you can. For example, now is a time when soups go on sale. Stock up because they have a year or two shelf life. Use the digital coupons available for the store you use. I know there is no Shoprite in Salem County, but it is cheaper than crappy Acme. You just need a budget and stick with it. You should aim to pay yourself first, even if it's $25 a paycheck right now. I'm sending you a private message with some apps I use to save on groceries as well.

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THROWAWAYHELLLLL OP t1_ivr7ekb wrote

That is perfect thank you! I think there is a ShopRite in Gloucester somewhere, I went there a few times but it's been a while. Better to travel a bit then shop at the small owned convenience stores where milk is like 67 dollars (I love small businesses but Jesus I can't).

I save as much as possible, I average about 150-200 a month though I deff have gone over my budget a few times to compensate. I budget regularly, and minister my finances every day because I can't stand being surprised in finances. Everything is monitored and tracked using budget apps and my online banking, which also has a built in finance tracker.

Any help is appreciated! I don't need a modern home much, as long as it is livable, has power and won't fall over in a month I'll love it forever. I will deff take any advice to make that happen before I turn 75 lol. I appreciate your expertise in this.

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RivChk t1_ivt3b76 wrote

if you have the ability & energy, having a part time job during the holidays or a side hustle (like door dash) could help you build your down payment faster.

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dehydratedsilica t1_ivtwzlp wrote

As you may know, $1 at McD is cheap but certainly not healthy. You wouldn't do that for 2-3 meals/day x 30 days/month either (someone has already documentary-filmed that). Have you checked out r/EatCheapAndHealthy or r/Frugal or similar resources?

I ran my numbers for 7 years of expenses as a single person (extrapolating 2022 YTD to the full year) and found that groceries are 70-80% of my food spending. Social is about 15-25% (includes some general entertainment but it's mostly food) and the rest is self-dining/takeout. I realize this is a bit extreme but maybe you can calculate your current grocery percentage and work on getting halfway to mine. It does takes time to plan, shop, cook, clean (and I store and eat leftovers, rather than simply cook "one serving" at a time) vs. it takes money to pay for the convenience of eating out, which is someone else doing all of that for you.

3.5% down on 129k is about 4.5k. I'm not thoroughly reality-checking all the numbers (and also I personally would not do 3.5% only) but I just have the impression that the upcoming months might be good for seasonal work. Can you hustle and make a dent in that? Or make a dent in the car loan - and once you get rid of the car loan, that few hundred dollars of monthly payment can go towards your house fund.

Keep in mind that with a mortgage, the bank "owns" your home, and if you don't pay, you will eventually no longer own it. When the mortgage is paid off, you still have property taxes, and if you don't pay, you will eventually no longer own it. All throughout, anything that needs maintaining or fixing - anything that you previously called the landlord about - is all your financial and emotional responsibility! I'm not saying don't dream, or be fearful of everything, but do go in with a plan knowing the practical realities, not only a starry-eyed ideal.

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whatsinaname1970 t1_ivr6btg wrote

Honestly, a slow change from McDonalds to home cooked lentils/beans and rice will not only save you money, but make you healthier. Medical expenses, and the associated trauma, are really really expensive. Start on a slow path to healthier to save yourself a lot. A 3 qt instant pot is not so expensive, and something everyone should have anyway … you can never burn anything, it’s fabulous. I know this doesn’t do a lot for you right now, but over time it absolutely will. I hope you get to move here, every place has its warts, but overall Jersey is just great.

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THROWAWAYHELLLLL OP t1_ivr8lzw wrote

Oh I live in Jersey, just buying the home part with the market and my salary with the market and savings is the main obstacle. That's why I wanna live here, because I love it here.

I do need to eat healthier, it is my biggest obstacle. At the moment my health is clean besides my weight. I plan on going to the gym. I had an instant pot but it broke when I dropped it during my move so I need to get another one.

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whatsinaname1970 t1_ivre348 wrote

It’s too hard to make big change by yourself without a lot of information.Consider going to a plant based potluck. https://plantpurecommunities.org/find-a-pod/ The fellow who started this is the son of Dr. Campbell who wrote something amazing called the China Study … watch the movie “Forks Over Knives” for context … and it’s just a really good documentary. Good luck with everything!

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Fit_Secret5021 t1_ivtdwit wrote

I love FB marketplace, you can find a never used one there that will be cheaper. People gift small appliances to others and some people never actually use them then sell them on FB. I personally save a ton of money on a lot of things that I buy through FB.

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RivChk t1_ivr3z3u wrote

You can get there. I bought my own house as a 30-year old single gal by SAVING SAVING SAVING. I had a car with no AC, I didn’t have any kind of cable TV, only did free stuff for entertainment, and when my coworkers wanted everyone to chip in $12 for an office refrigerator I said no.

After a few years I had enough for a good down payment and bought myself the cutest little house.

You can do it!! It just takes a game plan and discipline.

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TodayTime8321 t1_ivr6g1h wrote

Sign up for some consumer research survey companies. A lot are online now. If you can do 1 a month that could be your gas/grocery bill. Just a small tip for extra cash without doing much.

Create a budget to track where you are spending your money and figure out how to utilize your checks for better spending/saving.

You are well ahead so you are on the right track. You will be able to own a home.

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THROWAWAYHELLLLL OP t1_ivr92w9 wrote

I had no idea! I'll look up those surveys immediately, could help put a little more away each time. I budget a lot, because I have this goal so I am covered in that. Thank you so I much for the optimism! It's so incredible to hear positive things instead of the usual pessimism for the housing market I see on this sub. I love the community and seeing all the pictures but sometimes it weighs on you lol.

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TodayTime8321 t1_ivr9m2l wrote

It is a bleak market the further up you go but South Jersey has so many beautiful options and the prices are much more reasonable.

Some of the sites I am a respondent for: QInsights, 2020 Panel, AO Opinions

Surveys average $50 for at home tests and then $125+ for online and in person focus groups. Some are $300 if it is a long at home test for a product.

There are a lot tho so do some research to find them and sign up. Good luck!

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BacktotheFutureTmw t1_ivr3489 wrote

Also...depending upon what the interest rate is on your car loan, I wouldn't pay it off unless it made sense to. So for example, if you have a savings account that accrues 3% but your interest rate is 2%, it would make more sense to let your money grow at a 1% higher rate than pay off the loan. I hope that makes sense.

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THROWAWAYHELLLLL OP t1_ivr3u10 wrote

Car rate is 2.75% and savings is 1.7, I think. It does make sense, I just want to have it paid off in terms of debt-invoke ratio when I finally try to get pre-approved for a house.

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mcgeggy t1_ivr8oou wrote

> Car rate is 2.75% and savings is 1.7, I think

Look into another savings account, possibly even in your same bank. For example, Ally Bank has savings account with 2.75% interest rate. I had a Capital One savings account with a measly .30% rate, then realized they had another type savings account with over 2% interest. No minimums for any of them either… For some reason, some savings accounts don’t raise their rates, and others keep bumping up as the federal interest rates go up.

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THROWAWAYHELLLLL OP t1_ivr9jj9 wrote

I was thinking of switching my savings though, I heard about Ally. There are just none that I know of near me, and I like having one close by just in case I need it (even though I literally do everything online). The best one at my current back is for people who have REALLY HIGH balances, and it has a high minimum. The other options are CDs but I don't want to lock my savings away in case of an emergency. I love my bank, been banking with them since 17, so it's a tough choice. But I really want to maximize.

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mcgeggy t1_ivrb667 wrote

Yeah, it’s definitely harder to find good rates at brick and mortar banks. I’ve been banking online for over 20 years and love never having to step foot in an actual bank, with all of their other fees to boot. You could always keep your checking in that bank, and open a separate online savings at ally, or other higher yield savings bank.

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Dreurmimker t1_ivri30g wrote

There’s no need to abandon your current bank entirely. You can keep your current bank for the deposits and day-to-day banking, but transfer excess out to an Ally savings account. Typically less than 2 business days, sometimes faster depending on your bank. This is what I do, and I couldn’t be happier with my experience with Ally. FWIW they are part of the allpoint atm network, so you’d be able to use any of those ATMs for cash if you opened a checking with them: https://www.ally.com/bank/find-atms/

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THROWAWAYHELLLLL OP t1_ivricxj wrote

Holy crap that is cool. I am deff thinking about it if they have ATMs. Sad they don't have any physical locations but I think I might over look that to get my savings up.i want to make max profit while keeping it liquid just in case I need it.

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defalt86 t1_ivr5cce wrote

At those numbers, paying it off only saves you about $100/yr (give or take). If debt to income ratio can handle it, you're probably better off putting that money towards the down payment.

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THROWAWAYHELLLLL OP t1_ivr5k28 wrote

If my debt to income is good, then I might just save for the down payment. I thought debt-income was the most crucial aspect for getting pre-approved, so I wanted to make sure I had minimal debt to secure my chances.

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TodayTime8321 t1_ivr6pfg wrote

Your credit score will take a hit when the car loan is fully paid off. It will bounce back but you will still take a hit. I recommend trying to plan a home purchase while you still have that loan on your report when it is mostly paid off but still active. Like when there is still $2500 or so left. Not a huge amount of debt but the payment history will keep your score high.

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THROWAWAYHELLLLL OP t1_ivr85yj wrote

Oooo ok, I did hear about the credit hit but I assumed it would fall off rather quickly. So stupid that paying off your loan makes you look worse. I will keep that in mind. Hopefully I'll be at that rate in a few years. I have savings, and with that in mind, I could pay it down to that amount, and have enough to put towards a down payment. That actually shortens my potential wait time by a bit! Thank you!

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ForestGuy29 t1_ivt66q1 wrote

Depends. The car loan will count against his debt to income ratio, a major factor in the amount the bank will lend to you.

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TodayTime8321 t1_ivtrpnv wrote

If the amount is low and there is no other debt it will be fine. Having that credit history on her report will help her with a mortgage.

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_TommySalami t1_ivta4rd wrote

As mentioned, takeout is a huge expense long term. Get cookin'! Bring lunch to work. You said you are saving, so that's good. Can you pay more to your loan regularly? A little every month might be better than trying to save up for a lump sum payoff. Best of luck!

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