NewBie ! Need help on buying

I almost bought this cute red 96 ford escort LX 2dr hatchback ...had 70k miles on it. The engine was smooth and all. The thing that stopped me from buying was the brakes , a slight squeeking noise, which the mechanic said will go away after u drive it frequently and the exhaust pipe. There was this constant grey color smoke coming out of it. I tried to compare it with my dads 2001 windstar , just to see if it was due to the cold weather or real smoke. But guess it was smoke and there were drops of water spraying out now and then from exhaust pipe. Wouldnt stop even after 10 minutes.... The mechanic checked teh coolant , oil and things ....looked good. Is the grey smoke expected from 96 car , didnt have a old car to compare so thgt somebody might help.
Need a car badly for winter job . please help- Cr :)

squeaking probably rear shoes on the backing plate
some water is normal i don`t know about grey smoke?