I'm 23 years old and I wanna buy a townhome, please help.?

Question

Hello, I'm 23 years old and I just recently finished paying off all my credit card debt from college. I started out at a job that pays me $57,000 a year. The only debt I have now is my Stafford student loan that totals 7,000 now and the payments are like 78 bucks a month. I'm really ready to get out of my parents house but I don't really want to move into an apartment. I've been looking at some townhomes and there are some really good finds in the 80,000-90,000 range. So far, I've saved about 2,000 dollars since the beginning of December and my credit rating is 720. I was looking to save around 8,000-10,000 total by May or June and then work from there.

I'm wondering how much money will I need to move in comfortably? Is 100% (80/20) financing a good idea? How much would it cost to cheaply furnish a 2 BD/ 2 BTH around 1400 sq ft? Should I even put a down payment down if I'm planning to move into a real house when I'm around 30? BTW, Merry Christmas.

Answer 1

Finance the entire thing and do not forget that there are closing costs as well. Your credit is great and with that income you should qualify to go full doc, meaning you get the best rates. One thing to think of is going 100% one loan or an 80/20. Now that PMI is tax deductible, you may want to go with 100% one loan and they have 100% one loan no pmi.

How long do you plan on owning the home?

That $2000 you might not have to use if you have the seller pay your closing costs (in this market, you should get that all day long) but you want to keep it as "reserves". The lender likes to see that you have some money in the bank after closing.

In this market, you should take advantage of the fact that everyone wants to sell and there are few buyers. I would offer 10-15% less than what they are asking and definitely have them pay your closing costs.

If you are confused at how the seller can pay your closing costs, drop me an email or check out my site. They do not really have to "pay" for them, you can essentially offer that amount more than you want to offer with them paying the closing costs. It is a credit to you at closing.

I would definitely shop for a mortgage because although your credit is great, by walking into a bank you are only offered that banks products. Go to a few mortgage brokers where they can shop all the banks for you.

Answer 2

You should have no problems buying a house. Especially in the price range you are looking at. At least you're not asking questions like,"I have no money and bad credit-Please help." With your salary the mortgage lender will preapprove you for lots more but I think its smart at 23 to take it easy(as you are doing) and see how you make out with bills and stuff. Also, you will have plenty left to save and invest. If you want to move sooner than mid year just sock away a couple thousand more just so you have a stress free closing and find a Realtor to start looking now. (If you are in PA, shoot me an email). Hope this helps!

Answer 3

I would definitely go for 100 percent. Like the other person said, get the closer to pay the closing costs. Also, you have to be in a rush to furnish it. Just get things as you go. It's a little cheaper. Also, search the thift stores. They have great things.

Answer 4

Hello,
I work with Fortune Financial Group L.L.C., we are a national mortgage company based in Colorado.

Please visit our web site http://www.trustfortune.com/quick-loan-app.html

In comments mention you were directed by Dana Schultz on Yahoo Answers...

reply with questions or more information,

Merry Christmas & Have a Happy Ney Year!

Answer 5

I would do the 80/20 route. What profession are you in?

Answer 6

100% financing will be better . try to get the loan for a longer period .if u want u can write to me at [e-mail] with detailed information and let me see what i can do for you..........
regards,
kish