I am not sure If I am ready to buy a home. If I have no debt and a credit score of 770 and my husband also has no debt and credit score is fair. If total gross income is around $3200/mnthly and a savings of $15,000 to $18,000. what would we qualify for? also I would like to know your experience of homeownership?
Right now I am currently renting very cheap @ $360/mnthly
Thanks
2006-12-29 07:36:35 · 15 answers · asked by victoria M 2 in Business & Finance ➔ Investing
I am from SD
2006-12-29 07:50:09 · update #1
answers are good, but what do you think would be the best price rage to start out with. Living in South Dakota
2006-12-29 07:51:19 · update #2
I am looking for people now are homeowners. What has been your experience. thanks
2007-01-04 14:47:16 · update #3
Why not put the 360 a month towards something that is yours. If I was in your shoes I would buy a home in a minute I hate paying someone else's mortgage. Good Luck!
2006-12-29 07:41:10 · answer #1 · answered by The_Game 3 · 1⤊ 1⤋
Normally I'd say buy but at 360 a month rent, holy cow stay renting and save for a huge down payment.
Your credit score is good but if you use both incomes they always take the lowest score. So your rate and the amount you can borrow will be determined off of your husbands score.
Assuming a good score you generally qualify for about $160,000 house with 20% down and a payment of about $850 a month. These are very, very rough figures. I don't know what houses go for where you live though.
True you are not gaining equity but $360 a month rent holy cow. Save, Save, Save, The market should remain fairly flat with slow growth. If you could save 1200 a month and wait a year and get a bigger down but still buy a house in the 120k to 160k you guys would be set. You could even go for a 15year mortgage, slightly higher payment but well worth it.
2006-12-29 14:56:30 · answer #2 · answered by hogie0101 4 · 0⤊ 0⤋
Continue to rent until the real estate prices have hit bottom, probably this summer. Between now and then study the market, prices, house types and schools so you will recognise a good deal in the right area when you see it. You can make more money on your invested money than in real estate for a while yet. Especially with your rent so low. It may never be a good idea if your rents stays so low and you can continue to say so well. I know everyone says buy but that isn't always the smartest investment idea. You are a good saver. Keep it up.
2007-01-04 12:20:02 · answer #3 · answered by sm4125 3 · 0⤊ 0⤋
Home ownership, in general, is preferable to renting. Ideally, you would pay off the mortgage prior to retirement and thus reduce your monthly expenses while you live off your retirement income.
Whether you should buy now depends on the real property market conditions in your area. Some parts of the country is experiencing a housing slump and prices are declining rapidly. If you live in this area, then you may want to wait for prices to continue their decline. Other parts of the country have not seen the dramatic price increases in recent years and may be ripe for buying now.
A mortgage broker should be able to give you an idea of what price range you would qualify for based on your financial background.
2006-12-29 07:43:37 · answer #4 · answered by eddygordo19 6 · 1⤊ 1⤋
Buy a home instead of rent. As far as the price range, it would depend on what city/town you are wantin to purchase in. (I wish I would have bought in SF area 20 years ago, the place has grown so much)
Check the average prices on the internet to avoid pushing realtors until you are ready. Century21.com is one site that you can view several listings at.
2007-01-01 16:30:47 · answer #5 · answered by just me 2 · 0⤊ 0⤋
normally i would say to buy as soon as possible, but that rent is so cheap i dont think this is a no brainer, since you are saving so much money with the cheap rent i would save every penny possible, and just start slowly looking for a house, dont just rush out and buy, take your time to find a house you would like to be in for the long haul
plus the income isnt that high, but what part of the country are you from? the rent is low,but i guess it depends on the area of the country, but just make sure you dont overextend yourself on the house, dont buy the most house you qualify for
figure out what your new house payment would be including tax and insurance, then start saving that much out right now, see how much it affects your budget,
2006-12-29 07:47:06 · answer #6 · answered by swenjj 4 · 3⤊ 1⤋
It all comes down to what you can afford, and plans for the future,
The main benifits for owning your own home are equity build up, the ability to deduct your interest paid on your IRS taxes at years end..And knowing that it is yours and you can do what you want with it...As far as amount depends on the broker/area $150,000+
I rent for years before having kids and enjoyed no grass mowing and 2 pools in my complex, but now enjoy my backyard and the large deck I built to entertain on...
2007-01-05 08:41:55 · answer #7 · answered by cjhodge 1 · 0⤊ 0⤋
If you're ready to commit to a home and mortgage, then do it. You can find reasonable rates that may increase your monthly payment a bit, but it's an investment rather than throwing money away on rent.
2006-12-29 07:41:35 · answer #8 · answered by schneb 3 · 1⤊ 0⤋
OH my gosh, you need to get on it! You are throwing money away by renting. Find a good real estate agent now. Buy in a good neighborhood and watch your asset rise in value while you pay your mortgage down.
Don't put all your money down, but put 10-20% down on a $100,000 home if you can swing it. Depends on where you live what you can get for that.
2006-12-29 07:39:17 · answer #9 · answered by Anonymous · 1⤊ 1⤋
Owning a home is def a good investment. Because you are actually putting money towards something rather than just practically giving it away!
You can get pre-qualified for a loan to let you know more about how much you could get.
2006-12-29 07:41:03 · answer #10 · answered by TNL 4 · 1⤊ 1⤋