How much money would I have to save for a down payment? How much money would I have to make a year? I live in the Chicago suburbs. I am talking about one of the cheaper houses.
2007-03-06 04:15:38 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Ballpark estimates figure you can afford anwhere from 4 to 5 times your yearly income on a house.
How much you need down will be worked out with your mortgage officer. You can put as little as 3- 5% down , and sometimes even nothing, but then you would be paying higher interest rates.
The best thing to do is to figure out homes that are roughly 4 to 5 times your annual income. The call a mortgage officer and tell him how much you can afford to have down at closing. They will work estimates including taxes and inurance for you that will show how much you will have to pay every month. Try to keep these monthly payments no more then about 35% of your montly income.
This was the way me any my fiance did it. It helped us really break down the costs to make sure we were not going to be in over our hedas.
2007-03-06 04:26:38 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Usually you want to have 20% for a down payment but that is not always necessary. How much you would have to earn per year depends on how much debt you have and the cost of the property. If you would like me to help you out and maybe pre-qualify you for a mortgage then send me an e-mail. Many times you can get into a 100% financed loan. However, your interest rates will be higher than if you put some mony down. Even 5% would make a difference. E-mail me if you would like some help.
2007-03-06 12:23:43 · answer #2 · answered by Amber J 2 · 0⤊ 0⤋
Right now is a buyers market, so it is a good time to invest on a starter home. The first thing you need is to get in contact with a mortgage specialist. He will inform you how the whole process works and what steps need to be taken before you go house hunting. Let him pre-qualify you for a mortgage. See what you qualify for.
Always remember that the higher your credit score is the lower your interest rate will be. A down payment of 20% will also help you; that way you don't have to worry about PMI (Private Mortgage Insurance).
2007-03-06 12:44:20 · answer #3 · answered by alex4loans 1 · 0⤊ 0⤋
Depending on your credit score, you may qualify for 100% financing. Contact me whenever possible.
513-860-2940 ext 10
msmith@premierloangroup.com
Martin Smith
2007-03-06 12:20:53 · answer #4 · answered by Martin S 1 · 0⤊ 0⤋