how much money do you need saved up to think about buying a house?

Question

im young and a little naive. also what kind of salry do you need. i live in san francisco

Answer 1

To qualify for a home loan, your gross monthly salary must be over twice your total monthly debt, including the mortgage, taxes, & insurance.

Answer 2

I'd recommend you save at least 20% of the total cost of house you want to buy. Also, never spend more than 25% of your net/post tax income on a mortgage. Spending less than 20% on your mortgage is ideal to allow room for interest rate hikes, should the hikes happen. This prevents you from being a victim of foreclosure.

San Francisco is a very expensive real estate market; most likely priced beyond any employee's means. If you are from a wealthy family, 'old money' or if you're trust fund kid, by all means buy your dream house in San Fran. If you are like the rest of middle class America, I would not recommend it for a first home buyer.

Answer 3

You can sometimes get a new home for as little as 5% down, others you will need 10-20%. Alot depends on your credit rating and your income. In SFO you wont get a lot for your money unless you move out of the city.

An owner finance house is good as the owner carries the note and isnt as strict because if you put X amount down and live there for a few years and then can't afford to keep it up, it goes back to the owner who can resell it; usually for more. You lose your downpayment, etc. which he gets to keep. I've sold several of mine that way and made a lot of money by carrying the note myself.

Go to your bank or mortgage company and have them figure out how much you qualify for so you know how much to save and what to look for. Buying any real estate in Calif. is a good investment.

Answer 4

It all depends on your credit rateing it can be 5% or 20% down and the lender too good luck