My fiance and I are planning to buy a house,we make roughly $1200($600 each) a month.I have good credit,but unfortunetly he does not. My question is,how much should be plan to spend on a house? How do we get a home loan?
I believe he has been looking in the range of 50-100K,but im nervous that we wont beable to make our payments if we go anyhigher. We both have car payments,insurance,and we also want to beable to stay in school....Any advice would help! thanks!
2007-03-19 10:01:59 · 7 answers · asked by melissa f 3 in Business & Finance ➔ Renting & Real Estate
I am assuming you are talking GROSS pay, NOT NET. With what you would net (or even gross, for that matter), you will be hard-pressed to afford a house and all that comes with it. The expense is vast. You really are not making enough to afford to own property. Wait a while. You don't want to get in over your heads and then default, and I can guarantee that is what will happen if you try and buy property at this point. In addition, it is NEVER a good idea to buy property with your boyfriend (or vice versa). Wait until you are married. Honestly, the legal entaglements (and subsequent hard feelings) of doing it the other way are as vast as that expense I mentioned earlier. You are young, you have time. Don't be in too much of a rush!
2007-03-19 10:12:08 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Don't listen to spammers.
You can't afford it. If you try now you more then likely will fail and have a very hard road ahead. You simply do not make enough money. There are expenses you are not taking into account.
An estimated budget, 50k house (I don't think any exist):
300 mortgage
100 property tax
50 home insurance
400 food
200 utilities
400 gas/car
100 clothing
total $1550. And this is assuming you do nothing but work and cook all your own food,.
Get your lives a bit more together, higher income, enough saving to live for 3 months and then give it a try. The way things are going there may be 50k houses on the market by then.
2007-03-19 10:16:25 · answer #2 · answered by Anonymous · 1⤊ 0⤋
if you only make about 1200 a month with all those other bills you might as well wait or go get a new job. Because with a new house comes water, gas, electricity, cable, internet, homeowners insurance, groceries.
Your house payment without an escrow account should be about how much money you bring in in about a week. So you are more in the 50 thousand dollar range
2007-03-19 10:07:42 · answer #3 · answered by B 4 · 2⤊ 0⤋
My advice may help the most b/c i'm in a similar situation now. My husband makes around $1700 a month and we are actively looking to buy a house. With all the calcultions done(our regular expenses,taxes, insurance etc.), we can hardly afford a $69000 house.
You should get pre-approved(easy) for a home loan first. Find a broker to do that for you(call a real estate agency). They WON'T help you figure out what you can actually afford b/c they want as much money as they can get out of you, so don't look to a broker for that.
Bottom line, you really can't afford to buy a house right now...
2007-03-19 11:34:26 · answer #4 · answered by clclc 2 · 0⤊ 0⤋
Bottom line - you will only be able to get a loan with a payment of 50% of your total monthly income, after revolving debt (car payments, loans, etc.) In other words, the maximum payment amount you can afford is $600 per month minus your car payments, student loans, credit cards, etc. With taxes and insurance, and his bad credit, you are unlikely to find anything that will place you in that window. Unless you live in outer Slobovia, where houses only cost $25,000 each, you will need to wait awhile, pay off your revolving debt, and find better jobs.
2007-03-19 10:51:12 · answer #5 · answered by mamalissa 2 · 0⤊ 0⤋
Melissa,
I can connect you with some great resources on getting that loan. A100K house should be doable. Shoot me a email msmith@premierloangroup.com and I'll get the ball rolling
Marty
2007-03-19 10:06:41 · answer #6 · answered by Anonymous · 0⤊ 2⤋
consider what you are paying for rent, and go over your expensws and see if you have enough left over to pay for a house, insurance, taxes,, pay close attention to the taxes, try to apply for a first time buyers loan, there are places that have this option. buy what you need, and dont go overboard . buy what you can afford and also consider repairs, location etc. talk to a real estate agent. but dont go on any buying sprees. if it were me, i wouild stay nearer to the 50k. i have always owned my own home. the first one was the hardest. sleep on it.
2007-03-19 10:15:55 · answer #7 · answered by oldtimer 5 · 0⤊ 0⤋
Where do you guys live? I can't even find a 2 bedroom rental for $1200!
2007-03-19 13:26:49 · answer #8 · answered by MO 2 · 0⤊ 0⤋
thank you babe but i do have good credit. i know i got some bills that need to be payed and i will pay them. i love you an im going to make this work, just trust me. ill talk to you later hun love you *MUAH*
2007-03-21 03:22:55 · answer #9 · answered by jc_33777 1 · 0⤊ 0⤋