I am 22 and living with my folks and looking into purchasing a home/townhouse. The problem is I would be going into with a 30k salary and 12k for a down payment living in West Palm Beach Florida. I want to know if i can afford to buy or would it be better to find something that is "rent to own." Also, what price range could i afford. If anyone could let me know of a good mortgage group or suggestions that would be great. I am a first time home buyer. Thank you.
2007-03-20 05:54:56 · 8 answers · asked by Jeffe 1 in Business & Finance ➔ Renting & Real Estate
Based on the information you've provided here, I have to agree with other answers that you probably are looking at a range of anywhere from 100 -150k.
Becareful about going too high with your first mortgage. You want to make sure you can keep up on your mortgage payments and establish and maintain good credit. This can greatly affect the rates and options you'll have in the future as your income and wealth grow.
Prices for homes are stagnant or even dropping in several areas, so this may be a good time to enter the market. You'll have to look around and see what's available in the areas you are interested in.
To get a better idea of what you can afford, there are numerous online mortgage calculators available. But I strongly recommend talking to and working with a trusted mortgage professional who can analyze you entire financial situation and let you know what options are available for you.
Keep in mind, when preparing a budget for your new home make sure to include the various expenses you will have. Closing costs, appraisals, taxes, utilities, normal repairs, and other fees associated with homeownership can add up, so be careful. And beware pre-payment penalties. These can add thousands to your mortgage costs if you sell early or refinance.
And finally, ask for referrals from people you trust when you choose a mortgage company and real estate agent. Chances are you won't be led down the wrong path.
2007-03-22 15:04:22 · answer #1 · answered by Quicken Loans 5 · 0⤊ 0⤋
First of all, watch out for brokers and loan officers badgering you now because you put up this question. Now that you know that, be extremely cautious working with anyone, and don't just hand out your personal info.
If you're a first time homebuyer who lives at home with your parents banks and lenders will have a tough time trusting you to make the payments each month as you presumably have no rental history. And your salary is very low as well, so you'll more than likely need a parent to co-sign with you to get any type of loan.
Even then, it doesn't sound like you're ready to own a place unless it's in the ballpark of $200,000 or less. It's probably not even the best time to buy either because home prices are so high historically.
Learn more at http://www.thetruthaboutmortgage.com
2007-03-20 06:12:49 · answer #2 · answered by Todd S 3 · 0⤊ 0⤋
It sounds like you are still in the thinking stage. You should find out what you could buy and what the total payments, PITI, wound be. Go the next six monthe saving that amount of money each month as you were pay it ongoing to the house. If you make it the 6 months you know that you can do it, the bonus is that you have additional money for down P or just a nice rainy day fund.
2007-03-20 06:09:09 · answer #3 · answered by ttpawpaw 7 · 0⤊ 0⤋
I would say you can buy a house for approx. 125k assuming you don't have many other debts and an interest rate of 6.5%. If you have good credit something better than that can be done. If you would like help getting me a loan. I am a licensed mortgage broker in the state of florida. E-mail and let me know if I can help you out.
2007-03-20 06:02:43 · answer #4 · answered by Amber J 2 · 0⤊ 0⤋
You may also want to see what programs are available to first time home buyers in Florida. You may qualify for downpayment assistance, closing cost help or even a discounted loan interest rate.
Check out the link below to learn more.
Good luck!
2007-03-20 11:56:43 · answer #5 · answered by S C 3 · 0⤊ 0⤋
If I was in your situation, I'd buy a house, rent it out in the winter to a snowbird, and live in it in the summer.
Live in a trailer or with your parents in the winter.
2007-03-20 06:06:51 · answer #6 · answered by Quixotic 3 · 0⤊ 0⤋
your price range would depend on what other debts you have as well, which you did not list, but assuming your credit score is ok.. and you do not have alot of other debt..
Your range would be... 125-140k.
2007-03-20 05:59:49 · answer #7 · answered by Anonymous · 0⤊ 0⤋
yes
2007-03-20 05:58:10 · answer #8 · answered by charles h 4 · 0⤊ 0⤋