How do I decide how much to pay for a home?

Question

I am looking into getting a home. When I looked at what I can afford, while I can afford up to $1400 monthly, I don't want to pay more than 800 in rent. I did some calculations, all that will buy me is $150,000 in a home, and in my city, houses at that price are in the ghetto. The people (in the 150,000 neighborhood) make 3 times less than I do, so I can only imagine what they're doing to themselves financially.

How do I get started on this?

Answer 1

you just have to keep looking i am moving into my new home tommorow and we are thrilled but we have looked for over 2yrs and the whole time we were renting so you have to be patient a house will come you can afford and you will love it . this was just a fluke that we came across this house . the ppl also sold it below value . So just have to keep looking and drive around cause that is what we did as well . the house was only on the market for 2 weeks before we purchased it . so you have to look and when you find one move on it cause it will not stay on the market at that price . good luck .

Answer 2

I am a Senior Loan officer with American Home Mortgage and I would suggest if you feel like your income is going to increase in the next several years you could do several things you could do an 80/20 and pay your taxes and insurance yearly which will cut out the monthly cost so your can buy more house and not have as much coming out every month,you do an ARM loan which is a lower rate that is fixed for a short period of time such as 2-7 years which you would be able to get more house you could go with an interest only loan program where all you have to pay is the interest and whatever you want towards the prinicipal or finally you can do a 40 year loan term which could be combined with the arm program if you would like to know exactly what your options are for free you can email fax or phone me my contact info is in my profile and i would be glad to let you know what options are availible to you to purchase more house for less payment

Answer 3

Each person has to find their own way to get a first home. Get your budget in the best shape, no payments for cars or credit cars, save a down payment and emergency fund then jump in. Or get parents to loan or give you money, get roommates or live without furniture and appliances for the first year, rent or borrow a lawn mower.
Really look at the cost of home ownership, utilities, repairs and things you didn't have in an apartment. Consider renting a house for a year so you have time to see what you need and accumulating things like garden hoses and ladders.
Look outside the city a hard commute more house for less money or look at little 2 bedroom 1 bath 70 year old houses. Then when you sell that in 3-7 years you will be on the housing ladder.

Answer 4

Boomer, what you need to do first is find a reputable Mortgage Consultant either through a referral from a friend or family member. Someone they have had a wonderful experience with.
This person needs to sit down with you and go over your finances properly and find out exactly what you really can qualify for. The one thing you need to make sure of is that they are out for YOUR best interest and that means even if they have to tell you that buying a house right now isn't the right thing to do.
Once you find out if buying is a good thing for you then you get preapproved by them and find a reputable realtor. Most good Mortgage Consultants can lead in you in the right direction to a realtor.

Mark Marchand
Your Mortgage Consultant For Life.

Answer 5

every city should have a credit counseling class ,through United Way etc. they can help you. buying a home takes time,to be sure you get want you want.Even at a "fixed rate",homeowners insurance and taxes can raise the monthly payments on a home.there are some many more buying tools out there to help new homebuyers now though.I took a homebuyers class,made a home ads portfolio for myself,so I could watch certain homes that had been on the market for awhile,i kept visiting the land records at the court house, homes which were being sold from forclosure. Also ,check out Fannie Mae and Housing Coalition in your area.

Answer 6

See what neighborhood you like and ask your Realtor how much the homes in that neighborhood are selling for. I don't know what area you are from but usually around $250.000 you might be able to get a townhouse. As you did not mention what city you are looking into.

Answer 7

Use a Realtor