I live in Washington D.C with my parents right now. I am 24 years old, with good credit and make $50k a year. I am planning on buying a house in Frisco, TX. The houses I am looking at are between $120K - 160K. I don't have any other expenses besides my cellphone. My parents are not asking me to pay any bills so that I save up to buy the house. I have so far saved $20K.
After buying the house. I want to fix it up nicely while I am looking for a job and still working in DC. I will not move the same day I buy the house.
Question:
1) do you think I will be able to afford any kind of mortage?
2)Is it only people who make $70K or more that can afford houses?
3)Do you think it would be smart to make until I can make more money before buying a house?
Please tell me what you do think.
Currently, I am looking for a second job. I hope to get it soon. Maybe, as a waiter or a security guard. Right now I am a proposal analyst for a government contracting firm.
2007-07-30 02:53:44 · 4 answers · asked by K.S 1 in Business & Finance ➔ Personal Finance
A few things you should keep in mind.
1) Lenders like to see established tradelines (generally 2-3). The tradelines could be from Credit cards, car loans, personal loans, student loans, etc. Anything that shows credit worthiness.
2) If you are going to buy a house in TX and you live in DC and plan to stay there for sometime after purchasing the home it will not be considered your Primary Residence, and this could affect your Int. rate.
3) Since you are living with your parents you have no way to prove your ability to pay rent / mortgage payments on time. This also could affect your Int. rate.
You do not have to wait to make more money in order to buy a home. If you make more money you will be able to afford more of a home. If I were you I would buy a home and start building equity. You are young and it is never to soon to start building equity. Go for it!!
2007-07-30 04:30:09 · answer #1 · answered by so3503 2 · 0⤊ 0⤋
Here a few things to think about.
First, the moarket is pretty depressed right now. Nationwide (with exceptions) there is an oversupply of homes on the market. As a result prices are lower. It is a buyers market and a good time to buy your first home.
Second, you can definitely afford a home with the income you make. Just be smart about finances and don't overborrow. Putting 15-20% down is always best.
Finally, avoid spending money on fixing up a house right away. Live in it first. It is very tempting to aly out a lot of cash at first, but this moeny is better kept until you live in the house and have a better grasp on what the most important projects for you to do are.
2007-07-30 12:18:00 · answer #2 · answered by Jay P 7 · 0⤊ 0⤋
Right now there is a buyers marked for houses,so what it means you can pick and choose and you are the one who dictates the terms but you will need to educate yourself a little bit about the area and the prices in the area before you buy anything.Don't jump to first so called good deal.I would suggest to stay were your are and keep your job,than look in in foreclosures in the area you like,than buy something you can rent.Than make some money renting it and at the same time visit the area to look around and when you have your house rented look for a job in the area,than move there.
2007-08-03 09:53:25 · answer #3 · answered by Zijuzijazijana 2 · 0⤊ 0⤋
DC has a first time home buyer credit of 5k.
2007-07-30 10:12:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋