I have been trying to research buying a house, but I am not sure if I could.. Currently I am a college student, who works a stable full time job (I gross $2200/month). I just bought a brand new car a few months back all on my own, so that and insurance are my only large monthly expenses (car alone about $300/month). I also have 3 credit cards, which I have consistently paid over the minimum and have not been late on. So knowing that, would it be possible for me to get financed as a first time home buyer? How much do you think I would be able to get financed for? Also, what may help improve my situtation to make me more likely to be able to purchase a house?
2007-08-28 10:59:52 · 10 answers · asked by dolceserendipity 3 in Business & Finance ➔ Renting & Real Estate
I live in Colorado. I also owe only $2,000 total on credit cards. I want to buy something rather then rent, because I see renting as a waste of money. Later down the road I am hoping to get involved in real estate investing so I figured buying something I could fix up now would be a good start.
2007-08-29 06:45:44 · update #1
You need to check your credit score. Banks typically like to see a score of 650 or higher, but there are lenders who will finance those with scores in the 500's. The higher the score the lower your interest rate. You can qualify from 25-30% of your monthly income to be spent on a house payment. It will help you to keep your credit card debt to below 50% of your available credit. I would check with a mortgage broker. They can tell you what you may qualify for and help package a loan and present it to various lenders. You will probably pay them a premium for their efforts. If you have a good credit score, you may want to go to your bank or a mortgage company and talk with them. Be prepared to prove your income. You will probably need from 5-20% down. I believe FHA will finance up to 97%. You don't mention how long you have been on your present job, but the longer the better. You won't know until you try. I would go for it. Good luck!
2007-08-28 11:42:11 · answer #1 · answered by Flyby 6 · 0⤊ 0⤋
The rule of thumb has always been that you can afford a house that's 2.5 times your annual income. So, if you make $2,200 a month, that equals $66,000. Not much is available for that price. And your debt ratio is not so good with car payments and credit cards.
Try to find a house that you can rent to own. A portion of the rent would go toward the down payment. Houses that have been on the market for a long time are good candidates for this type of arrangement. Find a good Buyer's Agent who'll work for you in finding the right house at the right cost.
2007-08-28 11:15:37 · answer #2 · answered by Cheryl G 7 · 0⤊ 0⤋
Lets look at the number $220 gross should be about $1650 take home
Car $300 $1350
Insurance 100
Food and cleaning 400
Elec 75
Cable/Internet basic 60
Gas for car 80
Water/Sewer 35
Heat 250
Left over after basic
expenses 450
Basic expenses not including cell phone etc and averages, mortgage also includes insurance and taxes which are dependent upon area. With an income of 26,400 basically you cannot afford a home
2007-08-28 11:16:08 · answer #3 · answered by Pengy 7 · 0⤊ 0⤋
SOOOOO much more information is required. You sound in good fiscal shape, but you've got a long way to go to get an answer.
Where do you live? LA? Houston? Springfield, IL?
$2200/month is nothing in LA and it's doubtful you'll get qualified for anything, let alone get qualified for enough to buy anything.
In Houston you might get $125k which might be enough for a condo downtoen, or a small home way out in the 'burbs.
Springfield might allow you to get a small home or condo as well.
Other info you'll need to know:
Debt to income ratio?
Current Balance on each CC to Total Balance on each CC
What is your credit score?
Best thing you can do is go to a couple of banks that are local to you and ask them to run the numbers. This will tell you home much, if any, money they'll lend you.
2007-08-28 11:11:44 · answer #4 · answered by saberhilt 4 · 1⤊ 0⤋
You could afford a home but depends on how much the home costs. If your debt to income ratio is to high then no. What is the limit on your credit cards and what is the actual balance on them? You have to congigure taxes and insurance also. Your debt(credit card, mortgage, car note) should not exceed 50% of your income. YOu might only be able to afford 125k house
2007-08-28 11:12:14 · answer #5 · answered by s_berry 3 · 0⤊ 0⤋
Unfortunately, this is a question that can not be answered in this forum with any accuracy.
You did not say how much you owe on credit cards and what your overall debt to income ratios are and what your credit scores look like. Only a lender who has reviewed these items can truly give you the information you seek.
2007-08-28 11:08:19 · answer #6 · answered by liveinaustin 3 · 1⤊ 0⤋
It is determined by what sort the asbestos is in. If it is simply pressed asbestos tiles, just like the siding on my condo, it poses no chance. If it is fibrous insulation, then there's a critical competencies for extreme wellbeing disorders. Hire a house inspector, and get his opinion. If it's hazardous, it perhaps price-prohibitive to repair it. Good good fortune!
2016-09-05 17:13:08 · answer #7 · answered by mckinzey 2 · 0⤊ 0⤋
You can.
Try places like, " Farmers Home "...
A house can be like a " White Elephant ".
It's nice, but the House always NEEDS
when it gets older.
Save you money, until you get married,
and then buy a house.
Oh, and pay your bills off.
2007-08-28 11:40:11 · answer #8 · answered by elliebear 7 · 0⤊ 0⤋
What state are you in? There are many facets of a loan application. You will best talk to a broker that can answer that. If you are in Texas, by any chance, you can contact me and I can tell you. Good luck
2007-08-28 23:39:06 · answer #9 · answered by Bill P 5 · 0⤊ 0⤋
you should first finish college and get a steady job, than when your ready and making a higher slary than 2,200 a month ,buy a house.
2007-08-28 11:09:29 · answer #10 · answered by player 3 · 0⤊ 0⤋