Between my wife and I we are making around 4000 a month. That maybe be around 50K a year (that will raise slightly within the next few months). I am in my mid twenty's and have pretty good credit that I have been building for as long as I can. Our only debt we have are my student loans and a plasma we are currently financing aside from the basic needs (car phone food.).
Our rent is up by the end of next year and wanted to know if it is possible to own a house at our level. I really prefer not to rent and would rather buy a house as opposed to an apartment/condo. What do we need to do?
We only have about 6000 cash at all times but would like to know what we should be aiming in terms of savings (if at all needed). We also live in south florida.
2007-09-24 10:14:39 · 8 answers · asked by Dessaix 2 in Business & Finance ➔ Renting & Real Estate
You COULD swing it- IF you're careful. Get at LEAST $10K together for a Downpayment; shoot for a 30 year mortgage (you're young enough to go THAT route); and WHATEVER you do- apply for a FIXED RATE LOAN when it comes to financing that House. It'll cost you alittle more in the short run; but at least it won't cost you that HOUSE- in the long run (Also alittle personal advice; WAIT until late NEXT Summer to buy anything. Prices are falling all over the place- & they should "bottom out" in your area- by next September. You could get a REALLY good deal on a house- by then. ). Happy "saving"- & Good Luck! :)
2007-09-24 10:33:43 · answer #1 · answered by Joseph, II 7 · 0⤊ 0⤋
First meet with a qualified Financial planner. Get your finances in order first. If you wanted to buy a car you wouldn't just walk in the dealership without doing your homework. Your first home is a big deal. You are probably in the market for a home in the price range of $125k to $175K. You should have at least 10% to put down in cash in order to get the best possible deal. This would be $12k to $18k. It is a buyers market right now. This means that you have much more buying power. Speak with a home loan representative at your bank that you do business with. They will help quide you for free, but also do your homework. A knoweldgeable person has the upper hand.
2007-09-24 10:32:58 · answer #2 · answered by David C 2 · 0⤊ 0⤋
Dessiaxa,
there are some good answers listed.
understand renting is not forever. buying a home should not be done by everyone.
suggest a visit to the library get/read
'house buying for dummies'
'total money makeover'
visit daveramsey.com to learn what he mortgage comps pray you never ever learn - how to own ur cash.
both of u could get 2nd jobs for 1 yr, budgets, pay off bills save cash. then walk into a good fixed rate mortgage . no variable rates balloons 80/20% rip offs.
wait the yr as the market adjusts down.
buy less than u can afford so we will not visit.
2007-09-24 10:43:27 · answer #3 · answered by Anonymous · 0⤊ 0⤋
honestly it depends where you are located, if prices of homes are really high then it may not be possible to buy now because 270,000-300,000 or so loan is going for 1800-1900 a month which i think is really high. You do not want to struggle just to meet the mortgage payment... i would suggest saving up more money for a down payment and looking into mortgage lenders they will prequalify you for free so you know how much you can afford.. i would start there and see... here is a good site with lots of home buyer tips and even a mortgage calculator.. good luck
http://www.stevemarowitz.com/
2007-09-24 20:43:40 · answer #4 · answered by Pure Genius 3 · 0⤊ 0⤋
It is dependant on yours & your wife's credit scores. You usually need at least a score of 680. They also will ask for at least 5% down as well as closing costs, but you can get 100% financing but you will have to pay more in interest. Also what they will look at is how long you've had your jobs, or jobs in the same field. They want to see what you have in the bank generally for the last 90 days. They would like you to have at least 3 months of however much your mortgage pmt. is in your bank. You can get pre-approved to see if you qualify & what you qualify for. My husband makes 50K a yr. I am not working & they pre-approved us for up to 150K but he has a really high credit score & has been in the same line of work 12 yrs.
2007-09-24 10:28:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It will depend on your credit score (the middle score of the lowest scoring borrower), your car payment, student loan payments, and the payment on your plasma.
Without that information no one can tell you for certain.
If I may be of further no strings assistance, feel free to email me. I do not solicit business here, I just try to help people figure things out.
2007-09-24 10:22:22 · answer #6 · answered by mazziatplay 5 · 0⤊ 0⤋
Your aim should be to put 10-20% down on your home..Price not over $100,000.00..Rate not over 7%..and ALWAYS ALWAYS ALWAYS a FIXED 30year.Monthly pmt at 50k no more than $500.00 a month..credit card debt UNDER $5000.00..monthly no more than $200.00.
2007-09-24 10:28:49 · answer #7 · answered by Anonymous · 0⤊ 0⤋
you need to apply for a mortgage!
they will help you determine how much you can afford...if you have a down payment...and the monthly payments for the home you plan on living in.
2007-09-24 10:20:04 · answer #8 · answered by Anonymous · 0⤊ 0⤋