I'm looking to buy my first house and have a less than 1000.$ in the bank. I move out in May of this year!!!

Question

I need as much as posible,are there any things I can do myself?? like a RE agent or mortgage do
i need them??? also where do I look?? I'm from the North Shore area??? I need to save as much as I can , also should I do a cd to make some $$ or will it even make a diff??

Answer 1

You need to prepare yourself financially and find out if your plan is feasible or even possible.

You don't tell us how much you make, but you can figure using the 28/36 rule. 28% of your gross income can go towards a housing payment (that has to include PITI, principal, interest, taxes and insurance & PMI if necessary). You shouldn't spend more than 36% of your gross income on all installment debt (credit card minimums, car loans, student loans, etc.).

Now that you know your maximum, start putting the difference between your rent and your 'mortgage' payment aside in a savings account. This will let you see how tight your budget is when you do this and give you a little more money to play with when you actually buy.

Use an amortization calculator to figure out what your payment translates to in housing price. Contact some lenders and find if they will pre-approve you for this amount with essentially no downpayment and no way to pay for closing costs.

You need to check your credit score and report and make sure that it is sparkling clean before talking to lenders to keep your rate down.

I am guessing after you do all of this work you will find that you aren't quite ready to buy yet.

Good luck!