If you make 1334 per month after taxes how much house can I afford? What mortage amount should I pay?

Question

What amount should I be expected to pay, and what would you suggest would be a good lender to use?
What is the total amount of the house would I be able to afford too

thanks swat because you hit the nail right on the wall.
that means if i add someone elses income then we can pay 800 per month in a mortgage and the house would be like 60000 dollars. thats even steven by my book

houses where i saw are going for reasonable
and half of that so it will work out well.

Answer 1

In what country???????

Answer 2

First if the extra income you are going to get is from a roommate, is not on the mortgage and title you cannot use that income for the mortgage. Next let us look at some expenses.
Electric $100
Cable $40
Internet $40
Car Insurance $100
Food (including going out for lunch etc) $400
Gas for car $100
Taxes $150
Misc repairs $100
Heat $150
If financing you also have to add PMI, if you have a car payment that is extra, if you car is paid you have to budget for unexpected repairs, medical etc. So using the basic numbers listed above, without the extras, you have $154 a month, at most for a mortgage, considering nothing goes wrong. If you do not have good credit, and a downpayment you're rate will be high. Personally I do not think you are ready, nor have a good enough income to purchase, and the key word is keep the house. You would be better off waiting until your income improves.

Answer 3

There are a few methods to see if you pre-qualify for a loan depending if it will be a conventional loan, FHA, VA, etc., but the simplest is to simply contact a loan officer and have them pre-qualify you. It can be done over the phone (they need your SS#, date of birth and address). It will not cost you anything (if they say it does, find someone else). With the current tightening of credit score requirements, even if your income is high enough, you may still not b able to qualify.

EDIT: The last reply mentioned PMI. You only hve to pay PMI if the loan amount is more than 80% of the appraised value of the home. If the home sells for (and appraises for)$100,000 for instance and you finance $90,000, then you would have to pay PMI until you had the loan paid down to $80,000 or until the property appreciated to the point that you had 20% equity. Loan companies by law have to drop the PMI as soon as you reach that 20% equity mark but you will probably still have to notify them that you are there.

Also a foreclosure that you buy for $20k to $30k is going to need MAJOR work and unless you can do the renovations yourself, expect to spend another $20k to $40k out of pocket to fix it. Only get into foreclosures if you have the bankroll to fix them.

Answer 4

with your income, you need to find a forclosure. buy something for 20-30K and suck it up for two to five years. fix anything that needs to be fixed, and when you are looking for your next house, you'll have some equity built up.

dont set up a mortgage for any more than 300-400 per month, because you will soon find that your mortgage is not going to be the only monthly payment that goes into owning a house. you also have taxes, utilities and repairs on the house.

good luck!

Answer 5

Well you have to factor in other costs
food: at least $100 per week
car payment: $150/month
gas: 25 per week
leaves about 680 per month
but that doesn't include any utilities, taxes, or any other misc expenses you might have. You're better off finding a roommate and renting a two bedroom apartment.

Answer 6

The general idea is to spend 1/3, which would be $400.20

Answer 7

Sorry you are going to have a hard time finding a "house" that you can afford!