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[ADVICE] buying my first home...i think

Discussion in 'BBS Hangout' started by steveng125, Mar 6, 2018.

  1. steveng125

    steveng125 Member

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    I saw a house i really like, its 200k firm. The estimated payments are 1650 a month and right now im brining in 3200 after taxes, insurance, etc. I should be expecting $2 raise in October.

    I dont know if i should go for it or wait and keep looking but i really think its a nice house, everything im looking for.

    Do yall think i will be able to afford it?
     
  2. pirc1

    pirc1 Member

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    I would say the payment is too high for you, is that what we are suppose to debate about? :)
     
  3. CometsWin

    CometsWin Breaker Breaker One Nine

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    Sauces say... no. Maintenance and upkeep are probably more than you think.

    As a rule, your house note and taxes shouldn't exceed 25% of income. Save your money, put more down.
     
    No Worries likes this.
  4. pirc1

    pirc1 Member

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    I don't think the banks will approve the loan if payment is more than 30% of you income
     
    No Worries likes this.
  5. KingCheetah

    KingCheetah Member

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    Not in this Trump economy.
     
  6. juicystream

    juicystream Member

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    You either need to wait, or settle for something less. Your payment is $900 more than mine and we net about twice that.
     
  7. juicystream

    juicystream Member

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    That is based off gross and he gave net. He could probably get the loan as long as he doesn't have much debt service outside of the mortgage.
     
  8. geeimsobored

    geeimsobored Member

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    Those payments are too high relative to your income. You don't want to get into a situation where you're house poor.

    Also, what kind of down payment are you looking at?
     
  9. pirc1

    pirc1 Member

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    You are correct, but i still think it is too much, there will be utlities, hoa etc, the house is more than mortgage.you can expect 400-500 on top of mortgage at least.
     
  10. juicystream

    juicystream Member

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    Definitely agree. What you can borrow and what you should are not the same. Spending 50% of take home on a mortgage greatly limits you. He needs a payment about half of that. You don't want to struggle to make ends meet.
     
    Deckard likes this.
  11. FranchiseBlade

    Supporting Member

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    You might be able to afford it if you are willing to be house poor. You will have a home but not be able to afford much else. If that is a sacrifice you are willing to make, then go ahead. Banks want you to do that because they win.
     
  12. Sweet Lou 4 2

    Sweet Lou 4 2 Member
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    No you should not buy this home. It's very risky to get a home that will cost you a higher percentage of your income. If the housing market declines you are underwater. If you lose your job you are likely to default. You have very little to save and would be struggling living paycheck to paycheck.

    You would get some tax benefit from mortgage interest and property tax deductions but you may not make enough to realize the full benefit.

    You want your rent / mortgage to be no more than 1/3 of your after tax income. So $1,100 is your max.
     
    cml750 likes this.
  13. bobrek

    bobrek Politics belong in the D & D

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    How long is the term and what is the interest rate? Does that $1650 include taxes? In order to get $200000 to be $1650/month, the interest rate has to be over 9% for a 30 year loan unless that amount includes taxes and other fees.
     
  14. steveng125

    steveng125 Member

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    1650 includes mi, taxes, homeowners
    5.05% loan
    30 year fixed

    Where i live this is pretty much the best deal you can find. Everything living wise is overpriced. 2 bedroom apts are $1200month
     
  15. Sweet Lou 4 2

    Sweet Lou 4 2 Member
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    Are you getting an fhi loan?

    There is a high risk the value of your home will decline as the economy is at its peak and interest rates are rising
     
  16. Exiled

    Exiled Member

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    Depends on other factors like how much you pay rent right now ! is it close to your payment. Is it possible to lease or split part of the house with someone else so you could slash some cost, is your income stable , did you save some money for the past a few years,how much money is sufficient for other expenses, is there a moonlight job you could do etc

    I bought a 4 apartments building so it can pays for itself, wasn't the glamorous place I wanted to live in though and 2.5X of what a nice house cost but I have some peace of mind about this investment though it can be a financial burden from time to time
     
  17. dobro1229

    dobro1229 Member

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    10 years ago I’d say you’d be fine with a low down payment because you could just refi once you got 20% equity in the home.

    However rates are about to go up and will be raising for some amount of years.

    Your home payment is so high because of PMI. It’s okay to deal with PMI your first few years as nobody can really be expected to have 20% in cash to put down on their first home, but you need to give yourself the ability to get off that loan in a few years.

    Hope that makes sense. I’d try to find a starter home in the 120 to 150 range if you can based on what I’m reading here. It might not be everything you want, but you can start building equity and get in a loan you can manage.
     
  18. steveng125

    steveng125 Member

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    Conventional 30 yr.

    Im about to talk to my bank they offer conventional 30 year with no mi
     
  19. steveng125

    steveng125 Member

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    Im one of thr lucky ones in town oy pay 785 a month for apt. My gf has a job right now and can help but she hates her job. I dont expect her to be there to much longer
     
  20. pirc1

    pirc1 Member

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    Another way is borrow two loans one for the twenty percent down and other for the rest of the the 80% standard loan, that way you could tighten your belt for a few years and get rid of the 20% loan then it would be just like a regular loan the rest of the way.
     

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