lorddonk, Home Buyer in Buffalo, NY

Can I Afford It? Where's Suzy Orman when you need her? :) I'm 23 and want to experience the world!

Asked by lorddonk, Buffalo, NY Wed Apr 4, 2012

I currently make about $1,350 /mo. My expenses (loan, etc) are $950 /mo. The rest I bank or spend on things which I could give up. I live at home for $150 /mo. currently.

I have about $10K banked, no credit card debts. I figure if I could get a $500 /mo. mortgage payment or less per month, I could live off $350 /mo. which would include $150 /mo. for groceries and $150 for utilities, still having some leftover for anything I haven't thought of. (Dr. appts. etc) and still bank a bit for emergencies.

I have read online that I might be able to consolidate my student loans into one smaller payment which would allow me to pay a higher mortgage per mo., but I would have to get the house first because supposedly applying for consolidation looks bad on a credit report?

So, am I crazy? Could I do it? Any expert advice is very much appreciated from the bottom of my heart. Would like a "starter" home or up to $150,000 in Ton. or No. Ton area or nearby areas. THANK YOU FOR YOUR TIME!

Help the community by answering this question:


how can anyone advise someone making under $20,000 a year (with monthly expenses, including loans of some sort, totalling 950) that they are financially fit and ready for home ownership?

And......he'd like "a starter home for 150,000"???
How realistic isthat?
The numbers dont even come close to working........

I don't care how cheap housing might be in Buffalo or anywhere......this young man hasn't yet lived on his own or managed rent payments or other such expenses that come along once you move out of your parent's home.....he has no idea of how 1 unexpected repair can affect his monthly tight budget, and it wouldn't take much to fall behind should that happen.....he needs experience balancing life and income before even thinking of taking on the responsibilities of owning a home.

It's just premature and foolhardy, imo, even if it's possible.

SC, it's great to think big.....and I don't mean to throw cold water on your plans.............just speak to a financial advisor and make plans for the FUTURE when the timming will be right for you to pursue this dream of yours!!

In the meantime, why not find a few friends.......share an apartment.... and see how it feels to be out on your own!

All the best...
1 vote Thank Flag Link Fri Apr 6, 2012
Oh, no! And you can't beat it because your arm is on the DL. I am so sorry!!!

SC, I love home ownership, but you can't live all the lives - you cannot be both cosmopolitan and provincial, and you cannot experience the world if you're tied down to a house.

What you could do is buy a house near a college that can be rented as a "group house," where you can rent out rooms and reserve one as your "home base" as you travel.

All the best,
1 vote Thank Flag Link Thu Apr 5, 2012
all sym[pathy is most appreciated - arm is coming along - I can now type with 3 fingers and hold a knife to cut my food (slowly)!
Flag Thu Apr 5, 2012
You can still experience the world and find suitable housing. As a first time home buyer you are eligible for grants not only with some of the financing programs banks offer, but most communities have their own grants for first time buyers. The first step is allowing a lender to pre-approve you to establish your buying power. From there then you can properly plan your purchase. If you have questions visit my website at http://www.johngatas.com.
0 votes Thank Flag Link Tue Aug 21, 2012
Yes, you can. While your needs are still minimal, play it smart and get your starter home. You can grow from there if and when you want to. Try to keep your 10k out of the equation as much as possible.
Cushions are a good thing in life. Rent to own in one way of entering the market also. In any case, talk with an experienced realtor. Find a realist! Too negative, or too positive, be wary.
This area is a dream for buyers. Go for it! I did and have no regrets at all.
Barknorr, Williamsville, NY
0 votes Thank Flag Link Mon Jun 18, 2012
There are numerous home for sale in North Tonawanda under $100,000. Depending on your exact price point you could end up with a payment around $500.00 per month.

Get with a local or online lender to see what kind of loan you qualify for. Once you know you can search online or with a broker for homes in your price range.

Go for it!
0 votes Thank Flag Link Fri Apr 6, 2012
Property prices in Buffalo are extremely cheap compared to NYC. You may indeed be able to afford something. However, if you still want to party there may be a problem! How about taking a year out to "go crazy" then make house ownership a priority.
0 votes Thank Flag Link Fri Apr 6, 2012
Your first and only move to determine of you are qualified to purchase a home is to contact a top notch mortgage professional. Only they can determine your qualifications as opposed to some of the opinions expressed elsewhere. If you are not qualified, a good mortgage professional will put you on a path toward home ownership at the appropriate time.

I would be happy to assist you in any way that I can. Please feel free to contact me at your convenience.

Ron Fronckowiak
Licensed Mortgage Professional
R & R Funding, Inc.
Lancaster NY 14086
P: 716-685-9696
Web Reference: http://www.RandRFunding.com
0 votes Thank Flag Link Thu Apr 5, 2012
well Mack...mabe he wants that house to be in ............Paris!

oh the joys of home ownership........dishwasher died tonight and flooded my kitchen!

see....you never know!
0 votes Thank Flag Link Wed Apr 4, 2012
I don't know how you're going to "experience the world" when you're tied down to a house . . .
0 votes Thank Flag Link Wed Apr 4, 2012
Pretend I am Suzy

You are DENIED!


So, to be blunt like she is...........No - you're not ready to own a home, but I applaud you for inquiring!!!!
. Not sure how you are working those numbers, but if you make (assuming you mean NET) 1350 a month....and loans/expenses are 950........you only have 400 left over!

Houses require upkeep and maintenance........furnaces break.,.so do hot water heaters....you need a financial cushion and a higher income before even thinking of buying a home.

And.........Please don't tell me you're planning on touching your savings of $10,000 for monthly expenses......so, unless I am missing something, the money just isn't there for you to spend!!

You're 23...........enjoy life.....keep saving, and when your income increases you can revisit the home buying idea.

Good luck..........I like your spirit!
0 votes Thank Flag Link Wed Apr 4, 2012
I agree that I think the bank would see your income too low to afford a mortgage and student loans. Feel free to contact me directly and I can help you work through the numbers
0 votes Thank Flag Link Wed Apr 4, 2012
For a personalized answer, why not simply visit with any licensed loan officer to determine qualification; at the very least if you don't qualify, he/she can offer great suggestions as to what needs to be done; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Wed Apr 4, 2012
Unfortunately I don't think that you would qualify for a home loan right now but the only way to know for sure is talk to a lender and see if you can get pre-approved.
0 votes Thank Flag Link Wed Apr 4, 2012
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