Home Buying in Holyoke>Question Details

Nadeauc, Home Buyer in Holyoke, MA

I am a student and my fiance works full time. He makes about 20,000 a year, and when I graduate in August, I will start to make about the same

Asked by Nadeauc, Holyoke, MA Mon Jan 18, 2010

amount. Can we afford a 100,000 dollar house with everything that comes along with it, or should we just keep renting for now?

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Hi! I am a REALTOR in the area and would be happy to help you sort through these first time home buyer questions. Someone already gave the good advice to start working with a mortgage professional. If you are hoping to take advantage of the home buyer tax credit, you need to be in a contract by April 30th, which means you should get started right away. Let me know if I can help.
0 votes Thank Flag Link Tue Feb 23, 2010
I think it's great that you are starting to look towards the future and I hope you can take advantage of this fantastic market! Save Save Save and try to have little to no credit card debt to keep your ratios looking good. Consult with a Mortgage Agent and you'll probably be in a home by Fall. Good Luck!
Web Reference: http://www.mdmrealtyinc.com
0 votes Thank Flag Link Mon Jan 18, 2010
(yearly) Income x 3 is the safe amount for a mortgage. That would be $60k. $40k x 3 =$120k.

A lot more factors come into play than just a house payment. Do you have a down payment of at least $3,500 available? Do you have another $2,000 or more to cover unanticipated expenses? Then you have closing costs. Although some people are getting the sellers to pay for those, what if you have to pay them, do you have well over $1,000 to cover those also?

I wrote three blogs I think could help you. Take a look.
This one covers the steps needed to buy a house. Simple, east to understand steps anyone can follow. I also give a very simple way to figure out just what you can afford for a safe monthly mortgage payment.
This blog gives things to do and consider when you are going to buy a house some time in the future.
This gives some iedas about how to build up a down payment.
0 votes Thank Flag Link Mon Jan 18, 2010

First thing you need to do is consult with a lender.

Even though his income is $20K/year, his employment history, debt ratio, FICO's, etc. may impact the "bottom line" net worth he actually makes.

Once you get discuss this with your lender, they will be able to tell you how much you actually qualify for.

It'll save you alot of time in researching a home plus when putting in offer's, you are required to submit a pre-approval letter showing how much you qualify for.

Best of luck!
Web Reference: http://kathyweberhomes.com
0 votes Thank Flag Link Mon Jan 18, 2010
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