Home Buying in San Pedro>Question Details

Liable23, Home Buyer in Torrance, CA

I have a monthly gross income of $10000 a month with $350 in monthly debt, and a credit score of rougly 780. How much house can I afford?

Asked by Liable23, Torrance, CA Tue Mar 16, 2010

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You really should meet with a lender and ask this as I am sure there is more details that will be needed.
0 votes Thank Flag Link Wed Mar 17, 2010
A total payment of $3800 minus property taxes (1.25 percent) of about $750 a month and maybe either HOA or insurance of about $300 a month would give you a payment without those of $2750. At 5 percent , that would be a mortgage of $512, 275. If you wanted to add some of your savings to a downpayment, you could go to about $540,000 (reserving some for closing costs.)

For this price, you could get a nice place in Torrance or possibly even a small 2 bed plus den in Redondo Beach, maybe even near the beach. The variables are many (downpayment, whether you pay mortgage insurance, condo/townhome vs. single family, so I'd love to work with you to figure out what you really are looking for and see if we could make your dreams come true! You'll definitely be able to find a nice home -- I look forward to hearing from you!
0 votes Thank Flag Link Tue Mar 16, 2010
When buying a house remember that you have closing costs to consider. Save some extra money for those and if possible leave $5,000 as a cushion in case anything breaks. That way if the furnace dies you can just replace it and not worry.
0 votes Thank Flag Link Tue Mar 16, 2010
Well, I'm a Navy Vet so I'm looking to use a VA loan (0 down). But I have 50k for a down payment if I need it to get me into a better house. Max monthly payment I can swing is $3600-$3800. How much house will that get me? 500k-550k would be ideal.
0 votes Thank Flag Link Tue Mar 16, 2010
Hello, it would depend on how much you have for a down payment and how much money you would like to have after your expenses have been paid. With a monthly income of $10,000 and a strong fico so, you shouldn't have a problem getting approved for a loan. You would want to figure out what type of loan you want, for example a conventional loan or an FHA. Conventional loans typically require a 20% down payment while an FHA requires as little as 3%. But keep in mind an FHA requires mortgage insurance to be paid monthly and it can be couple hundred dollars a month depending on your loan amount. If you can decide whats the maximum you want to spend on your house each month including your mortgage, taxes, insurance, and HOA (if any), I can give you more of an accurate number as to the price of a home.
0 votes Thank Flag Link Tue Mar 16, 2010
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