The amount of money you have in the bank and your credit score will determine if you can qualify for a loan. The amount you can actually borrow will be determined by your income. You need to go to a mortgage banker and get yourself pre-qualified. Have them review your income, assets and credit and then they will be able to tell you how much you can borrow and what type of rate you can get AND how much the loan will costs you every month.
Here are some things you need to know:
1) If you are qualified you can probably get an interest rate of about 4.75% which means you pay $5.22 per thousand you borrow (if you borrow $100,000 you would pay $522.00 per month).
2) A good rule of thumb for figuring out how much you can borrow would be to multiply your income by 3.
3) If you go with a down payment of less than 20% you will also have to pay for private mortgage insurance on a monthly basis (approximately $50.00 per month for every $100,000 you borrow).
4) Most co-ops require a down payment of at least 20%, hence if you cannot go 20% down on a co-op purchase it will be very difficult to find place.
5) You cannot go less than 3.5% down plus you need money for closing costs which will be about 5% of your loan amount.
6) When you purchase you will also be paying real estate taxes, homeowners insurance and common charges...make sure you budget for that when you are calculating how much you want to spend.
7) When you purchase a property to use as your primary residence you will be getting a big tax write off! Speak to your accountant to find out how much you will save and you can also factor that into your decision making and budget!
If I can be of further assistance, please let me know. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
However, your fico score (very good btw) your debt to income ratio (unknown) job history, and perhaps a few other things could change this.
To find out for sure talk to a lender near you. They can give you a precise reply.
There is a better way to figure out what you really can afford. Look at your monthly income. Remove all of what you spend on everything except for rent. Whatever is left is the most you can afford for a mortgage, taxes, heat, electricity, water, trash, repairs hoa fees, and so on. Make sure you leave enough extra money in your life so when you rip a pair of jeans or ruin a tire or need to replace a balljoint you can afford that as well as a house.
To many people accept what they are told they can afford and do not realize that they spend more than what the loan allows them to now.
Here's an idea for you: in Las Vegas, you can purchase a condo for $25k, with an estimated monthly net of around $300; which, had a fair market sales price around $120k during peak sales in 2006.
Or, even better, for around $30-35k, you can find something that will net you around $500/mo; which, had a fair market sales price around $160k during peak sales in 2006.
Keep in mind, Las Vegas will not become a dust bowl, and as history repeats itself, prices will eventually be what they were, and greater (even if it takes 7 years). And, as prices slowly go up, so will rent and your monthly net.
I can help with any of your Las Vegas Real Estate needs or questions; feel free to contact me direct.
Mark Fleysher, MBA, Realtor