Hey Jen, Your income is $3333 per month (40K per year). If you have no other debt You'd probably be okay getting pre approved with a housing payment of $1300 per month max, or a housing ratio of 39% ($1300/$3333) or higher since your overall ratio would be the same as your housing ratio since you have no other debt. Ie. if taxes are $3500 that's $292 per month, estimated insurance $680 per year or $57 per month, $62 per month PMI estimated that leaves you with $889 for your principal and interest. If you use a mortgage calculator this will put you at around a $160,000 home. You also want to consider how much of a payment you feel comfortable with regardless of what you are approved for. With FHA you get up to a 6% assist but you'd need at least 3.5% out of pocket..or around $5600. This amount could be a gift from relatives and/or your own funds. It's a great time to purchase with rates being so low, housing prices low, and the $8000 tax credit if you are a first time buyer. In answer to your question, what would be realistic is whatever you would feel comfortable with in terms of a monthly payment. You should compare what you are comfortable with to what you are pre approved for and go from there. Sit down and analyze your budget to determine what you'd feel comfortable with. I'd recommend getting a pre approval with a Good Faith Estimate, which I could do for you in about 10 minutes. Chad

Hi Jen,

One thing that those mortgage calculators tends to be off with for home buyers in Delaware County is the real estate taxes. The real estate taxes will influence your monthly payment on your mortgage. You will want to have a fairly accurate estimate on anticipated real estate taxes so the estimated monthly payment the calculator gives you isn't way off. Take a look at the real estate taxes for homes you think are in your price range and be sure the mortgage calculator you are using is in line with the averages you are seeing or fill in that field accordingly. Also be aware that if you are thinking about a home with condo or home owner's association fees, those fees will be part of your monthly expenses.

Those online calculators are a good starting point but to really be sure what you will qualify for and what payment will fit into your budget, you should consult with a mortgage professional. Read my most recent blog post for tips on selecting a mortgage professional. I would be happy to send you my list of preferred mortgage consultants. Check out my website for more helpful information such as "10 Questions you should ask your lender" and more. A direct link to the page is below.

I see you are in Media. There is a local Green Drinks group that meets at Brodeur's Restaurant on the 1st Wednesday of every month.... That's tomorrow for November's meet up. I specialize in helping clients save money by going green with their real estate purchase. That doesn't always mean buying new construction and it doesn't mean a funky looking home with bamboo floors. I'll be at the Green Drinks meeting tomorrow night if you want to talk some more about how you can save money on your utility bills in your next home. I have a special incentive program I offer my clients if they want to make their new home more energy efficient and save money on their monthly bills. You don’t have to be Green to save Green!

Create a Great Day!

Kelly Gidzinski
Keystone Property Connections, LLC

Start with an Online Home Affordability Calculator. This calculator will give you a ballpark figure of how much house you can afford to buy – based on income, debt, down payment and other factors. Keep in mind that the figure derived from this calculator is an estimate and should be used only as a starting point for careful examination of your budget and overall financial goals to determine what you can actually afford. Then, meet with a reliable, competent and trustworthy mortgage consultant to discuss all loan options available to you, as well as get pre-approved before you begin looking for your new home.

If you have additional questions, please contact me. In the meanwhile, here are some Online Home Affordability Calculators to get you started:

* CNN Money - http://cgi.money.cnn.com/tools/houseafford/houseafford.html

* Yahoo! Real Estate - http://realestate.yahoo.com/calculators/afford.html

* Bankrate.com - http://www.bankrate.com/calculators/mortgages/new-house-calc…

* Mortgage101 - http://www.mortgage101.com/affordability-calculator


This response is for informational purposes only and is not a substitute for legal, tax or other professional assistance.

Jen,

This is a great question, but it really comes down to 2 things. First, how much of your monthly income would you be comfortable paying for your housing expenses to continue living a lifestyle that you are comofrtable with. I say this b/c you might qualify for a mortgage that might be more than this amount. This is the best way to figure out how much house you want to buy. Second, you will want to talk to a reputable local lender that will meet face-to-face with you to discuss the loan options that are available to you. Keep in mind that the monthly mortgage payment will include, principal and interest, home owners insurance and taxes. Depending on how much money you put down it can also include mortgage insurance. If you use an FHA loan product that requires the least amount of down payment 3.5% or other loan products that generally require at least 5% down.

If you have any additional questions please feel free to let me know.

Andrew Himes, CRS, ABR, e-PRO
Prudential Fox & Roach Realtors
Andrew@AndrewHimes.com
267.231.8255