Home Buying in Park Slope>Question Details

Miller, Home Buyer in Brooklyn, NY

My partner and I are looking for a two bedroom in Park Slope. We have no debt, $325,000 available for a down

Asked by Miller, Brooklyn, NY Wed Mar 11, 2009

payment and take home about $4000 a month. What price ranges should we be looking at?

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Answers

8
Hi,
on a combined monthly income $4000 /mth, 33 % should go to mortgage.
It's about a $200,000 mortgage loan.
So you could afford about $525,000.

Have you found anything yet?
I have a few attractive listings in Park Slope and surrounding areas.
Best regards,
Ella
0 votes Thank Flag Link Mon Oct 26, 2009
Dear Miller:

I was the first agent to answer your question. I just want to clarify that when I said you could spend up to about 50% of your income on your living expense, I meant that as the maximum that a bank would allow you to borrow as a ratio based on your income.

Although this is possible, you may or may not want to actually spend 50% of your income on your living expense. Some consumers may only want to spend say 30% of their income on their living expense, it all depends on your own comfort level. You need to determine how much you are comfortable spending on your monthly living expense and then back into the numbers using the formula I gave you in my original answer below.

If I can be of further assictance, please let me know.

Sincerely,
Mitchell Feldman
Associate Broker
Madison Estates & Properties, Inc.
Office: (718) 645-1665 Cell: (917) 805-0783
Email: MFeldman@MadisonEstates.com
0 votes Thank Flag Link Fri Apr 17, 2009
Hello, first are you referring to a two bedroom co-op or condo? If you can answer this question I would be glad to assist you.
Web Reference: http://www.KandHhomes.com
0 votes Thank Flag Link Fri Apr 17, 2009
Hi, Miller. You should talk with a lender and get pre-qualified. This is important for two reasons. It will tell you how much a lender will give you and will let you know the price point you should be looking at. The second reason is in this market, sellers and their agents want to know you can complete the transaction and if you put in an offer they will most likely want to see your prequalification letter. They will take an offer from someone who has one rather than someone who has done their own calculations and feels they can afford it. Next, find yourself a terrific real estate agent who really knows Park Slope. I have lived here since 1981 and raised my children here and would be happy to answer any questions you have about the area or to help you find the perfect place and take you through every step of the buying process.

Feel free to click on my contact info or email me .

Jenet Levy
jlevy@cbpreviewsnyc.com
0 votes Thank Flag Link Thu Apr 16, 2009
I would suggest talking with a great loan professional. There are different programs currently out there like FHA where you have to come up with 3.5% down payment. Then closing cost if you need a great loan professional let me know and I will send you contact info for Dale Biaggi.
Hav e wonderful day!
0 votes Thank Flag Link Mon Mar 16, 2009
Right now is that you need a 20% down payment to buy a house, Keep in
mind that the down payment is not the only money that you need to bring to
the closing table. There are also closing costs and escrows, which you will
establish with your lender for taxes and insurance.

Your monthly home payments should be about, 28% of your monthly netpay.

If you have additional questions you can direct them to me.. My Direct # 347-813-1290.
Here is my website http://fajardodelacruz.realtors.officelive.com
or my e-mail delacruz.fajardo3@gmail.com
Hope to hear from you soon.
0 votes Thank Flag Link Fri Mar 13, 2009
Simply put take 43 percent of your monthly income and that is what you max monthly payment can be. The rates determine how much you can ultimately afford.

Are you interested in foreclosures?
0 votes Thank Flag Link Thu Mar 12, 2009
Typically to qualify for a the mortgage you would want to spend no more than about 50% of your income on your living expense which is commonly referred to as PITI...Principle & Interest (your mortgage payment), Taxes & Insurance (with a co-op you also have to include the monthly maintenance).

If your income is $4,000 a month, this means you should be looking to spend about $2,000.00 per month on your living expense, also known as PITI. So in order to answer your question, first you need to know the maintenance on the co-op. Lets say the maintenance is $700.00 per month, then the $2,000 monthly living expense budget would be reduced to $1300.00 after subtracting that maintenance. Then you subtract insurance (say $50.00 per month) which brings it down to $1,250.00. The real estate taxes will already be included in your maintenance so you don't have to worry about that.

If I assume you will be going for a 30 year fixed mortgage which these days the rate would be about 5.25% if you are qualified the "factor" you use would be 5.52, meaning you would be paying $5.52 per thousand you borrow. Hence, $1,250.00 divided by 5.52 equals 226.449. Multiply that by 1000 and you get the maximum loan amount you can take to stay within your budget...$226,449.00. Add you down payment and "boom" you have your purchasing budget ($226,449.00 + $325,000 = $551,449.00)!

By the way, I actually have a two family house for sale right now located at 426 17th Street between 7th & 8th Avenue, perhaps it would interest you, the asking price is just $599,000!

If you need more information, please contact me, I would love the opportunity to help you!

Mitchell Feldman
Madison Estates & Properties, Inc.
Office: (718) 645-1665 Cell: (917) 805-0783
Email: MFeldman@MadisonEstates.com
0 votes Thank Flag Link Thu Mar 12, 2009
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