Home Buying in Harrisburg>Question Details

cpressley57, Home Buyer in Harrisburg, PA

how much house will an income of 50k a year get me.?

Asked by cpressley57, Harrisburg, PA Sun Apr 21, 2013

First time homebuyer looking to purchase my first home. A decent home in the area I would like to be in will run about 175k

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Answers

9
Mortgage-wise it's 50K multiplied by 3, which is 150K, plus down payment.
If you have 15K downpayment, and your seller agrees to cover your closing costs, you
can buy...

However, that's if you don't have large car loan payments, your credit card debt is mid or low size or there is nothing in balance on credit cards, and there are no pesky student loans.

Check out if your city has the grants for 1st time home buyers, or get a gift from a relative...
You can also get a loan from 401K plan (but any additional loan will decrease your buying power).
So, this all has to be carefully planned and calculated.

So, to figure out how to maximize your buying potential, meet with a good mortgage pro
and discuss how you can get to 175K price point.

Best of luck in your purchase!

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Mon Apr 29, 2013
Good evening cpressley57,

First steps:

Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

Line up a Home Inspector. A good home inspector will scare the heck out of you: that's what you pay him for! But you'll concentrate on the fundamentals of the property: roof free of leaks, plumbing, heating and electrical up to code and in good working order. Again, when you make an offer and you have your Home Inspector ready to go, your offer will be considered with much more interest by a Seller because you truly have your "ducks in a row" and your preparation demonstrates your serious attitude about conducting the purchase transaction in a timely manner.

Find an experienced Local Realtor who works in your desired shopping area. A serious pro Realtor will refuse to show you homes until you are Prequalified for mortgage financing. Don't take offense! That Realtor doesn't want you to be disappointed and wants you to have a smooth experience as you shop for your new home.

Put together your Team of real estate professionals and shop 'til you drop!

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Mon Apr 29, 2013
There are different factors that come into play, such as, your debt ratio, property taxes and insurance on the property. If you have low debt, you could purchase a $200,000 home. Of course, the amount of cash for deposit and closing cost would also comes into play. I would like to meet and discuss your options and how I can help you save out of pocket money. Barbara 717-608-1284 with EXIT Realty Capital Area.
0 votes Thank Flag Link Sun Apr 28, 2013
Hello,

When determining how much you qualify for, we look at your credit/income/assets/liabilites. Your debt to income ratio is used in determining how much you qualify for. We are a local lender if you would like to get together I can help you determine how much you may qualify for. I am flexible with your schedule.

Thank you,
Jerry Kensinger
717-884-8823
http://www.jerrykensinger.com
NMLS #186925
0 votes Thank Flag Link Mon Apr 22, 2013
Hello Presley,
When determining how much of a house you can afford I will first look at your gross monthly income and current monthly obligations (car payment, credit card debt and students loans. Depending on the mortgage program your total monthly debt including mortgage payment taxes insurance and PMI (if applicable) should be 43 to 55 % of your gross monthly income. The credit score, amount of savings, length of employment and mortgage program will determine where in the 43 to 55 % range you will be.
Regards
Alan Openshaw
Cornerstone Lending Inc
2679927276
MLS 143960
0 votes Thank Flag Link Mon Apr 22, 2013
CPressley. The area that you prefer to purchase a home in will a part of the equation as home prices for similar homes can change from area to area. The only way that you will know how much house you can afford is to sit down with a Mortgage Adviser and get your self pre-qualified for a mortgage. It will not cost you anything and at that point they will look at your credit scores, employment history, income and your income to debt ratios. All of these determine how much you can qualify for. In addition how much cash you have available for closing costs and down payment requirements will be a part of the determination as well. We have an excellent Mortgage adviser in our office that is part of our Howard Hanna Mortgage Services that would be glad to speak with you. You may reach me via my cell at (717)448-1391 or send an email to williamrudge@howardhanna.com
0 votes Thank Flag Link Mon Apr 22, 2013
Hello Presley,
When determining how much of a house you can afford I will first look at your gross monthly income and current monthly obligations (car payment, credit card debt and students loans. Depending on the mortgage program your total monthly debt including mortgage payment taxes insurance and PMI (if applicable) should be 43 to 55 % of your gross monthly income. The credit score, amount of savings, length of employment and mortgage program will determine where in the 43 to 55 % range you will be.
Regards
Alan Openshaw
Cornerstone Lending Inc
2679927276
MLS 143960
0 votes Thank Flag Link Mon Apr 22, 2013
Congratulations on your decision to become a homeowner! In today’s market you will find that in a lot of cases it is actually cheaper to purchase a home than it is to rent.
Many factors impact your ability to purchase a home.
• Credit score
• Debt to income ratio
• Amount of income
• Length of time at your current job.
The decision on how much of a home you can afford is best calculated by your mortgage company. Getting pre-approval will make it easier to find the house you can afford.
All too often somebody will go look at a house and fall in love with only to find out it is out of their price range. A good agent will work with you to find the perfect house that you can afford.
There are also many programs to assist first time home buyers. Some areas will offer a grant to first time home buyers. This could make the money needed for closing a lot less.
Some programs can allow for little to no money down. Your mortgage lender should be able to explain all of this to you.
Please give me a call (717)623-3328
I would love to setup a meeting with you to start the process of purchasing your first home.
0 votes Thank Flag Link Sun Apr 21, 2013
First, congratulations on your decision to become a homeowner! Factors such as credit score and debt to income ratio play a key role, in addition to your income, when securing a mortgage. Best advice would be to contact your bank's mortgage professional and have them complete a pre-approval for you. This way you will know the maximum price range you are pre-approved for and what your estimated monthly payment will be, which is ultimately what you need to be comfortable with. - Sarah
0 votes Thank Flag Link Sun Apr 21, 2013
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