Let me give you the best way how to find what you can afford. First, we will assume that you have been on your job for 2 years. And that you have a good savings for your down payment. So, get your gross income, then multiply it by 31%. That ratio is for your housing ratio. Now, I assume that 3800 is your net, then I will assume that your Gross is 4500. Then 31% of $4500 is - $1395 which will be your Mortgage Payment including tax and insurance. Then, by just the monthly payment, I will recommend that you look for home no more that $200k.

The last thing we need to do is to determine is your DTI - Debt-to-income ratio- so Add $1395 plus your car payment and minimum payments on your Credit Cards. Once you total the amount, divide it by your Gross Income, if the ratio is 42% or less, then more likely that you will be able to afford the $200k. But if you go beyond, then it's either you paydown your liabilities or put more down payment.

This is what loan officers and REALTORS are SUPPOSED to do when they pre-qualify a client. Once you determine the two ratio, then that should be your basis on how much you can afford to buy.

I'll share to you a small trick on how to estimate your monthly payments depending on the purchase price. It is $600 per $100,000.

Also the idea is that only 42% of your income should be use for your housing and debt expense and the rest is for savings or other use. That is what underwriter is looking at.

I hope this advice is helpfull to you.

Hi Princess,
What the other agents/lenders have said is correct. You should check out FHA loans that only require 3.5 % down and there are other first time home buyer programs out there. SEE at least 2-3 lenders starting with your own bank, that way you know what you can afford and to see who will give you the best rates and terms. Also make SURE you will be comfortable with the payments. I am experienced in purchasing REO/Short Sale's and working with first time home buyers if you would like some help just email me or check me out on my web page.

Regards,
Allyson
(408)705-6578
allyson@homesbyallyson.com

Princess,

With as much as California home values have fallen, there is AMPLE chance to find the home of your dreams at a fair price. The fist thing you want to do is contact a lender, such as myself, and attempt to get pre approved.

HUD has a program to buy FHA foreclosures n many areas with 0% down. That may be an avenue you wish to explore.

If I can be of further assistance, please feel free to contact me below.

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com http://www.PrecisionFundingUSA.com

You make enough to afford a condo/townhouse - but a great deal depends on questions such as:
How long have you had both jobs, what amount is the car payment (and it's balance), what down payment and of course what credit scores do you have. The best method is probably the easiest - have the lender look at everything for you and do the math. Then have them sit down, explain your options, review your credit and plan your path to ownership. I enjoy doing this for clients and if I can help, please let me know. This is a tremendous opportunity for you to get in and actually own a home for you and your mother. Best always, John

Dear Princess,
Firstly, you need to sit down with a good Mortgage Lender and Plan out your finances. I have a good Lender who can help you there, he is also a certified financial planner. Based upon your finances, he can run numbers, and if you qualify for a Loan, he can give you a $$ amount upto which you can look for a home. Then take the next step in working with a good Realtor, to find you a home within that amount.
I wish you the Best, do contact me, i will help in every way i can, 408-7773823.
Regards,
Nina

Princess, You might want to go through and review the current gov. programs. http://www.govloans.gov/govloans_en.portal?_nfpb=true&_p…

Fha site: http://portal.hud.gov/portal/page?_pageid=73,1827439&_da…

http://www.calhfa.ca.gov/ mortgage info and programs for Calif. residents..

http://www.rurdev.usda.gov/CA/programs.htm

http://www.ci.milpitas.ca.gov/citydept/planning/neighborhood…

Be patient, learn your market area...Good luck, Dunes

I am sure you can it depends on your credit score and debt ratio, you might even try a condo/townhome. Best contact a mortgage broker who can review your financial files, all particulars. Great time purchase, receive annual tax reduction benefits.