Home Buying in Brooklyn>Question Details

Croz, Home Buyer in Queens, NY

1st time home buyer, how much house can I afford if I only make $72,000 in New York city? 400k too much?

Asked by Croz, Queens, NY Sat Sep 27, 2008

Am I in over my head with no kids, no school loan and debt of any kind? Single guy

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Bob McClure’s answer
good afternoon croz...despite what you may hear...income and price target isn't quite enough to figure out everything for you.....is all of your income straight hourly or salary?...any commissions...or bounses, lots or a little overtime?.....credit ?......debt ratio including other debts....available downpayment....etc....etc......there is a lot to consider....in answer to your question..yes, $400k is too high..unless there is or can be another borrower that can enter into the deal with you.....i can make sense of it all for you...licensed in 22 states, including your's.....best regards......bob mcclure...mortgage now.....farmington, michigan.....
0 votes Thank Flag Link Sat Sep 27, 2008
YES! Too much. Go to a basic payment calculator and figure out your payments. Keep in mind that they usually are not figuring in taxes, insurance and any association dues and utilities. So, for a $400 purchase, even with 20% down, you'll see that your principal and interest payment alone is roughly $2,000. Jared's advice was online. Knock the purchase price in half and put 20% down and your p & i is down to $1,000 a month. Once you add your other expenses in, you'll probably come up with something you can live with. Get a good Realtor who is mindful that you want to be able to eat something besides ramen noodles.
0 votes Thank Flag Link Sat Sep 27, 2008
According to Ginnie Mae's affordability calculator, your affordability range is 223k - 273k.

I've pasted a link to Ginnie Mae's rent vs. buy calculator to let you run some numbers to see what makes the most sense for you in your situation.
0 votes Thank Flag Link Sat Sep 27, 2008
With lending and lenders changing by the minute, the only answer to really give you is to contact your local lender to sit down with them and really look at your finances. Many programs are no longer available or have been modified greatly. #1 on your list should be to work with a professional full-time realtor, but a close second is to work with a lender whom you trust and has been referred to you by people you trust.

Good Luck!
0 votes Thank Flag Link Sat Sep 27, 2008
$200,000 ...ish
Different people have different opinions, but not more than 3x your income is usually a good marker for the absolute maximum you "should" buy.
0 votes Thank Flag Link Sat Sep 27, 2008
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