Property Q&A in Lynn>Question Details

Kcorrea.smg19, Home Buyer in Frederick, MD

Can I buy a $399,000.00 house if I make $123,000.00 annually?

Asked by Kcorrea.smg19, Frederick, MD Mon Sep 24, 2012

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Add all your debts - including your new mortgage payment on a mortgage of $400K at X% - and that should be less tham 36% of your income.
Then, talk to a lender and find out the other issues you may or may not have personally.

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0 votes Thank Flag Link Fri Sep 28, 2012
Most likely, yes!

There are many factors that go into financing a purchase the three big factors are....

1- Capacity- Your ability to repay, meaning your income. The lending institution will also look at homw much of that income is tied up with other consumer debt.

2- Credit- Your credit is more important than ever and it is important to have a moderately good credit score.

3- Collateral- How much money are you putting into the transaction. Not only down payment, but closing costs and reserve funds.

The best thing to do is contact a lender and discuss where you are at and they can tell you how much you can afford.
0 votes Thank Flag Link Tue Sep 25, 2012
Yes assuming you have: 3-5% to put down. Goog credit scores and not too much debt.
0 votes Thank Flag Link Tue Sep 25, 2012
The best thing to do is to call a mortgage professional and get pre-approved! The process is quick and then you will know where you stand and can look at the homes that are in your price range!
0 votes Thank Flag Link Mon Sep 24, 2012
The short answer solely on your income is yes. However, there are other factors to consider (DTI, credit...) best is to get pre-approved and that will let you know what your buying power is; if you need assistance let us know,
0 votes Thank Flag Link Mon Sep 24, 2012
Depends on how much debt you have and down payment. Quick rule of thumb take income by 35% divide that by current interest rate and it will give you a ball park as to max mortgage. You can afford much more than the 399,000 home. Just because you can afford a specific amount does not mean you should max yourself out either.

But to get a more accurate number based on your particular situation contact a local mortgage broker or officer at the bank.
0 votes Thank Flag Link Mon Sep 24, 2012
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