You need to meet with a mortgage banker and get yourself pre-qualified. In order to do that you will have to show them your last two years tax returns and W-2 forms, last three months bank statements showing the money you will be using for your down payment and closing costs and then they need to run your credit report. After that the bank will be able to tell you how much you can borrow, what type of interest rate they can offer you and how much your closing costs will be.
Generally speaking the closing costs will be about 5-6% of the loan amount and you can finance that money if you are short on cash. Assuming you have no other debt, the bank may be willing to allow you to spend up to about 40% of your income on your living expense also known as PITI (principle, interest, taxes & insurance). Hence with your income that would break down to about $933.34 per month. If you subtract for taxes and insurance, that number becomes $533.34 which represents your mortgage payment. With that type of number you probably will not be able to borrow more than $105,000.00. If you then add your down payment of $50,000.00, then you can spend up to $150,000.00.
These numbers will vary from person to person depending on the individuals qualifications. If I can be of further assistance, please let me know. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783