Me and my fiancé are looking into buying our first home.

Asked by Nolasaintsfan5, Gonzales, LA Wed Jul 11, 2012

We have been pre-approved for 260,000 at 3.375. With 9,100 down. We are trying to figure out whether or not we can afford a home for 250,000. Here's a little background information. We make about 5600 monthly together and pay 950 a month in loans. With the cost of living in Gonzales, we are wondering whether or not this is too high of a price for us to afford.

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Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Thu Jul 12, 2012
In my area that would give you a back ratio of about 48% which is a little high, your credit scores must be very high to get that ratio approved. Either that or you will have a lot of cash in the bank after closing this deal, one of these two factors would be needed to get 48% approved.

Let’s assume the approval is real, if my figures are right, and the real estate tax rate for my area is 1.07 – 1.22 depending on the neighborhood, then add the deductions from your pay to the mix and it looks like you have spent about 75% to 80% of your income before you get out of bed in the morning. My cell phone, cable and dry cleaning would eat up half of what you have left.

So the answer is do your budget to see if it works for you. Shoot me an email if you need a budget form, good luck,

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
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Dave Jones, Agent, Prospect, CT
Wed Jul 11, 2012
Your mortgage broker should be able to help you figure out a payment that you are comfortable with. Buying a home could be a stressful situation. Make sure you partner with a good REALTOR and mortgage broker that you trust.
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