Help figuring if these affordability indicators are right on, or if there is leeway.

Asked by Kende1980, Cary, IL Fri Mar 2, 2012

In the brief.
Lived in Illinois for 1.5 years, living with fiance who has lived here forever.
Fiance is gainfully employed but due to his previous unfortunate layoff of two years has shot credit.
My credit is very good.
I earn approximately 40,000 per year with great job security.
Fiance earns 52,000 a year with great job security (thank you God)
I have 41,000 cash to put down on a house.
I have 650 approx in monthly bills
Looking at homes in the $160-180,000 range
Affordability indicator says I can only afford a $103,000 home. (good luck finding that!)

Will this give me great difficulty in finding a home? How do I go about finding foreclosed homes, and would this be a better option for us (some of the homes we are looking at may even be foreclosed homes, I am unsure)

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, ,
Sat Mar 3, 2012
Hi Kende1980,

Here's a trick that will help.

By putting $41,000 down you can reduce your monthly mortgage payment by an estimated $272.00 depending on your credit score and the loan program.

What happens if you use the cash you've saved for a down payment to pay off your debt instead? You'll save $650 per month which frees up more money for your mortgage payment. This in turn gives you more purchasing power.

It's all about allocating your money the right way and putting it where it's going to really "work" for you.

Please feel free to contact me and I'll run some numbers for you and show you what you can qualify for.
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Shelly Coars…, Agent, Cary, IL
Fri Mar 2, 2012
Are you working with a Realtor? A realtor will help you get these types of questions answered by helping you build a team of professionals where necessary. Your entire situation including needs and wants needs to be evaluated, and a plan set in motion so that you can achieve your goal of owning a home. You will feel better knowing you are headed down the right path, a path you are comfortable with, with trusted professional advice along the way. Owning a home is a big step, protect yourself carefully going forward.
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