How much home can I afford?

Asked by Tasha, 91761 Mon Dec 24, 2007

I am a first time home buyer. I make about $60,000/ year. I have no debt (No car pymnt, and my credit cards are all paid off. I have however left my credit card accounts open, so I have about $10,000-$15,000 open on my credit cards) The only debt I have is car insurance & a cell phone bill(About $350/mnth). My credit score is 750. It may be higher now b/c that was my score before I'd paid off my car and credit cards. How much do you believe I will qualify for in a home loan? I am looking in the Los Angeles area. I have gone on various sites where you can plug in your info and it will give you an estimate of how much you can afford. However, every site I've gone on has given me different amounts. I'd heard somewhere that one can qualify for a home loan 3 times their annual salary. If this is true then I would only qualify for a loan of $180,000? Not realistic in Los Angeles!!! I have not sat down w/a lender yet b/c I am not ready to buy. I do want to purchase a home by summer of 08'.

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Linette Carr…, Agent, Wilmington, DE
Mon Dec 24, 2007
When you get closer to your home purchase (June or July) go to a reputable mortgage company and find out what you qualify for and what the mortgage payment will be when added with the property taxes and insurance. Decide if you are comfortable with that payment. If not, look for something that costs less so that you stay within your comfort zone.
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The Hagley G…, Agent, Pleasanton, CA
Mon Dec 24, 2007
Your best bet is to talk to a mortgage broker live, They can personally analyze your situation and guide you through the entire process. I am happy to recommend some lenders to you.....but since you are a first time home buyer, I recommend starting with Bank of America's ACORN program. Stop by local branch for more information. Good luck -it's a GREAT time to buy!
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Donald J. Le…, Other Pro, Tacoma, WA
Mon Dec 24, 2007
Hi Tasha,

You can get a lot of thoughts, ideas and opinions here naturally... however we are mainly Real Estate Agents, not mortgage brokers or bankers. Even a Banker would need to take down your details and run an estimate to give you a Letter of Pre Approval or a Letter of Credit. The estimate or Letter will generally at no cost to you what so ever and will server two purposes, 1. You will know what you are qualified for... and 2. You will need such a letter in many cases to put in an offer on a home to show credit worthiness.

Get your free letter at most Banks who do home loans and Happy Hunting for your new home!
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