In order to answer that question, we need to know how much your monthly budget for PITI (principle, interest, taxes & insurance) is. Let's say if you were to purchase a one family home in Bay Ridge for $580,000 (do-able in today's market), you would put down $175,000.00 and take a mortgage of $405,000.00. This mortgage would cost you about $2,150.00 per month. Then you add in $450.00 per month for real estate taxes and insurance which brings that up to $2,600.00 per month. You just need to make sure you go at least 20% down and keep the mortgage amount below $417,000.00 to get the best rate. You would have an extra $25,000.00 to pay your closing costs which usually are about 5% of the loan amount.
If you were to get a condo, the number would be even lower and you may wind up spending like $2,200.00 per month. This is all possible because you are coming in with a big down payment.
So the answer is that it is "do-able" and you should not wait for the market to cool down, that has already happened. Prices are low and so are interest rates, plus there are lots of homes to look at right now. If you wait you may miss the boat because odds are that things will get better, you really can't perfectly time out the bottom of the market.
Please bear in mind that the figures I provided above are estimates based on the average qualified buyer. In order to be sure of what you can do, you must speak to a mortgage banker or broker and have them pre-qualify you! 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