Home Buying in 02138>Question Details

Charlenesmit…, Home Buyer in Washington, DC

I am a writer and so I do not earn a fixed income. I have $110,000 to put down. No debt. Gd credit record. What value home shld I be looking at?

Asked by Charlenesmithwriter, Washington, DC Sat Jun 25, 2011

I am a writer and so I do not earn a fixed income. But earn from articles and book royalties. I have $110,000 to put down. No debt. Gd credit record. What value home shld I be looking at? And will I need anything else to secure a mortgage? I am presently looking in Cambridge, MA or Washington DC area.

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Congratulations for living your dream and doing what you want to do professionally!

I would recommend talking to one or two local portfolio lenders, who are going to be more flexible with their loan underwriting guidelines than large Fannie Mae based lenders. There are others, but two local portfolio banks that I have worked with in the past are Cambridge Trust, at 617-876-5500, and East Cambridge Savings Bank, at 1.866.354.3272. While I would not want this answer to be construed as a personal endorsement of these banks, they do both know the Cambridge market, and are familiar with non-traditional mortgage lending. My guess is, you will have better results with local portfolio lenders than with the big national banks. Typically, these banks work on loan ratios of anything from 60% to 75%, meaning that you might wind up looking at properties in the $250,000 to $340,000 range. Fortunately, with some patience and diligence, you can find something nice in this range! Hope that helps!
0 votes Thank Flag Link Sat Jun 25, 2011
It sounds like you are ready for home ownership! Did you know that in the past 12 years the average home owners net worth has been 31 to 46 times greater than those of the average renter ?

There really is not answer to this question as ther are tons of variables to look at. I think the first step in any home search option is to speak with a mortgage professional that you trust. This will give you an solid understanding of your lending options and the price bracket that you will focus your home search around. There are several options in structuring a mortgage and a good consultant can help you make the proper financial decision. Once you have your target price identified I would recomend that you work with a LOCAL Realtor in the selected town. There is a huge difference between working with a real estate agent and a Realtor .

Please let me know how I can help .... I am here if you have questions.

John Dean
1 vote Thank Flag Link Tue Jun 28, 2011
Hi my name is Linda Sciaraffa I am the Broker/Owner of Linda's Rentals I have a friend that works at Wells Fargo if you like we can set up a meeting with her. Just give my office a call at 978-969-1978
Thank you
1 vote Thank Flag Link Sun Jun 26, 2011

A mortgage broker can work with you and assess your buying situation. In your case they will review a few years worth of tax records. I have a Massachusetts contact for you if you want to contact me. It also depends what you are looking to buy, how many bedrooms, condo/single family etc. I often work with artists, writers and performers in the same boat so I'd be happy to talk.
1 vote Thank Flag Link Sat Jun 25, 2011
Hi Charlenesmithwriter,

Contact a local lender and they will be able to calculate what you qualify for. Ask for a pre-qualification/pre-approval letter from them. Sellers like to see these when your Realtor submits your offer on a property - this lets them know you are able to purchase their property.

Good luck.

Shanna Rogers
SR Realty
1 vote Thank Flag Link Sat Jun 25, 2011
Best thing to do is talk to several lenders and see what they can offer you and how they will look at your income.

Bottom line any lender will be attributing some sort of monthly income to you based on a couple of years of income from your tax return.

With that said, it is hard to know what mortgage amount you could be approved for to purchase a home.
0 votes Thank Flag Link Sun Jun 30, 2013
Cambridge and Washington DC markets have various price points. It isn't what value home to look at, but what are you comfortable spending every month on a mortgage. Even if you get qualified for a mortgage of X, if you only want to spend Y every month, then look in the Y value range. $110K on a million dollar home is of course quite different than $110K on a $110K home. The markets you are looking in may or may not meet your comfort zone for payments. A good real estate professional can help you identify your Y value range, and the areas where you could accomplish your home ownership goal. Ask a real estate professional to learn your taste and wish list. They'll save you a lot of time.
0 votes Thank Flag Link Thu Jun 30, 2011
You need to provide a lender wirg 2 years tax returns so they can determine your monthly income.
0 votes Thank Flag Link Sat Jun 25, 2011

That's a very good question. Please give me a call at 781-526-8666. I can put you right in touch with someone
who can let you know this in a matter of minutes. Or email me at ksolio@hammondre.com.

I service the Middlesex area and would love to help you find the perfect home.
0 votes Thank Flag Link Sat Jun 25, 2011
you should be able to get a loan with 25% or 30% down payment. You should contact a lender, they have different programs. Also it is important if your income is self employed or W2s. So to answer your question 3-5 times of your down payment.
Best regards,
0 votes Thank Flag Link Sat Jun 25, 2011
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