Home Buying in Massachusetts>Question Details

Amy, Home Buyer in Massachusetts

I am 23 years old and am looking to move out of my mother's house!

Asked by Amy, Massachusetts Wed Jul 22, 2009

I have a steady job as a scientist, paid off car, paid off student loans, and about 20K saved up. No debt and I live frugally (internet, phone, and food would be my money eaters...) I make 42K a year, maybe 28K after taxes. No children or hubby in future, so a small 1BR condo would be nice for me. Should I go in and buy? Entering my info on various mortgage calculators, I am told I can afford a house that costs max ...55K! I feel like I can afford more than that...but of course that's what everyone thinks! Also, I hear 1br condos have bad resale value. What should I do?

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Answers

8
With rates as low as they are, why wait? With the governments 8,000.00 gift you can refile your 2008 taxes and the 8,000.00 to use for the down payment on a condo. Prices fluctuate where you live.

Example 100,000.00 condo with 20,000.00 down payment is $80,000.00 financed, add in taxes and insurance and a codo fee that to be 786.00 to 986.00 per month!

Condos are better than paying rent to someone else, this way you build equity then someday you will be able to buy a bigger unit or a house??

Good Luck!
0 votes Thank Flag Link Thu Jul 23, 2009
Hi Amy,
Keep saving your money for a larger down payment. Wait another year to buy, save another 20% on the price. Good Luck
0 votes Thank Flag Link Thu Jul 23, 2009
Hi Amy,

Now is a great time to buy, just remember It takes the average home buyer 6 weeks to find thier home and and 1+ months to close the transaction the deadline on the tax credit is NOV 30th and you must have your transaction closed. That being said I just hepled a woman with the same situation as you buy a 2 bed condo in Andover MA for 220,000. Call Brian Andler at 978-766-3070 for a pre approval, then get started !! I work both in MA & NH you can visit my website or contact me direct I will send you a free first time home buyer package that will explain the credit in detail. If you have any further question call or e-mail me

Warm Regards,
Kelli Cassidy
978-979-2823
k.cassidy@comcast.net
Web Reference: http://www.kellimovesre.com
0 votes Thank Flag Link Thu Jul 23, 2009
Amy,

I agree with Bill.

Don't delay.

Check out a local bank, a national lender such as Wells Fargo, Bank of America and maybe a credit union if you belong or can join. DO NOT have them each pull a credit report as it may adversely affect your score. Just get one and share. The bank you choose will probably do it again but that would be fine.

One bedrooms can be a tough resell, but if it works for you, it works for you. The location,a low number of other one bedrooms in the complex and the quality of the property as a whole may protect the future value. Especially buying in a downturn.

Good Luck
Joe
0 votes Thank Flag Link Thu Jul 23, 2009
Amy Now is a good time to buy, As a first time home buyer, you are eleigible for the $8,000 tax credit, Also rates are low & home prices are low, You seem to qualify for the Soft Second program BOA offers, It is the best out there rates about 1 % lower, no PMI ( saves you about $80, month )
I would not recommend a 1 bedroom- re sale is tough
If you are looking in the South Coast area, south of Taunton I would be glad to help visit my website at http://www.ViewYourDreamHome.net for a free list of homes for sale & more info on the $8,000 Tax Credit You Do not have to pay back !
0 votes Thank Flag Link Thu Jul 23, 2009
Amy,

Mortgage calculators are not set up to include your ability to live as cost efficiently as possible but assume you are going to have certain expenses which you may not.

Our recommendation is to visit several loan agents and have them put together a plan that includes your REAL numbers. We would tend to agre with you about being able to afford more house. Is there a chance for pay raises of bonuses. These elements should not be overlooked.

Additionally, you are absolutely correct about 1 bedroom condos having poor resale value.....we recommend avoiding this situation.

Remember to request a "good faith estimate" from each loan agent. This is nothing more the a written account of the programs and rates the agent quoted to you during your meeting.

At this time, the only mistake you can make is to NOT actively looking at property and exploring your options.....keep gathering information and looking. ,,,,and trust it will happen.

Good luck
The Eckler team
0 votes Thank Flag Link Wed Jul 22, 2009
Hi Amy
I am an agent from the Western Mass area not sure if this is were you are looking if I can be of help you can contact me at rryan@wmasshomes.com
0 votes Thank Flag Link Wed Jul 22, 2009
Hi Amy,
I work with a lot of First time buyers here on the south shore. Is the south shore a place of interest for you? I have a strong team and work closely with mortgage brokers who also specialize with first time buyers and know of all the programs out there. Please feel free to contact me at dakota@chaseteam.com so that I can assist you with any questions you may have.
0 votes Thank Flag Link Wed Jul 22, 2009
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