I live at home, am a first time home buyer, credit score is very good, and have saved $45,000 . What price ($$ amount) of home can i buy? Can I?

Asked by Pete, 48042 Thu Oct 1, 2009

afford a $220000 to $245000 home?

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Kim Johnson, , Sterling Heights, MI
Thu Oct 1, 2009
Hi Pete,
I am a Mortgage Loan Officer and would love to help you with this. There are many different things that underwriters look at to approve a mortgage. Not only do they look at your credit score but they also look at your employment history and your debt to income ratios. It sounds like you are doing very well for yourself. If you would like to see if we can get you pre-qualified to buy a home, give me a call at (586) 216-5353 or email me at kimlj@glmf.com. I would love to work with you and see what we can do.
Kim Johnson
Mortgage Specialist/Branch Owner
Great Lakes Mortgage Funding
0 votes
Bonnie Phill…, , Clinton Township, MI
Thu Oct 1, 2009
Hi Pete,
I am working with buyers right now that have bought some very nice homes with good credit scores. I had one that bought one for 230,000 and put a downpayment 46,000, so he did not have to pay pmi
and bought this home that is worth much more in a better market. If I can be of assistant, call me.

Bonnie Phillips
Select Real Estate Professionals
0 votes
Pam Bava, Agent, Rochester, MI
Thu Oct 1, 2009
Hi Pete, What you need to do first is to sit down with a bank or someone in the mortgage business, have a confindential conversation with them regarding your income and your debt. They can also answer all your questions about the tax credit. They will then be able to give you an idea of you how much house you can afford and a monthly payment. You've done a great job saving for a down payment and that is a plus. Once you find the house of your dreams remember you will have taxes and insurance, plus your closing cost. If you are looking in the 48042 and surrounding areas, I work there all the time and I would be happy to assist you with your purchase. In my office we offer all the services you would need, we have mortgage, title work, inspectors and insurance. We like to make things easy for our clients.
Please feel free to go to my web site, call or email me for assistance.

Good luck!
Pam Bava, e-Pro Realtor
GMAC Real Estate / The Kee Group
Web Reference:  http://www.thekeegroup.net
0 votes
Ron Ristovski, Both Buyer And Seller, Troy, MI
Thu Oct 1, 2009

The tax credit is roughly about 10% of purchase price meaning anything you buy over $80,000 then you are maxed out for $8000 tax credit.

When I talk and meet quite a few financial planners they recommend to buy a house not to exceed 2.5 times your yearly income. This is a cushion to stretch between your retirements funds and house as a place to live upon. Also outside your home you should saved minimum of (Your Age)*Your Gross Income/10. Say you are 40 years old with $100,000 in gross income then should have saved for future 40*100,000/10 which comes to $400,000

At the very end use your judgement with balance of emotional and practical needs.

Web Reference:  http://thebestmihomes.com
0 votes
Derek Bauer, Agent, South Lyon, MI
Thu Oct 1, 2009

Good morning. You should be congratulated for saving that kind of money for a downpayment. The answer to your question, however, depends on 3 factors - your credit score, your debt-to-income ratio, and your comfort level with payment.

As a 1st time buyer, you, "may," be able to qualify for the $8,000 1st time home buyer tax credit (learn more at http://www.PimpMyTaxReturn.com), but would need to close by the end of November.

If we can be of any assistance, please don't hesitate to contact me.

Professionally yours,
Derek Bauer, Associate Broker / Realtor
Real Estate One
248.851.4100 x132
Web Reference:  http://DoorToDreams.com
0 votes
"Carolina Jo…, Agent, Charleston, SC
Thu Oct 1, 2009
The previous answers ar correct. However the first thing you need to do is contact a direct lender (a bank) and complete the application process to get pre approved for financing. This will allow you to know what your payment wil be at a given pruchase price, all financing expenses, along with your downpayment amount.
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Nash Khraishi, Agent, Troy, MI
Thu Oct 1, 2009
Hello Pete,

I agree with Vickie. It depends on your income AND also on your existing debt. You may heard the term before debt-to-income ratio.

As a first time home buyer though and to take advantage of the tax credit, the first step for you need is to get pre-approved. My team specialize in working with First Time Home Buyer and I have a great mortgage lady on my team that could help. Feel free to contact me with any questions you may have.

RE Consultant
(248) 250-1192
Web Reference:  http://www.MyHomeComps.com
0 votes
VickieKW, , Sterling Heights, MI
Thu Oct 1, 2009
That would depend on your income. Contact me and I will be able to get you the answers your looking for fairly quick! I would be happy to assist you in any of your real estate needs.
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