Jen, Home Buyer in Media, PA

I make $40,000/yr, excellent credit history, just finished paying off my car, no student loans or credit card balances. What would be a realistic?

Asked by Jen, Media, PA Sun Nov 1, 2009

cost for buying a home in southeastern PA?

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Isaiah Y., Agent, Rockford, IL
Sun Dec 27, 2015
Find a great lender. As an agent it can be difficult to find good lenders to send clients to. We send ours to Home Loans For All. They are 2nd to none when it comes to customer service. We highly recommend them for excellent credit or really any type of credit. They have a very informative YouTube channel and website. I will include links to them.
2 votes
John B. Gray,…, Agent, Media, PA
Tue Dec 18, 2012
I am assuming you have some savings and a good credit score. Generally, the banks will qualify you for a payment of 33% of your Gross monthly income, however a better barometer is to work out a budget to see where you are comfoortable for a mortgage payment. Keep reserves to anticipate unforseen circumstances and future purchases. You show much discipline. But it depends on where you are comfortable. By the way 33% is $1100/month (PITI) Principal, interest, taxes and homeowners insurance and condo/association fees
0 votes
Dan Chase, Home Buyer, Texas City, TX
Wed Mar 17, 2010
General rule of thumb is yearly income x 3 = safe mortgage. So about $120k for a loan. Naturally a lender will give much more specific answers.
0 votes
Richard Leci…, , Tucson, AZ
Wed Mar 17, 2010
As mentioned before talking with a lender would be a good next move.
0 votes
Steve Sisman, Agent, Media, PA
Wed Mar 17, 2010
Good morning Jen, looks like you've received good advice. My sugestion is to contact a lender for a free no obligation mortgage pre-approval letter; and, not a pre-qual letter. There is a major difference when a buyer's agent presents an Agreement Of Sale (commonly known as an offer) on your behalf. Please feel free to contact: Sharon Torres of Bld Mtg for you free pre-approval at: 215.633.8080. When representing a buyer, part of my Buyer VIP program is to offer a guarantee. "I GUARANTEE to Save you at least $10,000 off of the asking price or I'll pay you $1,000 at time of closing." Some restrictions do apply. Please freel free to contact me for a VIP Buyer saving guarantee. Steve Sisman, Keller Williams Real Estate, 610.565.1995 office, 610.357.6101 direct, email. Thanks for taking the time to read my response. Have a great day, Steve
0 votes
Traci Marra, Agent, Media, PA
Mon Jan 11, 2010
Hi Jen

Looks like you have gotten some great advice already. I think the most important thing of all is to find a Realtor the specializes in First Time Buyers and someone you can trust. You need an agent that has your best interest in mind and will spend the time you need educating you on the home buying process. I wish you well in your home search.

Insist on a Realtor, not just a sales associate.

Please feel free to contact me if I can provide any additional information.

Best of luck,
Traci Marra, Realtor
First Time Buyer Specialist
Keller Williams Real Estate - Media
610 653-6870
0 votes
Chad Bahnsen, Mortgage Broker Or Lender, Exton, PA
Wed Nov 4, 2009
Hey Jen, Your income is $3333 per month (40K per year). If you have no other debt You'd probably be okay getting pre approved with a housing payment of $1300 per month max, or a housing ratio of 39% ($1300/$3333) or higher since your overall ratio would be the same as your housing ratio since you have no other debt. Ie. if taxes are $3500 that's $292 per month, estimated insurance $680 per year or $57 per month, $62 per month PMI estimated that leaves you with $889 for your principal and interest. If you use a mortgage calculator this will put you at around a $160,000 home. You also want to consider how much of a payment you feel comfortable with regardless of what you are approved for. With FHA you get up to a 6% assist but you'd need at least 3.5% out of pocket..or around $5600. This amount could be a gift from relatives and/or your own funds. It's a great time to purchase with rates being so low, housing prices low, and the $8000 tax credit if you are a first time buyer. In answer to your question, what would be realistic is whatever you would feel comfortable with in terms of a monthly payment. You should compare what you are comfortable with to what you are pre approved for and go from there. Sit down and analyze your budget to determine what you'd feel comfortable with. I'd recommend getting a pre approval with a Good Faith Estimate, which I could do for you in about 10 minutes. Chad
0 votes
Kelly Gidzin…, Agent, Philadelphia, PA
Tue Nov 3, 2009
Hi Jen,

One thing that those mortgage calculators tends to be off with for home buyers in Delaware County is the real estate taxes. The real estate taxes will influence your monthly payment on your mortgage. You will want to have a fairly accurate estimate on anticipated real estate taxes so the estimated monthly payment the calculator gives you isn't way off. Take a look at the real estate taxes for homes you think are in your price range and be sure the mortgage calculator you are using is in line with the averages you are seeing or fill in that field accordingly. Also be aware that if you are thinking about a home with condo or home owner's association fees, those fees will be part of your monthly expenses.

Those online calculators are a good starting point but to really be sure what you will qualify for and what payment will fit into your budget, you should consult with a mortgage professional. Read my most recent blog post for tips on selecting a mortgage professional. I would be happy to send you my list of preferred mortgage consultants. Check out my website for more helpful information such as "10 Questions you should ask your lender" and more. A direct link to the page is below.

I see you are in Media. There is a local Green Drinks group that meets at Brodeur's Restaurant on the 1st Wednesday of every month.... That's tomorrow for November's meet up. I specialize in helping clients save money by going green with their real estate purchase. That doesn't always mean buying new construction and it doesn't mean a funky looking home with bamboo floors. I'll be at the Green Drinks meeting tomorrow night if you want to talk some more about how you can save money on your utility bills in your next home. I have a special incentive program I offer my clients if they want to make their new home more energy efficient and save money on their monthly bills. You don’t have to be Green to save Green!

Create a Great Day!

Kelly Gidzinski
Keystone Property Connections, LLC
0 votes
Andrew Himes, Agent, Collegeville, PA
Sun Nov 1, 2009

This is a great question, but it really comes down to 2 things. First, how much of your monthly income would you be comfortable paying for your housing expenses to continue living a lifestyle that you are comofrtable with. I say this b/c you might qualify for a mortgage that might be more than this amount. This is the best way to figure out how much house you want to buy. Second, you will want to talk to a reputable local lender that will meet face-to-face with you to discuss the loan options that are available to you. Keep in mind that the monthly mortgage payment will include, principal and interest, home owners insurance and taxes. Depending on how much money you put down it can also include mortgage insurance. If you use an FHA loan product that requires the least amount of down payment 3.5% or other loan products that generally require at least 5% down.

If you have any additional questions please feel free to let me know.

Andrew Himes, CRS, ABR, e-PRO
Prudential Fox & Roach Realtors
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