Home Buying in 19004>Question Details

Mark, Home Buyer in City Ave

My wife and I (no kids) are looking into a buying a house in the near future. We figured it would be a few

Asked by Mark, City Ave Thu Feb 19, 2009

years still, but with the recent tax refund we thought it would be worth looking into what we can afford.

Right now our joint income is about $48k/yr because I work part time and am in grad school. I'll be working full time starting in May, and our income should be around $70k. With $20K, do we have a shot at home in the low $200's?

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Hi Mark,

I do believe that you would be able to start looking for a home based on what you have stated so far.

I do have a program that you may quite interested in.

If interested, please contact me.

If not, good luck with your search.

Renee Porsia
Associate Broker
(215) 669-0589 Direct
(215) 358-1100 Office Ask For Renee
1 vote Thank Flag Link Thu Feb 19, 2009
Get in touch with a locel lender, credit union or broker who deals with local lenders to get preapproved for a loan. This way, you would know what needs to be done to get everthing prepared. The reason I say local lenders is that the local banks have not been tainted as the big boys have been with the foreclosures. They would have more fund available and their hoops to jump through are not as bad as the larger lenders.

After you have this done, or during, you can search for an agent who will work for you and search for all homes in your price range whether they are in the Multi List, for sale by owner, or even those no longer on the market (recently expired).

Hope that helps, please give me a call or email if I could be of any service to you.

Terrence Charest, e-Pro®
Century 21 Associates
905 Easton Road
Willow Grove, PA 19090
Cell (Preferred): 877.614.1494
Office: 215.659.5250
Fax: 215.659.5550
“Century 21 is the number one franchise site on the Internet”
1 vote Thank Flag Link Thu Feb 19, 2009
Hi Mark,

A question I have is how much money do you have for a down payment and closing costs? Another question is how is both of your credit? Those are the most important factors which many people forget about. Your income is a huge factor as well as your debt.

You said it may be a few years until you are ready. Nobody knows how the market will be in a few years. If you both have money saved, your credit is good and you both have good income, now is an amazing time to get out there.

You should also find a buyer agent who will represent you both and who will look out for your best interests. Feel free to read my blog on buyer agency at http://www.reneeporsia.com

Also, you should speak with a reputable mortgage consultant to see exactly what you qualify for. Usually your buyer agent can give you a few names if you do not know of someone.

I'd love to answer all of your questions, feel free to contact me either via email or phone.

Renee Porsia
Associate Broker
(215) 669-0589 Direct
(215) 358-1100 Office Ask for Renee
1 vote Thank Flag Link Thu Feb 19, 2009
Hi Mark,

First talk to a couple of mortgage lenders, find one you trust and get a mortgage preapproval. This will let you know what your comfort zone is and whether or not that $20,000 is enough for what you want to spend on your home. It may be that an FHA loan where you can get up to 6% assist from the seller for your closing costs is the way to go. Then find a hardworking Realtor who you are comfortable with and go for it.

Good Luck!

Mike Budzius
Web Reference: http://www.FindAHomePA.com
0 votes Thank Flag Link Thu Mar 4, 2010
Hi Mark, I would reccomend talking with a mortgage professional to determine your financial picture. There are many things they will look at to determine if you qualify for a loan and what interest rate they will give you. Let me know if I can point you in the direction of a lender that can help. Once you are pre-approved then you can start looking for homes. But you will need to move quickly as the tax credit expires April 30th.
0 votes Thank Flag Link Thu Mar 4, 2010
This advice is for anyone who does not qualify for a mortgage . Learn about the home buying process and how to improve your credit score. If your payments are going to be higher than the rent you are paying, put the amount in a savings account each month . This way you will have more money for down payment and you will also know if you are comfortable with the payment. Save for a down payment and wait till you are ready.
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Sat Feb 27, 2010
Hi Mark,

In my opinion, you'd really be pushing it to be buying quite so fast. There are closing costs to factor in, as well as all sorts of ongoing maintenance that must be considered. Please take a gentle step back and make sure that you two know exactly how the number will work. Otherwise, you two can end up in a house and working hard just for the house instead of yourselves.

Once you are ready to pull the trigger on a home, you really need to have at least 6 months of living expenses covered as a buffer. Get good and ready, get your credit as high as you possibly can (740 or better is preferable). and the housing market will still be here waiting for you. Prices are NOT about to start jumping up left and right. This wasn't merely a major correction, it was a return to normalcy, where buyers need to be well-qualified and prices will only go up at a much more normalized rate.

Good luck!

0 votes Thank Flag Link Sat Feb 27, 2010

Another option could be a Lease Option (aka Rent-to-Own). Below is a quick explanation:

A Rent-to-Own is a basic lease agreement used with an Option to Purchase contract. A Tenant/Buyer leases the property from the Seller/Landlord for a certain amount of time at a certain price with monthly lease payments. On or before the end of the lease, the Tenant/Buyer has the option to buy the property at that certain price (usually agreed upon prior to the start of the lease). The Tenant/Buyer typically gives the Seller/Landlord money upfront which is usually non-refundable (called option consideration) for the right (but not the obligation) to purchase the property and to take it off the market.

Therefore, you start out renting and when your income increases you can qualify for a loan and purchase the property. You will not get the tax credit if you wait until after you graduate and your income increases. However, after dismal December and January existing homes sold numbers, it would not surprise me if the Government extended the home buyers credit again.

If you are interest in learning more about rent-to-own feel free to contact me.

0 votes Thank Flag Link Sat Feb 27, 2010
Mark, I hope you have purchased your home by now. But if you have not yet purchased I thought I would add that lenders look at income, debts,credit score, down payment available, and length of time at your job.
The first thing you should do is to talk to a lender .If you have not purchased a home and are a first time home buyer, you may qualify for the first time buyer's tax credit. look up info at http://www.irs.gov
Web Reference: http://www.gitabantwal.com
0 votes Thank Flag Link Sat Feb 27, 2010
Mark, from what you have stated it sounds like you are well on your way. It depends on your credit score, your loan to value and closing costs. I would call a lender and get a no commitment loan approval.
The very best of luck to you!

Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
0 votes Thank Flag Link Mon Feb 23, 2009
Hi Mark

It really wouldn't hurt to talk to a well known lender and get a pre-approval. or to see what the bank would lend you guys. I think you should start there. Than I would call a Buyer agent that works in your area.

Dawn Fussell
realestate.com Realtors
serving Bucks,Montgomery,Philly, Delaware Counties
0 votes Thank Flag Link Thu Feb 19, 2009
We currently have a little more than $20,000 for a down payment. We also both have good credit (I've never made a late payment and have no marks against me).

As I said in my question, we currently bring in about 48,000 a year. We will be making $70,000 a year in May or June because I'll be done grad school. I have grad school loans in the neighborhood of $50,000. I will look into a local lender, but any thoughts on if getting a house is even a possibility would be helpful.
0 votes Thank Flag Link Thu Feb 19, 2009
if you are first time buyers,you can get an FHA loan fir 3.5% down. right now,a conventional loan requires 20% down. There are ways online to figure what your monthly payments would be.
0 votes Thank Flag Link Thu Feb 19, 2009
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