The first thing you need to do is see a mortgage banker or broker and get yourself pre-qualified. In order to do this you will have to bring your last two years tax returns and/or W-2's, last three months bank statements plus you have to allow them to do a credit check. In most cases you can go with as little as 3.5% down if you want, but you have to be able to qualify and afford the monthly payments.
These days, if you were to get a thirty year fixed mortgage, you may be able to get a rate as low as 4.75%. With this type of mortgage you will be paying about $525.00 per month for every $100,000.00 you borrow. Hence, if you borrowed $300,000.00 with this type of mortgage, your monthly mortgage payment would be $1,565.00. Then you have to add to that real estate taxes, insurance and private mortgage insurance (PMI: required if down payment is less than 20%). When you add all that together, your monthly living expense will be about $2,250.00. If that is too high for your budget, you can borrow less, let's say $200,000.00 and your monthly living expense would be about $1,600.00.
When you get yourself pre-qualified you will know exactly how much you can borrow and how much you will pay every month. Then you can go out looking for a property that fits into your budget and hopefully meets all your needs.
If you need further assistance, please fell free to call me. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783