I want to buy a townhouse

Asked by ceciliawoodbeck, Phoenix, AZ Sat Oct 13, 2012

So I am 22 years old I have a steady job, not the greatest credit in the world but not the worst either. I am considering buying a town house. NOT A HOUSE A TOWN HOUSE! The prices for a townhouse seem cheaper as appose to buying a house if I had a mortgage. I've seen a few properties that I admired. i also like the fact that after it was paid off in my later years i could rent it out. Only problem is I'm not sure where to even start. Where should my credit score be, how much should I be making to qualify, what re the best companis to have mortgage with, Should I wait and why? Etc. I'm very confused but a town house is something that has been on my mind for a very long time and it's something I know I would eventually like to do. I do know if I bought one my Maximum price would be say $45,000. Please help.

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Gary Geer, Agent, Antioch, IL
Fri Aug 9, 2013
Your fist step is to ge pre-approved for a loan. Contact a local lender professinal to get that done. This will establish your price range of properties that your agent can use to find homes that match your criteria. Yes you can look at town homes that are listed at a lower price than what your leder has approved you for. Then go out with your agent and learn about the market by viewing some of the homes. This will help you refine your search and identifiy a great deal when you see one. I wish you all the best.
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Karen Peyton, Agent, Chandler, AZ
Fri Aug 9, 2013
Your first order of business is to get pre-qualified with a lender. Yes, you are correct that the price of townhouses are less than that of single family homes, but the "prices" you see are not the entire story. HOA fees will be added to, and are considered part of your monthly payment, although you may pay them separately. From a payment perspective, the mortgage on a townhouse plus HOA fees often rival those of a single family residence. Good luck to you!
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Tim Ng, Home Owner, 95127
Fri Aug 2, 2013
You'll need to first talk to a lending agent, or a bank to know how much you can buy. I'm not in the industry, but here's what my lending agent told me:

Need 20% down, very few exceptions.
Your monthly payment cannot exceed 50% of your gross income. Monthly payment is broken down as the mortgage itself, property tax (prorated monthly), home insurance, HOA fees (townhouse), any loans you currently have, and the minimum payment on your credit card balance.
If you meet the above requirements, your credit score will determine the tier of risk you're in, and therefore you interest rate.

Hope this helps, it's not that bad once you have a professional with a computer to do all the math for you.

Best of luck.
0 votes
Jennie Miller…, Agent, Phoenix, AZ
Sun Oct 14, 2012
You should contact a lender that I work with often. She can help you with getting prequalified:

Korene L. Clopine-Seaman
Senior Mortgage Originator / Team Leader / Mortgage Lender
NMLS# 218520
AZ License # LO-0916745
Direct Phone: 623-340-0934
eMail: korene@klcsloanteam.com
0 votes
Paul Paich, Agent, Peoria, AZ
Sat Oct 13, 2012
Feel free to call me at 602 722 0026 and I will be happy to help answer your questions for you.

Kind regards,

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