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This might be a dumb question, not sure, but in my area the housing market never really took a nosedive, however it didn't really go up much during the bubble either. This is probably due to the fact that I live in a small town in the middle of a bigger rural area. I was recently thinking about moving out of my parents' house, seeing as I graduated college back in December, and looked into renting around here, it seems as though the minimum to get anything starts at $300/mo + utilities, and the decent/nice places are $400/mo + utilities. The thing is, not many people around here, or in towns nearby, rent. The average home price for a house with 2-3 bedrooms and 1.5-2.5 baths with a 2 car garage is around $80k. Plugging $80k into this mortgage calculator: http://www.ucmortgages.com/qualifier-calculator.htm $10k down, 5.25%, 30 years, I get a $395/mo mortgage payment, with a $525/mo total mortgage+insurance+PMI Going $21k down, same stats, I get a total payment of $434/mo. There are cheaper homes as well, but I like to use $80k as a good middle ground. With these kinds of numbers, I just don't think I can justify renting over buying. Here are my numbers because I'm sure people will be asking. Income: $55k/yr. Take home - I'm self-employed so I just lob off 1/3rd of whatever I bring in and put it into a savings account for taxes, (around $80k/yr. gross) Monthly expenses: Gas: $100 Food: $250 Entertainment/Misc.: $500 Total: $850 (If I were to buy) Electric: $200 Gas: $100 Water/Sewage/Trash: $100 Mortgage/Insurance/Taxes: $450 - assuming $21k down. Grand Total: $1700/mo. The rest pretty much all goes into savings. Would it be a good idea to just hang out living with my parents for another year or so while I build up the $21k downpayment + emergency money to buy, or should I do all that saving, rent for a couple years, and then buy? Also a couple of side questions, I put around $2400/month into the savings account for taxes, if I bought a house, would there be any special write-offs so I could use some of that money towards the down payment? And with that $8k tax rebate for closing before Dec. 1, would I actually get a check from the government for $8k, or would I just have to pay $8k less in taxes next year?
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Jun 10, 2009 03:40
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dreesemonkey posted:Well someone put a bid on the house we're interested in, today we're also submitting a bid. What we have going for us is our realtor also happens to be the listing agent, so the seller would get a slight break on their fees by going with someone through their agency vs. another realtor. Does the interest rate drop 1% or .5% with a 15 year compared to a 30 year? And to the people asking, I am very happy where I live, and my girlfriend is happy here, almost all of my friends live here in town.
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Jun 11, 2009 03:03
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Has anyone went through the experience of trying to get a mortgage while you are self-employed? I know that usually banks like to see a couple months worth of pay stubs, but as an affiliate marketer, I'm paid in a different way. If you have gone through it, what would you suggest, and what other advice would you have?
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Aug 1, 2009 01:16
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moana posted:My boyfriend is self-employed (online poker) and we made sure to do regular transfers of money to his account in the months preceding the mortgage app since he doesn't really get "paid" like normal people do. All you really need is the IRS paperwork for a couple of years prior and some evidence that you're getting paid the right amount of money each month, and you should be fine. They focused on his stated income on his tax forms. Do you have your own LLC or no? I don't know if that makes a big difference in how the process works. No LLC, I've heard its a good idea though if you start making over $70k/year. drat, I didn't realize they required 2 years of employment data, I haven't been at it for that long. Would the be more leinient if I were to put say $65k down on a $130k house?
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Aug 1, 2009 01:38
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My girlfriend and I are thinking about buying a house sometime in the near future, we are looking primarily in the $70-80k range (small town, far from a city) with a $10k downpayment. She has a salaried job and I am a web developer, sometimes I make $3k/month, sometimes I make $300/month. My question is would it be better for my girlfriend, who has fairly bad credit, to get pre-approved, and I would be a co-signer, or would it be better if I got pre-approved, and she would be the co-signer? Which one would get us the better interest rate? Or would it not matter?
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Jul 13, 2010 22:15
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