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 First time home buyer looking for advice I recently got preapproved by two different lenders for 250k, one at 5% (Guaranteed Rural Housing), and one at 5.35% (unrestricted). About Me: I'm 26 years old. Software Engineer at a small marketing company. I make 50k a year, have some debt (3 school loans - around 21k left), fully paid off car, motorcycle (paid off) that I'm willing to sell if need be. I have 15k in savings and 23k in 401k. I'm looking to buy a house in PA, in the suburbs north of Philly. The houses in the areas I'm looking are about average price. I can get an almost new 3br / 2.5ba townhouse for 225k. There also is the potential to rent out two rooms (I'm looking for a 3br / 2ba home) to the people I currently live with. My question is: based on this information, would I be ready to purchase a home @ 250k?
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May 28, 2009 17:35
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Alrighty then, thanks for talking me out of it. I'll continue renting until I can make more money.
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May 28, 2009 18:16
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Kobayashi posted:Yeah, look at Step 2 from the OP. General rule is you can safely ballpark around 2.5x your annual salary. A $250k mortgage puts you at 5.0x your annual salary. Right now you either need to double your income, or halve the loans you're looking at. Yeah, I figure in 2 years I'll be making close to 80k, and if I continue paying what I'm paying for rent right now, I can easily save 1k a month towards a down payment. That reminds me, what is the most ideal (or common) place to put money you expect to use for a down payment?
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May 28, 2009 18:57
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hosed Up Situation Post I'm currently in the process of purchasing a new home. I'm at the point now where the standard agreement has been finalized and signed by both parties. The inspection has been done, and the inspection addendum to agreement of sale has been back and forth a few times, and it's been finalized on my end. I'm currently waiting for them to sign it. I've basically caught up on everything I need to do from this point forward. The only thing that is left is to deliver the information to the mortgage company so I can get the loan. The settlement date is October 30th, so I have plenty of time. These people have been extremely frustrating to deal with. They haven't budged in negotiations from price to items included with purchase to items included after inspection. The radon was extremely high, and they are refusing to pay for the radon system, among a few other things they were unwilling to negotiate. I'm basically doing all I can to purchase this home because I like the property a lot. I got a call today from my Realtor saying that the sellers are having issues with their new home, and are unwilling to move unless they are able to purchase the place they are trying to buy. My question is: if these people end up not coming to terms on this new property they are purchasing, can they legally stay at their home? Keep in mind they haven't signed the inspection addendum (which the only modification on it is including a few bar stools in the price of the home - not quite sure why this is on the inspection addendum, but whatever). Does that give them an angle to walk away from this deal by saying they refuse to sign it? If that's so, I'm out ~$800 in inspection costs, water tests, and termite inspection. I'll also be missing out on the $8000 tax credit since I'm a first time home buyer. Please help!
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Sep 25, 2009 05:24
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I probably should have mentioned that on the Standard Agreement there is no contingency clause stating they need to have settled on their new home before I can settle on their current home.
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Sep 25, 2009 06:04
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