Anyone here own a home...I have a question for you.

[ivol]

I want to buy my first house...condo actually. I'm 22 years old, live in orange county california, make $55,000 a year and have a credit rating of 707. I pay around $1000 a month in debt. My question to you is how much do you think I could get approved for? How much did you get approved for. Or any general advice. Thanks in advance.

 

[Danlz]

Go here

linky fixed

 

[Tsaico]

There is a lotthat goes into the finacial descision that will determine how much they will loan you. Things like how long you have been at your job, did your recently graduate, are you single or married, consistancy of income (like if you work at a commision based job and do great one year and bad the one before that...), and sometimes even what job you are doing. In my situation, I recently graduated, had 24k to put down, and was at the middle of my second year of my job(39,800), and they cleared me for a loan of 80k in a couple of weeks. no problems or hassles... I don't know about my rating or anything like that, but I feel that if I had tried for more, I probably woul dhave gotten it...
P.S. that quicken thing isn't very good, i put in the same info i have here at 1000 for bills, and the info it returned was all right, but who will get a house worth less than 50k? Or perhaps So cal living is high? 200 for the monthly payment? I pay more a month for my truck...

 

[ivol]

I'm hoping to get a loan for $170. My friend got his loan for $145 when he was only making $40 a year. I have also only been at my work for almost two years. Don't have much to put down though. There are alot of 1st time buyer programs that help out with that though. I guess the only way to know is to hurry up and get prequalified. DAMN ALL THIS WAITING....

And all those online calculators are pretty bunk, they give ultra-conservative numbers. They don't consider front/back end ratios of the companies, credit history, and so many other things...

 

[Descartes]

I would think $170k would be pushing it a bit on an income of $55k. Your mortage payment would be nearing 50% of your monthly net. Toss in a car payment, and you're got little disposable income. This is of course my opinion..

Around here, I could find a nice home for $140k probably (or at least that's what I'm hoping!)

Good luck in your search!

 

[PullMyFinger]

A good rule of thumb is your home should not cost more than 3 times your annual salary. This provides you with some buffer for unforseen expenses and allows you to put a little in the bank.

If you already have $1000/mo debt, then that may reduce the amount which the lender will clear you for, depending on what the debt is and how long you have to go before paying it off.

My best advice is to be patient! You absolutely do not want to rush your home purchase. Make sure the house/condo you are looking at meets as many of your personal requirements as possible.

And how the hell can I get a job like yours ($55K @22 years old)? Damn, I'd be making $150K+ if I started at that salary 12 years ago.

 

[Descartes]

<< A good rule of thumb is your home should not cost more than 3 times your annual salary >>



That's difficult to use as a rule of thumb. There are so many other factors to consider, like: cost of living in your area, debt to loan ratio, other expenses, etc.. But, in general, I agree w/ you.



<< And how the hell can I get a job like yours ($55K @22 years old)? >>



Probably something in the tech industry. I pull a consider amount more than that at 21, and I had difficulty even qualifying for my car.

 

[ivol]

Web Developer...My friend who is one month older than me is making way more than I am. I am getting kind of bored of it but I guess I should'nt be talking about that if I'm going to buy a house. And it is a job which is hard to find these days over here. At least for Web Developers.

 

[Fireman]

I think 2 years on the same job is a magic mark most banks are looking for.
Also, you have to have 20% down (I think....help me out peeps) to avoid paying Mortgage Insurance. Which is simply wasted money you hand over to the bank every month