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My fiance and I have been looking for houses for a while. We are just starting out and right now we only make about 35,000 annually combined but in a few months both of us start better jobs and will be making better salary (about 70k combined). We found a wonderful house we would love to have for a listing price of 82,000. We REALLY love the house but can we afford this house with our CURRENT salary?
This is our first time buying and we just want to be sure.
I live in Southwest Virginia in a small town. My additional expenses include Cable Internet which is $40.00 a month and a car payment which is $215.00 a month. My fiance paid off his truck and he doesn't have anymore additional expenses. We also have a wealthy co-signer, if that makes any difference. Any opinions would be very much appreciated!
Is the "wealthy cosigner" going to contribute the down payment?
As for monthly expenses, you need to calculate the cost of homeowners' insurance, property taxes, utility bills such as heat, gas, water, electricity and sewer if applicable.
The bank isn't going to care about your future income, they want it in black & white now.
I wouldn't co-sign if you can't afford it by yourself with what you're making right now, and at $80k your payment is going to be about $800/mo. At $35k? I don't see it happenineg, no.
The bank isn't going to care about your future income, they want it in black & white now.
I wouldn't co-sign if you can't afford it by yourself with what you're making right now, and at $80k your payment is going to be about $800/mo. At $35k? I don't see it happenineg, no.
With a house you will also have
Homeowners insurance may need flood or fire depending on area.
ALL the utilities to pay water electric gas
Repairs ( service guys aren't cheap)
Materials for repairs if DIY
PMI property mortgage insurance if putting down less than 20%. BTW the PMI is now for the life of the loan if its a FHA loan.
Don't forget the move will cost money and you will most likely need to do curtains/drapes and some sundry stuff.
Turning on services will also cost money
Can it be done? Yeah it can. Are you liking to sacrifice going out to dinner driving same car for a long time no splurging on stuff. That's up to you.
I wouldn't co-sign if you can't afford it by yourself with what you're making right now, and at $80k your payment is going to be about $800/mo. At $35k? I don't see it happenineg, no.
How are you coming up with $800/mo? I can't see them even paying $600 and that's with PMI in addition to PITI. Even at 5% and 100% financing (which wouldn't happen), the principal & interest portion of the mortgage would only be $429.
were basing it on a 31% DTI . Even so 35k a month COMBINED income is iffy because if one decides to break up the other will be In trouble financially. There is more to a house than the payment. Depending on how disciplined the OP is with their finances it's. possible they can make it. I just know its not easy. But it is possible really depends in how much a person is wii g to sacrifice to secure their future ( well as much as you can secure it)
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