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that wasn't the question coupon (btw have you missed me?). the question was what price level should he be thinking at the salary.. I think I was clear that I didn't like his/her price level, but felt they needed stay under 300k. I had to do a quick calculation and just picked a number to run..... I picked the middle number of 300k. it makes it a 36% ratio WITHOUT taxes and insurance.... not so good.
Didn't I state i like my clients to be under the 36% ratio with taxes and insurance? or did you not read my entire post, lol!! Come on Jack, I know you better than that : )
that wasn't the question coupon (btw have you missed me?). the question was what price level should he be thinking at the salary.. I think I was clear that I didn't like his/her price level, but felt they needed stay under 300k. I had to do a quick calculation and just picked a number to run..... I picked the middle number of 300k. it makes it a 36% ratio WITHOUT taxes and insurance.... not so good.
Didn't I state i like my clients to be under the 36% ratio with taxes and insurance? or did you not read my entire post, lol!! Come on Jack, I know you better than that : )
Shelly
Shelly
I just think it was a rediculous ratio to be in when you do the numbers quick. I thought you would've felt the same way, that's all.
In our market I would sum it up this way. To a first time homebuyer with not so terrific credit, I typically recommend renting. Or anyone coming to town w/ a house on the market where they left, that they only have owned a couple of years.
If you likely will be here a while, have out grown your current home, and have decent credit, it is a great time to buy. A 5 3/4% (+or-) 30 yr. fixed conventional mortgage can rarely be beat.
Homes are no longer the liquid assets that moonlight as ATMs when the owner wants a new SUV and HDTV. The tried and true rules are back - Buy a modest SFH in a good neighborhood, but if you sell in three years you will be lucky to break even after selling costs.
Second Question - you want to buy an investment property to hold for 5 years and sell. When would you buy it?
I would have bought in December when I saw a seller of a home I was interested in drop the price between Thanksgiving and Christmas. That is a terrible strategy that shows either desperation or ignorance, IMO. Have your agent do a history search on any price drops for the properties you are looking at.
In my area I would try to close in April or May as June 1 is the best date for a rental to hit the market.
Homeseeker, I think you should ask this question on the mortgage forum, as they can probably answer better... and it will be impacted by where you are because you will have taxes and insurance that I cannot help you calculate... but when I do a quick calculation, if you did a loan of 300k, before taxes and insurances you would be in the 36% ratio. I like to see my clients under the 36% ratio with taxes and insurance, UNLESS they know something I don't know...
You can still get 100% financing it is out there... with a credit score like yours.
Stated income is for individuals (like most real estate agents) who cannot produce a pay stub to "prove" our income. We have to "state" our income and show a tax form from last year (or more).
Save a little money, that will help you. No debt, nice annual income, you should be able to get a little nest egg going...
Hope this helped.
Shelly
Thanks Shelly! I'll guess I'll wait a few more months and work on that savings
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