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Old 11-26-2015, 08:25 AM
 
776 posts, read 745,925 times
Reputation: 349

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Quote:
Originally Posted by Becky2517 View Post
Happy Thanksgiving!!!

It is what Weaverra does best... OP, don't ever let anyone stomp on your dreams, it is doable no matter what anyone says...just takes hard work and a little gumption
The best thing to do is wait. There are many Realtor's and lenders around here that will pressure this couple to buy a home "because you never know when the rates will go up." Here's another one; "if you don't put in an offer now somebody else will." Those are two scare tactics used to pressure people into purchasing a home. I've heard it myself when we first started looking. This idea that you have to own a home and own it now is stupid. I'm sure though there are many broke finance professors that would agree with you though. Based on the information given I don't think they are ready to buy yet. She said they were living with their in laws. If they have never even rented a house or apartment before jumping to purchasing a home is going to be a huge sticker shock. $35K take home is not a lot considering there is more to home ownership than the principle and interest.
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Old 11-27-2015, 12:11 PM
 
776 posts, read 745,925 times
Reputation: 349
Quote:
Originally Posted by FayettevilletoHuntsville View Post
Weaverra, Are you a mortgage broker?

I own my home and have been told in the past that if someone has good credit and qualifies for a home loan that a good rule of thumb is to finance no more than 3 times their annual income.
They also say that you need to have at least 3-6 months expenses in your emergency fund along with some form of life insurance. They also recommend that you need to be putting 15% of your annual income into a retirement fund. These are strong recommendations before purchasing a home. $35K take home is not going to cut it if you do these things with a 3 times your annual income mortgage. Just had a lady in my neighborhood lose her home to foreclosure because he husband passed away several months ago.
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Old 11-30-2015, 07:19 AM
 
169 posts, read 206,195 times
Reputation: 225
If we're using anecdotes for evidence, I know a couple who laddered up through several homes, with each mortgage significantly more than 3x their gross annual income. They worked hard, paid the bills on time, and retired in nice style.

Since Madison is extremely popular and not getting any bigger, it's entirely possible buying a home there will be that rarest of things, a successful residential real estate investment. Mortgage qualification is much tougher than it used to be. If a bank wants to lend these folks the money, odds are good that it will work out. No guarantees, but everyone knows that, right?
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