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So we talked to a numbers guy and with our 70,000 down which we now actually have in the bank in advance as a gift we can owe up to a $2000 mortgage and taxes combined. We werelooking at numbers for a $320,000 home. This was based off of how much we make per week as well as how much we make after taxes which is 4,160 a month. This also cuts us off yearly taxes wise at about 8400. After we added everything from credit cards to gas to groceries, electric, phone bills, we were still slightly over and not under budget by $60.
So we are happy that even though we are two years away that we can afford something a little less and save up money and up our jobs. So $320,000 is just about breaking at zero. So it's good to know that after all this talk that we can work with the number as of now.
I know that my posts have annoyed many people and I understand that to a degree so now that I know the numbers I'm happy to share it and am curious on other people's situations upon moving into a home in the early 300,000 range.
If you have the money in the bank why not buy right now? You can't predict what home prices are going to be in 2 years. What if they go up 10-15%? Your 320K house is now 350K and unaffordable. You can't predict what interest rates will be. If you have excellent credit you can get around 4% these days. In 2 years it could be 6%, and the amount you qualify for goes way down. Taxes will go up for sure. Insurance as well. Gas, electric, food, pretty much everything will go up in 2 years. Did you budget AT LEAST 200-300 a month just for basic maintenance that comes with a house?
Prices on homes will eventually climb, they slowly are already. Interest rates are at all time lows and will go up. If you can afford it now, buy it now, otherwise this is all still a huge waste of time.
The other important number that you need to figure is, if you put the full 70k down, what kind of cushion will you have left in the bank? Also, once you have actually purchased that home, are you still going to be able to save money with your anticipated expenses? If so, what kind of cushion will you have and how much will you be saving based upon your current salaries?
Also, what happens if one of you gets sick or loses a job? Are you going to be able to afford the house on one salary? My husband and I make a lot more money than you do, yet we still limited ourselves to a $270k house for such a scenario. I think you're cutting it way to close, especially if you don't have a cushion like nuts2uiam says.
The other important number that you need to figure is, if you put the full 70k down, what kind of cushion will you have left in the bank? Also, once you have actually purchased that home, are you still going to be able to save money with your anticipated expenses? If so, what kind of cushion will you have and how much will you be saving based upon your current salaries?
People have been telling me to see how much we can afford basically spoke to someone at the bank sat down with us we figured it all out based upon cost of bills with a slightly higher amount of what it should be, just for worse case scenario purposes. I would rather try to find something in the number 200s rather than breaking into the 300s. Also again it all depends on where our jobs are at that time and we will then if not half a year or more before then look into homes in that specific area close to where we will be working. The point is is that it is doable now but it will be extremely tight so again my salary. I did not take the full time cleaning job due to the fact that there was no way for me to make any more money then what I would've been making. When I went in for a told me that 50 K was over a five-year period and that it would start out at 42. Part-time cleaning for a while it's not really something I want to do for the rest of my life.
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