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Old 08-29-2013, 10:53 AM
 
1 posts, read 2,172 times
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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!
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Old 08-29-2013, 02:07 PM
 
Location: Brentwood, Tennessee
39,019 posts, read 37,656,456 times
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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.

Is there an HOA with fees?

Do you have a lawnmower?
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Old 08-29-2013, 02:12 PM
 
16,724 posts, read 13,665,130 times
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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.
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Old 08-29-2013, 02:57 PM
 
171 posts, read 174,989 times
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Quote:
Originally Posted by convextech View Post
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.
Can you describe a cosigner?
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Old 08-29-2013, 03:08 PM
 
Location: Brentwood, Tennessee
39,019 posts, read 37,656,456 times
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Quote:
Originally Posted by embe View Post
Can you describe a cosigner?
What is a Cosigner?
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Old 08-29-2013, 06:18 PM
 
Location: Marshall, MN.
689 posts, read 2,394,125 times
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There are online calculators that will help you determine if you can afford the home or not.
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Old 08-29-2013, 07:03 PM
 
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How much are you putting down? What I see as problems is you're not married ( and sometimes people do break up before marriage) you only make 35k and you ave debt. I could see you swing the house payment if you had no debt. Cable tv isn't debt. The vehicle payment is.
I bought my first house with about the same conditions as you just no fiancée and no vehicle payment. It was a pretty frugal living. Not saying it can't be done.
35k a year with 31% DTI you should be able to afford 904 dollar a month payment. Your car payment is about 25% or so of what will be your house payment. I strongly suggest you pay off the vehicle.

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.
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Old 08-29-2013, 09:43 PM
 
7,671 posts, read 11,275,729 times
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Quote:
Originally Posted by convextech View Post
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.
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Old 08-30-2013, 08:43 AM
 
16,482 posts, read 17,501,756 times
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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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Old 08-30-2013, 09:07 AM
 
16,724 posts, read 13,665,130 times
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^^ This.

Just because you CAN doesn't mean you SHOULD.
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