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Old 04-20-2015, 06:36 PM
 
35 posts, read 52,668 times
Reputation: 25

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Hello. First time home buyer here. In the pre-approval process. The lender told me I could look to buy a home up to 200K. I'm skeptical of this figure and would like to get an opinion from some of the professionals on the forum. Here is my situation:

Income- 66K
Employed FT for last 10 years
Chapter 13 filed 2010, will discharge 8/15
Credit score 680
No late credit card payments
1 credit card with 4K balance
25K for down payment
Student loan pmt 500/mo

I'm thinking it would make sense to purchase a home between 180K and 185K given my down payment. My first question is would I likely qualify for a loan? Second, am I looking in the right price range? I'd like to keep my payment at/around 1K to 1150 per month. I'm applying for FHA so need to factor in PMI.

Thanks so much in advance for helping.
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Old 04-20-2015, 06:44 PM
 
Location: Sugarmill Woods , FL
6,235 posts, read 5,384,329 times
Reputation: 13586
Here you go: Let me google that for you
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Old 04-20-2015, 06:47 PM
 
203 posts, read 196,573 times
Reputation: 404
Your income would qualify you for that amount, but the fact that you have a $500 student loan payment really takes a chunk out of what you can afford. You would be wise to borrow less than the bank says you're qualified for, especially with a history of bankruptcy. You don't want to get in over your head.
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Old 04-20-2015, 07:17 PM
 
Location: Kansas
19,189 posts, read 14,062,995 times
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You need to sit down and make a budget out and know how much you are spending. Will you need a new auto? What about furniture? Do you already own what you need or will you paying cash for that? Have you really looked at what the payment will be with interest, home insurance and property taxes?

I would, from prior experience, go at about 2/3 of what they say you can afford. I don't know where they get the numbers but you'll live from paycheck to paycheck praying that no emergency happens that will require cash. Take it slow.
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Old 04-20-2015, 07:21 PM
 
Location: MSP
437 posts, read 392,458 times
Reputation: 563
I usually recommend 2.5 times income, so I would look around the 165k range. If you can find something you like in the 125k range so you can put 20 percent down and avoid mortgage insurance, even better.
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Old 04-20-2015, 09:17 PM
 
Location: Denver CO
18,975 posts, read 10,032,914 times
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Qualify, yes.

The real question is can you afford it?

A big issue is what real estate property taxes are in your area. And then add on HOA, if any. And do you have any savings beyond the 25K? What will you do if you need a new hot water heater 2 months after moving in?

What is your take home pay every month? What are you currently spending every month? How long did that 25K take to save up?
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Old 04-21-2015, 06:33 AM
 
5,048 posts, read 6,394,701 times
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Yes. How long before the roof needs to be redone? The hot water heater, etc. The kitchen appliances. If you're looking at the older/slightly older homes many first time buyers can afford these are very real concerns.

You should not buy just the most house pricewise. You need to factor in all the things mentioned so far.
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Old 04-21-2015, 10:44 AM
 
Location: Somewhere in USA
537 posts, read 452,696 times
Reputation: 467
I'd factor all suggestions above and then recalculate the numbers to their closest decimals possible. If you're in a housing fever then I'd suggest you stop looking. It's not wise to drain all your savings and leave no room for emergency. Probably wiser to wait another year or two to get rid of the student loan first, save up for 20% down payment and then go from there.
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Old 04-21-2015, 12:37 PM
 
Location: Olympus Mons, Mars
5,000 posts, read 8,032,221 times
Reputation: 4920
people with your income, debt levels and credit profiles here in California are easily getting qualified for $400,000+ homes so not quite sure what you are worried about.
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Old 04-21-2015, 05:08 PM
 
126 posts, read 157,117 times
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Quote:
Originally Posted by k374 View Post
people with your income, debt levels and credit profiles here in California are easily getting qualified for $400,000+ homes so not quite sure what you are worried about.
Probably true, because their aren't any homes for $165k in California, except mobile homes. $400k in California will buy you the same type of home that $165k will get you in, let's say, Georgia. I'm referring to Southern California.
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