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- Annual salary is around $75,000, a nice government job that I have to really screw up to lose, and I'll be making closer to $100k in two years. My take-home is $2,600 a month (I claim 0 and put extra into retirement)
- Current cash savings is $20,000 - I figure closing costs will chomp away $10,000 of that
- Looking to spend $240,000 with a mortgage of $230,000
- Credit score 720+
- No debts at all
This would give me a monthly mortgage payment of $1,400 and a total housing cost of $1,700 per month, according to the IndyMac online calculator. Plus whatever HOA charges are.
So my questions are...
Is that too bad of a ratio of salary to housing payment?
And would it be beneficial to save up some more cash for a downpayment? I would normally do so but I really want to get out of my current living arrangement.
Do I have a good shot of getting approved with a good rate?
The way the bank looks at it...you will be a PRIME candidate.
The problem is that you have little money for a down payment.
I'm not sure where you're buying but check to see if your market is declining.
FHA requires the 3% down payment.
You can have the seller pay the closing costs up to 6% which I would highly recommend that you do. It's better to keep the money in the bank then to spend it on upfront fees.
Would if you need a new car or a major car repair, that would eat up whatever you have left after your take home pay?
Next, can you pay all your utilities, groceries, and repairs/maintenance of the home with 900 bucks ? As well as possibly hiring someone for lawn care or having to buy a lawnmower and how will you purchase appliances?
I think that mortgage payment eats up too much of your take home. You don't have much leftover. Maybe you should save up more as a downpayment or look for something less expensive.
Also why is your take home so little? I make less than that and take home more than that after taxes and putting away in retirement.
But 900 dollars left for all his other expenses! I just saw in his profile, I think he's from NYC. That explains it.
I guess if he ever runs into a bind, he could always decrease the amount he puts into his retirement.
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