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OP, you should probably stay in the $250-300k range. You could go higher than that, but you'll find yourself in great trouble if you end up getting laid off or some unexpected expenses pop up (especially with you being the only income earner). I've witnessed many people who max out on what they can qualify for, have a bad situation occur, and end up filing bankruptcy because they can no longer pay their bills. That said, opt for a home in the $250-300k range; you can always upgrade once you save more money and/or have a salary increase.
OP, you should probably stay in the $250-300k range. You could go higher than that, but you'll find yourself in great trouble if you end up getting laid off or some unexpected expenses pop up (especially with you being the only income earner). I've witnessed many people who max out on what they can qualify for, have a bad situation occur, and end up filing bankruptcy because they can no longer pay their bills. That said, opt for a home in the $250-300k range; you can always upgrade once you save more money and/or have a salary increase.
While I agree you shouldnt go crazy with a huge mortgage but where in NJ is he going to find homes for 250 to 300K? I am assuming he wants to live in a decent town with decent people which lead to Good schools. Not to mention a townhouse or condo is out of the question with 2 kids. Where is the OP looking? Towns? Where are the rest of you finding these homes for 250 to 350K? Thanks.
While I agree you shouldnt go crazy with a huge mortgage but where in NJ is he going to find homes for 250 to 300K? I am assuming he wants to live in a decent town with decent people which lead to Good schools. Not to mention a townhouse or condo is out of the question with 2 kids. Where is the OP looking? Towns? Where are the rest of you finding these homes for 250 to 350K? Thanks.
OP- I think I can relate - I am looking to move into house #3(luckily, bought first house in 2003 at 26 before prices went wild)... anyway- If I did it all over again, I would by a fixer-upper in a great location with good schools- if it wasn't big enough make sure there is room to expand, and taxes won't choke you. Your needs will probably change- as the kids get older you will wish you had more and more space.
Also, a note- your mortgage(assuming you get a 30 year fixed or similar) will never go up- but your salary will. If you are young- I err on the side of overspending- as your income will most likely rise.
Honestly, as a home owner to be and in the same situation as you (make about the same income, 2 kids), I would recommend to get a bigger house. I have only look at houses in good school town ranging from 400k to 550k. I ended up getting a house slightly higher than my target range but it is a two family. So rent will take care of the tax and insurance.
Ask yourself this question when you look at the property: Is this the best I can offer to my children? If no, then move on to the next property.
Whole bunch of people with that exact mindset bid up houses to the current extremes and are now facing foreclosure.
While I agree you shouldnt go crazy with a huge mortgage but where in NJ is he going to find homes for 250 to 300K? I am assuming he wants to live in a decent town with decent people which lead to Good schools. Not to mention a townhouse or condo is out of the question with 2 kids. Where is the OP looking? Towns? Where are the rest of you finding these homes for 250 to 350K? Thanks.
Southern New Jersey. I would NEVER pay more than $250,000 for a home in my neighborhood, and at that price I'd feel ripped off. We have decent schools, a safe neighborhood, etc
Southern New Jersey. I would NEVER pay more than $250,000 for a home in my neighborhood, and at that price I'd feel ripped off. We have decent schools, a safe neighborhood, etc
So you are saying if you work in North Jersey like most people do buy a home in South Jersey? Right.
What exactly do you plan on doing then? Renting forever? Not that this is not possible but do you really expect things to come back that much more? Even if Real Estate another 10 to 15% everything wont be that much cheaper. Not to mention "nice" places in jersey will always be overpriced.
Well, what I don't plan on doing is purchasing something that I will never be happy with. In the interim, yes, I will continue to rent and save for a larger down payment. Condo's and townhouses, which seem to be what most people in my situation elect, are not an option because I have fundamental issues with homeowner associations.
OP, with no debt, over 100K in savings, and a willingness to purchase a preowned car, you're doing better than most Americans! Keep up the good work! I just don't know where you're going to find something in Central or Northern NJ that you'll be happy with...
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