Looking to buy a house in Southern MD soon, HELP! (Clinton: rent, mortgage broker)

[mkdeet]

My fiancé and I started looking at houses today (online and in person.. checked out a couple of the new neighborhoods being built in the Fort Washington/Clinton area) just to get a feel for what we want in a year or two.

Together, we'll be making around 100k by the time we're married and looking for a house.
What should our price range be around with our income?

I know there will be other factors (student loans and other monthly payments).

Should we buy new as first-time buyers?


Thanks!

[bufflove]

Originally Posted by mkdeet

My fiancé and I started looking at houses today (online and in person.. checked out a couple of the new neighborhoods being built in the Fort Washington/Clinton area) just to get a feel for what we want in a year or two.

Together, we'll be making around 100k by the time we're married and looking for a house.
What should our price range be around with our income?

I know there will be other factors (student loans and other monthly payments).

Should we buy new as first-time buyers?


Thanks!

Speak with an agent and then a lender. Here's a general calculator if you want to ballpark it: https://www.zillow.com/mortgage-calc...affordability/

[lookingbutnotlost]

Lenders will generally tell you you can afford way more than you actually should. Figure out how much you're willing to pay per month, taking into consideration student loans, car notes and other expenses

[HoCoMom]

When figuring how much mortgage you can afford remember you want to be able to eat, maybe buy a new car, go on vacation once a year.

Yes, your incomes will increase and the mortgage payment is fixed, but your expenses will increase - houses require upkeep and if you have children - they are expensive.

You do not want to be house poor.

[North Beach Person]

Originally Posted by mkdeet

My fiancé and I started looking at houses today (online and in person.. checked out a couple of the new neighborhoods being built in the Fort Washington/Clinton area) just to get a feel for what we want in a year or two.

Together, we'll be making around 100k by the time we're married and looking for a house.
What should our price range be around with our income?

I know there will be other factors (student loans and other monthly payments).

Should we buy new as first-time buyers?


Thanks!

At that income you likely won't be able to afford new at the price point new houses are being built at (in Calvert that would be $400K and up).

You will, however, likely be able to afford an older, smaller house.

[MrRational]

Originally Posted by mkdeet

What should our price range be around with our income?

The target is being able to cover the MONTHLY expenses with a WEEKLY paycheck.
Which is also the standard when renting.

Once upon a time there would be only ONE weekly check... which is still an advisable standard
assuming there will be young family years in the not too distant future with only one earner.

So... rent (or mortgage PITI) + utilities + any other fees = $X/month.
$X = net weekly wages = gross less tax/FICA; less any other deductions (eg:401K? HI?)

This number will be a fair bit less than what the mortgage brokers will allow.
Take the advice above to heart and don't over extend yourselves.

[mkdeet]

Originally Posted by MrRational

The target is being able to cover the MONTHLY expenses with a WEEKLY paycheck.
Which is also the standard when renting.

This is a good point. Thank you!

[mkdeet]

Originally Posted by North Beach Person

At that income you likely won't be able to afford new at the price point new houses are being built at (in Calvert that would be $400K and up).

You will, however, likely be able to afford an older, smaller house.

Yeah, that's around the same price in the PG/Charles County area.

Thank you for the input!

[mkdeet]

Originally Posted by HoCoMom

When figuring how much mortgage you can afford remember you want to be able to eat, maybe buy a new car, go on vacation once a year.

Yes, your incomes will increase and the mortgage payment is fixed, but your expenses will increase - houses require upkeep and if you have children - they are expensive.

You do not want to be house poor.

Yes, I agree! Good point.
We're planning on no kids until after getting the house.

Thank you!

[North Beach Person]

Originally Posted by mkdeet

Yes, I agree! Good point.
We're planning on no kids until after getting the house.

Thank you!

Ok, if you are planning on kids you need to look down the road several years to schools. Prince George's would likely not be the first choice for most people for that.