Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Thanks everyone! We are first time home buyers and thats why v r nervous. We were looking to buy in dillworth within 350k but havent really found anything? The realtors tell us we can get abt 95% funding frm some banks ....is tat a good idea? We are so confused....!!!!
sue77 - I would be asking myself a few questions if I were you. If this house required a 20% downpayment or $70,000, could you, or would you, shell out that amount to buy it? If the year you were born is the number after your name, if you suddenly found yourself pregnant, could your husband's salary alone provide enough of a cushion to keep you a stay-at-home-mom and take care of the mortgage? One never knows what the future holds, so you always need to be financially prepared if your circumstances change significantly in a short period of time!
You need to speak with a lender who knows what they are doing. Yes, banks are offering 95% LTV financing with good rates. However, there is a problem. The Mortgage Insurance companies that insure these loans have stricter borrower requirements than the banks on 90-95% LTV programs. So what I'm saying is while a bank might say "yes" the person insuring the loan might say "no" due to a tighter guideline on your minimum credit limit or debt-income ratios.
Your payment on a 95% loan program is probably going to be very high due to the mortgage insurance rates that have spiked for these loans.
^^^^ This is excellent advise that is applicable to those selling their home. You can ask ANY price you want for your home. Hey, it's your castle.
And someone can buy at your price. But then.....(see above)
Thanks for your reply and advice. Yes I will for sure look into these factors. As of now we are paying 1400 dollars in rent and so were wondering if it makes sense to buy. We dont have a whole lot of money for down payment and I guess thats were we are stuck. Also I go to school and my hubby is the only one earning,so that is a another issue ...just incase he gets laid off or something..so thats where things are ....I think we should wait a lil bit more ....however thrz a joy in living in a house wch offcourse one cannot be exp'd being in an apmt!
Thanks for your reply and advice. Yes I will for sure look into these factors. As of now we are paying 1400 dollars in rent and so were wondering if it makes sense to buy. We dont have a whole lot of money for down payment and I guess thats were we are stuck. Also I go to school and my hubby is the only one earning,so that is a another issue ...just incase he gets laid off or something..so thats where things are ....I think we should wait a lil bit more ....however thrz a joy in living in a house wch offcourse one cannot be exp'd being in an apmt!
Yes, you could make a house or condo payment w/ that $1400/mo. The concerns are exactly what you just said 1. little for downpayment and 2. only one wage earner at this point in time.
And there is a lot of joy with owning your own place - I so agree.
Have you actually looked at the figures on paper?
If you were looking in the $180-200K range, then I would say it may make sense to buy, even w/ your being in school right now. But in the $350K range . . . I dunno. I would wait til I was finished with school and had a job . . .
Thanks for your reply and advice. Yes I will for sure look into these factors. As of now we are paying 1400 dollars in rent and so were wondering if it makes sense to buy. We dont have a whole lot of money for down payment and I guess thats were we are stuck. Also I go to school and my hubby is the only one earning,so that is a another issue ...just incase he gets laid off or something..so thats where things are ....I think we should wait a lil bit more ....however thrz a joy in living in a house wch offcourse one cannot be exp'd being in an apmt!
sue, the fact that your husband is the only wage earner doesn't bother me. My husband and I decided years ago to never consider my income in affording our home - we did it strictly on his salary, which prevented us from overextending ourselves. My salary goes into savings or for vacations. But we could (and have) fallen back on it during a time of job loss.
BUT, since you are still in school and couldn't exactly go out and start working to pay for the home in a crisis I would say you need to wait a bit to buy - just until you are finished with school at least. This would give you more time to build up a better downpayment. You really want to have as big a downpayment as possible - at LEAST 10% these days, though 20% is even better. Do what you can to make that happen because throwing that much money away on rent would personally kill me. Best of luck to you!
You can get a mortgage on $200-210K, and with taxes and insurance, keep your payment right around $1400 (assuming you get a 30 yr loan at around 6%).
That is what I would be looking at - getting a home for about the same as my current monthly rent. Of course, you would need around $20,000 to use as a downpayment (10%) or $10K + at 5% down.
You can get a mortgage on $200-210K, and with taxes and insurance, keep your payment right around $1400 (assuming you get a 30 yr loan at around 6%).
That is what I would be looking at - getting a home for about the same as my current monthly rent. Of course, you would need around $20,000 to use as a downpayment (10%) or $10K + at 5% down.
There are A LOT of really nice homes for sale right now in the $200,000 range
Where would be a nice place to look at in the 200k range? We wanted to be close to uptown in a good neighbourhood.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
.....
