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i think it's on the edge. but that's what the bank gave him...what he "could" afford. not what he "should", but what he could, based on his income. he can do it. plus, it's leaving out his gf's income. so he could easily do it.
they can manage with the gf's income, i agree, but statements all along were with the bank pre-approving HIM only.
if was lending out money it would be no more than 2xs income with min 15% down. i'd probably have very few loans, but wouldn't have needed a bailout either, LOL.
they can manage with the gf's income, i agree, but statements all along were with the bank pre-approving HIM only.
if was lending out money it would be no more than 2xs income with min 15% down. i'd probably have very few loans, but wouldn't have needed a bailout either, LOL.
well, yeah. but they were saying what he could afford. a lot of people go with the 30% of gross rule, so it's not shocking. it's a pre-approval also, so it's before taking into account property taxes. when he gets that far, the property taxes of maybe $750/month might knock down his approval amount, based on 72k.
Your Salary: $72K, after taxes is between $50,400- $56,250
or $4200-$4,688/month
Your mortgage and taxes with PMI on, let's say $270k note (10% down on $300K) will be about $2,250/month Mortgage Calculator
Your Home owners insurance is $83/month
Your Car Payment is $250/month
Your Car insurance is $100/month
Your grocery bill is $500/month
Your Cable/phone/internet Bill is $100/month
Your PSEG Bill is $200/month
Total Estimated Recurring Monthly Expenses: $3,483
That leaves you with about $750-$1,200/month leftover to cover: healthcare(since even if your employer pays you are probably on the hook for some portion of it), savings, cell phone( if not paid for by employer),general spending money, commuting expenses,gas and entertainment.
As you can see it is definitely doable but does not leave you with much margin for error. It also does not account for the money that you will have to put into the house for renovations or repair. not much in your house will cost you less than $750 to fix.
it's more about knowing all the facts and making your own decision, it's a judgement call. My wife and I have a similar mortgage and my salary alone is more than double that, but I'm not going to sit here and tell you it can't be done. I'm just saying I wouldn't do it.
Quick update, I went to look at a place today. Condo, new construction, 3br, 2br, parking, 1400 sq. ft. for 242K. Maintenance is about $215, taxes about 6K. It's the cheapest I've seen so far. This thread however has scared the bleep out of me
Quick update, I went to look at a place today. Condo, new construction, 3br, 2br, parking, 1400 sq. ft. for 242K. Maintenance is about $215, taxes about 6K. It's the cheapest I've seen so far. This thread however has scared the bleep out of me
Quick update, I went to look at a place today. Condo, new construction, 3br, 2br, parking, 1400 sq. ft. for 242K. Maintenance is about $215, taxes about 6K. It's the cheapest I've seen so far. This thread however has scared the bleep out of me
do the budget before you fall in love with a place you can't afford.
No yet I will though, I'm just looking around not thinking of buying until I figure everything out.
I know you've already endured 13 pages of questions and advice but what the heck, here's another question for ya.
Why do you want to buy? Renting is so easy. You can just move on when you get sick of the place, no maintenance, something breaks, call the landlord. Condo associations are a special kind of pain too.
I think you said you were 27? You live with your girlfriend, no kids. Travel while you can. Take nice vacations if you have extra money. Have fun. Save money too of course, but you get the idea.
Owning a home (or a mortgage really) is so overrated.
I know you've already endured 13 pages of questions and advice but what the heck, here's another question for ya.
Why do you want to buy? Renting is so easy. You can just move on when you get sick of the place, no maintenance, something breaks, call the landlord. Condo associations are a special kind of pain too.
I think you said you were 27? You live with your girlfriend, no kids. Travel while you can. Take nice vacations if you have extra money. Have fun. Save money too of course, but you get the idea.
Owning a home (or a mortgage really) is so overrated.
I said this on page 4 somewhere. Its a spot on analysis.
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