Where to look for a house next week

[UpstateBound19]

Originally Posted by DetroitN8V

How is it that you’re comfortable paying $2500 in rent, but you’re limiting your purchase price to $400k? I obviously have no idea what you’re able to put down, but a $2500 mortgage should buy you more than $400k.

We don’t have a huge amount to put down. According to the mortgage calculator on SmartAsset.com, a 30-year fixed rate mortgage at 4.25% with $25K down will have a monthly PITI payment of $2,590 not including any HOA fees. We have good credit but not much cash. Maybe I can’t even buy yet? Maybe lenders will give us better terms? I think we could maybe afford more based on income but our down payment may limit us. Also I don’t want to be too “house poor” because I know for the first year at least we will shell out some money for my senior daughter to finish high school at a private school similar to the one she is in now.

[Sno0909]

Originally Posted by UpstateBound19

We don’t have a huge amount to put down. According to the mortgage calculator on SmartAsset.com, a 30-year fixed rate mortgage at 4.25% with $25K down will have a monthly PITI payment of $2,590 not including any HOA fees. We have good credit but not much cash. Maybe I can’t even buy yet? Maybe lenders will give us better terms? I think we could maybe afford more based on income but our down payment may limit us. Also I don’t want to be too “house poor” because I know for the first year at least we will shell out some money for my senior daughter to finish high school at a private school similar to the one she is in now.

Rates right now are in the low 3% area. You would only have a percentage in the 4s if you are using some type of Down Payment Assistance program.

[ElleTea]

Originally Posted by UpstateBound19

We don’t have a huge amount to put down. According to the mortgage calculator on SmartAsset.com, a 30-year fixed rate mortgage at 4.25% with $25K down will have a monthly PITI payment of $2,590 not including any HOA fees. We have good credit but not much cash. Maybe I can’t even buy yet? Maybe lenders will give us better terms? I think we could maybe afford more based on income but our down payment may limit us. Also I don’t want to be too “house poor” because I know for the first year at least we will shell out some money for my senior daughter to finish high school at a private school similar to the one she is in now.

I would recommend speaking to a mortgage professional and get pre-qualified, that way you will know 100% what you are working with. Just going by a online mortgage calculator gives you a ballpark range, but many realtors won't even bother unless you are actually pre-qualified. The housing market is fairly competitive here right now, I think, so you don't want to find the perfect house then have to wait to get your finances locked down only to have someone else take it from you because they are better prepared.