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My husband and I are continually astounded by how much $ institutions want to lend us. He makes 110k gross in addition to a bonus of between 15-20% yearly. We also both have side businesses where we pick up a little extra. Based only on the 110k, we have been told we can buy a 450k house. We have no debt, no car payments, and try to live beneath our means. We are trying to keep our purchase price under 300k, the lower the better. Do people at our income level really buy so much house? If so, please tell me how you make ends meet? Maybe we are doing something wrong, bc we absolutely don't think we could afford it. Also, we are only putting 5% down.
My husband and I are continually astounded by how much $ institutions want to lend us. He makes 110k gross in addition to a bonus of between 15-20% yearly. We also both have side businesses where we pick up a little extra. Based only on the 110k, we have been told we can buy a 450k house. We have no debt, no car payments, and try to live beneath our means. We are trying to keep our purchase price under 300k, the lower the better. Do people at our income level really buy so much house? If so, please tell me how you make ends meet? Maybe we are doing something wrong, bc we absolutely don't think we could afford it. Also, we are only putting 5% down.
You are doing the right thing, IMO.
Never doubt the value of living sensibly.
People who stretch from their tippy toes to grab all that they can qualify for are the first to have issues if they have small misfortunes.
I understand your astonishment- the debt some folks willingly get themselves into is mindboggling! Our household income is less than yours but We were told we could qualify on one income for up to 350K or so, and we too have excellent credit and no outstanding debt and live below our means ( hello thrift shops!! I like'em!)) YEAH right, like we're gonna get that expensive a house. Who are we trying to impress. We wound up spending 185K, 20 % down. (want the math? payment is about $1249 inc. tax & ins)
Got what we needed, no Granite though LOL... actually its bit more house than really needed but it will do, as the location and neighborhood are pretty decent for here.
I hereby congratulate you on your willingness to live below your means!
continue that path and be proud of it!
If you feel that you want to stay under 300,000 then that is what you should do. Some people live way beyond their means. This is one reason why people lost their homes during the "bubble"years. You are wise to be concerned. We are purchasing a second home for our retirement. We were told we could qualify for 225,000. We know what our budget is and we said we are not going over 180,000. That is what we felt comfortable with. Sometimes it's a gut feeling too.
I was qualified for a house for 250k. I gross, depending on the year, between 50 and 60k. I wasn't about to go under. And this was just a few months ago. I'm comfortable with my teeny weeny 145k mortgage....b/c it's not teeny weeny in my eyes!!!
Yes, you are doing the right thing. The first thing I tell my clients is this, please do not spend the entire amount you are approved for, you want to enjoy your life AND your home - good luck with home ownership!!!
There is a phrase 'house poor'
If that is all one wants in life, then sure, buy the biggest and fanciest you can afford.
Just don't want to enjoy much other than looking at your prize.(and hope your financial situation stays the same)
In my market, including taxes and home owners insurance, the "average" buyer can qualify for almost 3 times their income. If you go only by $110k and not adding on the bonus or any other income, you shouldn't go higher than $330k on the high end, so your $300k price range is just about right.
3x income for mortgage not price of house correct?
So 100k income x 3 = 300k + down payment = total price you should spend on house.
Assuming 20% down. $360ish would be tops of afforadable house with 100k income. Right?
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- the debt some folks willingly get themselves into is mindboggling! Our household income is less than yours but We were told we could qualify on one income for up to 350K or so, and we too have excellent credit and no outstanding debt and live below our means ( hello thrift shops!! I like'em!)) YEAH right
, like we're gonna get that expensive a house. Who are we trying to impress. We wound up spending 185K, 20 % down. (want the math? payment is about $1249 inc. tax & ins)
LOL... actually its bit more house than really needed but it will do, as the location and neighborhood are pretty decent for here.
