If I make 48,000 a year, can i be qualified to buy a house that ranges from 170,000-180,000?
How do i know i can get approved and if i am in Houston Texas, where can i go with this at a cheap mortgage lender at that. I want the best and good mortgage rate possible, does anyone have any recommendations for a first time buyer? Or any good loan places for a house?
- spalmerLv 71 decade agoFavorite Answer
I would suggest going to your local bank for a pre-approval. This is a simple process and they will give you their estimate of the amount of loan you would qualify for. This is not a guarantee, and you are not entering into an agreement with the bank. This is just to give you an idea how how much house you can afford. Remember that just because the bank says they'll give you a loan for $170,000 that doesn't mean you can afford it. You'll need to figure out what the full monthly payment will be (including principle and interest, taxes, insurance, and pmi if your downpayment is less than 20%). Don't go by the mortgage calculators online. They're great for knowing what the principal and interest will be, but then you have to add all the other stuff. The principal and interest for my home is only $367/month, but with pmi, insurance, and taxes, my monthly payment is $566.87/month. Figure out what you can afford before you fall in love with a house that's too much.
When you're ready to get your actual loan (first find a home and make an offer), then you will want to call around to different lenders and compare interest rates. Do you know what type of loan you're looking for? For an FHA loan, you'll need at least 3.5% down payment and for more conventional loans 20% down payment is recommended. In addition, make sure you have the money for closing costs (2.5-3%) of the purchase price.Source(s): purchased my first home last year
- Anonymous1 decade ago
OK rule of thumb is 3 times your gross income but there are other factors to consider:
your credit score, your debt load, int rate, down payment and taxes. Take all of your debt. Credit cards, auto loans and let's say the taxes are $200 a month? (I'm from CT so I'm guessing)
It will be tough. I'm assuming the mortgage will be at least 160k and you have some debt, right? Even with no debt and a 160k mortgage you're looking at approx 1,500 a month for the mortgage. That is just about the max a typical bank would go - usually 36-38% of your gross income. (48,000/12*.36 or.38) = between 1,400 and 1,520 a month.
Unless you have a significant downpayment, I would try to look in the 150k range. Good luck.Source(s): I am a finnacial profesional
- Anonymous1 decade ago
there are so many factors - your down payment and credit score for 1 and 2! If you have a good credit score, around 680, then you will qualify for a lower APR which will result in a lower payment. If you have a bad credit score, then its customary to pay 10-20% down. Even with such a large down payment, you could have a high APR if your credit score isn't good.
There are many lender websites - some that will even compare against other lenders... you ARE lucky since the real estate market is in shambles, but that doesn't mean that you could get a loan anywhere - esp. since lenders and banks are being more discrimatory since they are losing money.
You can find all sorts of ways to finance the house, but I would really aim to have that high down payment.
Though the atheist buddah or whatevers his name is correct - we all should ask - is it 48K take home or before taxes? Do you have children? are you single? I believe all these factors would be taken into consideration....Source(s): Best friend is buying a house in Houston - he makes TOO much money for a bachelor and is still scared to invest!
- falsi fiableLv 71 decade ago
Rule of thumb is that you can afford a house that is 3 to 3-1/2 times your gross annual income.
Rule of thumb #2: Your mortgage payment (principle, interest, property taxes, and insurance) should not exceed 28 to 33% of your gross monthly income. If you have no other debts (no car loans and you don't carry a revolving balance on your credit cards) you may have slightly higher limits. Your total debt load (mortgage plus auto and other minimum debt payments) may not exceed 38 to 43% of your gross monthly income.
At $48,000 (pre-tax) you can afford a mortgage between $150,000 - 175,000.
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- Steve DLv 71 decade ago
The basic rule of thumb for mortgages is 3 times your gross income. So, that means you can get a mortgage for up to about $150,000. To buy that $170,000 home, you will have to make a down payment of $20,000.
- pennellaLv 44 years ago
some month earlier you commence staring at residences, save around for lenders and get a "pre-approval" letter that provides you a concept how plenty you may borrow. you may coach this on your realtor to teach how plenty living house you will have the money for. as quickly as you come across a place, agree on the cost, and have a signed contract, determine which lender you're going with and enable them to renowned you decide on a "pre-qualification" letter with the help of despite date is asserted contained in the contract. The sellers will decide to work out this so as that they understand you have the ball rolling on your individual loan and the lender subject concerns this letter as an coverage that the non-public loan ought to pass by. In Florida, "pre-authorized" and "pre-qualified" are not the comparable. i assume those words are frequently puzzled, yet in all likelihood in different states, too, you get pre authorized earlier you save, and pre-qualified when you have signed a freelance.
- 1 decade ago
We have Bank Of America as our Lender. They are a good place to start. I hear they have great rates.
- David ZLv 71 decade ago
no. your loan payment should be about 25% of your income before taxes. your max house will be about $130,000. if interest rates begin to rise then the max house price will begin to fall.
- Anonymous4 years ago
That's a really good question, looking forward to reading the answers
- 4 years ago
This is a good question, and one that confused me for quite a long time.