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hubby and i are first time home buyers?
We are expecting our first baby and would like to move into our own place.
He works & i am currently unemployed due to my pregnancy & with an income of 2,000/month we would like to find something cheap & reasonably priced. We found a couple of really nice 3 bedroom homes under $110,000. We would prefer something under $100,000 but if we're not able to, we'll just have a room mate or two to help with the mortgage. Since we are amateurs when it comes to home buying, we don't really know the other expenses that go along with buying a home. Can you please share any & all advice you have for first time home buyers? Do you think we can afford something between $50,000 & $100,000 with an income of $2,000/month? Thank you for your help.
p.s, besides our cell phone bill & car insurance, we dont really have any bills
- godgedLv 71 decade agoFavorite Answer
$50,000 may be doable, but much more may be a stretch.
You are only going to be considered for a mortgage with your husband's income. You, because you are not working, and getting roommates will not enter into this at all.
Not sure why you are not working when you are only 4 months along, but OK.
YOu can typically expect to be approved for about 3 times your annual salary. But there are other things that will be factors, debt to income, credit score, most lenders want to see 2 years of steady employment history, etc.. Your potential renters income will not be a factor for what you can get qualified for, that is not how it works.
My advice, get two employed persons for the mortgage, this may take a while if you have a long period of unemployment due to your maternity leave, even if you are reemployed in the same field you left.Source(s): Oregon Realtor
- spalmerLv 71 decade ago
You can typically get a loan for 2.5-3 times your annual income (assuming that your credit is good and your debt load is low). So, you'll likely be approved between 60k and 72k. Now, you would be smart to add up the costs and figure out what you can truly afford -- the bank typically approves for more than you can comfortably afford. If you put less than 20% down on the house, you'll pay monthly pmi. You'll also have taxes and insurance included in your mortgage. My last house was a 65k mortgage and I paid 520/month (including property taxes, insurance, and pmi) at a 5.2% interest rate -- this is just to give you an idea. Your other monthly costs will of course be utilities. You'll also be responsible for all repairs and maintenance -- which can add up some years. When purchasing a home, you'll need money for a down payment (typically 3.5% - 20% of the purchase price, depending on the loan you get) and you'll need money for closing costs (typically 2%-4% of the purchase price). Sometimes you can get the seller to contribute towards closing costs and you'll include this in your offer. I would suggest that you meet with a lender (or two) to see if you can get pre-qualified to get an idea of (a) if you can even get a mortgage and (b) what you'll qualify to borrow.
You may not have any bills now, but you have a baby coming -- they can be very expensive (diapers, wipes, formula (if you don't breastfeed), toys, clothes, shoes, supplies, etc). Will you be going back to work or will you be staying at home? Only asking this question because daycare can also be very expensive, typically about $100/week (more depending on where you live). You cannot afford a 100k house on 2k/month -- you should be looking at something under 75k, unless you are putting a lot of money down. Your housing expenses should be no more than 30-35% of your monthly income (all expenses included). Your monthly mortgage or rent should be no more than 25% of your monthly income. Good luck to you!
- A HunchLv 71 decade ago
You have to be able to afford the mortgage on your own. If you get roommates, that's a "bonus" to you, but that will not be taken into account for the mortgage approval.
-- This is a good thing because it would be may be difficult to find roommates with a newborn.
You will typically be able to get approval for 2.5-3 times your income. Since you currently earn $24000 a year, this is $60000-$72000. To get this approval, your husband must have been in the same industry for 2 years and earn the same amount of money during this period.
Money you have to have to purchase the house: downpayment (between 3.5%-20% of house), closing cost dependent upon cost of house, property tax, and homeowners insurance.
- SlickterpLv 71 decade ago
$2K/month is $24K/year. You'll be able to qualify for a mortgage of about $75K. So to go to $100K, you'll need $25K in cash. You'll need a down payment, 3.5% for FHA, as much as 20% for conventional.