my salary is 60k per year?
I would like to buy a new house or max 10 years old I am thinking Hamburg NY or Orchard Park NY,Elma,NY etc...i dont want to live close to Buffalo dowtown it is to much movement.....my budget is max 250k..this is possible to buy a house?
- loanmasteroneLv 75 years agoFavorite Answer
Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, you can find one in your local telephone book.
Make sure this mortgage broker or mortgage banker is able to do government loans such as USDA, FHA and VA loans if you qualify for one. With a VA mortgage loan you are not required to have a down payment, this will save you on closing cost.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of your monthly income earned would be used in a formula to determine what is called a debt ratio. This debt ratio would determine the amount a mortgage lender would allow you to borrow to purchase a house. This debt ration should normally not exceed 39%.
When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.
Make sure, before you get your pre-approval letter, you and your mortgage broker go over all your options, as to all the mortgage programs you qualify for, the interest rate, monthly payments. This will allow you to make an intelligent decision.
Once you have your pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.
You should select the loan that best suit your financial situation at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.
What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.
So select the best option for you and your financial situation.
You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign. Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.
I hope this has been of some benefit to you, good luck
- Stephen McBrideLv 65 years ago
Just a quick peek on zillow shows me plenty of houses in the areas you named that fit iwthin your price range. It won't be a 5 bedroom 3,500 sqft house, but there are plenty that would certainly be more comfortable than an apartment. Plus I feel it is always better to spend money on a mortgage where you generate equity instead of throwing it away on rent.
I personally bought my first home when I made almost exactly what you do now. I purchased a home at $320k with 15% down using a VA loan. So my mortgage was for $275k. I was still pretty comfortable paying all my bills and still finding enough money to stuff into my 401k and as well as my IRA
- BiffLv 75 years ago
your budget maybe $250k, but you will have a hard time qualifying for anything over $175,000 and you'll need min10% cash for down pmt and closing costs
- Anonymous5 years ago
What kind of house will be for only180k?
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- realtor.sailorLv 75 years ago
Go to www.realtor.com and search by city
- 5 years ago
You can borrow about $180K.