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Message
House buying
Posted on 2/11/16 at 2:24 pm
Posted on 2/11/16 at 2:24 pm
I got approved for a VA home loan through my Credit Union for $230k. Is there a rule of thumb of what to purchase a house at when you get approved? Or is it okay to buy a house at the max approval of a home loan?
7
Posted on 2/11/16 at 2:45 pm to noles25
quote:
is it okay to buy a house at the max approval of a home loan
I wouldn't.
Posted on 2/11/16 at 2:51 pm to noles25
Buy what you can afford. Banks will typically approve you for MUCH more than you need. I can tell you that 230k will roughly be around a $1500 mortgage including pmi and insurance (unless you put a ton down)
Posted on 2/11/16 at 3:12 pm to AUtigR24
I gotcha, using the VA home loan which requires nothing down. So I won't have PMI on my monthly payment.
This post was edited on 2/11/16 at 3:13 pm
Posted on 2/11/16 at 3:28 pm to noles25
Some approve you for the max amount, some approve you for numbers at which the customer tells them if they can get approved for that amount. Look at what your monthly payments look like with the potential homeowners insurance, taxes, and hoa included to see if that can fit in your monthly budget. That all of course depends on what neighborhoods and areas you are looking to live at.
To simply answer question yes it is okay to buy a house at the max approval.
To simply answer question yes it is okay to buy a house at the max approval.
Posted on 2/11/16 at 4:15 pm to noles25
Back in 1993, we got approved for a loan of $120,000. We were nowhere near comfortable with that loan amount and actually fell in love with a home that was $83,900. It had just been listed and the for sale sign hadn't even gone up yet.
The agent kept asking us if we were sure and we most definitely were.
The for sale and sold sign went up at the same time the day after we signed the purchase agreement.
The agent kept asking us if we were sure and we most definitely were.
The for sale and sold sign went up at the same time the day after we signed the purchase agreement.
Posted on 2/11/16 at 4:44 pm to noles25
quote:
Is there a rule of thumb of what to purchase a house at when you get approved?
Know thy self. I've seen families who make 50k a year swing a 200k house like it was nothing. I've seen folks who make 150k who have no business buying a 300k house.
It's almost impossible to tell someone on a message board we don't know what to spend on a house, all we have to go by is a lender who feels good loaning up to 230k.
Posted on 2/11/16 at 4:48 pm to noles25
A general rule of thumb is to not exceed 3x your gross salary, or 77k in your case. However many people feel less house poor by having a lower multiple of say 2x. It's hard to make a more specific recommendation on so little information.
Posted on 2/11/16 at 10:13 pm to GoldenD
I was pre approved for 450k but found a house in a great area for 200k spent a year updating a house built in the 60's with no issues just outdated on some thing out another 30 k in and now the house is worth 400k.
Posted on 2/12/16 at 5:31 am to GoldenD
quote:
3x your gross salary
That sounds very high. Mines about 2.25% of my gross and I thought that was too much. Am I doing better than I thought I was?
Posted on 2/12/16 at 2:14 pm to DownshiftAndFloorIt
quote:
That sounds very high. Mines about 2.25% of my gross and I thought that was too much. Am I doing better than I thought I was?
We're talking annual gross here - so unless you make a couple million you probably calculated that wrong.
Posted on 2/12/16 at 2:41 pm to ItNeverRains
quote:
Know thy self
I'll echo this. Depending on how many other debt obligations you have to repay you presumably could be able afford anywhere from 1.5x Annual Gross Salary to 3x Annual Gross Salary.
I believe that 2x Annual Gross Salary is generally an appropriate number.
Personally, my number 1.81x Gross Annual Salary. But I have student loan debt I'm paying off.
Posted on 2/18/16 at 9:13 am to noles25
Our offer was accepted on a house yesterday! Bought a house for $212k, excited that I won't be throwing away money monthly by renting anymore.
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