First time home buyer questions

Go set up a meeting with a lender. They can run a check on your credit and will let you know. Just give them an idea of how much you are needing

Example: 150k house, 4.0 rate, 30 yr, 3.5% down, fha loan...it comes out at a little more than 1k monthly

This would have been cheaper if I put more down but A) didnt have 20% to get no pmi and B) only plan on being in this house 5-7 years

This was first house. Been in it about a year

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1) First off, when it comes to what I can afford. I found a mortgage calculator and entered my information. 47k salary, 0 debt, with a down payment of 15k. The calculator told me I could afford a 163,880, 30 year fixed mortgage at that rate. Not sure what the interest rate I would be paying on that, but essentially I would be spending $1100/month on mortgage+home insurance+property taxes. That's my ceiling, I would assume, on affordability. My question for those with experience is, would it even be wise to come close to that ceiling?

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That's not your ceiling. What's your budget? Your budget defines your ceiling. Not some mortgage calculator.

Also, you'd be surprised how much you can be approved for. Scary honestly and don't allow a $250k approval make you think you should buy a house that expensive at this time.

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2) I realize 15k down won't be 20% of the down payment for my desired home. The additional fee I have to pay for that,apparently, would be around $75/month. That's obviously doable, but will add up over time. Better to wait till I can save for 20% down or just say frick it?

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I'm thinking that number is low. PMI for me runs around $150/month, and my house was just a little more expensive than your $163k price.

With that said, yes, wait for the 20% down. New rules state that you will never get rid of PMI with a house purchase without the 20% down unless you refinance with 20% to put down on the new mortgage. Before, you could pay down your loan until it was 20% lower than the purchase price, refinance at the new number and lose the PMI. **I'll admit I could be wrong on this, but I remember when I refinanced that the broker told me that we would never lose the PMI unless we brought 20% to the table next time we refinanced.

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3) credit score. I have no idea what my credit score is. I'm worried it won't be good. I have never used a debit card or ever had any debt in my name to pay off. Things I can do about this, and how will this effect me in qualifying for a mortgage?

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Debit card or credit card? Never had a car loan? Student loan?

If not, you're not buying a house. My tenants ran into this and it's why they're renting from me. They were both from wealthy families, went to college for free, had cars since they were 16, got good paying jobs and found out their credit scores were 0. Now they're paying off two cars on loan and using credit cards that they pay off at the end of each month.

**I feel like I should add that owning a home right away is not really part of the American dream anymore. Many young people are mobile, become dissatisfied in their job, and marry people who have their own hopes and dreams. My #1 piece of advice to those under the age of 30 would be to not buy a house. Find better long term investments, have an account to save for a house one day, and when you find a home that you know for sure you want to die in, buy it. Most likely your first house is not going to appreciate like it did for our parents when they bought their first homes.

I'd imagine that a $160k house isn't the one you envision for your family to have their memories in. If you saved $5k a year for ten years, you'd be 32 with $50k to put down on a home. If my maths are correct, $50k is 20% of 250k, and if you're married with a working wife, you could afford more than that. 32 ain't that far away, brother. Don't let time scare you.

you are confusing FHA PMI and conventional PMI. FHA loans the PMI never goes away and is very expensive. conventional PMI goes away at 78% and with good credit is cheap. i closed a customer with 10% down last month with 750 credit and his PMI on 168k was $56 a month.

I do agree with the pp who said it's too soon to buy...wait a couple years. Not only do you want your 20 percent down, you need a decent cash reserve: at least enough to cover the homeowners insurance hurricane deductible (2-3-5 percent of your houses insured value), as well as cover the inevitable maintenance and repair costs associated w ownership. Paying the mortgage is just the beginning.

You need to build up a credit history. You aren't going to get a mortgage with no credit history. There's nothing there to base you ability and willingness to repay the debt.

I agree with all the responses so far... i'd add that besides deciding if you want to build from the ground up (or one already built)... how stable is your job? If you are able to get a mortgage large enough to cover a house, a 20% down is a must. Why would you want to give the bank extra money (PMI) to prove to them you are worthy of your own money. Banks suck in general but ya have to go thru it..

also, wait until you have an EXTRA reserve of at least 20 grand if you dont already have the 'house supplies' including:
-fridge/ washer&dryer/ couch/ bed/ dishes/ lawnmower/ yard stuff in general/
-- what kind of cable u want (cox/ routers/ services)
-- alarm service
-- termite service
-- dont forget about your vehicle and how you will always need one of those/ tires/ oil / all that fun stuff.
-- find a location that is up and coming so that hopefully the future will appraise your future house well. hah.
- try to do a 15 yr loan if possible... why give the bank more free damn money.?
-- if your parents are wealthy enough, see if they can co-sign on a mortgage loan with you. It might help out your bottom line, since you dont have credit and havent paid anything off in life, passing thru the 'debt' stage of gaining credit.
-- id also watch House Hunters and Property Brothers on HGTV.. i watched for a year before buying and the knowledge they dish out is very accurate across any housing area in the US.

Good luck!