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Started By
Message
Another First Time Home Buyer
Posted on 1/1/12 at 9:02 pm
Posted on 1/1/12 at 9:02 pm
Looking to purchase my first home around August/September of this year and I was hoping you guys can offer me some good advice. The future wife and I bring in about $117,000 a year between the 2 of us (we're still young). The only fixed cost we have is 2 car payments, which is approx $700 a month between the 2 loans(both of us have 4 years left on the loans). We are just now really starting to save because I had to pay off the wedding ring & honeymoon.
All that being said, I was wondering the following...
1) What price range would you feel comfortable with assuming you were in our position? This is assuming you had a 5%-7% interest rate or whatever the national average is. I was thinking 200k to 230k.
2) Is it possible to get a zero down mortgage? I heard it's generally 3.5% or 5% of the purchase price and it really depends on your credit score etc. Also, I know they changed some things recently in the mortgage industry after '08, so not sure what the standard is now.
3) General advice or suggestions.
Thanks in advance
All that being said, I was wondering the following...
1) What price range would you feel comfortable with assuming you were in our position? This is assuming you had a 5%-7% interest rate or whatever the national average is. I was thinking 200k to 230k.
2) Is it possible to get a zero down mortgage? I heard it's generally 3.5% or 5% of the purchase price and it really depends on your credit score etc. Also, I know they changed some things recently in the mortgage industry after '08, so not sure what the standard is now.
3) General advice or suggestions.
Thanks in advance
This post was edited on 1/1/12 at 9:09 pm
9
Posted on 1/1/12 at 9:59 pm to RollTideATL
quote:
1) What price range would you feel comfortable with assuming you were in our position? This is assuming you had a 5%-7% interest rate or whatever the national average is. I was thinking 200k to 230k.
You'd be looking at about a 4% 30yr fixed rate for the near future. A $250k mortgage would be about $1200/month. I think that would be pretty reasonable for someone in your shape.
quote:
Is it possible to get a zero down mortgage?
With the amount of money you and your wife are pulling in, I don't know why you wouldn't save up over a few months to cover a 20% down payment. It's very difficult with the current market to not put money down. Good luck.
quote:
General advice or suggestions.
Unless you have a great place in mind, I would rent while young. You don't want to be tied down to a house when options come up.
Posted on 1/1/12 at 10:15 pm to RollTideATL
Take your time, clean up your loans and save some money.
Posted on 1/1/12 at 10:29 pm to C
quote:
You'd be looking at about a 4% 30yr fixed rate for the near future. A $250k mortgage would be about $1200/month. I think that would be pretty reasonable for someone in your shape.
Until she turns up pregnant.
Posted on 1/1/12 at 10:57 pm to RollTideATL
Save up some $$$. You can get 0 down loans (much harder now though). You can get 5-10% down. But...
you should save at least 20%. At your income level you should definitely save up the money. Its tempting to just go out and buy buy buy but it will eventually catch up to you.
Housing market isn't about to skyrocket anytime soon so take some time and save the $$. Shouldn't take too long anyhow
you should save at least 20%. At your income level you should definitely save up the money. Its tempting to just go out and buy buy buy but it will eventually catch up to you.
Housing market isn't about to skyrocket anytime soon so take some time and save the $$. Shouldn't take too long anyhow
Posted on 1/1/12 at 11:00 pm to RollTideATL
Double post
This post was edited on 1/1/12 at 11:01 pm
Posted on 1/2/12 at 12:06 am to C
Is there any benefit specifically for being a first time home buyer?
Posted on 1/2/12 at 1:57 am to RollTideATL
I would try for a 15yr loan if possible. The amount of interest saved on the loan is outrageous. The down side is that the note would probably be about 200$ more than it would for a 30 yr but you would pay it off so much faster. And, with yall's combined income, you should still be able to pull it off around 4-5%
Posted on 1/4/12 at 7:38 pm to RollTideATL
I wouldn't be looking to get the best house you can. get something that works and is in a decent neighborhood. Do the 15yr thing. Spend atleast 5-7 yrs in this house. Either save as much as you can while in it, or pay as much as you can to principle. Then when you need to get bigger better later on, you rent out your old house. It will be paid for quickly and then you have rental income that if managed right, will help with childrens school/college, and your retirement.
Posted on 1/4/12 at 8:04 pm to RollTideATL
Like everyone else has said so far, save up the money first and then buy the house. Don't rush into it.
Posted on 1/4/12 at 8:07 pm to RollTideATL
quote:
Is it possible to get a zero down mortgage?
Tough. Look at an 80/20 with a seller held second if you can. Or if you're a veteran you can do a VA loan.
Other than that 0% down is very tough. Lenders are risk aversive right now and they want borrowers to share the risk. Is there really a reason you can't put at least 5% away? For a conventional mortgage you're also going to have to have significant cash reserves in the bank after closing.
Posted on 1/4/12 at 9:07 pm to VABuckeye
Thanks everyone... good stuff here.
It sounds like I just need to sit back and watch the savings account grow for a little while. It's pretty easy to get excited about purchasing a house, but I'm sure it's even more exciting buying a house w/ a nice chunk of change and reducing some of the stress that comes w/ a mortgage.
It sounds like I just need to sit back and watch the savings account grow for a little while. It's pretty easy to get excited about purchasing a house, but I'm sure it's even more exciting buying a house w/ a nice chunk of change and reducing some of the stress that comes w/ a mortgage.
Posted on 1/4/12 at 9:29 pm to VABuckeye
Can you get a va loan more than once? I'll be buying a house within 2 to 4 years. It will be a starter home for sure. Not sure if I should use up a va zero down on a home for the first one. Obviously, I'm under the impressions you can only do that one time.
Posted on 1/4/12 at 10:41 pm to wegotdatwood
quote:
Can you get a va loan more than once? I'll be buying a house within 2 to 4 years. It will be a starter home for sure. Not sure if I should use up a va zero down on a home for the first one. Obviously, I'm under the impressions you can only do that one time.
Yes you can use it more than once. The only difference is the funding fee is higher than the 1st use, but that is the only difference.
You use up some eligibility when you buy a home, but it is restored when the home sells.
Posted on 1/4/12 at 10:43 pm to VABuckeye
quote:
Is it possible to get a zero down mortgage?
VA and USDA Rural Development.
RD loans have to be bought in a specific area, outside of metropolitan area, and has income limits based on the size of the household.
Posted on 1/4/12 at 10:59 pm to novabill
How much is the funding fee? I'm not on any disability. Could get some but damn I hear it's a hassle.
Also, do you have to pay funding fee unfront or do they tack in on the loan?
Also, do you have to pay funding fee unfront or do they tack in on the loan?
This post was edited on 1/4/12 at 11:27 pm
Posted on 1/5/12 at 1:07 am to wegotdatwood
The fee does vary. But for most 1st time users with no disability it is 2.15% and it is rolled into the loan amount.
VA is the one loan program that has gone through the mortgage meltdown without many changes. It is the best program available in my opinion.
VA is the one loan program that has gone through the mortgage meltdown without many changes. It is the best program available in my opinion.
Posted on 1/5/12 at 1:35 am to novabill
So the only cost I would have getting into a house is closing costs?
Posted on 1/5/12 at 6:55 am to wegotdatwood
I have a VA loan and i had to put up 3.5%. The seller paid the closing costs
Posted on 1/5/12 at 7:15 am to wegotdatwood
Yes. Unless the seller pays that for you, which is common.
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