Buying Home Question

You can afford a house in that range. It might be a little tight but it's doable

If you finance 150k @ 4.5% for 30 years, the note is $760 plus taxes and insurance (and possibly PMI). I would estimate them to be an additional $150-$200, and that's if you are not in a flood zone. So the note could be around $960/month for a 150k mortgage.

$960 note / $2400 per month = 40% PTI

Normal PTI ratios are up to 29% max. I do not believe that a lender would approve you for that. Also, the lenders might look at it poorly that you have only been out in the full time workforce for a short amount of time.

IMO you should wait until you get settled in and get a raise before you try to buy. Even then I think that PTI would be a little tight. A roommate to defer some of the costs might also be a good idea.

Money down to help reduce the monthly note will be hard to come by since you haven't worked for that long. Also, keep in mind you need to plan to be in the same house for a few years to get above water.

Make sure to add in taxes and HOA dues. I found plenty of places I could afford if it weren't for the taxes. And go ahead and dig up your past few years of tax returns now so you'll have them when the underwriter asks.

quote:

---

You may have trouble getting financed due to lack of work history. Last time I refied they needed 2 yrs w2s.

---

It's not such a hard and fast rule with recent college graduates. However, a 23 year old just out of college may have a problem having the credit score necessary to qualify and sufficient cash reserves to close on the loan.