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Member
crazystr88
Posts: 6
Registered: ‎01-04-2008
0

Should I buy? Mortgage and credit questions

Hey all, I would so appreciate any advice you have.. I'm thinking of purchasing a condo because I feel that it's the right move, and I am in a situation where I will be living with people who can help pay the mortgate. (living with my sig other, and another roomate in a 2 bedrm condo hopefully)
 
My credit scores are in the high 640 range.  I got into credit trouble in college but have resolved it and have no more credit debt.  I'm 26, make 55k/yr, no car pyments, and am in school so loans will not begin until dec 2009.  I only have 5k saved for a down payment.
 
Does buying seem like a wise decision? I'd rather not rent another yr since I am ready to do this.... but am I better off renting until sep '09 and then purchasing, when my score is hopefully even better?  I am in the Boston area, where real estate is very pricey, and with the mkt being buyer-friendly right now, I feel like I should jump on it.
 
Thanks so much in advance for any replies or advice!!
Super Contributor
ShanetheMortgageMan
Posts: 8,156
Registered: ‎09-28-2007
0

Re: Should I buy? Mortgage and credit questions

How close are you to your significant other?  Marriage material?  The one thing I warn people when they are buying and relying on other's income to help pay the bills is what if they are out of the picture, how would you be able to afford the home?  Not sure what price range you are looking in, but I know Boston real estate can be pretty expensive... and am not sure if $55k/year can support the monthly payment on your own?

What are you paying in rent right now, and what type of sales price would accommodate your situation?
Member
crazystr88
Posts: 6
Registered: ‎01-04-2008
0

Re: Should I buy? Mortgage and credit questions

Thanks Shane!  Good point.. I'm in a serious rel'ship, but realize you never know what can happen..
 
I'm thinking that if it is a 2 bedroom, I will have another roomate to help.  I was planning on aiming to pay the other half on my own and save all of my sig other's contributions in an acct to be used only in emergencies.  Is this too naive of me?
 
  After taxes/insurance etc, I take home $3200/month.  My rent right now is $670/month.  Other monthly expenses add up to about $300/month...
 
I really only guessed at what mortgage I could afford.  Do you have a suggestion on a good way to predict what mortgage you can take on? Is it simply subtracting expenses from income?
 
 
Super Contributor
ShanetheMortgageMan
Posts: 8,156
Registered: ‎09-28-2007
0

Re: Should I buy? Mortgage and credit questions

Well I definitely recommend you purchase at least a 2-bedroom, preferably a 3-bedroom as those keep their values much better than anything less... as they are more desireable for families, etc, you'll have more "demand" for them.
 
I'd recommend you check out www.realtor.com and find out what homes would accommodate your living situation.

The "affordability" question comes up often, and there is no exact science on figuring out how much you can afford.  How much you can qualify for is much easier, as there are specific lender guidelines in place.. but afford?  Because each person has a different take on how one should live their life, you are going to get varying opinions on the subject.

A Excel spreadsheet that might be able to help you budget is http://www.dallasloanguy.com/MortgageCalculations.xls (created by MED - DallasLoanGuy just hosts it).  You might find this silly, but the book "Home Buying for Dummies" really gives people a good idea of what to expect during the homebuying process.
Member
crazystr88
Posts: 6
Registered: ‎01-04-2008
0

Re: Should I buy? Mortgage and credit questions

Thanks so much for the advice!
Super Contributor
ShanetheMortgageMan
Posts: 8,156
Registered: ‎09-28-2007
0

Re: Should I buy? Mortgage and credit questions


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