Hi Shane, can you help me with Mortgage information too :)?

[alpha0meqa]

Hello there!

I'm planning on getting into the housing market soon. I've been pre-qualified for up to 225K and maybe higher. ---I make 44,000 a year(salary). I have 0 debt, no car payments, nothing at all like that. I put all of my expenses(food/bills) on a credit card that I immediately pay off at the end of the month(building points). I want a house in the 200-220K range(New construction). The mortgages I've been quoted are about 1200-1300$ a month. Currently my rent is 1065$(water included). 

I live a very spoiled life, I hate saying no I can't afford XYZ. I want everything that I want. So yeah I'm a spoiled brat for sure. My bills currently are around 465-4900$ (electric,cable+internet+Phone, Gas for car). My take home is around 2500$ a month(claiming 0 by the way). I could obviously do this mortgage and survive. But is it smart.....I'm just sort of scared I'll be poor.....

Questions:

Credit. EFX Facta Beacon 5.0: 790//////XPN/Fair Isaac Model II: 794////TU Fico Classic 04:780

Income. Salary: $44,000

Source of income. Employment

Monthly debt payments. I've 0 debt. Just monthly Bills(Cable+Internet/Phone/Electric/Car Gas)

Employment (for those who are employed): I work for a software company (2 1/2 years now) Full time.

Assets/Reserves. I've around 6K saved, and I'm enrolled in a 401 that is company matched. I probably wont be touching that one though. I do have a "gift" of a down payment from Family for $10,000.

Location. I live in Cary North Carolina. The house I potentially buy will likely be Raleigh/Wake Forest NC

Property: New Construction, single family home. In a community (HOA)

Value. I'm looking at around 200-220K --this is for a new home with the full upgrades for what I'm looking for. I've seen quite a few properties.

Occupancy. Currently I live in an Apartment, I think I answered this wrong....The house I be will be my new primary residence.

Transaction Type. Purchase

[DallasLoanGuy]

that is a lot of house for that income.

what are the property taxes there?  insurance on that house would cost what?

[alpha0meqa]

I believe the taxes are around 2K(I think around 168$ a month) and the Insurance was about 46$

[StartingOver10]

Remember, the house payment will be the total of Principal, Interest, Real Estate Taxes, Homeowners Insurance, Mortgage Insurance (if applicable), HOA/condo fees (if applicable).

For a house that is NOT in a HOA community where the purchase price is $220,000, as an example, using your tax and insurance rates on a FHA loan (3.5% down) at 4% for 30 years the payment will be approx $1482 including MIP.  That is more than 40% of your gross income ($44k) for the housing ratio alone. The down payment for this loan is $7700 plus closing costs and pre-paid expenses (guesstimate about $8k more unless you get the seller to contribute toward your costs).

[alpha0meqa]

Hello StartingOver,

I will definitely be doing a 5/7 year ARM instead of fixed. I'll also be putting down 5% so no FHA loan as they usually have higher PMI's. I literally have a sheet for the quoted mortgage at 1253$, and that includes HOA, Taxes, PMI, P+I, everything. 

[StartingOver10]

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@alpha0meqa wrote:

Hello StartingOver,

I will definitely be doing a 5/7 year ARM instead of fixed. I'll also be putting down 5% so no FHA loan as they usually have higher PMI's. I literally have a sheet for the quoted mortgage at 1253$, and that includes HOA, Taxes, PMI, P+I, everything. 

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That's good. Yes, the mortgage insurance in my example was about $237/mth for that FHA loan (which is heafty on a $220k purchase).