Do I have enough to buy a house?

Deal Score0

I have $ 4000 saved and about $ 12000 of available credit on cards. My cards are at zero balance and I have a FICO score of 720. Right now I can only afford around a $ 1350 payment for a mortgage + insurance and tax. Right now I am able to save around an additional $ 300 per month. I live near Milwaukee, WI and I’m thinking of buying a house in September when my apartment lease is up. Should I wait to buy a home? Based on searches on www.amerisave.com I can get first and second mortgage combo loan 30 year fixed that would allow me to pay little in up front loan costs. Is it worth it to wait another year and save more for the down payment/points payment? Or should I just get in as soon as possible and take a 0% to 3% down loan while I just pay points? I’m just not sure what the best option is. Thanks!

2 Comments
  1. Reply
    rukara n
    May 1, 2011 at 7:34 am

    The best thing to do is contact a loan officer who will anlyse your financial situation and recommend the best option for you. Your income and credit rating are the key factors. You may get free loan analysis and advice here:

  2. Reply
    fiftycentsthisyear
    May 1, 2011 at 7:44 am

    You have a mix of issues. First your down payment is low for a buyer. That might stop you. On the other hand your creditscore is very good. You didn’t indicate what your income is and that will be very important. Your right to be looking at a fixed rate. Now for the big question. Location, Location, Location!!! How is the economy in your area? Baby boomers are not going to need houses in the near future. Many parts of thecountry will have a glut of homes on the market. Additionally, the market is damaged right now. My belief is that it will get worse over the next 24 months. Its just a guess though. Is your goal to buy and stay in the house for 20 years, or are you looking to get a starter and move up every four or five years? If your looking for very long term it might be okay to jump now but if you are planning to move in four or five years you might not breakeven. That would really hurt. My position is that rates and prices will be lower a year from now. Further I wouldn’t jump into a first and second. Your giong to have some unexpected cost and you could end up very strapped. Here is an idea though. When I bought my first house I got two friends to rent rooms for the first year. They signed conditional leases. (If I got the house they would move in) I took those leases with me to my bank and the bank approved my loan at a better rate than they had quoted me. Lastly- I was advised not to purchase but went ahead- that house went 3x over the next 10 years. The person who advised me was very smart, I was very lucky. It pays to be lucky. Anyway– Good luck!!

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