What would be the most you would be my advice to pass on a house?

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I’m in Fargo, ND .- income is $ 25,000 No credit card debts and credit score of 700 – to pay my credit standing with two years left on very low interest rates, car payment of 140 $ month-1 semester student loans ($ 7,000) are – the rest I did part-time, the treasury of the situation before life – the basement of the house would be home for a friend and me (he rent each month to pay for me) – ground floor would be where I would be converted to operate solely my new GeschäftWas you suggest the price range that I we be? And deposit *? I had been looking to lease space in my new business, but many of the monthly rent exceeds the mortgage, say, a $ 75,000 house in my area. A house of best fit for my particular business, it would be as well!

7 Comments
  1. Reply
    njyogibear
    May 1, 2011 at 5:13 am

    figure out what size monthly payment you can afford, and take it from there. and remember, you will have other expenses with a house…like when the fridge or water heater break down and you don’t have a landlord to call.

  2. Reply
    PupPyLoVE4
    May 1, 2011 at 6:04 am

    i would get a 15 yr. fixed rate loan and then the monthly pymts should be no more than 25% of your monthly income…..so whatever would work with that.

  3. Reply
    Michael S
    May 1, 2011 at 6:43 am

    Banks do not want your housing cost to exceed 35% of your income.

  4. Reply
    Desert Dweeb
    May 1, 2011 at 7:38 am

    Figure 30% of 25,000 is $ 7500. $ 7500 devided by 12= $ 625 a Month recommended payment. $ 70,000 is about the right neighborhood. 20% down is about $ 14,000. Hope this helps.

  5. Reply
    capricorn one
    May 1, 2011 at 7:51 am

    with your incomw and bills cap the payment at 450 to 550 a month! you can buy a 85,000 house offer them 65 k and that should work for you! be careful sweetie,research everything!!!!!!,plus buyahome warranty!

  6. Reply
    Mike
    May 1, 2011 at 7:56 am

    You indicate that you are starting a new business.

    It may be some time before your new business begins to produce income.

    Do you have another source of income other than your new business?

    I recommend that you do not rely on receiving income at all from a new business for at least two years.

    Also a new business will place demands on your other income.

    I recommend that you keep the purchase price low. do not let the Real Estate Agents or the loan officers encourage you to buy the maximum amount of house that you qualify for.

    Unfortunately the guidelines used to qualify you for a loan are based on the income of someone who receives a regular salary not on the uncertainties of the income of a new busines owner.

    When starting a business the first year or two are generally very uncertain.

    In fact a good lender will want to see at least a two years history of consistent income from your business before they will even count that income from your business to help you qualify you for a loan.

    Also consider how much you are paying in rent now.

    When you are starting a new business I recommend that you do not get a mortgage that has a monthly payment that is any higher than what you are paying now in rent.

  7. Reply
    Irisheyes
    May 1, 2011 at 8:04 am

    Hi

    Credit union’s don’t do anything for your credit
    rating. Banks will only lend you 80% of what you make
    per year. Maybe you should think about a condo or town
    house. They cost less money and will help your credit when
    your ready for a house. But I would check with your bank
    about a loan and how much you can borrow. I think getting
    into debt right now isn’t a good idea. Wait and see what’s
    happening with the economy. Good Luck

    Irisheyes

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