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Profile picture for oldieslover329

Can we afford a 350K home?

My husband and I are first time home buyers. My credit is above 720, his is just starting out. We have 10,000 for down payment. We make about 50,000 a year. When I put in the numbers in mortgage calculators online, it gives us a $145,000 estimate of what we can afford. Problem is, in our area, all you can buy with that is a garage. LOL Is there any way we can be approved for a decent 350-400,000 home? The only debt we have is a school loan of $8000, which I pay $100 monthly. We are very responsible with money, and I'm thinking we would be able to pay $1500 comfortably, maybe 1600. Please tell me there is hope!
  • May 11 2014 - Orange
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Answers (8)

We can send you a list of the properties you can afford. We think you will be pleasantly surprised.
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  • August 19 2014
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Southern CA is a tough place to buy, especially in Orange for that price range. I would recommend talking to a lender and they can give you the actual number that you can afford based off of rates, and your exact situation. Mortgage calculators can be pretty off because they cannot see your entire situation. Feel free to reach out to me, and I can help give you an accurate picture of what you can afford, and give some pointers for what you can do to plan financially to be mortgage ready.
  • May 12 2014
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You are way ahead of most because you are figuring out your budge before....
Normally, I recommend my clients visit with one or two mortgage professionals for many reasons.
-online info can be a good place to start.
-mortgages have many more factors that can only be accurately processed by a professional....
i.e.    loan programs you qualify for, current interest rates of program, in your area, your market and so on.

great question, good start, and good luck

  • May 12 2014
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For the best estimate, I would recommend speaking to an actual lender than using a calculator. A lender can give you advice on what you would need to do for your situation. For example, one way people increase their loan amount is to add a family member as a coborrower. This will allow the lender to count there income as well to increase your loan amount. The best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • May 12 2014
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This is a huge decision for you and you really need to get in touch with a Mortgage Professional that will provide you with detailed mathematical analysis of what you can get qualified for and comfortably afford. In addition to the principle & interest on the mortgage, you need to also know the additional costs of property taxes, homeowner's insurance and mortgage insurance putting less than 20% down. You need someone to help navigate you through each step of the process of qualifying and review of all of the figures so that you are not looking at homes you may not be able to afford as well as to ensure you are both qualified and comfortable with the total expense. If you need additional help or have anymore questions, my contact information is available on my Profile. All the best to you!
  • May 12 2014
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From what I see you would be wise to buy no higher than $150,000.  A lender might qualify you and even give you the loan but you will be driving the same car for a very long time and if you have children you might have to sell a couple of them, just saying.   Stay under $150,000 seriously
  • May 11 2014
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Profile picture for USMortgageRanger
Thanks for the post. With good scores that is a great place to start. The only issues i can see without further information is the income as you stated your combine household income is $50,000 of this amount you can only use a maximum of  43% for housing or $21500. This would have to cover insurance, Taxes, Principle and Interest so yes aggressively you would not qualify for more than $165,000.00. I do believe its time to make a change in location or employment. [self promotion deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • May 11 2014
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Profile picture for wetdawgs
Zillow's mortgage calculator is a little be more generous than what you've found, but still a long long way from your target of $350k.     This calculator shows you monthly payments.

It is worthwhile spending time with a lender to come up with a strategy.   You need to work on building up  your down payment  (FHA 3.5% of $350k = 12,250 and then there will be closing costs and costs such as inspection during the purchase process).    You don't want to buy and get your savings down to only a penny in your pocket because there will be expenses.       You may also wish to identify a strategy to increase your incomes or a strategy to move to an area where housing prices aren't so high.

When you calculate what you can afford monthly, are you taking into account savings for maintenance and repairs?

  • May 11 2014
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