Am i able to afford this much for a home?

Question

So i make $85,000 a year and then in a month that would be about $7-8,000 a month.And for bills about 350.00.And also costs of other things too so i'd probably have $6,000 leftover.So would i be able to afford a $275,000 home?If not please tell me some other ideas?

Answer 1

I'd be very careful if I were you. If this is your first home, I'd try to find something less. I know it's tough these days with the price of homes but your also buying at a good time where you can negotiate the price. Have you already started making that amount? And do you actually bring home between 7-8K a month?  And would you actually have about $6000 left over. Be very honest with yourself about your bills and the cost of things. Something doesn't seem right. Taxes are a big chunk. And if I were you, I would also look into a 401K and find out if your company contributes or matches what you put in. Start saving now and get use to having it come out of your check.

How big is the house? That will affect the power bill. We have a 2300 square foot house and just that bill alone during the summer is about $320. Then you have water, garbage, cable, internet, food, etc. You also need to consider your credit and what the interest will be. Are you putting any money down or will you finance the whole amount? You don't say where you live now and what living expenses you have. Before committing, figure out about how much your mortgage will be. Start saving that amount along with an overestimate of what you think the other expenses are (they are always more than you think). Then consider in a car payment, car repairs, medical deductibles, etc. Maybe you don't have those now, but you will while your still paying that hefty mortgage.

It's very easy to get caught up in the home buying process. The idea of finally owning instead of renting. But just like getting a new car, after about 6 months, it becomes a pain sending that check out each month.

By the way, aren't you in high school? How can you be making $85K a year!

Answer 2

Rule of thumb:  housing costs shouldn't be more than 1/4 of income

when you add in taxes, insurance, utilities, assessments, still not more than 1/3.

DON'T overextend yourself.  Don't buy more home than you can easily afford.  There are bargains in houses to be found, but you can get yourself in too deep.

Answer 3

Firt Start only one Credit Card, Stop buy and buy.