Single woman looking to buy a home by Aug 2009 advice please!?

Question

I am a single 32 year old woman with two jobs, no kids and no husband. I am looking to buy my first home by August 2009 when my apt lease is up.

I have never purchased a home before and am seeking some advice.

I have a very good credit score of over 700. I work two jobs but only make about $28,000 a year.

Will I be able to purchase an affordable home with my low income? I do not wish to rent to own. I want to buy a detached home in the Baltimore metro area. I would like for my mortgage to be around the $600 to $700 range. Is this possible? I have been looking on this website called longandfoster.com and have seen some decent homes in this price range. Help please where do I begin and what should I be aware of so that I do not fall victim to a scam?

Answer 1

1. muve tu Kumberland, MD...median hous pries=70,000$

& persun with median inkum: 98% kan bi hous with median sales pries.

Won av the cheepest plaeses tu bi a hous in USA.

Answer 2

The first answer is correct . . . an additional piece of advice . . . most metropolitan areas (and even some banks) have a program with the tag line of "Urban Renewal" or something like that . . . generally the city will match your down payment or discount the price of the home or "co-sign" your loan if you agree to move to a certain area . . . so try looking there as well . . . your county and city administrators should be able to help you find the website . . . also remember HUD and HUD loans . . .

I bought my first home through an urban renewal plan  . . . it wasn't in a horrible area and the house wasn't run down . . . I was very pleased . . . the city of Tampa gave me a 20k credit toward a home in that area and cosigned my loan . . .

Answer 3

You should go to your bank that you have been doing business with and apply for "pre-approval"-- this means that you are already approved for a set amount mortgage by a bank so buying a home will not be a guess as to whether a bank will give you the money.  Drive around to the different neighborhoods and check out where you actually would like to live....the nicer the area-the more value the home will hold.  About 6 months before you're ready to buy- start watching all foreclosure sales--I know it's sad, but you can get a great deal on a foreclosed property and with your pre-approval, the bank will be able to accomodate your fast purchase.  Just remember that whatever the bank states you can approve may not be what you will feel comfortable spending--what if you can't work two jobs anymore?  try to purchase a home on one salary and that way you won't overextend yourself--in the mean time--SAVE, SAVE, SAVE for a good down payment.  good luck to you!

Answer 4

You seem to have yourself put together.  You've checked  your credit scores and they are decent and that's a good first start.  You really want that credit score to be above 720 to qualify for the best rate...

Although you might be able to find a lender who will lend you more, you should really follow the 28/36 rule.  This means that you should spend no more than 28% of your gross monthly income on a mortgage payment (that has to include principal, interest, taxes and insurance - both homeowner's and private mortgage insurance).  

The 36 part of the rule means that you shouldn't exceed 36% of your gross monthly income on total debt payments, that includes the mortgage, any car, student and personal loans.  It also includes credit card minimums.  Once of these two ratios will limit what you can (and should) borrow.  These ratios are called DTI (debt-to-income).  You want to be in good enough financial shape that the 28% limits your house purchase an not the 36%.  

For you, these are relatively low.  Again, showing that you have a financial clue, the 28% figure is $658 a month which is right in the range that you want to pay per month.  The 36% for you is $840 per month.  

The rule of thumb for a mortgage is between 2x and 3x your annual salary which for you works out to be $54,000-$82,000 which isn't a whole lot of money in the Baltimore metro area.  If you figure out the payment on those mortgages with taxes and insurance, you are probably looking in the $75000 range.  

I'd be most worried about someone trying to convince you that you could really afford more.   You can't.  

good luck!

Answer 5

Your mortgage payment will depend on your current debt, your income and your down payment.  How much money do you have for a down payment?  How much debt would you have besides the mortgage?  I've attached a mortgage calculator for you to check out.

You will also really have to do your homework.  Go to many websites besides the one you visited.  Find the address of the home listed, or at least the neighborhoods and drive around them.  Are the neighborhoods safe?  Find out what crime rates are and what schools are like.  

It's easy to fall in love with a home or even the idea of owning a home-it's the American dream.  But be very rational about this decision as you will be living there for a while.  Good luck!