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itsbabytime
LIF Adult
Member since 11/05 9644 total posts
Name:
Me
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Q about beginning buying process
Hi ladies, We are thinking of starting to look to buy a home. I am clueless and have what will probably seem to be an obvious question. If I know how much I can put down and how much my I want my monthly mortgage payments to be how can I figure out what price range we should be looking in. Or, in the reverse, if I know what I can put down, assuming an average interest rate, how can I figure out what my monthly payments will be. Also, is there an average amount above which you usually cannot get a mortgage? Or, as long as you can make the payments can you get what for whatever amount? TIA 
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Posted 7/27/07 10:23 AM  |
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Prudential Douglas Elliman Real Estate
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Q about beginning buying process
What you can afford goes way beyond your mortgage payments - it includes utilities, savings, car payments, insurance, vacations...if you have a child(ren).
Your best bet is to sit down with someone - if you get serious about a house, you will need a pre-approval anyway. It will give you direction and leave out the guess work.
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| Posted 7/27/07 10:27 AM |
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itsbabytime
LIF Adult
Member since 11/05 9644 total posts
Name:
Me
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Re: Q about beginning buying process
Posted by ~Colleen~
What you can afford goes way beyond your mortgage payments - it includes utilities, savings, car payments, insurance, vacations...if you have a child(ren).
Your best bet is to sit down with someone - if you get serious about a house, you will need a pre-approval anyway. It will give you direction and leave out the guess work.
Thanks for your response. I understand what you are saying. Basically we rent now and have all those expenses in addition so I was figuring we could afford a monthly mortgage in the same range as our rent is (taking into account that we will have some extra expenses such as property tax etc). I know this is a rough approximation but do you think this is the wrong way to do it just to get a rough idea. Because we kind of what to have an idea of what we can afford now to decide if we want to buy vs. rent.
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| Posted 7/27/07 10:32 AM |
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alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
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Re: Q about beginning buying process
if you want a quick estimate of your monthly mortgage payments figure this:
its about $700/month (based on the current interest rate) for every $100k you borrow.
so for a $400k mortgage its about $2800 a month plus taxes.
HTH!
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| Posted 7/27/07 10:35 AM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Q about beginning buying process
Posted by itsbabytime
Thanks for your response. I understand what you are saying. Basically we rent now and have all those expenses in addition so I was figuring we could afford a monthly mortgage in the same range as our rent is (taking into account that we will have some extra expenses such as property tax etc). I know this is a rough approximation but do you think this is the wrong way to do it just to get a rough idea. Because we kind of what to have an idea of what we can afford now to decide if we want to buy vs. rent.
Honestly, yes, I think it's a bad idea. Not awful...but you don't want to be guessing when you find a house you absolutely love only to find out you won't be approved for the mortgage you need.
Don't forget, as a renter you aren't responsible for anything...as a home owner, the onus is always on you. The boiler goes, the roof leaks, etc. It all adds up.
It doesn't hurt to do the open house circuit - but if you are really serious about a home, you will need a pre-approval letter with your offer. At some point you will need to sit down with someone - and you don't need to commit to the person you sit with - but it will need to be done.
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| Posted 7/27/07 10:36 AM |
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itsbabytime
LIF Adult
Member since 11/05 9644 total posts
Name:
Me
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Re: Q about beginning buying process
Posted by ~Colleen~
Posted by itsbabytime
Thanks for your response. I understand what you are saying. Basically we rent now and have all those expenses in addition so I was figuring we could afford a monthly mortgage in the same range as our rent is (taking into account that we will have some extra expenses such as property tax etc). I know this is a rough approximation but do you think this is the wrong way to do it just to get a rough idea. Because we kind of what to have an idea of what we can afford now to decide if we want to buy vs. rent.
Honestly, yes, I think it's a bad idea. Not awful...but you don't want to be guessing when you find a house you absolutely love only to find out you won't be approved for the mortgage you need.
Don't forget, as a renter you aren't responsible for anything...as a home owner, the onus is always on you. The boiler goes, the roof leaks, etc. It all adds up.
It doesn't hurt to do the open house circuit - but if you are really serious about a home, you will need a pre-approval letter with your offer. At some point you will need to sit down with someone - and you don't need to commit to the person you sit with - but it will need to be done.
Thanks again, I totally understand what you are saying. RIght now all I was looking for is a rough estimate. I currently live in the city and am paying $$$$ for rent and living expenses and since my rent is going up again I was just curious how much house I could afford with the ridiculous amount I am paying. I guess what I am saying is if I can afford the kind of house I would want I will start the process you describe but if not didn't want to waste the time and would put it off for another year. Lazy, I know  I was just hoping to get a rough estimate of what range before making a decision. Thanks again.
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| Posted 7/27/07 10:42 AM |
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itsbabytime
LIF Adult
Member since 11/05 9644 total posts
Name:
Me
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Re: Q about beginning buying process
Posted by alnem
if you want a quick estimate of your monthly mortgage payments figure this:
its about $700/month (based on the current interest rate) for every $100k you borrow.
so for a $400k mortgage its about $2800 a month plus taxes.
HTH!
Thanks very much!
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| Posted 7/27/07 10:42 AM |
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