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It all depends upon your:
1. credit score (kinda) 2. annual salary 3. down payment amount 4. mandatory monthly bills (car note, student loans, credit cards, child support, tax liens, etc)
take your GROSS annual salary and divide by 12 take that number and multiply by 0.40
that is the MAXIMUM you can "safely" be approved for a mortgage for i think technically you can go up to 49.9% of your gross but i said "SAFELY" be approved for
now, go find a house that is that amount or less for mortgage, taxes, and insurance and you're set.
i wouldn't put my personal biz on OKP and i'm sure you wouldnt the quick and easy way to determine how much you can afford to spend on a house is to go to ANY BANK and ask to get pre-approved for a mortgage they will run your credit and ask a grip of financial questions might take 30-45 mins to get through the process once done, they will let your know how much house you can afford
this amount is also determined by your credit score
FHA loans are back by the federal govt and aren't too strict on credit score but they usually cost more than conventional loans
if you're saving 18% of your gross income i'd say that's damn great but of course it depends how much you make if you gross $8,000 per month and save $1,440 per month FABULOUS but if you make $3,000 per month and save $540 per month that's nice too but not as sexy as saving almost three times that amount
what zip code do you live in and what zip code(s) are you looking to buy in?
if you just tell me where you are looking to buy in i can easily tell you how much you need to earn in order to buy there
>I'm not financially illiterate, but my family struggled my >entire life. I budget. Currently, I save 18% of my gross >income. I'm trying to do better, but the idea of homeownership >is something that I'm not all together comfortable with. The >amount of debt and everything that comes with it, but at the >same time, I see rich white folks starting to come into the >neighborhood... > >Anyways, I've been looking at buying at house using a first >time home buyers program to get a house before gentrification >pushes all the poor black and ethnic folk out, for a few >months. It's already started to happen and particularly, for >the location I want, I need to act fairly quickly, if I'm >going to make it happen. > >What do I need to do? What do I need to know? What do I need >to be aware of? How do I know much house I can afford? How >much should I allow my student loans to factor into this? What >resources can I turn to? > >It sounds like your other post I should be looking for a 70K >house that I can comfortably afford in case something pops up, >I can roll with the punches fairly easily, but 70K doesn't go >far where I'm at. Or maybe I just don't know how to look.
**** pink toes: http://i.imgur.com/WN7DPL1
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