[Shelby]

Hi all, these may be some silly questions, but wanted! I’m starting to lean into buying a home for the first time. I’ve attempted to use some online calculators to see how much of a home and mortgage I could afford, but they don’t seem to be very realistic.

Is there a calculation that’s somewhat accurate or trusted website that you all would recommend?

What would you consider to be a solid or even minimum down payment? Who would you recommend speaking to about these things?

Some background info: I’m in Oklahoma, US, live alone, have no debt, own my car, 24 y/o, have a fair amount in savings, credit score is in the mid 700’s, make about $45k a year, live pretty frugally, currently renting, almost done with my masters (not even sure if that matters at all lol)

[Josie]

It sounds to me that you have a lot under control, so I have no advice, but good luck with your Masters.

[Stephanie]

If you know where you want to buy a house and you know the realtor you want to use talk to them about preferred lenders or mortgage brokers and then talk to that person because they will help you.

If you don’t know any of that contact a mortgage broker in person.

That isn’t one of the online chain type brokers because they’re kind of a pain.

You want to go to an individual that works for you.

[Kaylene]

Talk to a lender. Then borrow significantly less than they say you can. I’d say aim for a minimum 20% down.

And remember, no matter how nice they are realtors make more money the more you spend AND banks make more the more you borrow.

So don’t let either one talk you into taking on more debt than you can comfortably repay.

[Penny]

I suggest you visit a lender who can go over all the different types of loans and determine your eligibility.

[Shawyna]

I am in OK as well and we made a choice to buy well below what we could he qualified for, we did 0% down and a usda loan for our first home.

What county are you in because 270k is extremely high for most of Oklahoma (we sold a house at lake Texoma for under 250k last year) so with 45k if you look at smaller towns you can find many homes still under 100k.

[Susan]

Talk to a mortgage person at a bank but do NOT buy a house as expensive as what they say. Try to do a 15 yr mortgage.

If you have 20% down you won’t have to buy the mortgage insurance.

[Lori]

Yes, 1 of the program for first time home buyers is the U.S.D.A. I would do it quick tho because of all these new budget cuts coming
My son used them 6 years ago

[Pia]

Don’t believe the bank when they tell you how much they are willing to lend you based on what you can afford.

That’s how lots of people lost their houses.

[Nancy]

There are loan calculators online. Keep in mind there will also be property taxes, home owners insurance, maintenance and other expenses you are not used to paying for (like clogged plumbing or landscaping or remodeling).

With that said, you sure sound like you’ve got it more together than I did when I bought my house.

[Brenda]

The actual mortgage payment is only part of the consideration. Property taxes, homeowners insurance and possible mortgage insurance need to be considered.

Because those vary by area it’s best to meet with a lender to determine max payment.

A good loan officer will go over the full breakdown with you and provide at least 3 different loan scenarios based on varying down payments.

[Lisa]

Depends on your mortgage lender. You should start with finding that first.

Sometimes a well connected realtor can help with that, not always

[Tammy]

Bankratedotcom was good when I worked. I would speak to a loan officer. They can help you!

[Carolyn]

A good mortgage lender is your next step. Lots of great advice here! You should also know that for a pre-approval they’ll need to get a current credit report.

When a few mortgage lenders get your credit within a 30 day period it does NOT harm your score like it does for other purpose credit inquiries.

This is somewhat newer, and a protection offered so you can shop around and find the right Mortgage Originator for you.

[Diana]

Do a Google search for first time homebuyer programs for your state, County and even the town you may want to live. If it’s rural, also check the USDA.

I was able to purchase a home with lower interest, lower down-payment, a down-payment assistance grant and closing grant.

Each had a limit of how long I had to be in the house *or my repayment of the grants wld be prorated.

This was in NY. I’ve recommended this to others more recently and it still holds true.

[Kay]

I would wait a few more years…save for a bigger down payment. Visit the areas your interested in and look up homes in the areas to see how much yearly taxes are.

Closer to city’s the higher the yearly taxes … especially now

[Johnson]

What kind of down payment have you saved up
That is question 1 or 2 when trying to buy a house

Income
Debt
Those 3 things
Credit score
A basic budget says that

Your housing should be 1/3rd of your income or less
That is where the idea of making 3x the rent to rent places comes from

[Mary]

DO IT ! ASAP !! housing costs are going up. maybe not as bad in some states – but I am tellling you, gentrification is coming! and when it hits, you won’t be able to buy a house. get one now !!!!

as others have advised – talk to the loan officers at sever diff. banks or cred. unions.

(shoppping around type of thing) owning your own home is the best hedge against inflation. renting – you could get kicked out.

your rent willll go up with inflation. home interest is a good tax deduction (see fed form A) don’t wait!!! and don’t buy a home that is part of an HOA. good luck!!!!

[Gina]

As a homeowner, former escrow officer & real estate agent, I say this: look to see if there are any 1st time Buyer programs in your area/city that can give you a grant to help with the down payment. Lenders sometimes have 1st time Buyer programs as well.

Once you’ve calculated how much of a mortgage the bank says you can afford, reduce that amount by $50,000.

They always tell you the max you can afford. You don’t want to be cash poor, eating Top Ramen 2 weeks out of 4 just so you can pay your mortgage. I would put down 20%.

That way you won’t have to pay Private Mortgage Insurance if you get a conventional loan. PMI will make your monthly payments higher & it’s not tax deductible.

Same with Mortgage Insurance Premiums (MIP) on FHA loans & you will have this for the life of an FHA loan.

I have found that since credit unions are non-profit, their closing costs & interest rates are lower. So, if you can join a reputable credit union, that’ll be the ticket.

I hope this helps.

[Barbara]

Rocket Mortgage has a good calculator. You probably are not ready to buy a home. Hopefully your Masters will bring a bigger income.

Ideally 20% down and a 15 year mortgage.

Home ownership is expensive-I budget about 3% of my home value each year for maintenance/repairs-you won’t need to use it each year but the day will come-roof, HVAC, etc.

You are on a good path.

[Gloria]

You should be able to get pre-approval. Go with what you would be comfortable with paying for rent.

Be aware that in addition to your note there is insurance and taxes to pay.

Your mortgage company will include those in your payment so include that in your calculations.

[Mary]

Do not listen to nay sayers. I bought a house with less income than you and it is great!!!!! Try it. Go to your bank and a nice local credit union and a local mortgage company.

Ask a lot of questions.

Get educated! You wont know until you try!!!!! I put 0 down, paid 5000 in closing costs. There are hundreds of programs for loans.

Go do it! If you get turned down you will then know what needs to get fixed!Good luck!!!

[Kristel]

What I suggest to everyone is to set aside each month the difference between your rent and the cost of a mortgage, insurance, and taxes. Add $100 because you’ll need to be able to set aside some for repairs etc.

By the time you are ready to buy, you will have money to help pay for moving costs and things like painting and maybe a lawn mower etc.

that many people don’t consider in the cost of ownership.

If you can’t reliably do this over an entire year, you want a house that is too expensive for you.

Banks and real estate agents make more money if they get you into a house that is more than you truly can afford.

Also, take into consideration your repayment terms for your student loans if you have any.

We always think we will be better off financially tomorrow than we are today.

Don’t fall into that trap or you’ll be house poor.

[Louise]

Buy something way beneath what your income says you can afford. I sold real estate. Often new buyers came into the office and said they were approved for x amount of dollars.

Later on, I saw them lose their homes. Home ownership comes with taxes, insurance, repairs, maintenance and sometimes scary things that happen.

Be prepared with enough money in the bank to not be house poor.

Talk to a couple banks. Find out how you fit in the world of loans and see what they think you can afford, and buy beneath that.

When buying, do good research on the shape of the electricity, heating and cooling systems, foundation and if a basement the basement, and the roof and windows and doors and insulation of the home.

Those are the most expensive things in a home. Dreary walls can be painted. Old fashioned faucets can be replaced. Dwell on the major things in a home and see through the decorating nightmares. Jewels can be underneath. Get a home inspection.

Make sure you accompany him as he inspects. Do not get someone that a realtor has recommended. Find someone either through word of mouth or by other research.

Good luck.

[Author]

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