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Anyone know anything about real estate?

Does it sound like someone who makes $23,000 a year could be approved for a home worth about $189,000. Tell me the truth!

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Anonymous

Asked by Anonymous at 7:13 PM on Apr. 21, 2009 in Money & Work

Answers (6)
  • Wow..thats a hefty mortgage. Google mortgage calculators and it should be able to give you an estimate
    Amy_M

    Answer by Amy_M at 7:18 PM on Apr. 21, 2009

  • Probably not anymore. 5 years ago yeah I'm sure someone would have found you a lender...Loan requirement are pretty harsh these days, they will probably expect you to have a down payment too.
    prettyrayray

    Answer by prettyrayray at 7:27 PM on Apr. 21, 2009

  • No Way, not a chance. Your mortgage payment BEFORE taxes and insurance would be $1100 per month. That is more than half your monthly pay. Banks won't give more than 35% of your pay and these days it's more likely to be 25%.
    You do NOT want to put yourself into that situation anyways, you would be setting yourself up for a major failure if you put so much at risk. Find a mortgage calculator online and play with numbers to find out what you can really afford in a mortgage. Remember that you want to keep the monthly payment at 25% of your pay.
    slw123

    Answer by slw123 at 9:34 PM on Apr. 21, 2009

  • I think you could be approved if you have excellent credit history, no other debt, you have a solid career and you've been at your current job for three years.

    If you get a 5% interest rate, your payments will be $1100 a month. But if you get an 8% interest rate it will be closer to $1400 a month. Really, it would be better to save up until you have a huge down payment. Keep in mind that buying a home requires you to maintain it- not the land lord. Things will get broken, and it's your responsibility to fix it or replace it.

    In the words of Dave Ramsey, "Homes should be a blessing not a burden."
    Erica_Smerica

    Answer by Erica_Smerica at 9:56 PM on Apr. 21, 2009

  • How could that be enough income? a mortgage can be anywhere from $800 to $2200. But on a 23K a yr. job? hmmm......
    Gigi1969

    Answer by Gigi1969 at 11:18 PM on Apr. 21, 2009

  • Your monthly mortgage and property taxes should not be more than 1/3 of your monthly income.
    rkoloms

    Answer by rkoloms at 6:51 PM on Apr. 22, 2009

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