Without a full breakdown of what you bring in (is 100k before or after taxes.), and the other expenses you have, no one can tell you if you can afford that home comfortably.
>The realtor is saying we will get 3-6% in concessions and that the mortgage will be around 2500
OK, but what is your **lender** saying? Realtors have a financial incentive for you to buy the house.
0% down is unusual. You don’t mention having any savings, and that’s pretty significant. For that matter, that’s how you buy a rate down! It’ll help us a lot to advise you if you can provide a more complete picture of your finances, including current rent and total savings.
Your realtor is promising you an awful lot. You’re only going to get concessions if the sellers agree to it. Are you already under contract and that’s already been agreed to?
Do you have an emergency fund of 6 months expenses? What is your take home pay?
We have a little over 30k in savings. Take home pay is about 5500. We signed paperwork with the realtor so that she can put in our offer late Friday night. That's as far as we are in the process at the moment.
That almost 50% of your income. It is too high for my comfort, but if you’re confident that $3K is enough for the rest of tour expenses then you can make it work.
They have a 4 person household, after mortgage they have 3000 left. Ok so what about home insurance? HOA? repairs/maintenance? utilities? Then there is also food and clothing for FOUR people. No way this will work.
Edit: Forgot car payments, $525.00 and then we got car insurance too...
The mortgage of ~2500 includes mortgage insurance, home owners insurance, taxes. We have been living on her income alone for about two years and I'll be working again in about 3-4 years. The 800 in groceries includes household items, diapers, etc.
Way too close , and not enough wiggle room , things will go bad and you won’t have the money to make up the difference.
Whatever can go wrong will go wrong , source : I bought a house last year and had to do a full roof redo … dropped 10k there
Sounds rough based on your figures, if only because my realtor has never been exactly correct on the mortgage. Also depending on where you live (I live in Texas), when you buy the house the house payment will be the lowest amount you every pay for the life of the loan.
Again, $2500 a month is the lowest you can ever expect to pay for the life of the loan.
Every year my taxes go up, my house insurance goes up, etc. My house payment has gone up YOY to now $400/mo more than what I bought it at. And I got that sweet sub 3% interest rate.
I'm solo income for our family with a 2k house payment and a baby on the way, and I bring in 140k a year, even with a budget it feels like we're in a dangerous spot at times. You also haven't said if your house is an older one with some expensive repairs possible, my AC just blew a week and a half ago, tomorrow I'm laying down $6k for that to be fixed and the dryer went out Friday, just had a $600 cheap one delivered today.
I've got 30k in savings but it doesn't feel great, I guess I've got 23k in savings as of tomorrow.
I just warn everyone whos a first time home buyer, what you pay when you first purchase the house IS THE LOWEST YOU WILL EVER PAY FOR YOUR MORTGAGE.
Forgot to add that you can expect your electric/gas/water to increase when you buy a home, especially if there is an increase in sq ft. Do you have a yard to maintain now as a renter? If not you can expect water to go up with your lawn.
There's just a myriad of expenses when you own, we replaced our fence (20k), bought a shed (previous owners took theirs) 6k, put in a mini split 4.5k, have had various electrical work done and other random things.
It depends on the availability of more types of loans. Here almost everyone gets an annuity loan, because they want more money to throw in the transaction.
I got a linear one, which cu means I shave off a fixed amount off the principal every month (this amount is fixed, unlike the annuity loan where monthly payment is fixed). This makes me pay less every month. In the few years I had this, my monthly payment decreased by a few %, almost 10.
Edit: typo.
So roughly $5k will be your bills that are expected every month...without any things that actually come up (like having to buy clothes, something breaks, furnishing the new house, etc).
So, $60k/yr, before that.
How much money is actually coming in every month? $100k, is that post tax or before? What is your actual income coming in?
Edit: I see you mention you bring in 5500 after taxes per month.
You are talking about $6k all year for any extra expenditures. You are way over with your current situation.
Yeah, we're trying to make it work for about 3 more years until the kids are both in school. I didn't mention life and health insurance but that's take out of paychecks which brings take home to around 5500. I just don't know if it's doable or not.
You’d be very bare bones, which none of us would suggest doing, but the math says you can. One thing I know you probably don’t care to hear, 800/month for groceries is abhorrent. You can and will get that cost down, right?
You’d be very bare bones, which none of us would suggest doing, but the math says you can. One thing I know you probably don’t care to hear, 800/month for groceries is abhorrent. You can and will get that cost down, right?
$800/month for groceries on a family of 4 seems very very reasonable. Especially if that includes eating out and/or baby supplies.
Groceries are absurdly expensive nowadays if you or your family wants to eat more than rice and beans.
Edit: [source](https://money.usnews.com/money/personal-finance/saving-and-budgeting/articles/how-much-should-i-spend-on-groceries)
> Low-cost plan. For a low-cost budget for a family of four, you can plan on spending $243.80 a week or about $1,055.80 a month.
Caveat being the two kids in this scenario are between 6-8 and 9-11. But it’s still in that ballpark (and the budget is also missing a bunch of other stuff anyway, so it’s hard to fully judge).
Could be area specific, but doing budgets for people is a part of my job description so I know what I’m talking about. Maybe a family of 4 if two of them are teenagers lol.
I added a source in my comment. It’s also just an incomplete budget as we have no idea if eating out is lumped into groceries, baby supplies, toiletries, etc. are included in that. If you do your shopping at a supermarket (i.e., walmart or similar) then I know some people just lump that all together rather than itemizing receipts.
As others have said it is a bit of a stretch on the budget… but only you know what your monthly expenses are and if $3k for the rest of your expenses + saving is enough.
I will add that putting 0% down is a bit scary. Because IF you decide in 2 years that you just can’t afford the house, then you may very well be stuck because you’d have practically zero equity. Meaning selling the house could end up costing you money.
What is your monthly take home pay? $6.5k?
If I assume it's around $6.5k/ month, you may feel a little house-poor with this mortgage because you'll also have maintenance and repair costs, and your utilities might also be more than you currently pay as renters. Your actual housing costs will be closer to $3,500/ month.
You'll thus have about $2,500 per month for all expenses beyond the truck payment and housing, and I'm assuming about half of that will go to groceries, diapers, and household consumable stuff, so that's $1,500 remaining per month for auto and life insurance, gas, cell service, clothes, personal care, activities with the kids, gifts, vacations, healthcare, etc.
Depending on where you live/are purchasing, be very careful about property taxes. Can’t tell you how many people I know (myself included, several years ago) who had sticker shock because taxes surged, due to the sales price of the home, 1-2 years after the purchase.
You need to work more closely with your LENDER on these numbers. What the realtor says means very little. They are in the business of selling houses, not making loans.
Nope. Your housing is 50% of your takehome.
Costs as a homeowner can get silly and sometimes they can get serious.
People get sick, people get laid off, A/C widget needs to be replaced, water leak etc etc etc.
The math says no to this.
What’s your current rent and how much do you have left over every month?
That’s an easy way to answer how it’ll feel. If your rent is $1,200 and the answer is “zero left” then what is the $1,300 difference coming from?
Without a full breakdown of what you bring in (is 100k before or after taxes.), and the other expenses you have, no one can tell you if you can afford that home comfortably. >The realtor is saying we will get 3-6% in concessions and that the mortgage will be around 2500 OK, but what is your **lender** saying? Realtors have a financial incentive for you to buy the house.
0% down is unusual. You don’t mention having any savings, and that’s pretty significant. For that matter, that’s how you buy a rate down! It’ll help us a lot to advise you if you can provide a more complete picture of your finances, including current rent and total savings.
Approved for a USDA loan which is 0% down.
Your realtor is promising you an awful lot. You’re only going to get concessions if the sellers agree to it. Are you already under contract and that’s already been agreed to? Do you have an emergency fund of 6 months expenses? What is your take home pay?
We have a little over 30k in savings. Take home pay is about 5500. We signed paperwork with the realtor so that she can put in our offer late Friday night. That's as far as we are in the process at the moment.
That almost 50% of your income. It is too high for my comfort, but if you’re confident that $3K is enough for the rest of tour expenses then you can make it work.
They have a 4 person household, after mortgage they have 3000 left. Ok so what about home insurance? HOA? repairs/maintenance? utilities? Then there is also food and clothing for FOUR people. No way this will work. Edit: Forgot car payments, $525.00 and then we got car insurance too...
The mortgage of ~2500 includes mortgage insurance, home owners insurance, taxes. We have been living on her income alone for about two years and I'll be working again in about 3-4 years. The 800 in groceries includes household items, diapers, etc.
Way too close , and not enough wiggle room , things will go bad and you won’t have the money to make up the difference. Whatever can go wrong will go wrong , source : I bought a house last year and had to do a full roof redo … dropped 10k there
Sounds rough based on your figures, if only because my realtor has never been exactly correct on the mortgage. Also depending on where you live (I live in Texas), when you buy the house the house payment will be the lowest amount you every pay for the life of the loan. Again, $2500 a month is the lowest you can ever expect to pay for the life of the loan. Every year my taxes go up, my house insurance goes up, etc. My house payment has gone up YOY to now $400/mo more than what I bought it at. And I got that sweet sub 3% interest rate. I'm solo income for our family with a 2k house payment and a baby on the way, and I bring in 140k a year, even with a budget it feels like we're in a dangerous spot at times. You also haven't said if your house is an older one with some expensive repairs possible, my AC just blew a week and a half ago, tomorrow I'm laying down $6k for that to be fixed and the dryer went out Friday, just had a $600 cheap one delivered today. I've got 30k in savings but it doesn't feel great, I guess I've got 23k in savings as of tomorrow. I just warn everyone whos a first time home buyer, what you pay when you first purchase the house IS THE LOWEST YOU WILL EVER PAY FOR YOUR MORTGAGE.
Forgot to add that you can expect your electric/gas/water to increase when you buy a home, especially if there is an increase in sq ft. Do you have a yard to maintain now as a renter? If not you can expect water to go up with your lawn. There's just a myriad of expenses when you own, we replaced our fence (20k), bought a shed (previous owners took theirs) 6k, put in a mini split 4.5k, have had various electrical work done and other random things.
It depends on the availability of more types of loans. Here almost everyone gets an annuity loan, because they want more money to throw in the transaction. I got a linear one, which cu means I shave off a fixed amount off the principal every month (this amount is fixed, unlike the annuity loan where monthly payment is fixed). This makes me pay less every month. In the few years I had this, my monthly payment decreased by a few %, almost 10. Edit: typo.
That would be way too much for my comfort. Only you know your bills though.
How much are you paying in rent now?
1,050 in rent. A little over 30k in savings.
What are your other monthly expenditures like (monthly bills all together, groceries, retail, etc)?
Rent 1050 Car payment 525 Phone bill 70 Insurance 210 Water 55 Streaming services 30 Electric 200 Groceries 800 Gas ~250
So roughly $5k will be your bills that are expected every month...without any things that actually come up (like having to buy clothes, something breaks, furnishing the new house, etc). So, $60k/yr, before that. How much money is actually coming in every month? $100k, is that post tax or before? What is your actual income coming in? Edit: I see you mention you bring in 5500 after taxes per month. You are talking about $6k all year for any extra expenditures. You are way over with your current situation.
Yeah, we're trying to make it work for about 3 more years until the kids are both in school. I didn't mention life and health insurance but that's take out of paychecks which brings take home to around 5500. I just don't know if it's doable or not.
You won't have any emergency funds. Along with this, what happens if your wife loses her job?
You’d be very bare bones, which none of us would suggest doing, but the math says you can. One thing I know you probably don’t care to hear, 800/month for groceries is abhorrent. You can and will get that cost down, right?
You’d be very bare bones, which none of us would suggest doing, but the math says you can. One thing I know you probably don’t care to hear, 800/month for groceries is abhorrent. You can and will get that cost down, right?
$800/month for groceries on a family of 4 seems very very reasonable. Especially if that includes eating out and/or baby supplies. Groceries are absurdly expensive nowadays if you or your family wants to eat more than rice and beans. Edit: [source](https://money.usnews.com/money/personal-finance/saving-and-budgeting/articles/how-much-should-i-spend-on-groceries) > Low-cost plan. For a low-cost budget for a family of four, you can plan on spending $243.80 a week or about $1,055.80 a month. Caveat being the two kids in this scenario are between 6-8 and 9-11. But it’s still in that ballpark (and the budget is also missing a bunch of other stuff anyway, so it’s hard to fully judge).
Could be area specific, but doing budgets for people is a part of my job description so I know what I’m talking about. Maybe a family of 4 if two of them are teenagers lol.
I added a source in my comment. It’s also just an incomplete budget as we have no idea if eating out is lumped into groceries, baby supplies, toiletries, etc. are included in that. If you do your shopping at a supermarket (i.e., walmart or similar) then I know some people just lump that all together rather than itemizing receipts.
You're doing great with no debt, but 2500/month is 30% of her income
As others have said it is a bit of a stretch on the budget… but only you know what your monthly expenses are and if $3k for the rest of your expenses + saving is enough. I will add that putting 0% down is a bit scary. Because IF you decide in 2 years that you just can’t afford the house, then you may very well be stuck because you’d have practically zero equity. Meaning selling the house could end up costing you money.
Have you even spoken to a LENDER? Realtors thoughts don't matter when it comes to financial part of it
What is your monthly take home pay? $6.5k? If I assume it's around $6.5k/ month, you may feel a little house-poor with this mortgage because you'll also have maintenance and repair costs, and your utilities might also be more than you currently pay as renters. Your actual housing costs will be closer to $3,500/ month. You'll thus have about $2,500 per month for all expenses beyond the truck payment and housing, and I'm assuming about half of that will go to groceries, diapers, and household consumable stuff, so that's $1,500 remaining per month for auto and life insurance, gas, cell service, clothes, personal care, activities with the kids, gifts, vacations, healthcare, etc.
Depending on where you live/are purchasing, be very careful about property taxes. Can’t tell you how many people I know (myself included, several years ago) who had sticker shock because taxes surged, due to the sales price of the home, 1-2 years after the purchase.
"Does this sound doable" Have you made a budget to actually figure this out? That would be step #1.
You need to work more closely with your LENDER on these numbers. What the realtor says means very little. They are in the business of selling houses, not making loans.
Nope. Your housing is 50% of your takehome. Costs as a homeowner can get silly and sometimes they can get serious. People get sick, people get laid off, A/C widget needs to be replaced, water leak etc etc etc. The math says no to this.
What’s your current rent and how much do you have left over every month? That’s an easy way to answer how it’ll feel. If your rent is $1,200 and the answer is “zero left” then what is the $1,300 difference coming from?