Buying a home

SoCalGirl · #1 07-22-2003, 02:34 AM

I'm contemplating buying a condo but keep wavering back and forth on whether or not I think I can afford it. But if I wait it could easily cost me another $40,000/year!

So for those of you that have made that leap, any advice? If your willing to share, what was the ratio of your first mortage to your income at the time? My dad thinks I could easily get 4x my income. That's what he was given back in 1983 when my parents bought our house. I told him I'm not so sure, I could probably see 3x. But the only way I can get into the market is if I get 4x, use a big chunk of my savings, and Daddy

'loans' me some $$$ for a downpayment.

aggieAXO · #2 07-22-2003, 04:02 AM

I have always owned throughout my life (I rented for 3 months while I moved to Austin in 97 and that's it) and I recommend it but I guess it depends on your situation. One of the most important questions right now is: How stable is you job? Could you get layed off in the future?

The best advice comes from a book by Suze Orman-9 steps to financial freedom, she also has a couple of other books and one of these books actually has a worksheet that you can use to see if you can afford the house you want. I am a HUGE Suze fan and have read 2 of her books so far. She will go through the house purchasing steps with you and explain all the different mortgage types and what questions to ask your lendor-I went to the Mortgage company with my Suze Orman book in hand (I think it is her second book that really goes into detail about house mortgages, types, etc..-I would look but I am in the middle of moving to my new home and have packed all my books up-but go to Barnes and Noble and you will find her in the financial section). She also has a show on CNBC that comes on Sunday nights and through the week (check the CNBC site for info.)-you can E-mail her with questions. Do your homework and most of all be comfortable with your decision-it is you paying the mortgage not your dad (well usually).

Interest rates are low but if buying is going to stress you out or stretch your finances to thin then I wouldn't.