Greetings
Age 26 Single, no loans and debts, maximizing 401K and IRA every year. Credit score around 800 per my bank .
Salary - $163K. Additionally I have sign on bonus that is remaining $7K/month for the next 22 months.
401K - $144K
Vanguard - $52K (Brokerage, IRA/Roth)
Cash - $120K
I am sharing a condo and my monthly rent is $1000 (utilities included) and my expenses are basic living expenses. I drive a 2019 Camry with 65K miles and it is in excellent condition and well maintained.
I am thinking to buy a home (or a condo) in a $500K- $600K range. I am also thinking to buy a used $40K-$45K car. My only thinking to buy a car is enjoy a car like Toyota Supra while I am single and keep Camry as a daily driver.
My thinking is to buy a home and rent out 2 bedrooms as there are lots of single tech people in my city.
I am new to home buying scenario and I am trying to learn all this on my own.
So, the first question is can I afford a home? And how much mortgage should I afford?
Should I wait for interest rates to drop and buy early next year when there are more homes in the market? Or perhaps I should wait to buy a car?
Or should I save more to pay 20% downpayment instead of taking an 80/20 mortgage?
I have figured out my budget for home as such (Condos have high HOA).
Fixed Expenses for home – Mortgage, HOA, Property Taxes, Home Insurance, Liability Insurance for having renters (would that be required?)
Semi Fixed Expenses – Utilities and maintenance costs
Assuming I buy a 3 bedroom home and take a $500K (10% down) mortgage at 6.5% for 30 years, my monthly mortgage will be $3,160/month. And If I furnish two bedrooms and change $1000 rent/bedroom, I should be able to lower my mortgage costs.
I am still in process of interviewing realtors (some want me to sign a contract right away). And in Texas, the laws have changed and the seller does not have to pay 3% to the buyer’s agent. The new law just started this month, and the real estate market does not understand how it is going to play.
I have been reading only online about home buying process and here at the forum as well.
Any thoughts, recommendations to avoid any pitfalls would be much appreciated regarding selecting a realtor, comparing comps, making offers, getting pre-approved and locking an interest rate.
Many thanks and regards for sharing your wisdom.
Age 26 Single, no loans and debts, maximizing 401K and IRA every year. Credit score around 800 per my bank .
Salary - $163K. Additionally I have sign on bonus that is remaining $7K/month for the next 22 months.
401K - $144K
Vanguard - $52K (Brokerage, IRA/Roth)
Cash - $120K
I am sharing a condo and my monthly rent is $1000 (utilities included) and my expenses are basic living expenses. I drive a 2019 Camry with 65K miles and it is in excellent condition and well maintained.
I am thinking to buy a home (or a condo) in a $500K- $600K range. I am also thinking to buy a used $40K-$45K car. My only thinking to buy a car is enjoy a car like Toyota Supra while I am single and keep Camry as a daily driver.
My thinking is to buy a home and rent out 2 bedrooms as there are lots of single tech people in my city.
I am new to home buying scenario and I am trying to learn all this on my own.
So, the first question is can I afford a home? And how much mortgage should I afford?
Should I wait for interest rates to drop and buy early next year when there are more homes in the market? Or perhaps I should wait to buy a car?
Or should I save more to pay 20% downpayment instead of taking an 80/20 mortgage?
I have figured out my budget for home as such (Condos have high HOA).
Fixed Expenses for home – Mortgage, HOA, Property Taxes, Home Insurance, Liability Insurance for having renters (would that be required?)
Semi Fixed Expenses – Utilities and maintenance costs
Assuming I buy a 3 bedroom home and take a $500K (10% down) mortgage at 6.5% for 30 years, my monthly mortgage will be $3,160/month. And If I furnish two bedrooms and change $1000 rent/bedroom, I should be able to lower my mortgage costs.
I am still in process of interviewing realtors (some want me to sign a contract right away). And in Texas, the laws have changed and the seller does not have to pay 3% to the buyer’s agent. The new law just started this month, and the real estate market does not understand how it is going to play.
I have been reading only online about home buying process and here at the forum as well.
Any thoughts, recommendations to avoid any pitfalls would be much appreciated regarding selecting a realtor, comparing comps, making offers, getting pre-approved and locking an interest rate.
Many thanks and regards for sharing your wisdom.
Statistics: Posted by AB2020 — Mon Aug 12, 2024 8:38 am — Replies 18 — Views 666