I am looking to buy my first home in a few months (roughly 6) I have no debt but student loans.

Lets say that my morgage is $1000.00 a month. Isn't there a formula, or a rough estimate on what I will really be paying (like taxes, utilities, insurance, money i should save for home repair etc.) I rember watching a TV show about first time home ownership and she had some type of forumula, but for the life of me i can't remember it. Also, does anyone know of any websites i can go to for info on learnig about buying my first home, before i go to the realotor (i like to have an understanding of things before i talk to the professionals.)

also, isn't there government grants and things like that i can get for first time ownership?

thanks for the help in advance :cheers

You should never spend more than 2 weeks net pay for your mortgage and utilities combined.

Also, even if you can swing a 15 year mortgage, you should seriously think about getting a 30. You can still make extra principal only payments to pay it off in 15 years, but if something bad happens financially, you will appreciate the lower monthly payments.

There are government loans available depending on where you live. Your real estate agent will be able to help you with that.

Also one last thing, do NOT buy one of the best houses in the neighborhood, buy one of the lesser homes. It's easier to get your money back out of them that way if you have to sell and usually, the lower priced one is usually a lot cheaper because it looks a little ratty or doesn't have nice landscaping, etc. Those things can be fixed VERY inexpensively.

Bankrate.com, freddiemac.com, and mortgage101.com are great places for info etc. Read and understand as much as possible before you make any moves.

Above is a good place to get a bunch of good starting info. If you have any specific questions, PM me and I'll do my best to answer. I've bought 3 and sold 2 houses. The wifey is a realtor too so I can ask her as well.

Right now it sounds like most of your questions pertain to financing and evaluating what you can afford, which can be answered by lenders pretty well. Just research the lingo and you'll be able to have an intelligent conversation and they will help you. If you aren't getting the info you want then find another lender/agent. The turnover rate can be pretty high and there are just as many bad lending agents as good ones. As you get into contracts and such, there will probably be a few other more specific questions.

The best advice I can give is be completely comfortable with what you are doing. If you have competent people around you, then you should never feel pressure. The most effective way to sell is to make the buyer comfortable and confident. And oh yeah, you are in a great position not having to sell a house to be able to move into a house. Use that as an advantage to learn the process as it shouldn't be the last time you do it.

And congrats! Owning your own home is a smart investment.

Also one last thing, do NOT buy one of the best houses in the neighborhood, buy one of the lesser homes. It's easier to get your money back out of them that way if you have to sell and usually, the lower priced one is usually a lot cheaper because it looks a little ratty or doesn't have nice landscaping, etc. Those things can be fixed VERY inexpensively.
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about the utilities.. it really depends on how frugal you are. i pinch pennies in more ways then some people think is possibly or would be comfortable with :p but do i know it wokrs? YES.
here i am in iraq right now... and my avg utility bills are THREE TIMES LESS than what my friend who is renting my house has it at now.
if you want to know send a PM,.. its all pretty much common sense stuff and stuff youve heard before.. saving energy and not wasting.:cheers

Just to clarify:

There is a formula used buy every bank in the nation its called DTI short for debt to income ratio. Its really simple to figure out just add up all your bills that you have a monthly installment payment that show up on your credit report and divide that by how much you make...if you don't what on your credit report I can help you with that...

Conforming banks i.e.: Wells Fargo, Bank of America and so on are looking for around a 36% DTI

Sub-Prime or Alt-A banks i.e.: Ameriquest, Option One, or WMC will allow up too 55% DTI

But these are just numbers for the banks lending purpose you really need to be comfortable with your payment.

Before you even start looking for a home you should start by having a professional look at your credit...98% percent of Americans have inaccuracies on there credit report this will start you in the right direction before you go and talk to a real-estate agent. You will know exactly what you qualify for and what you payments will be often real estate agents will ask your for this its called a pre qualification letter.


If you or anyone else on gixxer.com has any questions about acquiring a mortgage or refinancing please don't hesitate to call. I am licensed in all fifty states.

866-206-3998

Thanks J.D.

the thing you can do is get into a credit union where you will get the best rates, i have been with lockheed for over 10 years and my parents have been with them for a long long time, the good CU's have all the options regular banks do and even better, also keep in mind what gixsexR said about saving...

all my utilities combined are less then what my friend pays just alone for electricity costs... of course it helps i travel often but its basic common sense, ie dont leave the light on if your not in the room and things of that nature...

good luck with your purchase...

Everyone has given you some very good advice, so I'll try to add a bit more. Unless you are building a new home, you should get a good home inspector. Do not make the mistake and think that they are all qualified to give you an honest evaluation of a home. Ask around now for referrals in your area. A guy I work with bought a house and found out later that it had dry-rotted beams in the crawl-space. This was missed by the inspector but there wasn't anything that could be done legally because my co-worker sign a release of liability statement. The inspectors got his fee and there was nothing that could be done to him other than tell everyone else how dis-satisfied he was with the inspector. My co-worker then had to shell out extra $$ to get the beams replaced and the house re-leveled. Try and get your ducks in a row early so you aren't scrambling at the last minute is my best advice. Good luck :cheers