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It sounds dumb (like a Walmart greeter could afford that)
But I’m actually very interested and concerned about how much house I can afford.
I make 36k right now at my full-time job, 12k at my part-time job,
And a good 5-8k at my weekend job. I’ve had all jobs for about a year.
My 36k one for only 9 months though.

Could I afford this condo down the road?
With 20% down its $ 253 per month.
I have an average score of 670 (I’m only 23)

I have inheritance money too, but I used that for my education.

Id go through my bank for a loan. Will they pre-approve me for free?

4 Thoughts on Can I afford a $250 mortgage?
  1. Reply
    February 9, 2014 at 6:57 am

    You should easily qualify for a loan with the monthly payment of $ 250 p/mo as that is less than rent but it will be difficult to find a lender that will issue a mortage for less than $ 60K. You can contact a local mortgage company or your bank and they can pre qualify you for a loan so you will know how much house you can consider. Realtors want their clients to be pre qualified so they know they are serious about buying. Good Luck

  2. Reply
    Pearl L
    February 9, 2014 at 7:16 am

    it sounds to me like you can

  3. Reply
    February 9, 2014 at 7:45 am

    Last question first: I would not go thru your bank. A lot of people think that their bank will work with them better for some reason. I have been a full time real estate agent then broker for 35 years. I have never seen a big bank care at all if you have done business with them. They are going to treat you as if they have never heard of you at all. Also – especially the six largest banks in this country have really screwed up and they know seem to require much more documentation and paperwork. So this bank will probably be much harder to get a loan thru than anyone else.
    If you used your inheritance but say you still have it–does that mean you have a loan secured by your inheritance? Any loan will be counted against you.
    “with 20% down it is $ 253 a month”. I think that is principal and interest only. You will also be paying property taxes, homeowners insurance and HOA fees- that may more than double that $ 253.
    Your score of 670 is pretty low. The 9 months is pretty short.

    My advice is to ask any family or close friends that have recently bought a house “who did you use to get your mortgage?” Your goal is to find a competent, LOCAL, and experienced loan officer. They will help you figure this all out and will not charge you to pre approve you.

    I love that you have all those jobs and hope you can soon be happy with just two jobs!

  4. Reply
    February 9, 2014 at 8:22 am

    Yes, they will pre-approve you for free.

    Lenders typically need at least 2 year working history before they will use that income. That means the jobs you were working for under 2 years will not count.

    Let’s just say your one full time job 36k (assuming you currently have no monthly debts ex:car payment, cc) you would qualify for about $ 1,500 a month

    You should be able to purchase much more than 253/month

    Keep in mind min down payment is 20% for SFH and 25% for condos.

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