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I’m looking at an apartment in Delray Beach, Florida to buy. It is currently listed $ 118.900. This is not a short sale or foreclosure. I am pleased offer over $ 85,000 – $ 90,000 and was listed on the market about 4 months. I am approved for $ 125k in advance. I am 25 years old single female, living at home, and now for about $ 35k per year before taxes. HOA fees on this home for about 270 $ . I have., A car payment of $ 291 My father pays my cell phone and car insurance. I won $ 42,000 ($ 35k in savings, and the rest in my bank account) I can afford this house and if so, how much would you ask? The house is fully upgraded, I would not even really do anything.

4 Thoughts on Can I pay for this house?
  1. Reply
    lolly-pop girl
    November 4, 2012 at 4:49 pm

    why not

  2. Reply
    November 4, 2012 at 5:44 pm

    Your goal should be to put a minimum of 20% down as that gets you out of paying any PMI (mortgage insurance). Your income would match OK if you were to get the property. Just keep in mind there is probably real estate taxes

  3. Reply
    Barry White
    November 4, 2012 at 6:28 pm

    Before we get to the home, a piece of financial advice that will turn an expense into income: If the interest you’re paying on the car loan is greater than the interest you’re earning on your savings, pull enough out of savings to pay off your car and put the $ 291 a month into your savings account. Just make sure to keep enough liquid savings to cover 3-6 months worth of living expenses in case of emergency.

    As to the house, a good rule of thumb is that your mortgage payment should be no more than 25% of your monthly take home pay. Put as much down as possible without leaving yourself short of money for emergencies. And remember to take into consideration homeowners insurance and property tax. You can have these included in your mortgage payment for convenience, but there is some savings in paying them separately if you are disciplined enough to budget for them. Which I’m guessing you are given what you have been able to save in your young life.

    Good luck!

  4. Reply
    Doctor Deth
    November 4, 2012 at 6:48 pm

    if you want to be independent – you need to be paying ALL your own bills – if you make that money, why is Dad paying your car insurance?

    offering that much under asking price is NOT a legitimate offer – 10% below asking price is the lowest anyone is going to consider if the house has only been on the market for 4 months

    you better figure out your budget with ALL your expenses, including those that you are not paying now and will have once you become a homeowner

    expect to have to put 10-20% down, plus more cash for closing costs – mortgage company is the one that decides how much down payment is required

    get pre-approved for a mortgage first to see how much you can afford

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