Preparing for the home buying dip

sounds like you can't afford it

Some would KILL to rent right now.

Wait. Being house poor sucks.

No way this is the "bottom." We're lucky if we come out ahead of the slide Japan has went through. People need to understand what global deflationary pressure really means.

Quote from steal : I am planning to send an offer for the home I decided, I calculated the income vs expenditure for myself and it looks like I will be in the borderline or in otherwords all my income will go towards the mortgage and the other expenses per month once I buy the house. I may or may not end up saving $100 per month. I am a bit confused or afraid now. What should I do, The house is in a good neighborhood and the price is correct. The schools covered by this property is also good. So I am getting what I was looking for, but I am borderline with what I make now. If I wait then I can make more savings and put more down payment, but I will be loosing money on rent every month. Moreover, will the house prices go up in a few months again, I dont know. So the inevitable truth is once I get the house with mortgage, then I am going to face a dip in my lifestyle, but how bad it will hit me, I dont know. Any valuable advice would be appreciated.

Your setting yourself up to be screwed in the future. Get a cheaper house.

Are you sure you'll even qualify for the mortgage? It doesn't sound like you will

You're trying to buy too much house. I'd back down on the purchase price so you have much more breathing room in your budget.

there is no way a bank would lend you money with a 90%+ ratio. Either you are not telling us something or you are trying to fool people.

@sdslick:where'd you get 90+% from? he's simply talking about his mortgage payment to income ratio. usually should be around 30%.

@OP:
Honestly, if you're afraid to do it, don't do it. you may think you're "throwing away money" in rent, but trust me, I've "thrown away money" in a down payment in my previous house once the price went down.

it sucks a lot more than throwing away money in rent. If I did that instead of buying my previous house.. I'd be rich.


Do what you KNOW you can afford. don't send the offer in until you KNOW you can afford it.

OR

Give them an offer that you KNOW you can afford. even if the price seems right to you, not many people are trying to buy houses in the fall/winter. you may be able to go a bit low. if they accept, great! if they don't accept...just walk away. Don't get emotionally attatched to the house where you make an offer disregarding your finances. KNOW your finances first. then make the offer with what you can afford.

My debt to income ratio after mortgage and my car loan payment is ending up in 52%. The bank sent my loan application for special approval since my credit score is in excellent condition.

My thoughts are fluctuating between " Yes I can manage it, No I cant, blah blah"

May be I should back out and keep looking for a cheaper priced one.

Most lenders recommend that your debt-to-income ratio does not exceed 36% of your gross income. That would be your "back-end ratio". Without giving us actual numbers, its hard to give more precise advice.

Read more: http://www.investopedia.com/artic...z1a1aQ6HRa

Quote from steal : My debt to income ratio after mortgage and my car loan payment is ending up in 52%. The bank sent my loan application for special approval since my credit score is in excellent condition. My thoughts are fluctuating between " Yes I can manage it, No I cant, blah blah" May be I should back out and keep looking for a cheaper priced one.

Are you counting in property taxes, insurance, HOA fees (if any), as well as setting aside some money for the maintenance, upgrades, repairs and the extra utilities a bigger house needs? The mortgage payment can easily wind up being less than half of what it actually costs to own the house.

I'm glad I did a ton of research and have NOT bought anything in the area I live. Buying a condo or townhome in my area would cost me the same in rent for the mortgage, however, the taxes, HOA, and insurance would cost me a SECOND rent payment!

A family friend's son moved out here and bought a nice 200k house, but didnt do his research and the next January got hit with a 8k tax bill, ouch!

Don't forget to figure in the cost of upkeep/maintenance of owning a house.

You may find a deal on the following sites, you just don't want your home ending up listed on those sites.

http://homesteps.com/featuresearch.html

http://www.homepath.com/

In my opinion, 50% is WAY too high. There are many things a house needs that you have no idea about until you move in.

Quote from MISHNAH : A family friend's son moved out here and bought a nice 200k house, but didnt do his research and the next January got hit with a 8k tax bill, ouch!

That doesn't sound like "not doing his research", that sounds like the basics weren't even covered.