I’ve been preapproved for 180,000, but nervous as heck about getting myself too big of a monthly payment. I want sfr for me to live in. Know about several on market for quite a long time and want to make lowball offers. What form does an offer take? Where are these forms available? Draw my own with help of attorney or use standard form?
Thanks in advance. I love this site. Will be asking many more questions when I get back from work in a couple of days. Preapproval good for only sixty days. Need to get moving, know what I mean?
The first thing I would think long and hard about is what you, yourself want to approve yourself for.
Not what someone else has pre-approved you for getting into debt with them.
If a $180,00 mortgage, it’s related property taxes, homeowner’s insurance, and improvements/maintenance are a drop in the bucket to you then jump right in.
Personally, my pre-approval, (what I tell myself I can afford), is way less than half of what a lender wants to tell me.
Why? Freedom. Plain and simple.
If your goal is to acquire other properties with the intention of producing positive cash flow from each, then my suggestion would be to be frugal with the expenditure on your own residence so that you have much more breathing room to afford those income producing assets that will achieve greater freedom.
But, then again, everyone has different circumstances. That’s just my perspective.
Cashflow Quadrant by Kiyosaki is a good read in this regard.
-Mike
P.S. $180,000 mortgage @ 7% interest over a 30 year term, (360 months), equates to total payout of $431,114.40 with $251,114.40 for interest alone.
Thats great your looking for your first home. Just remember if your a renter you about to see many new bills come your way. Most home buyers are not prepared for all the new bills. Remember you may have water/gas/sewer taxes to pay each month, home owners insurance, property taxes and higher electric bills since homes are bigger than apartments many times. Then you will need to deal with lawn care and much more. I recommend figure out a monthly budget you can afford for your home overall including utility bills, taxes and ins. Then add about $200 a month to that. Then dedcut the cost of those bills and that should be your mortgage, You want to be able to pay your mortgage using no more than 1 1/2weeks of take home paychecks.
its much better to live in your means then beyond them.
Great advice! Thanks to both of you. Your points are well taken.