First Time Home Buyer (potentially)

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kaeltor
Posts: 44
Joined: Sat May 12, 2018 11:20 am

First Time Home Buyer (potentially)

Post by kaeltor » Sat May 12, 2018 11:27 am

Hi everyone,

I recently finished paying off my student loans and am officially debt free at 27.

I am looking at potentially buying my first home in the next year. Currently have around 16K Networth ~70K/yr income, single. Been saving a fair amount of my takehome pay at ~55-60%. Most of my NW is tied up (not liquid) between my 401K,RothIra, and taxable account (all in Vanguard 90% VTSAX, ~10% VBMFX).


Been looking at some townhomes in the area I live they are between 200K-250K.

What's a good way to gauge how much I can afford?

thanks for the help.
Last edited by kaeltor on Sat May 12, 2018 7:44 pm, edited 2 times in total.

mortfree
Posts: 960
Joined: Mon Sep 12, 2016 7:06 pm

Re: First Time Home Buyer (potentially)

Post by mortfree » Sat May 12, 2018 2:13 pm

kaeltor wrote:
Sat May 12, 2018 11:27 am



Been looking at some townhomes in the area I live they are between 200K-250K.

What's a good way to gauge how much I can afford?
You should have 20% down so you would need 40-50k just for the down payment on a home in that price range. Plus closing costs. Plus moving. Plus furniture, etc.
Last edited by mortfree on Sat May 12, 2018 3:22 pm, edited 1 time in total.

youngpleb
Posts: 171
Joined: Mon Oct 16, 2017 7:06 pm
Location: VA, USA

Re: First Time Home Buyer (potentially)

Post by youngpleb » Sat May 12, 2018 2:32 pm

20% down, and the only kind of recommendations I've seen based off of salary is the price of the house shouldn't exceed your salary * 3. Or your combined salaries * 2.5 if married, which you aren't.

Play around with some mortgage calculators and use different down payment percentages to see what your payments would be on different properties. I'm pretty sure the "times 3" rule I mentioned above doesn't factor in for people who are aggressively saving, like most of us Bogleheads, so bear that in mind as well. Good luck! I'm 27 myself and have been looking at homes as well. It's an exciting time!
27. Always learning.

kaeltor
Posts: 44
Joined: Sat May 12, 2018 11:20 am

Re: First Time Home Buyer (potentially)

Post by kaeltor » Sat May 12, 2018 7:40 pm

youngpleb wrote:
Sat May 12, 2018 2:32 pm
20% down, and the only kind of recommendations I've seen based off of salary is the price of the house shouldn't exceed your salary * 3. Or your combined salaries * 2.5 if married, which you aren't.

Play around with some mortgage calculators and use different down payment percentages to see what your payments would be on different properties. I'm pretty sure the "times 3" rule I mentioned above doesn't factor in for people who are aggressively saving, like most of us Bogleheads, so bear that in mind as well. Good luck! I'm 27 myself and have been looking at homes as well. It's an exciting time!
Thanks for the info!

A lot of things are out of my range -- that's very good to know

And yes, exciting for sure! Maybe it's the young optimist in me but I'd like to buy something that I can rent out later.

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