Every time I look at the interest rates they are different so I dont bother lol. This would be our first home so we are looking to spend 170-200(ish) Obviously I will talk to a lender and such. I am just going on what I think/know what we would be able to afford comfortably.... I would like to have enough every month to start putting money away.

 

Someone mentioned looking around at different times. Also consider getting up early a few times, and doing your drive to work from the potential neighborhoods. Do the same for your drive home. Moving a few miles in a given direction could add significant time to your daily commute (which could be a deal breaker).

As for timing - other than picking areas, I wouldn't spend too much time looking at specific houses until you're ready. Once you have an area selected, then you can look at those units for sale.

List the things that are important to you on a list and rank them. 2 BR, 3 BR, 4 BR? Garage? Basement? New Kitchen, usable kitchen? Ready to move in/needs work? Big Yard/Little Yard/No Yard, etc... If you focus on the functionality and 'match' against what you want, then it doesn't become an emotional decision (I was alone when I bought, maybe this changes with a woman involved?). I knew what area I wanted, looked at 3 units in one day, negotiated over the course of about a week and signed after that. I've been there 13 years, will be paid off in 3 more, and have no regrets.

Lastly, YOU should figure out your budget. I don't know if its changed, but the banks/mortgage companies used to (has this changed with the current crisis?) use formulas to tell me what I could afford. 13 years ago, I was told I could afford a $160K mortgage on a $48K/year salary. When I figured out my expenses, play money, savings goals, etc... I determined that $120-130K was my upper limit. I do believe that getting pre-approved helps too, as it shows you've made a commitment to buying and that the bank(s) are prepared to back you.

Good Luck!

 

I want to kill you. At $78k we would have a 5 year mortgage.

For $78k here you can literally purchase a steel garage on a 25'x15' lot.

 

Thats what i have been doing. I watched some show on HGtv with a couple that got approved for like 300k and they went to a different lender which said 200-220 was more realistic. I am just taking my current income + my wife, adding any debt (mainly her credit cards ) factoring our car payments, and kind of going from there. I think the way we sit right now assuming I got a good interest rate and put 15 down we could afford a home for 150(ish) and be comfortable. I plan to be making more money by dec/jan and we will be purchasing hopefully no later than March. Right now we are just looking at stuff from 140 all the way up to low 200's. I think they most expensive one we looked at was 219 and some change. It is doubtful we would spend that much on a first home though.

out of a home i am mainly looking for a nice finished basement and a 2 stall garage... I also kind of care about the kitchen and what type of flooring is throughout the house.

my wife cares about the size of the master bedroom, the kitchen, and she would like a fenced in backyard for our dog.

From what we have looked at that can be had for 150-170. We found one the other day for 149 that had bamboo wood flooring through out the house besides basement, bedrooms, and living room. It had an updated kitchen with slate tile, nice counter tops, and cabinets. The rooms were kind of small but the garage was great and the backyard was incredible. Plus the basement had a SWEET wet bar... I am not a big drinker but thats just cool lol!!! Hopefully we can find something like this in a few months.

 

one thing to add...when you go to find out how much the banks will lend you; talk to a person. Those pre-approval things online are not very accurate. In my experience it was EXTREMELY conservative.

They said with the loan amount plus my down payment, I would be able to spend about 250. There is no such thing as a 250K house within a 50 miles radius of where I live. When I got more serious and spoke with somebody to get an actual pre-approval letter... we pre-qualified for a loan amount that let us look for houses around 430K; and our inclome, debt, etc... hadn't changed at all.

 

Haha! That sucks. They were originally asking $114k and it sat on the market for almost a year. The bank eventually came down to $79k. I offered $78k plus they pay $5k in closing. They went for it. When I refinanced, they reappraised it for $108k. So I'm sitting pretty. I would definitely agree on looking at commute time. It takes me 30 minutes with no traffic. I would look at county taxes as well. I have a little commute, but I live in a county with half the property tax. As long as you factor in escrow too, you should be good. Take your time. You're going to tire quickly of looking (at least I did), but you'll find the right one.

 

Half the time I don't know what the hell he's talking about but I sure as hell know HE knows what he's talking about.

 

That guy is incredible. Apparently he's a huge star in Canada

 

His show is the most popular in the country.

 

You couldn't be more wrong. When rates are rising it normally means the economy is doing well which means house prices are rising.

So you'd almost have to say that house prices tend to follow interest rates.

As with any generalization it's not completely true nor is there a direct cause and effect.