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Looking to Buy - 1st Time Buyer

I can use some advise, I am looking to purchase my 1st home but I have been researching that rates are the highest since 2009...which scares me a little. It seems the market is headed for another crash. I am thinking waiting might be better. I am self employed, income is $88k/yr, FICO is 689, debt is about $2k/month and i was pre-approved for $395k. any advise is super - thanks lender411. by HorridToes38 from Red Rock, Arizona. Aug 16th 2018 Reply

John Shrein (jshrein)
#208 ranked lender in Arizona - 1 contribution

Were you approved for a purchase price of $395k or a loan amount of $395k? Say your annual income is $88k. Divided by 12, that makes your monthly income $7,333.33. Finding 49% of your monthly income (49% is a common Debt To Income ratio limit), that comes to $3,593.33. Now deduct your $2k debt: that leaves$1,593.33 available to put towards a monthly home payment. Well $1,593.33 a month will NOT translate to a loan amount of $395k. I wonder: when you say $2k in monthly debt, does that ONLY include what shows on your credit report, or are you counting things like your cell phone bill, auto insurance payments, etc.? As for a "crash", I don't think I agree. We may be coming up on to a recession, but I don't think the Phoenix area needs to be too worried about home values reverting when you study job and population growth in Phoenix. The crash of 08 and 09 was setup by CARELESS lending practices. And from then until now and ongoing, lending practices are far more prudent than ever before.

Aug 16th 2018
Ralph Richard Guertin (
#136 ranked lender in Florida - 796 contributions

Hi, what do you base your thought on that market might be heading for another crash? This home appreciation was brought on by an exaggerated drop during the crash and a slow build up of values it took 10 years, IMHO a sideways market sounds more realistic. Call William Acres he specializes in Arizona.

Aug 17th 2018
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