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What is the most I can afford with a 50k income, and what are the expected closing costs?

I have a good credit score, between 650-675. by lauren.c831 from Armour, South Dakota. Nov 18th 2015 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,524 contributions

The safest answer is that most people can afford is about 3 1/2 times their yearly income before debt. So with a $50k income, the ballpark is around $150,000 to $170,000. But if you have a lot of debt, that can reduce the maximum house. Closing costs can be rolled into the loan, so all you need to be concerned about is having the down payment as an out of pocket expense. I lend in SD... Visit me at www.MortgagesUnlimited.biz

Nov 18th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,933 contributions

More info is needed to answer your question.. Your maximum would be based on your Debt to Income ratio.. Knowing your income is good, but now we would need to know what the minimum required payments on your debt are to determine a maximum purchase price.. Also, we would need to know how much you have for down payment... As far as closing costs, they typically range from 2% to 5% depending on the loan amount.. Closing costs can be paid in a number of ways.. you can pay it by bringing in cash to close, you can ask the seller to contribute, you can ask your RE agent to contribute, you can ask your lender to contribute, or a combination of the 3.. there also might be some local grant programs that might assist you with down payment or closing costs.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Nov 18th 2015
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Jericho Cherry (Jerichocherry)
#58 ranked lender in Virginia - 1,107 contributions

I need to know your total debts in order to answer that question.

Nov 19th 2015
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Derick Condron (rightstartoregon)
#32 ranked lender in Oregon - 597 contributions

It will all depend on your debt load. With just your income it is tough to say.

Nov 19th 2015
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,107 contributions

There would be no way to really answer this without knowing your total debts that show on your credit report, or if you pay alimony or child support, etc. You will need to speak with a local loan officer or two and go through the pre-qualification process to know for sure.

Nov 21st 2015
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Mark Hemingway (SFSLend)
#1 ranked lender in Colorado - 569 contributions

It really depends on how much debt you have. You should talk to a mortgage professional to have them analyze what your monthly debt is But you basically take your monthly debt of credit cards and installment loans and divide that by your total gross income. You want to be in the 40% to 45% range and if obtaining an FHA loan you can go with a higher debt to income ratio. Keep in mind if you have mortgage insurance that needs to be calculated into it as well as monthly property taxes and homeowner's insurance.

Dec 1st 2015
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