Posted by William, Columbus, OH on February 01, 2000 at 15:57:07:
Kimberly: What you are feeling is fear of the unknown,
you are letting the unknown control your thinking instead of you controlling it. If the mortgage brokers told you that you can afford to buy a house based on your current income/debt level then you can.
Let’s say you can afford monthly payments of $750.00 @
8%. You could finance $90,000 for a term of 30 yrs with a monthly payment of $660.39 plus taxes & insurance. This would allow you to begin building equity in a property while keeping your monthly payment
below your maximum limit at this time. You could even finance a lesser amount on your first home and after five years upgrade to a nicer one.
Getting in over your heads generaly happens when people don’t have a plan for saving money every payday
and they keep buying “things” instead.
Set down with a mortgage broker again and tell them your concerns. They don’t want to lend to someone that
is getting in over their heads. Okay?