Need Advice: Smartest Move for Buying Our First Home?

[Mark Towey]

Hey everyone — looking for some input on the best path forward for my fiancée and me. We’re getting married in September and plan to buy our first home in October or November. I’m a full-time Realtor and have two years of 1099 income, but it’s not super strong. When I met with a lender in April, they estimated we’d qualify for around $130K based on my income and hers.

That said, we know we could handle the monthly payments on something in the $150K–$160K range. We’re open to options like owner financing, although I know very little about the details around it but I'm sure I could learn or even using a cosigner (one of my parents is likely willing) to qualify for more — though we don’t want to stretch ourselves too thin. We currently live in an apartment and I just hate giving money to a property management company every month when we could be building equity in a home. 

Curious if anyone has been in a similar spot or has insight on whether owner financing, a cosigner, or waiting longer would be smartest. Appreciate any thoughts!

[Drew Sygit]

First, you do NOT technically qualify for a purchaes price or even a loan amount!

Mortgage lenders qualify you for a PAYMENT based on your stable income & debt payments.

That payment includes amounts for the loan P&I, taxes, insurance and any PMI/MIP called PITI).

The P&I portion depends on the interest rate, loan term and amount.

Taxes & insurance depend on the specific property.

How do you NOT know this as an agent?

Owner financing = land contract or an actual mortgage loan they give you. 
The only owners typically offering these are either:

1) Desperate to sell
2) Looking to overcharge

What PITI payment do you two qualify for?
How much of a down payment do you have saved?

To find motivated sellers, search MLS for properties 150+ days on the market and start making offers.

It may require you to write 50+ offers to get one accepted.