Need Advice: Smartest Move for Buying Our First Home?

Question

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!

Mark Towey · Answer

Thanks for your advice, that is good to know about the winter time home prices. Definitely trying to save as much as possible as the wedding plan is expensive but we live together and are letting people know of our plans to buy a home. We don't have much debt at all, paying off her car monthly and then we both have credit cards that we pay off in full each month. It sounds like I just need to keep my head down working, saving where I can and hope to have as much as possible for a down payment when the time does come.

Drew Sygit · Answer

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 sell2) 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.

Theresa Harris · Answer

Wait until winter to buy as generally speaking, it is harder to sell homes then, so prices will be lower.  Depending on your wedding plans, go simpler and spend less on the wedding and use that extra money for a larger down payment.  If you can do 20%, it will also save you a lot of money on mortgage insurance.  And if you qualify for $130K mortgage, the difference between 5% down and 20% down may seem like a lot, but really isn't.  Look at where your money is going and if you can cut your spending...or increase your income.  If you and your fiancé are already living together, rather than asking for wedding presents, let people know you are saving for a house and would welcome gifts of any size towards a down payment instead of an air fryer.

As Drew mentioned, what you get approved for is based on how much money you make and your debt.  What other debt do you have?

Theresa Harris · Answer

Wedding can be, but don't need to be expensive.  It depends on what you both want for a wedding.  Congrats and good luck.

Mark Towey · Answer

@Drew Sygit

Thanks for the clarification — I’m aware of how PITI works and that lenders ultimately qualify buyers based on their ability to afford a monthly payment, not just a purchase price.

When I said we were approved for around $130K, I was just relaying what the lender estimated as a ballpark purchase price based on our last two years of income (mine as a 1099 Realtor and my fiancée’s W-2s), our debts, and standard assumptions for taxes, insurance, and interest rates at the time.

I also understand that payment can vary based on specific property taxes, insurance costs, and rates — and that there may be some wiggle room if we find a home where those factors are more favorable. Appreciate the input.

James McGovern · Answer

Sounds like you don't make enough to truly afford to purchase a house. Work on boosting your income

Need Advice: Smartest Move for Buying Our First Home?

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