I commend you for planning so carefully. You do need to go to a bank and ask them these questions. Then you'll have a clearer idea of what you can afford, and you would be a pre-qualified buyer when you work with a Realtor and when you make an offer.

You may be getting ahead of yourself. What you need now is a *starter* home, on your own, out from under your in-laws' roof. You don't need to plan to live in what you buy now *forever*. You could also rent while you save more towards a house. Two people working full time don't have a lot of time left to put home maintenance or repairs.

What's available that would suit a you and your wife -- or you two plus a baby -- for the next few years? There's a learning curve to being a home owner. I'd rather start too small than too big.

Renting is what we are skipping because we are saving that rent money by actually living under her parents room, so the next step will be a home. We don't have kids and won't for a few years. I don't mind a starter and agree, that's our best bet, to have a home with affordable payments so that we can live locally for ten years so that our child or children can be close to parents to that we don't need to suffer financially with child-care.

The biggest we'd have is 1700. Our numbers of 200k down on a 399 asking price home is $1600 for the mortgage, taxes, insurance, etc.

I'd rather pay $1400 close by, in the town we grew up in, fix up the place and re-sell in ten years. We may not make as much as we'd want back, BUT I think it would be smartest financially for each months payment. She makes after taxes 2400, I make after taxes 1500. Add sporadic video work that pays the bills every few months I think it could go well if you pay under $2,000 a month total debts.

We were looking at $450k homes in Locust Valley, great school district but our total debt would be $2600. Not smart if you ask me, so we're looking in the 300s. People even say thats too high, but it's what we'd like and we feel we can get by and grow our jobs. My fiance went from 33k to 46k in two years. I went from 25k to 30k in two years. Not much but for now it's okay.

As others have mentioned, it's critical that you talk to someone at a bank. I am assuming that the $1700 you are quoting would also include your taxes and insurance for the home? Or at least I am hoping it does, because otherwise I think you might get a bit of a shock when you go to get pre-approved. Because I would be surprised if any bank would let you borrow more than 200K (given the high property taxes in the area).

Even running the numbers on a bankrate type mortgage affordability calculator (if you haven't already) would give you a good idea. At least that way you wouldn't be looking online at homes that are simply out of your price point.

Run the numbers, and account for things like saving for emergencies, saving for retirement, what you would do if one of you lost their job, the cost of kids etc. We bought our home with a combined income similar to yours, a total monthly house payment of not-quite-$1300, similar debt (student loans, not car loans) and still things were tight. We've always tried to have a savings for emergencies, investments for retirement, savings for projected cars or home projects, though, so I guess some of it was from that. We don't get significant help from relatives, so childcare for kid #1 was a major chunk of change and I left my job when we had kid #2. Luckily DH has been able to move up and now his income is about what our combined was when I left my job, so we continue to be comfortable. I feel like having children is stressful enough that having to worry about finances would be overwhelming ;-)

The people I know who got over their head with a mortgage had to either get roommates, sell their house at a loss, or lose their home altogether. My DH and I probably err on the side of being too conservative -- as in we'd like to move to be within biking distance of the kids' school but aren't sure we can afford the higher mortgage unless I return to work. Maybe you have some kind of safety net that will bail you out, but if you don't then it's not advisable to buy at the top of your range.

Hi Emma, yes $1,500 to $1,700 would be what we'd pay a month in mortgage taxes, etc with the home we are currently looking at which would actually need a lot of renovating so we'd put down $100k and save the other $100k for renovations which are surely needed. This doesn't include $410 in car loans.

John turn your messaging on and I'll message you privately. I know GC very well as we raised our kids in Glen Head. Our first home was in Long Beach. In fact if your parents were from Glen Cove also, ask them if they knew the Tawfik house in Glen Head. That was the house I owned until 2010.

However where in GC do you think you'll be able to find a home in your price range? Prices there are very high. How far would you both be from somewhere like in East Meadow/Westbury area as there are nice homes there for the prices you are looking for. In fact my sister just sold hers there.

Just do like a lot of your neighbors are doing and come on down to Charlotte, NC to live and work. I love having clients form this area... pocketful of cash, they love our weather, our taxes are a quarter of what they are up there, housing is affordable here and most of my LI clients already have friends or family down here.

But, like others have said, speak with a lender and get specifics for you and your wife's situation and then go from there.

We found a home in an area nearby that needs a LOT of updating. I am ready to take it on, and it's in one of the best areas of Glen Cove. To me it's a steal.

NC isn't an option. At least not now. The fiancee, soon to be wife wants to live here since she wants to be close to family. If it was me, I'd be outta here.

"Just do like a lot of your neighbors are doing and come on down to Charlotte, NC to live and work."

Absolutely incredible!

John we did like you did many years ago thinking we could fix up a house that needed a lot of work. I worry for you that even holding back 100k for fixing up you might be biting off more than you can chew.

I assume from your comments you are very handy and intend to do most of the renovating work yourself? If not how do you intend to fix up the house?

Will it leave you money for a night out for pizza at La Famiglia and a movie next door? How about a couple of beers and a meal at Cedar Creek? Notice I'm not even asking about the more expensive restaurants in the area.

Honestly if I were the two of you, I'd take NC up on his offer to find you a place in NC. My sister just moved down there and including completely renovating her home from top to bottom she paid under 300k and is on something like 10 acres. Her taxes are $1200. No not a month like here on Long Island but $1200 a YEAR!

You two are choosing one of the most expensive areas in the country and even Long Island; the north shore. I realize family is important and living near them is too, but that's a tough nut to have to chew daily on your salaries.

In fact the only reason I am still on Long Island (and it's only for 6 months a year) is because my elderly Dad is still here and I like to be around to help when I can and because of NY Health Insurance. Being self employed I need to get my insurance on the exchange and very few states do it as well as NY. I have 3 3/4 more years until medicare and then I am out of NY.

Living in cheaper homes in areas like Greenlawn, Huntington, Melville, Commack, etc are more crime ridden and less known places for us. Glen Cove we know the areas, the people, the best parts, the worst. I feel we can renovate and make the home we want to have - ours. NC is not possible. It would be if I divorced, but I'm not doing that. She is adamant of living near family here. Maybe she'll realize it's just not worth it after a few years and we'll move, but she at least wants to try to live here and start a family here. We don't drink, we don't go out much, we're careful and conservative with our money.

I think our next step is to get a contractor to come in and assess how much the home will cost to renovate and if it's over 100k, then we walk away from it. Simple as that.

Oh I agree with you about some of those areas. The nicer parts of Huntington are just as expensive, same with Commack and Greenlawn. There are some nice areas in the middle of the island. New Hyde Park comes to mind and not to far from GC. Other areas I'd consider (and believe me I want good areas. I grew up in Great Neck. LOL) Carle Place, Long Beach, East Meadow, North Merrick. Wantagh, Seaford.

John whatever price you are given as an estimate, then double it because it always is twice the price and double the time.

Hey you could try getting on the Property Brothers show. :)

Have you talked to a bank or a Realtor? Sometimes a seller will help a buyer to get a house sold. My DM was a long-time RE broker. She would occasionally set up a rent-to-buy deal. She knew which banks were willing to 'work with' a buyer.

OP, don't forget that after the home is rehabbed, your property taxes will surely go up in value. Just don't forget to add this increase into your budget.

Salti... Glad you found my post so incredible!

Because almost 85% of my business comes from this area, my advice was meant in earnest, not tongue - in - cheek, nor some cheesy ploy to offer my services. I have been on this forum for a long time and have never done so.

Since you mentioned you are getting help with downpayment. Please be reminded in some cases, there will be visible or invisible strings attached. Things start out great then eventually become more complicate. Do proceed with caution.

My best advice for your situation is to get married and live together for at least a year, getting to know the rhythms of yourselves as a married couple before taking on the additional stresses of owning a home.

Gosh, how did I miss that this couple are not married! The DD of friends once bought a fixer-upper house with her fiance, then they broke up. Neither could afford to buy it from the other. She ended up owning it and spent a year fixing it up enough to list it. I think she was stuck with it for a couple of years.

One more suggestion-please get out of the framework of planning based on what a monthly payment would be! This kind of financial (lack of) strategy leads to a lifetime of being in debt and working to feed one's obligations, because you aren't really focusing on the bigger picture.

Not to mention, as others have on this topic, trying to plan based on just getting by each month paying what is required will leave you woefully unprepared when-not if-you have an unexpected financial emergency. Trust the people who are telling you that each month there will be SOMETHING that you will need to pay out that you didn't plan for. So assuming you will be just fine as long as your mortgage is below some imaginary X number is setting yourself up for some hard knocks.

You also sound young and rather naive; believe those who are telling you that you are not restricted to purchasing in one tiny neighborhood, Widen your perspective, so even if you don't want to relocate to another state you can at least consider the prospect of a house close but not exactly where you think you must be.

Ah the wonders of first time homeownership! We all kept running those numbers, and once we figured it all out we were hit upside the head with reality.

There are more costs to home ownership than just mortgage and taxes. It's those little surprises we never thought about.

$100 for cable. $80+ per month for electricity. The cost of heat in winter! Groceries! Today it can be $75 a week for food for two people, and that's only if you actually cook instead of buying frozen foods. Car insurance. And never think property taxes are static. They always go up! You also need to have a reserve for emergencies like the hot water heater springing a leak, or the furnace giving up the ghost, or the washing machine stopping suddenly.

But you have a situation that may cause more difficulty. You mention your "fiancé". Is there a ring and a date? Otherwise you are just two single people purchasing a house. Each of you will have to qualify for 50% of that mortgage if the house is going to be in both names.

$80 for electric and gas? Maybe where you live but on Long Island it's more likely to run you closer to double that in winter and in summer if you have AC, 3-4x that number.

A cable package with phone, Internet and cable is between $150-$200 plus a month on Long Island.

Oil in the winter (most homes here use either gas or oil heat) will run you about $700-$1000 month during heating season. Gas is similar.

All I know is that 22 years ago we bought a home for $278k on Long Island. We put down if I recall 75k, leaving us with a 200k mortgage. We had 2 young children. At the time we were grossing close to 90k a year and we struggled for all the reasons everyone stated. Yes our mortgage rate was higher. I believe almost double what they are today but my taxes then were only 5k a year when we moved in. Plus we had no internet then so didn't have that expense and food was cheaper. Gas was about $1.50 gal. A new car was under 20k. So if we were struggling then with a larger income and a house that cost less, how do you think you will manage nowadays here on Long Island?

I remember our boiler going that first year and then my ex hitting an ice patch on Northern Blvd and smashing his car up. Life happens and with your incomes I am afraid you don't have enough for the what ifs.

"I think our next step is to get a contractor to come in and assess ....

I think most of the folks on this forum will tell you (as they have been, over and over) that the NEXT STEP is to talk to a lender! At least call a mortgage broker and shop around! I tell my buyers to call our preferred broker, our previous preferred broker (he was really good, just changed companies), their own credit union (or any local one if they don't have one) and look online (I recommend Quicken Loans).

Remember that the lender laws just changed (nationally), and how that affects us here in Florida is that our new contract will state 60 days or more to close (gone are the 30-day closures), among other things. This will affect anybody who applies for a loan on Nov 1st or later.

So you are smart to start looking sooner than waiting, but it will all be for naught if you learn that you qualify for far less (or more) than you are expecting!

Thread hijack -- @cpartist: why is the heating so $$$ in winter? Is that typical for a climate that has winter snow? melle_sacto <=== has never lived where it snows

melle -- We live north of Chicago. Heat, water heater, clothes dryer are natural gas. Lights, cooking, fridge/freezer, air conditioning, one bathroom floor are electric. Last year our gas bills totaled $2600; electricity totaled $1600. The electric rate has risen since then, but will always be 'cheap' compared the paying four times as much for electricity in Hawaii. Oh, and we paid our snow plow guy $900 last year.

Long Island has some of the higher rates for electric and oil in the country. That's why we no longer own in NY. We rent and we own in FL. A lot also depends on how airtight your home is. My old house was an 1898 victorian/colonial revival. Talk about drafty.

The mortgage broker we spoke to said we can be pre-qualified for a mortgage based upon our salaries and with 76k, they estimated at 70k x 4 so it's 280 loan. So let's say we put $100,000 down, we can own up at a $380k home. Let's say 200k down, up to a $480 home although maxing it out I don't believe in nor want to do.

The 339 home is a headache. Its an estate sale and the owners won't budget. My RE agent told me they want 339 and won't go down at all. Whoever offers 339 will get it. I am planning on getting someone in there soon to check out how much it would cost to re do the kitchen, rooms, walls, etc and it may be $100,000. That's what my real estate agent believes, that's what my father in law believes, so it's do we:

1) Put down 100k, pay 1800 month mortgage, wait on gift payment of $70k come October and renovate with that come December/Jan

or

2) Wait and put $150 down on a home that we will probably end up paying a few hundred more a month (maybe 200 or 300) - a $360k home in the area, in a little less desirable area by us would be 2100 a month compared to the great sidewalk lined street where it's headache due to new kitchen and not having anything in savings.

The mortgage broker also told me that we don't need money reserves in our bank because we are doing more than 20 percent on the home. Didn't know that. Whether many mortgage brokers do that, not sure.

Also, other than feeling sick today and calling out and feeling worn down from work, I want to switch jobs. I brought this up to the broker and he said it's fine, not a problem as long as it's salaried our hourly. I would hate to get a job with less money but I may need to as I believe I made the wrong career change.

Maybe we should wait until winter and something will come around? Homes seem to be less and prices come down if a home hasn't sold so that can benefit us. It's just hard that with this awesome opportunity to get a fixer upper and live in the best area of our town, would be hard to pass up, but we just won't have a savings.

Tough call. We will have a person come in tomorrow and figure out how much it would cost.

"My best advice for your situation is to get married and live together
for at least a year, getting to know the rhythms of yourselves as a
married couple before taking on the additional stresses of owning a home." Been together eight years. I basically live at her parents house. We learned the rhythms of our relationship in the early years and are excited about a home and both know that the stress can be great and can cause a strain on the relationship of many. Completely understood.

"One more suggestion-please get out of the framework of planning based on
what a monthly payment would be! This kind of financial (lack of)
strategy leads to a lifetime of being in debt and working to feed one's
obligations, because you aren't really focusing on the bigger picture."

My apologies for not understanding your statement. If we buy a $2400 mortgage home and have $410 debt on top and my fiance makes $2500 and I make $1500, that's a worse decision in my opinion than a $1800 mortgage and $410 debt on top. I personally feel that it's important to live within your means and know your restrictions.

so do the two of you combined bring home $3900 a month? or is your take-home something different? I really don't see how a house will be affordable if you plan to have a baby within the next five years. Or rather I don't see how you can afford the kind of house you are talking about.

What are you doing currently that will improve your financial outlook for your family? Are you going to school? Learning a trade? Getting a second job? Making as little as you do for the rest of your life isn't a good long term plan. Especially when you want to live in one of the higher cost of living areas. Buying a home right now isn't good for the short term or long term. Not until you've got more money coming in. Which isn't going to happen unless you pursue bettering your personal situation.

If you do proceed, then you should only buy as much house as could be afforded with your intended paying all of the bills. All of the bills. Your income should be going into savings 100%. Or 50% savings and 50% HVAC tech school, or underwater welding, or an accounting degree. Something that will create better job opportunities for a family's expenses.

What would happen to you if you two broke up? You'd be in the same boat as the 1950's housewife without enough marketable skills to actually support herself. Also, while family incomes are a family pool, it can get to be quite wearing on a relationship if you aren't matched with an equally contributing partner. It can engender a certain amount of disespect and conflict into your interactions if the lesser economic contributor isn't assuming the majority home maker role in order to balance the equation.

Please tell us you do not believe what the mortgage broker told you, do you? Years ago a mortgage broker told us that we could easily afford $600K mortgage, we borrowed $250K. We were much much older than you are now, with ample downpayment, established careers. We had no dependents, no debt, in good health with savings, we felt $250K was right amount for us to carry.

Thanks to everyone for their opinions and thoughts on the situation.

We are hoping that the lawyer tomorrow will give answers to if we can get our full $200,000 gift payment and use it towards the lifetime exemption gift tax, thus putting 50k of our own money on top of that and putting down $250k on a home around $399-$420k.

.... and yes I ruined basically a lot of my life by doing temp work and not caring for years (due to emotional issues about a girl from the past) while my fiancé was going to seven years of school to do what she does now.

Yes I do have a second job as well.

Again John let me ask? (For those who don't know the area I lived one town over from where John lives and wants to live. I still live on the North Shore so am quite familiar with his community.)

20 years ago I had a $200,000 mortgage on a combined salary of $90,000. Our taxes were 1/2 what taxes are now. We had money in the bank. We could barely make ends meet with more income, and a lower cost of living.

I would suggest you sit down and if you want this house, you figure out a monthly budget and what everything will ACTUALLY cost.

Mortgage,

Taxes, (house, not personal)

Home Insurance,

Health Insurance,

Life Insurance, (I assume you'd want policies on one another in case something happend so the other could continue to live in the house and not be up the creek)

Disability Insurance, (What happens if you have an injury?)

Dentist (What if you need a crown for example?)

Prescription drugs

Groceries,

Internet/Telephone/Cable, Medical,

Electricity

Oil or Gas to heat the house

Gas, (figure high and not at what it is right now. Remember a year ago?)

Auto loans,

Auto upkeep, (includes oil changes and yearly inspections, etc)

Car Insurance,

Savings

Eating out (including lunches at work)

Clothing (remember your fiancee and you need clothes for work),

Dry Cleaning?

Household upkeep (lawn upkeep, pest control, house upkeep needs to be budgeted just in case, repairs, appliance replacement),

Water (yes you pay for your water usage in your home)

Pets (including food and vet)

Cosmetics

Haircuts

Tuition to go back to school

Gifts

Church donations

Entertainment

Vacations

Notice I haven't even added in costs if you decide to have a child and I'm sure I'm forgetting one or two things. Do yourself a huge favor and figure out what each of these things will cost you monthly. Be honest, In fact budget for the extreme because even if it's not the thing you budgeted for, something will happen. A pipe will burst. The burner will go on the fritz on the coldest day of the year, the gutters will clog up, we'll have a hurricane and shingles will be blown off the roof.

Once you've figured out all these costs monthly, compare it to your take home pay and then see if you can really afford the house. Oh and don't forget you do want some left over every month for whatever.

What town are you in? We should meet up and talk.

Hi John, please don't ever listen to mortgage brokers who say what you can buy. You should always buy less house than they say you can afford. If you get the fixer upper AKA " money pit" you will be fixing on stuff forever and it will cost more than you could believe ( you tear up flooring and discover all the sub floor is bad. you decide to tear out the shower surround to do a really nice tile shower and you find mold. It is never ending.

Also, you have it all planned out down to the dollar counting on 2 paychecks every week. What happens if your wife is pregnant and has to go on bed rest for the entire pregnancy? It has happened. Or one of the cars breaks down. Do you know how much an engine or tranny costs?

No matter how much you love each other now, money problems cause many marriages to end. I know nothing about costs in New York; except to know there is no way I would live there but that would be a bad way to start out a new marriage.

I am old, and it is late: it was unclear to me if you each make 76k per year or together you make the 76k. That matters a great deal.

Good luck but don't get in over your heads.

cpartist said:

$80 for electric and gas? Maybe where you live but on Long Island it's more likely to run you closer to double that in winter and in summer if you have AC, 3-4x that number.

A cable package with phone, Internet and cable is between $150-$200 plus a month on Long Island.

Oil in the winter (most homes here use either gas or oil heat) will run you about $700-$1000 month during heating season. Gas is similar.

*************************

My monthly electric bill runs between $72-80. It's the higher amount when the A/C is running or I'm firing my kiln.

I have VOIP for my phone, my Satellite TV is $92 and my internet is $35 a month.

As far as heating my home, I use a renewable resource (I burn trees) so my total heating bill for wood and oil as backup was just over $550 last winter.

I bought a brand new car a few months ago since my old one finally gave up the ghost and was shocked to see my new insurance bill as I was not expecting $780 a year to insure it.

And to make matters worse, I got my property tax bill yesterday. Up here taxes are not part of the mortgage payment and are paid separately. And of course they went up. Now I have to pay $1734 in two installments. Half in October, and half in April.

I don't live in NY, rather the "cheap" midwest. And my monthly electric bill runs anywhere from $50 -- $200 a month depending on the time of year. My monthly gas bill runs anywhere from $40-$220 a month depending on the time of the year. I don't have cable, but I pay $75 a month for internet (not the top speed, but not the base). My water bill runs anywhere from $70-$100 a month.

I would concur with gardenerlorisc_ia about not listening to what a mortgage broker says you can afford. Sit down and be brutal with yourself and your income and run all the possible scenarios. What happens if one of you loses your job? Could you manage the mortgage and basic bills on just one salary? Also keep in mind that while housing may appreciate over time (especially in an area like NY), it doesn't always appreciate the way you expect it to. So I would encourage you to think about what happens if you are forced to sell. I'm in the midwest so the housing market is very different here (we never had the huge run up in prices like the coasts did), but I bought my house in 2002. I am planning on putting it on the market next spring. I will be lucky to get what I paid for it in 2002, because my area is still recovering from the housing downturn over the last several years. When I bought that house in 2002, I never thought that 13-14 years later that it wouldn't have appreciated by at least 20-30%. So it just shows that you never know how the market will play out, and so it's critical that you purchase what you can comfortably afford and have an exit plan.

As mentioned above, mortgage broker's numbers are never realistic. We qualified for a home price that was three times the amount of the home that we actually purchased. We are financially comfortable but would not be if we followed the mortgage broker's guidelines.

To the OP: This is not meant to be unkind at all but you do sound very young and starry eyed with the prospect of a new marriage and a new house and being out from under someone else's roof. There is a lot of talk about a bad downturn in this county's economy. Please be careful; it may not be the time to take on this serious debt.

How is that extremely large gift of money going to work? Someone will have to pay a lot of taxes on that and I sure hope there are no strings attached to it.

I am in the cheap midwest and paid under my annual retirement income for my house. Last time it was updated was in 1998 so it needs carpeting etc but it was completely livable as it was. Prices are starting to come back up now but there are still houses available for $30,000 and under. Quite a shock, right?

NEVER get an adjustable rate mortgage either! Those are what caused the crash in 2008 when people maxed out themselves at 2% ARMs and when the interest rates went to 4% the payments doubled and foreclosures became common.

I bought my first house in the mid 70s at 9 1/2%. A few years later mortgage rates hit 18%!

Your mortgage broker is trying to get you to sign for a loan and doesn't care if you have trouble making the payments. They will say almost anything to encourage you to buy the most expensive house you qualify for. A young couple of my acquaintance are spending roughly the same amount you're contemplating and their combined incomes are more than three times the figure you quoted. They have said repeatedly they don't want to be house poor. If you buy a $380k house you will be not just house poor, you will be plain old poor.

Have you considered how much your wedding will cost? If your in-laws are paying for that they may balk at the prospect of giving you a large cash gift for a down payment once they see how much more the wedding costs than anticipated.

You two should move out of her family's home and rent something for a year. Give yourself some breathing space. Spend that time going back to school nights and weekends and train for a new job that will net you a higher salary. I know that is gratuitous, probably unwelcome advice, but I would counsel my own children against doing what you are contemplating......walking a financial tightrope.

John, I will be out of the country for the next several weeks so let's talk when I get back.

I posted this in a new thread, but it's prevalent to this as well, please answer these questions to the best of your knowledge, thank you:

Hey all, so my manager calls me in today and tells me things are
going slow for me as far as picking up on things that I should be
picking up on, and I four weeks ago switched from MR/DD to Vet Assistant
and now I completely feel like crap about it. I feel like I want to
find a new job because in my mind, the worse thing before buying a home
in a few months is to be fired. Here's the whole situation:

I make
30k a year. My fiance 46k. I made 23k two years ago (first time working
full time since I was doing temp work and not doing much with my life),
and then 26k last year. This new job got us 4k more (but it's weird
because hours aren't set, even though I make 14.50 an hour rather than
12.50, it's 35 hours due to being charged an hour for lunch break, and
the hours change weekly)

So, basically I want out. I have a job
interview I did, $33k a year (around $15.50 an hour) but no benefits
($350 stipend towards Obamacare). Another open position at a day care
center for $10.50 an hour) - $21,00 a year. I don't believe the position
at the day care center is a smart move. Definitely not.

I
feel my days are numbered with this new job - I feel, what's the point
of putting so much energy in if I'm just going to potentially get fired?
Why learn more? It's not the type of job where they train you. See,
this job was open because five people left in a row. I was hired, then a
few others and I feel that maybe I'm the weak link. I have ADHD, I
don't learn too well, but I am a hard worker. The manager basically said
that she knows I'm engaged, and changed jobs and looking to start my
life and that she understands that, etc. She didn't fire me, but I feel
I'm on the firing line. Makes me feel like crap.

I live at home, I
plan on buying a home in 2016 (winter). I am curious if dropping down
to let's say $12.00 an hour (roughly $1350-$1400 a month) from what I
make now $14.50 is going to affect us getting a mortgage? I can ask my
mortgage broker directly but I'd rather not.

I wonder if we will be scrutinized and asked about it.

When
I spoke to my mortgage broker, we talked about down payments and we
will be doing a $200-250k down payment so based upon 70k (the broker
estimated at 6k less to round it out) he said with 200k down we can
afford up to a $480k home) - We wouldn't even consider buying anything
NEAR there, but it's good to see that 6k less (gross), which would be
probably $11.50 an hour I would guess, would still net us a good
pre-qualification. We are looking up to $420k home, pref something in
the mid to late $300k).

At times I wish I just had a simple,
secure job. Something 9-5, full time, benefits. My new job has been
crazy scheduling and weekends non stop. Sometimes I forget what day it
is. It's a good change of pace from my old job, but not a forever job
and I knew this.

I do make half that money doing video work on
a monthly basis so supplementing some extra money is helpful, as long
as there's work and there has been for many years, so that's good. But
it does concern me with the drop in pay if I decide to try not to get
fired and to find something before getting fired.

Is being fired
and totally getting another career going to stop us from getting a home?
Some people may say yes, some may say no. I will say that I am not
completely happy with my job and the hours are 32-38 hours, varying and I
want a full time set 40 hour work well.

Or how would it look if I
took a part time with benefits job and did that, and supplemented my
money other way? For example $1,000 a month. So to go from $1,400 a
month to $1,000 a month, will that stop us from getting a mortgage?

I'm
trying to figure out options here. My love is video but video jobs full
time are in NYC and the cost of a train monthly is $400-500 bucks. It's
insane. I've been thankful to work close to where I live and to be
successful making consistent money every week with video work. It really
helps and will help once we get a mortgage.So, I am interested in hearing everyones thoughts.

Hi John, I am going to be brutally honest here. Since you used the word insane in your last paragraph I will use it as well. You would be absolutely insane to buy as expensive a house as you are looking at especially since you are using OPM ( other people's money) as the down payment even if it is being gifted to you. If you lose that house, which you most certainly will, how do you think they will view you?

I really doubt that you will qualify for a mortgage and if they give you one, it will be a very high interest rate.

When I was reading your initial post, I was questioning whether you were both earning the 76k or each of you. You cannot afford that much house; You might not be able to afford that house for many years.

Please get to a trade school and learn a trade such as plumbing or electrician or the like. They will always be in demand. Doing videos can be done by almost anyone. Well, not by me...

You have never stated your age but you must be about my son's age which is mid 20's and I see a lot of him in your writings. He had ADHD, thankfully he outgrew it and he had to hit bottom before he made something of his life. He is a welder which would be another thing for you to consider. Good pay and benefits.

Sorry if this is a little harsh but better you get it from a common sense person who won't pat your head and tell you that you are doing great. It concerns me that you are heading for a big train wreck.

You might look into finding Dave Ramsey on the radio. He has a lot of good ideas.

I really wish you well and hope for the best for you.

I second the concerns John. If the 200K "gift" doesn't have buying-a- house strings attached, perhaps a better use of that money for the long term is to use it for 5 yrs to pay rent for a very small place and send you to a technical school as mentioned above. Good luck with your decisions.

Pay the danged cars off with your savings and retire that debt so it is not a factor...

We are in three year leases. Not sure if it's smart to pay off the cars. Can you with a lump sum?

A lease is very different than a purchase loan. It depends upon your lease contract; some won't allow early buyouts and some allow it at certain periods during the lease. There are often hefty penalties for an early buyout. It can be better financially to wait until the end of the lease period. You would have to check your contracts to know.