![]() |
|
|

As you prepare to buy your first home in Montgomery County, you have already said "yes" to the biggest questions of all: "Do I want to buy a home? Do I want to buy it now?" Now it's time to ask the big one: "How much house can I afford?"
If you have gone to the bank to get pre-approval, as your real estate agent (and everyone else on the planet) will urge you to do, you may have a ball park figure for what the lender says you can afford. This may be more or less than what you had in mind.
How Much Can You Afford?
How much you can afford these days is based on the 28/36 rule. The means your housing should be 28% or less of your gross income before taxes, while your debt (not including your mortgage) should be 36% or less of your income. Based on an income of $60,000, you might be able to append about $1,400 a month on your mortgage, taxes, and insurance, but this would dip to $1,000 if you paid about $650 about for credit cards, car payment, and other loans. (Click here for a handy 28/36 mortgage calculator to compute how the 28/36% rule would work out for you.) Banks may use a magical formula based on your FICO score, but they are considering similar things: how you your debt compares to your income.
If you have household income that totals $120,000, your might be able to pay $2,800 for housing with no debt. When most people go to the lender, they put on a positive face about how their income is stable. A discussion at the kitchen table with a calculator should center around if and how you can pay a house payment approaching $3,000 if one of you were laid off or one spouse decides to stay home with the kids or an elderly parent. Will you be able the handle increased energy costs of the home is bigger than your old residence? You need to be honest and forthright with the lender about the current state of your finances, but make sure to have a Plan B or Plan C in mind.
Don't Sacrifice It All For Your Down Payment
It's true that you can reduce the amount of the loan and the monthly payment by putting more money down. This makes many people look to the two biggest pots of money they have: retirement accounts and savings. With a retirement account, large sums of money may be available, but if you are under age 59 ½ , the money is usually taxable when you remove it; the amount of the loan is included in your 36% of debt. Young home buyers often see their future retirement as decades away, but it is important to retain the account and add to it as planned even when you buy a home. The stock market, which fuels the growth of your retirement fund, may not be doing well today, but over time this will not be the case. Tapping your retirement fund is not a great idea.
Buying a home may require mobilizing all sources of funds for the downpayment, but you should not put your last dime into the downpayment. Financial analysts maintain you should have three to six months income on hand, plus about five % of the purchase price of your home as a cushion for emergencies and repairs. In addition, you may need about 3-5% of the amount of the purchase price for closing costs and moving expenses. This may mean that you need to consider buying a less expensive home or consider a loan that requires down payment, such as FHA. You can always pay more down on the principle or refinance later if paying a large downpayment would leave you without any reserve. The word from Washington is that an extension of the tax credit is likely in some form, so you can probably plan on some assistance for either your downpayment or other move-in expenses.
With home price and interest rates low, this is great time to buy an affordable house - but not to overextend yourself. Talk to Courtney Griffiths today about buying a Montgomery County home Courtney will give the most to date information about the status of the first time homebuyers credit.
![]() |
|
|
POTOMAC, MARYLAND RESIDENTIAL MARKET - MONTGOMERY COUNTY
We receive calls from home owners and prospective purchasers that are asking about the local market. We email monthly statistics, but sometimes you need to have a closer look at what is actually on the market for sale.
The following three reports show the properties that are active listings of homes for sale in the area. The properties are sorted by subdivisions. You may sort differently by clicking on the column headers.
The first report shows the 221 active listings excluding the lender owned (REO) homes and the short sale listings. Click the following URL to see the listings:
http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=1135923XDLVP&p=DE-93135341-454
The second report shows the 4 short sale listings that are available. Short sales are transactions where the proceeds of the sale will not cover the outstanding mortgages. These are sometimes called pre-foreclosures. Click the following URL to see the listings:
http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=1135923XDLVP&p=DE-93135363-702
The third report shows the 2 lender owned foreclosures (REO) properties that are for sale. The lender owned properties are vacant and prices are reduced until they are sold by the highly motivated sellers. Click the following URL to see the listings:
http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=1135923XDLVP&p=DE-93135380-737
Please contact us with your questions. We always appreciate your referrals.
If you have prospective first time home buyers among your family and friends, please tell them that time is running out for the opportunity to receive the currently available $8,000 tax credit. Settlement must take place by 11/30/09. This cash incentive is too good to miss by those that have not owned a home during the past three years.
![]() |
|
9036 BRONSON DR, POTOMAC, MD
6 Bedroom , 8 Full Bath , 2 Half Bath
Auction onsite November 19th , 11:00 AM
listing by Tranzon Fox
I represent my buyers as their exclusive Agent ... if you are interested in one of the many opportunities in this unprededented buyer's market ... I would be glad to help.
rick.boothe@longandfoster.com 301-793-6796
*This information is deemed reliable but not guaranteed.
![]() |
|

** 11752 LAKE POTOMAC DR, POTOMAC, MD 20854 List Price: $1,584,000 8 Bedrooms , 7 full & 4 Half Baths
Assessment
| 2010 | $2,007,990 |
listing by Rosselle Realty Services
** 19 PETTIT CT, POTOMAC, MD 20854 List Price: $964,900 5 Bedrooms , 5 Full & 1 half Bath
Assessment
| 2010 | $1,416,120 |
listing by Long and Foster Real Estate, Inc.
** 8829 TUCKERMAN LN, POTOMAC, MD 20854 List $504,900
Assessment
| 2010 | $524,200 |
listing by Realty Executives One
** 4 PEBBLE RIDGE CT, POTOMAC, MD 20854 List Price: $559,900 4 Bedroom , 2 1/2 Bath
Assessment
| 2010 | $586,140 |
listing by Key Realty Group, LLC
I represent my buyers as their exclusive Agent ... if you are interested in one of the many opportunities in this unprededented buyer's market ... I would be glad to help.
rick.boothe@longandfoster.com 301-793-6796
*This information is deemed reliable but not guaranteed.
![]() |
|
|
POTOMAC, MARYLAND RESIDENTIAL REAL ESTATE MARKET - MONTGOMERY COUNTY
We receive several calls each week from home owners and prospective purchasers that are asking about the local market. We email monthly statistics, but sometimes you need to have a closer look at what is actually on the market for sale.
The following three reports show the properties that are active listings of homes for sale in the area. The properties are sorted by subdivisions. You may sort differently by clicking on the column headers.
The first report shows the 213 active listings excluding the lender owned (REO) homes and the short sale listings. Click the following URL to see the listings:
http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=1135923XDLVP&p=DE-92417790-437
The second report shows the 7 short sale listings that are available. Short sales are transactions where the proceeds of the sale will not cover the outstanding mortgages. These are sometimes called pre-foreclosures. Click the following URL to see the listings:
http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=1135923XDLVP&p=DE-92417824-797
The third report shows the 3 lender owned foreclosures (REO) properties that are for sale. The lender owned properties are vacant and prices are reduced until they are sold by the highly motivated sellers. Click the following URL to see the listings:
http://mrislistings.mris.com/Matrix/Public/Portal.aspx?k=1135923XDLVP&p=DE-92417862-124
Please contact us with your questions. We always appreciate your referrals.
If you have prospective first time home buyers among your family and friends, please tell them that time is running out for the opportunity to receive the currently available $8,000 tax credit. Settlement must take place by 11/30/09. This cash incentive is too good to miss by those that have not owned a home during the past three years.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved