So my husband and I along with my elderly mother have rented a home for the past year now. Annually we pay $21,300.00 per year in rent, excluding utilities.
We're at a point where we have decided we like the home and area, and I think it would make more sense to buy this property since the landlord has made it quite clear he would like to sell it.
We're paying $1775.00 a month, and the home value according to Zillow (which isn't a rock solid value) says the home is worth $189K. He has been trying to sell this house for the past 4 years and no one has paid what he's asking, and has come down in asking price multiple times when the home was listed.
The last time he tried to sell it which was last year right up until we moved in, he was trying to sell the home for $189K, and came down to $160K and still took it off the market. Anyhow, my husband makes $54K before taxes, I make $25K after taxes and my elderly mother makes $20K from Social Security.
So all together we're around the $90,000 a year income mark. (I excluded $9K to assume any taxes deducted from my income)
Based off these numbers, and considering we're already paying $1775 monthly for this home, would it be likely to be approved for a mortgage as first time home buyers? I haven't even began the process of speaking with a bank, considering I don't even know what I should have prepared for them.
Any advice and knowledge on this would be greatly appreciated, thank you!
Read more: Based off the numbers, would we qualify for a mortgage?
