Real Estate and Home Mortgages - I want to buy a home!

I am a single mother working as a teacher and want to purchase a home. But don't think I can afford a home. I am tired of paying rent. Is there a way I can become a homeowner and not pay an outrageous mortgage? Your advice will be greatly appreciated!

If you are working full time, have good credit and a down payment there is no reason why you can't afford a home.
Especially in the current market. I'm not sure what an outrageous mortgage is, but 30% of your available income is a good place to start.

The first thing to do is plan ahead. Pay down any debt, especially credit cards and big payments like vehicles. Start putting money aside for down payments and closing costs.

Figure out what you can really afford. Start small. Look at the market in your area. Don't forget it's not just the mortgage but there's also taxes and maintenance. Real estate agents will want to sell you mkore than you can afford. They have a process where they will look at your finances and "qualify" you for a certain price range. Trust me, they will be trying to sell you houses that will stretch (if not bust) your budget. Get a conventional loan. Part of the current crisis was caused by buyers that opted for adjustable rate mortgages and they ended up buying more than they could afford.

You're a teacher - do your homework and it will pay off.

When I moved from a two-bedroom apartment to a small 3-bedroom house, my payments went up substantially. But, practically all the money I was paying for housing became tax deductible. It became advantageous to blow off the standard deduction on my taxes and itemize. And other things became deductible, too - charity donations, state taxes, medical bills (after a certain amount). It may be worth spending a couple of hundred dollars to have an accountant give you advice on what you can afford to do.

But, please stay away from a.r.m. loans.

Some areas have special loan programs for teachers. Call the city you live in and ask.

Lots of areas also have programs for first-time home buyers. Any Realtor in the area could tell you.