Just joined!!!!
I'm thinking about buying a house because I am sick of paying rent.
Houses here are pretty reasonable,and interest is really low.4.3%
So here is my questions
1. Am I required to have a down payment?
2. If I buy a house for the listing price does that include the tax or is 7% tax going to be added on top of that?
3. I did find a house for 57,000 and used a online mortgage calculator and it came up with my house payment as being $329.oomonthly with a fixed interest rate 4.5 for 30 years.
I realize my Property taxes and house insurance will be added on top of that, so I'm looking at around $480.00 a month. Is this possible or am I not seeing the whole picture?

I mean this is about what I pay to rent a tiny apartment. If I could keep a house payment between $400. to $500. a month I will keep looking,but if it's not possible I will give up on the idea.

thanks for your time
Glad to be here
Tina

Very cool Tina.

PITI should be your whole payment unless you have an HOA or some other association dues that will alos be required.
PITI is an acronym for the 4 things you referred to in your post...came up with my house payment as being $329.oomonthly with a fixed interest rate 4.5 for 30 years.
I realize my Property taxes and house insurance will be added on
Also if you may have to pay some PMI insurance. The more you put down, the less that will be. PMI stands for private mortgage insurance. You pay to insure those who are backing your loan in case you default. This is most common with a conventional loan.

As far as a downpayment is concerned...likely answer is yes. FHA wants 3.65% now I think. If you are a Vet, then the answer will likely be no. If you go conventional, you will need about 10% probably. Of course you will need to consult a lender for the best answers. I am a broker/agent. I would interview at least 2 or 3 lenders, and more if you have the time. Same is true for finding an agent. Glad you are on the market. You represent the path to recovery.

Thanks so much for your quick reply. I think I will need to save some money for a down payment before I go any further. I didn't realize that it was required.
thanks.
Tina

100 percent loans are gone.You wouldn't like the high interest rate and payment to compensate for the extra lender risk on the loan.

You can get a 100 percent loan with your VA certificate if you are a veteran or in active duty.You still have costs to close the loan though.

You will also find it harder to get lenders to do loans under 50k as the lenders don't make much on them with interest and the mortgage brokers make little money sourcing the loan.

If you can save up 10k that would be 20% down at a 50k sale price and you avoid PMI on a conventional loan.Prices are sliding down in most markets so time is on your side to save up the down payment.Just make sure work history stays in the same field and that your credit score stays good. Look at all 3 credit reporting agencies Experian,Equifax, and Trans Union as the lender will take the middle score.

So to know what the middle score is and what is needed to qualify for a loan is very important.

It is best for everyone (most importantly you) in the long run if you do save for the down payment. When you save for 12 or 18 months (or whatever) and then make the decision to put it on the line by buying a home, your decision is more thoughtful and carefully planned. You buy smarter and are less likely to make a frivolous decision. That is the root of a healthy housing market.

Keep in mind that there are always hidden costs associated with owning your own house. You have to pay for any repairs needed, you have to buy insurance, pay for sewer, taxes, water - cold and hot, and all the rest. Plan this into your payments and see if you can afford it then. If so, and you expect to be there for a while, then go for it.

Taxes on real property is different. You pay taxes every year on the property even after you payed off the mortgage.

I couldn't agree more with taking the proper time to save your down payment, to consider all of the maintenance costs of owning a home/condo/townhome, determining the best location for you, etc. Very sound advice, and I applaud you for conducting your research so early on. Good for you!

I had my down payment and closing costs rolled into the mortgage. Find yourself an independent mortgage consultant. He/she can find you the lender for your specific situation. Stay away from banks. Got turned down twice.

Agreeing with most of the posts above, for the benefit of your financial future, you need to save up 15-20% down payment. Also, I think the mortgage calculator you used gave you an optimal scenario. We can't speak on your credit history or income, but you can. Every little ding or past little thing on your credit report will increase your interest rate in increments. Get with a lender as soon as you have some money saved up or even now to get a feel for what you can expect.