TC $364k Base salary combined with spouse 230 + 120 = $350k Cash available for downpayment : $200k I am hoping to buy a home up to $800k Is this achievable/advisable with current interest rates or should I wait a bit more ? City/region : greater seattle area or king county preferably on the east side, open to other areas like bothell, milcreek, lynnwood as well Credit score : 760 Monthly expenses: Parking + utilities + rent $2k Credit card : $2.5k on average Car loan and insurance : $330 Property tax : 0.98% in WA?
Missing information to answer this question. What city? Property taxes? HOA? Current monthly expenses? Excellent credit?
Added. Let me known if i need to add more info.
I would say it's doable. I'd estimate roughly $5,600 in home expensive with mortgage, property taxes, and utilities. If you take the 230K by itself and subtract the car payment, and then take 30% you get $5,650 which is what most experts would recommend. I'm not from the area, so my numbers could be off. Keep in mind that you are going to be tripling your home expense. If I was in the same situation I would buy less then I can afford to save more. That way if interest rates stay high I can put more then 20%, if they do lower, I'd be ready to buy.
Correction: you’re looking to buy a $300k home for $800k
Did you read about rate buydown increasing affordability?
I thought its only possible if the builder or seller pays for it. Is it wrong?
I’m was in a similar financial situation as OP and bought a 1.1m place a couple years ago when rates were good. Now, I would only be able to afford maybe 700k due to mortgage rates. But my house is now worth 1.3M. It’s all about mortgage rate and getting a good deal for the house so that it always goes up >5 years out. That was even true in the Great Recession if you had a good property. Buy what you can afford based on your monthly costs, not the price or the house and figure out how to get a good interest rate.
You can afford a $800k house, but there are no $800k houses in the Eastside. You'll be buying at best a townhouse, or a 1b1b apartment if you are looking at downtown Bellevue. Property tax is also around 0.7% of assessed value in Eastside, which can be ~0.5% of purchase price.
I am open to other areas too like bothell(I know this is equally expensive as east side maybe), milcreek, lynnwood etc as well. Hoping to be within 40 minute commute time from Seattle or bellevue.
You can buy a house, very comfortably, into the $1m range but doing so right now, at current rates, is foolish. I also want to mention that you can look at areas like Maple Valley, Black Diamond, Lake Tapps and still have great schools and a nice home! Edit. Didn’t realize you want to be within 40m of Seattle
You can easily afford 1.5 mill home with your TC
Yes
You can easily afford upto a million
And also easily be underwater.