Relocation considerations (downpayment, commute, schools) (Boston, Cambridge: sale, loan, home)

[simplexsimon]

Are financial questions on an anonymous internet forum out of line? Financial well being is important too. If it's possible to help mitigate a future foreclosure situation, why not?

OP, will the new employer offer a relocation package? Would you consider renting and saving a bit to 1) build up a bigger down payment and 2) give yourself more time to explore towns?

[mwj119]

Originally Posted by youdontknowjack

Great, I will look there as well, thanks!

Your money will go far in Acton, but I prefer Concord as another poster mentioned. Downtow(s), two train stations, quick drive to Cambridge (off hours).

[panchilly]

Concord is awesome.

It is also significantly more money than Acton. They might actually have a hard time affording Concord with 4 kids and a 250k HHI.

[CaseyB]

Originally Posted by simplexsimon

Are financial questions on an anonymous internet forum out of line? Financial well being is important too. If it's possible to help mitigate a future foreclosure situation, why not?

OP, will the new employer offer a relocation package? Would you consider renting and saving a bit to 1) build up a bigger down payment and 2) give yourself more time to explore towns?

Yes, personal comments about a poster's financial status are inappropriate. Asking why someone doesn't have more money saved or commenting on their income are considered rude.

General comments like "that is an expensive town" or "your money will buy you more in X town" are fine.

[bjimmy24]

Originally Posted by CaseyB

Not to speak for him, but I think he might have meant it to mean something like "I wish I had those problems".

Yes sorry I see how my offhand comment can be interpreted differently.

[chicagoliz]

Originally Posted by CaseyB

Not to speak for him, but I think he might have meant it to mean something like "I wish I had those problems".

Ok but again we see this kind of post all the time, so I don't see why it would strike him as at all unusual to think that "I wish I had those problems" -- I'd think, then, that he'd think this every time he logged on to C-D, because those questions are so frequent.

Originally Posted by Dm84

It isn't, but I agree it's a serious problem for the OP. Their offers are going to be rejected in favor of people who have 20% down.

But more importantly they probably can't afford to live here with those parameters. The mortgage is going to take up a decent chunk of their take home pay.

I have never really understood this. I don't understand why a seller would care (except for preferring a cash-close, without any bother with the mortgage company) if the buyer is pre-approved for the mortgage. If the bank has said they will lend the money, they have the money, and seller will get it. Why would seller care what happens afterward? If a buyer had 20% or 50% down, but lost their job or something, the mortgage wouldn't go through at that point, either. The only other issue would be the house meeting the appraisal, but that wouldn't be dependent on how much the buyer put down.

Originally Posted by knaapan

I would look along the lines that go to backbay - Worcester line, Franklin line or Providence line
If you want top ranked schools and a relatively quick commute, I would look at the following towns for 850k

For Worcester line- Needham, Newton

For Franklin line - Westwood, parts of Medfield that are close to train
For Providence Line - Sharon


For schools a notch below but still good, you have Natick, Walpole, Franklin(1hr +), Mansfield

I agree Needham and Newton would be ideal, but there's little available at OP's price point, and I don't think they'd want to take what's available when they have 4 kids. They'd likely be happier a tad further out, which is why I suggested Natick. I think Franklin and Mansfield are getting a little bit far. Westwood and Medfield are possibilities.

Originally Posted by simplexsimon

Are financial questions on an anonymous internet forum out of line? Financial well being is important too. If it's possible to help mitigate a future foreclosure situation, why not?

OP, will the new employer offer a relocation package? Would you consider renting and saving a bit to 1) build up a bigger down payment and 2) give yourself more time to explore towns?

I don't think renting in this area would enable anyone to save up much for an increased down payment. And especially if homes here continue to increase in price, they won't be in any better position. Plus, if they're being relocated, the company is probably paying for moving, closing costs, etc. If you don't have a company covering those expenses, they can be extremely high. So if they moved in a year or two, they'd be paying tens of thousands of dollars then that they wouldn't have to pay now. Plus they'd be uprooting the kids again.

Originally Posted by mwj119

Your money will go far in Acton, but I prefer Concord as another poster mentioned. Downtow(s), two train stations, quick drive to Cambridge (off hours).

But OP's spouse is going to Back Bay, not Cambridge.

Originally Posted by panchilly

Concord is awesome.

It is also significantly more money than Acton. They might actually have a hard time affording Concord with 4 kids and a 250k HHI.

Yeah, I'm not sure about the Concord recommendation -- from what I've seen Concord is pretty pricey, and it's just as far of a commute to Back Bay as some of the other towns that are mentioned, yet costs more. I'm not sure what OP would get for $800K in Concord. It is a very nice, town, though.

[youdontknowjack]

Thank you so much for all of these replies and recommendations, this is super helpful.

To address the 5% downpayment question - which I appreciate people saying it’s not anyone’s business, but I don’t mind explaining - it’s a few things. EDITED FOR SIMPLICITY’S SAKE: Primarily because we have moved a number of times in the past for my husband’s job, we haven’t built up much equity in any of our houses. That and medical expenses and student loan repayments (which are thankfully nearly at and end). And he hasn’t been making this salary all along of course. We are willing to pay more for the right house in the right area for our family, but $850 is our ceiling and we will be actively looking for something less expensive. My favorite house in Sherborn is currently at $799k and I’ve seen ones I would consider for $650. I am a real estate agent, I will only pay what I feel the house is worth and if I feel it will be a worthwhile investment.

Someone asked if I would consider renting - yes, I’m strongly considering it, (again, edited for clarity)... but i don’t love the idea of moving again in a few years and paying those moving costs. We will have a relocation package with this job offer (again, if he gets it). I just want to settle on the best place for us and then try to find a rental if necessary that will keep us in that school district. But I would prefer to buy.

[simplexsimon]

Pay close attention to property taxes if you haven't already...it's shocking. And don't forget PMI.

I don't know why but Canton doesn't get recommended much. It's pretty convenient with two commuter rail stations in town, $850k will get you a pretty good house and I think the schools have good ratings.

[MikePRU]

Originally Posted by chicagoliz

Ok but again we see this kind of post all the time, so I don't see why it would strike him as at all unusual to think that "I wish I had those problems" -- I'd think, then, that he'd think this every time he logged on to C-D, because those questions are so frequent.

I was a little surprised to read the comment as well given the frequency with which we see posts like this.

Originally Posted by chicagoliz

I have never really understood this. I don't understand why a seller would care (except for preferring a cash-close, without any bother with the mortgage company) if the buyer is pre-approved for the mortgage. If the bank has said they will lend the money, they have the money, and seller will get it. Why would seller care what happens afterward? If a buyer had 20% or 50% down, but lost their job or something, the mortgage wouldn't go through at that point, either. The only other issue would be the house meeting the appraisal, but that wouldn't be dependent on how much the buyer put down.

The problem is . . . yes the lender has the money however the seller doesn't know with certainty that the lender will give the money to the buyer until you're pretty deep into the transaction. Pre-approvals really are not all that meaningful. While it hasn't happened to me at this point in my career, I've heard numerous stories of buyers showing up with pre-approval letters and then not being approved for a mortgage. A pre-approval gives you a general idea of how qualified a buyer is but the deep dive into their finances generally doesn't happen until they actually apply for a mortgage. Yes, pre-approvals are more in depth these days then they were in the past. However, they're still not a complete underwriting of the buyer's finances. How much of a down payment a buyer has can impact the likelihood that the loan will be approved as well because of the appraisal. For example, if a buyer has 20% to put down and the appraisal comes in low then the buyer's loan will not be approved. If a buyer is putting down 50% then there's a significant buffer there for the appraisal to be off. Appraisals are a lot of art and not as scientific as the public would like to think. If an appraiser didn't get enough sleep last night (happened to me on my personal home sale) the report can come in significantly lower than it should. Luckily, I was able to appeal it and get the value adjusted to where it should have been in the first place. Also, some people will look at the down payment as an indicator of financial health. A person putting 20% down probably has more in savings than someone putting down 5%.

So, at the end of the day the amount the buyer is putting down is used as indicator to determine how much bother the lender will be during the transaction. An offer is really only as good as the likelihood that it will actually reach the closing table. Offers that don't end up in closings are worthless.

Originally Posted by chicagoliz

I agree Needham and Newton would be ideal, but there's little available at OP's price point, and I don't think they'd want to take what's available when they have 4 kids. They'd likely be happier a tad further out, which is why I suggested Natick. I think Franklin and Mansfield are getting a little bit far. Westwood and Medfield are possibilities.

I agree. With 4 kids, OP is likely looking for more space than Needham/Newton would offer at that price point (assuming they don't want to live on a super busy street). Moving out from there would be places like Westwood and Natick. Medfield is not a great town to commute into Boston from. So, I might put that a level down from Westwood and Natick because of that. How far out the OP will need to go depends entirely upon how much house they want. Given they've said they're happy with around 2500 sq ft I don't think they'd have to go further than Westwood/Natick. Maybe Medfield if they want something a bit newer.

Originally Posted by youdontknowjack

I’m just not excited about the idea of moving again, I’m tired haha!

Moving is not fun! One of my first clients told me she moved an average of every 2 1/2 years. I don't know how she could stand it. It would make me crazy. I hate moving.

[bjimmy24]

Originally Posted by MikePRU

I was a little surprised to read the comment as well given the frequency with which we see posts like this.

I'm quite surprised you guys are so sensitive about this. Geez.