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I am debating about buying a home between July-sept 2014 when interest rates should still be pretty low or to wait a full year until spring/summer 2015.... I have a decent and secure job but using my income alone would only get me and my husband about $145000 home which could work for an affordable townhouse. We will also have 4 months living expenses saved plus an additional maybe $6000 to put towards closing costs ect maybe closer to $4000 or $5000. We have great credit. My husband will be starting a new job this summer.
On the one hand we would likely quality for a usda loan and a great interest rate. On the other hand, we would have a bunch more money saved in 2015 but the interst rates may not be good by then?
Buy when you feel comfortable with the purchase price the payment and your financial situation. I prefer lower purchase price even if it's a higher interest rate because I can pay more towards principal or come up with more down to get the payment where I want it.
But no matter what the price if I can't comfortably afford it I don't buy it. Don't get sucked in the frenzy of must buy or forever be let out. House prices don't always go up
I walked away from two houses that seemed like great deals until the seller got demanding and the other needed complete remodel probably in the 70-80k range
Well right now we have nothing towards a downpayment but with the usda loan we wouldn't need one. We probably won't qualify for that once m husband gets his new job. It will more than double our income. We also want to start a family in the fall. We got preamp proved last summer and thought about buying. We could afford the payment for a townhouse and our current budget $140000-170000 (we got Approved for $170000) we want to keep it at that regardless of our income in the next few years
Well right now we have nothing towards a downpayment but with the usda loan we wouldn't need one. We probably won't qualify for that once m husband gets his new job. It will more than double our income. We also want to start a family in the fall. We got preamp proved last summer and thought about buying. We could afford the payment for a townhouse and our current budget $140000-170000 (we got Approved for $170000) we want to keep it at that regardless of our income in the next few years
Ugh.
I am probably not the person to give advice, as I am unilaterally against any situation where one doesn't put ANYTHING down for a house. I think that the buyer should have at least some skin in the game. Your monthly payment will be exorbitant with nothing down.
So basically, you will have to save (delay gratification) but have more income and be able to afford more if you wait. If you pull the trigger now, you have nothing to put down and can get a federally subsidized loan which you already know you will cease to qualify for in a few months because you might actually be able to afford to buy a house.
I would wait. Save some money. Not the fun advice if you want a house right away, but probably the prudent advice. And you will have an easier time buying if you aren't using a no money down loan. A lot of sellers (myself included) would shy away from a potential buyer like that.
wait, read my post in the other thread about the real estate collapse coming this year. nothing was corrected, no reset button was pushed, and a major player in china is pulling the plug at the end of this month. why spend 150k now when in a year you'll get it for 125 and in 2 100.
On the one hand we would likely quality for a usda loan and a great interest rate. On the other hand, we would have a bunch more money saved in 2015 but the interst rates may not be good by then?
It's all relative right? In most rural markets, if interest rates goes up it puts downward pressure on the housing prices, which could end up helping you.
Also, never based your purchasing decision solely on the interest rate.
wait, read my post in the other thread about the real estate collapse coming this year. nothing was corrected, no reset button was pushed, and a major player in china is pulling the plug at the end of this month. why spend 150k now when in a year you'll get it for 125 and in 2 100.
Oh good lord....
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