Tips And Tricks To Buy A House in North Dallas??? (Plano: apartment, mortgage)

[AdamantiumBoy]

To make the story short: I am the only one working as my wife took a year off to pursue some studies. We sold the house and live in an apartment. While we wait for a decent home to materialize, we get pregnant. Now it will be four of us, so buying a home becomes more important. However, can't buy the house we want because it is only my salary. She can only go back to work if we bring my in-laws. But can't bring the in-laws because we don't have a house (no, there is no way to fit six humans on this apartment). BLAM! Infinite loop, infinite regression!

The house we want will undoubtedly be in the 500K to 600K range (apparently homes here in Dallas have started to sweat oil, have become encrusted with gold and diamonds, etc). With my salary alone, we might be able to push 450K (I think...) If she was working, 600K would be a breeze!

No CC debt, only one car payment.

Shouldn't I be able to put 50K for a 500K home and then spend a few months of no expenditure until everything goes back to normal (i.e. she goes back to work). After putting a down payment of 50K, I would still have enough to survive for many months, even if I were to lose my job (which is unlikely at the moment).

How would you play this game?

[TheotherMarie]

If I were in your shoes, I'd buy a house you can afford on your salary alone.
Then, when your wife goes back to work, use the extra money to pay the mortgage down.

I agree. Houses here are ridiculously priced. Don't get me started...

[octo]

Troll alert!!!

If I was you I would just go for the $600k house. Or make that an $800k house. You can do it! You are rich with a massive $50k in the bank and super secure with one income for a family. Might as well go for that $900k house in Celina.

Hurry, those bargains will be snapped up by all these loaded Californians imported by Toyota!!!

[TheotherMarie]

Originally Posted by octo

Troll alert!!!
Hurry, those bargains will be snapped up by all these loaded Californians imported by Toyota!!!

Did I just fall for something???

[Prumio]

I think Adam was being sarcastic & suggesting that it would be very foolish to overreach when one spouse is not working and only $50K in safety-net. What if the house needs a new roof 6 months in? What if your wife or one of your kids gets sick? What if you get laid off? Also, do you have a lender that will finance a 500K house with only 10% down?

[FalconheadWest]

The area is not sweating oil as there are thousands of houses in the $300-350k range. There is no need for you to "have to" go up to the $500k range. Sounds like you're trying to "keep up with the Jones's" out of your league.

[turf3]

North Garland.


East Plano.


Wylie.


Central-East Richardson.


Lake Highlands.

[TurtleCreek80]

Originally Posted by Prumio

I think Adam was being sarcastic & suggesting that it would be very foolish to overreach when one spouse is not working and only $50K in safety-net. What if the house needs a new roof 6 months in? What if your wife or one of your kids gets sick? What if you get laid off? Also, do you have a lender that will finance a 500K house with only 10% down?

I think we read two different OP's. OP said that after $50k down, he "would still have enough [savings] to last for many months, even if he lost his job."

[TurtleCreek80]

Originally Posted by AdamantiumBoy

To make the story short: I am the only one working as my wife took a year off to pursue some studies. We sold the house and live in an apartment. While we wait for a decent home to materialize, we get pregnant. Now it will be four of us, so buying a home becomes more important. However, can't buy the house we want because it is only my salary. She can only go back to work if we bring my in-laws. But can't bring the in-laws because we don't have a house (no, there is no way to fit six humans on this apartment). BLAM! Infinite loop, infinite regression!

The house we want will undoubtedly be in the 500K to 600K range (apparently homes here in Dallas have started to sweat oil, have become encrusted with gold and diamonds, etc). With my salary alone, we might be able to push 450K (I think...) If she was working, 600K would be a breeze!

No CC debt, only one car payment.

Shouldn't I be able to put 50K for a 500K home and then spend a few months of no expenditure until everything goes back to normal (i.e. she goes back to work). After putting a down payment of 50K, I would still have enough to survive for many months, even if I were to lose my job (which is unlikely at the moment).

How would you play this game?

Unless the school your wife enrolled in is Med school or a MBA where she has a job offer upon degree, I would probably just buy the max home you can afford on your budget. There are very few places in DFW where $450k doesn't buy you a very nice home zoned to great public schools. IMO, a family with two professional incomes should buy a home that doesn't rely on both incomes to pay the bills- too many long-term risk factors for most dual income situations (layoffs, disability, need to reduce hours to care for aging parents, etc.) A 30 year loan is a long time to bet that both will be continuously employed.

[Katana49]

Originally Posted by TurtleCreek80

I would probably just buy the max home you can afford on your budget. There are very few places in DFW where $450k doesn't buy you a very nice home zoned to great public schools. IMO, a family with two professional incomes should buy a home that doesn't rely on both incomes to pay the bills- too many long-term risk factors for most dual income situations (layoffs, disability, need to reduce hours to care for aging parents, etc.) A 30 year loan is a long time to bet that both will be continuously employed.

I agree with this sentiment. My wife is now a SAHM. She'll go back to work in a few years, and when she does it will be nice to have the extra income, but that was precisely why we bought a home and calculated our budget based on my salary alone... even when she was still working.