Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Before you begin the application process, you should ask the agent what the cooperative expects of buyers. Your application may be dead in the water if you don't have two years of mortgage and maintenance in the bank. Maybe they will accept one year. But it's best that you get that information before applying because the application fees can be steep. I think I paid $400 application fee, $75 credit check fee and some other fee that I can't remember right now.
I would hold off on the purchase for now..a lot of your income deals on the what ifs and the future. I would recommend waiting until your RN license is complete and you have secured your higher salary. Most PA programs are closer to 3 years since most have transitioned to masters programs. When your hubby is in PA school it will be very difficult for him to work and go to school. Probably during that time the household expenses will be on your income alone. I hope he does get into PA schools. Excellent career choice.
Whatever mortgage you lock in right now, won’t be worth the same money you make 5 years from now.
Roll the dice!
Secure your future. I did almost 3 years ago, and haven’t looked back. Even if I get laid off eventually, Ill work 3 jobs if I have to. But when I retire in 20 years, the fruits will be ripe.
Whatever mortgage you lock in right now, won’t be worth the same money you make 5 years from now.
Roll the dice!
Secure your future. I did almost 3 years ago, and haven’t looked back. Even if I get laid off eventually, Ill work 3 jobs if I have to. But when I retire in 20 years, the fruits will be ripe.
I don't know what to do know honestly. 50% of us want to do it as you said, but another 50% shows we shouldn't do that... Ahhh, it is driving me crazy now,,,,....
Whatever mortgage you lock in right now, won’t be worth the same money you make 5 years from now.
Roll the dice!
Secure your future. I did almost 3 years ago, and haven’t looked back. Even if I get laid off eventually, Ill work 3 jobs if I have to. But when I retire in 20 years, the fruits will be ripe.
This is a terribly misguided outlook and advice.
Banks don't care about what you might make 5 years from now. They care about how much you've brought in 5 years before and NOW.
You're also assuming that 3 gig jobs will be enough to pay a mortgage in NYC. Ludicrous.
Many truly have no idea what's happening around them. My current profession allows me access to proprietary data, and while I can't divulge much I can tell you this Clinton era happy go lucky roll the dice mentality isn't going to work for OP or you. The game has changed. They aren't handing out mortgages like candy to just anybody with a pulse anymore.
Another thing that came to mind is they will check tax returns and status via your W-2 and paystubs. If you have any back tax owed to the IRS over a certain amount you will be declined. Because this is a warning sign that you can't handle your finances.
The catch 22 here is my gut tells me you've never both made enough to OWE (the Fed at least) which probably means you don't make sufficient money to qualify for the mortgage. Just because rent is the same price that is not enough.
The other problem that came to mind is living in your in-laws house. It depends on which institution you apply with but generally even if the bank approves you, some co-op boards are skeptical of people not paying rent to an unrelated 3rd party management. Because it potentially obfuscates any financial hardship. If you're unemployed 6 months for example parents generally won't start Eviction proceedings or sue for back rent. So they will be even more firm on you having the 2 year cash reserves.
Will that be possible for you to build up or are you close to having 2 years monthly housing payments saved?
The term used among bankers is unicorns.....for credit scores above 800.
Many with high credit scores in the 800’s tend to be in good financial shape and may not count on borrowing money as much ....20% is a lot of people with high scores ......my wife and I are in the 820’s
Banks don't care about what you might make 5 years from now. They care about how much you've brought in 5 years before and NOW.
You're also assuming that 3 gig jobs will be enough to pay a mortgage in NYC. Ludicrous.
Many truly have no idea what's happening around them. My current profession allows me access to proprietary data, and while I can't divulge much I can tell you this Clinton era happy go lucky roll the dice mentality isn't going to work for OP or you. The game has changed. They aren't handing out mortgages like candy to just anybody with a pulse anymore.
Another thing that came to mind is they will check tax returns and status via your W-2 and paystubs. If you have any back tax owed to the IRS over a certain amount you will be declined. Because this is a warning sign that you can't handle your finances.
The catch 22 here is my gut tells me you've never both made enough to OWE (the Fed at least) which probably means you don't make sufficient money to qualify for the mortgage. Just because rent is the same price that is not enough.
The other problem that came to mind is living in your in-laws house. It depends on which institution you apply with but generally even if the bank approves you, some co-op boards are skeptical of people not paying rent to an unrelated 3rd party management. Because it potentially obfuscates any financial hardship. If you're unemployed 6 months for example parents generally won't start Eviction proceedings or sue for back rent. So they will be even more firm on you having the 2 year cash reserves.
Will that be possible for you to build up or are you close to having 2 years monthly housing payments saved?
Banks are being extra tough right now with the mortgages. Many want 20% down (which the OP would have to put down anyway for the coop, very few allow 10%) and they will verify your employment up until the week before closing. They will ask for whatever information they want on a whim. My guess is coops are being even pickier than usual as well. Much of what you're saying (checking returns, back taxes, etc.) has been in place since after the nonsense in/around 2008.
As I stated above, they do not know if the OP's husband will get into PA school in NYC. That alone would make me wait it out. If they have to move out of state, do they want to deal with a renter? How fun would it be to have a renter now during this time period? Does the coop they are looking at even allow subletting?
I say no. Too much up in the air. Also, if the main impetus is just getting yourself out of a not so great situation at your current place, consider finding a place to rent or sublet for a year, maybe in your desired/targeted neighborhood. Rents may be softening a bit, and sublets should be easy to find due to people fleeing the city lately.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
