Looking for Advice on Buying a House (West View, Crafton: for rent, mortgage)

[Tony_Soprano]

Here's my current situation: I have been living in a townhouse in Cranberry for the last seven years. Last year, I refinanced my mortgage to drop from 6% to 3.5%. The main reason I moved to this area was to be close to work -- and I was until I lost my job.

I'm working out in Robinson and have zero desire to move to that area. Since I no longer work in Cranberry, I wouldn't mind being closer to the city and buying a house instead of a townhouse. The area I am targeting is north of the city in West View, Ross or some other area in close proximity.

Here is what I'm wondering:

1) Since I recently re-financed my mortgage, are there are any drawbacks to starting over and buying a new house and thus entering into a new mortgage?

2) What is your opinion on residing just north of the city and are there other areas I should consider? My price range is under $130,000

Thanks!

[Bong477]

I liked living in Ross/Westview a lot. Its not a great commute to Robinson though. 45min in the morning, a bit longer in the evening would be my guess. Less than Cranberry, but perhaps not enough to justify the move.

If you sell your current house, you'll lose what money you put into the refinance. Generally it takes some time to recoup the cost of a refinance, so you'll lose that. Since you got a huge drop in your rate, you may have gotten back most of the cost already though.

If you keep your current house and rent it, the income and reserve finances for buying a second home are a lot tougher to meet. Basically you have to be able to afford both payments by the debt to income ratios your lender uses and you will likely need 6 months of payments in relatively liquid assets for both properties (in addition to your downpayment and closing costs).

Your credit generally takes a little bit of a hit when you refinance as well since your are opening a new loan and needed credit checks to get it, but its temporary and should be more or less gone at this point in time if it was a year ago.

[robrobrob]

West View is nice. Same goes for Ross. Why don't you wait until you find a job before you buy a house. You never know where your new job will be located. People refinance all the time. I would imagine if your credit is still good you would have no problem getting a mortgage on a new place.

[Tony_Soprano]

Originally Posted by Bong477

I liked living in Ross/Westview a lot. Its not a great commute to Robinson though. 45min in the morning, a bit longer in the evening would be my guess. Less than Cranberry, but perhaps not enough to justify the move.

If you sell your current house, you'll lose what money you put into the refinance. Generally it takes some time to recoup the cost of a refinance, so you'll lose that. Since you got a huge drop in your rate, you may have gotten back most of the cost already though.

If you keep your current house and rent it, the income and reserve finances for buying a second home are a lot tougher to meet. Basically you have to be able to afford both payments by the debt to income ratios your lender uses and you will likely need 6 months of payments in relatively liquid assets for both properties (in addition to your downpayment and closing costs).

Your credit generally takes a little bit of a hit when you refinance as well since your are opening a new loan and needed credit checks to get it, but its temporary and should be more or less gone at this point in time if it was a year ago.

The commute to Robinson from Cranberry is 28 miles and generally takes 35-40 minutes in the morning and a about 45 on the way home. The Parkway West is absolutely horrible. I can't imagine it being a better commute from West View to Robinson. but as long as it's in the same time-frame I suppose I'm okay with that.

I considered renting my townhouse and I could certainly make some money by doing so, but with no experience doing so, do I really want the hassle? Or more specifically, is it worth the hassle?

[Goodjules]

Originally Posted by robrobrob

West View is nice. Same goes for Ross. Why don't you wait until you find a job before you buy a house. You never know where your new job will be located. People refinance all the time. I would imagine if your credit is still good you would have no problem getting a mortgage on a new place.

What he said about getting the job 1st. I just bought a home in Crafton and it's minutes away from Robinson. Once you get the job, if it makes sense to stay in the area, check out Crafton. I can point you to a good realtor.

[Bong477]

Your recent unemployment and job change could also affect your ability to get a loan. I'm not an expert on the subject, its probably best to consult a mortgage person before getting too invested in a house search.

[Tony_Soprano]

Originally Posted by robrobrob

West View is nice. Same goes for Ross. Why don't you wait until you find a job before you buy a house. You never know where your new job will be located. People refinance all the time. I would imagine if your credit is still good you would have no problem getting a mortgage on a new place.

Seems like a great location to me. I grew up out near Irwin and I frequently go home to visit family so I'd like to be a little close to them as well.

I considered the job situation. Where I am now is definitely not a place I will be long term. Moreover, I absolutely dislike the Robinson area so I'd never consider moving there and I'd prefer to work in a different location.

It feels like Ross/West View is a great location because it's close to the city and I hope to end up working in the city someday. If I have to work in Cranberry, again I'm still in a good location and it's a quick commute north.

You're right -- I probably should wait but considering the proximity, I think If I move I'll be okay. Credit isn't a problem I'm more worried about the hit I'll take financially by having recently re-financed and now buying a new place.

[Tony_Soprano]

Originally Posted by Bong477

Your recent unemployment and job change could also affect your ability to get a loan. I'm not an expert on the subject, its probably best to consult a mortgage person before getting too invested in a house search.

I've actually been employed for very close to two years. Is that recent enough to hurt?

[Bong477]

Originally Posted by Tony_Soprano

I've actually been employed for very close to two years. Is that recent enough to hurt?

If it were more than 2 years ago, it shouldn't hurt you at all.

If it is a little less than 2 years, you need to consult with a mortgage person to find out the specifics for your situation. It might be fine, but I think the specific details will matter.

[Retiredcoach]

Although I would see nothing negative about relocating to either West View, or Ross, you might want to consider Ohio Township or Ben Avon, as well. The proximity to town, Cranberry, and Robinson might just be a little more ideal for you. With entrances to routes 79 and 279 within/near the area boundaries, your travel time would be lessened.

As for renting your home in Cranberry, I would crunch the numbers first. Selling a home can carry significant costs (including the tax stamps, closing costs, possibly your finance charges, and realtor commissions). If too much of your equity will be lost through these costs, I would definitely pursue the opportunity to rent your Cranberry townhouse. There is no shortage of qualified potential tenants looking in that area, and if you can find the quality tenant you seek, being a landlord would not be a major challenge for you. Lastly, I believe that if I were in similar circumstances, I would probably rent for a year, as some of the previuos posters have suggested.