When would be the best time to buy a condo (first-time buyer)? (investment, mortgage)

[Jaye0307]

I know I might be putting the cart before the horse, but I am expecting a large inheritance in July ($80,000) and my family and I will be putting my father's house on the market this summer, to hopefully sell in the fall as well. My portion of this sale will be, conservatively, about $40,000. So I could have upwards of $120,000 towards a condo in the Milwaukee area of Wisconsin. I'm currently looking online at condos in the $100,000 area so I want to put 20-30% down. I haven't applied for a pre-approved loan yet, but my credit is in the good range and my only debt consists of credit cards (around $1,000).

The problem I have is, I just started a new job that doesn't pay what I hoped. I am willing to get a 2nd part-time job to pick up the slack if I can find one. I will also be looking for a different full-time job that pays more. My current hourly wage is $12/hour and I need to make at least $14/hour in order to get a monthly payment, including taxes and HOA fees, to be 30% of my income. And I would like to get out of my current apartment by February since it's very noisy, even if it means getting an apartment with a month-to-month lease.

My question is, how long should I wait before actively looking for a condo? If I can get out of my current apartment and into a condo by February, with my finances, is that doable? Or should I go for a month-to-month lease on a new apartment for 6 months to a year (after February) in hopes I can find a job with more money? In other words, should I "go for it" on a condo or wait? I just don't want to lose out on lower prices and lower interest rates, although nobody knows what could happen to either in the next 6 months. Any advice you can give would be great. Thanks!

[2bindenver]

You would need proof to source the funds, for the underwriter. You need ask a local to you lender, but I think, if you have $50,000 in a cd/bank account at time of closing, they will loan you 80% of the condo's value.

[DMenscha]

Originally Posted by Jaye0307

My question is, how long should I wait before actively looking for a condo?

I just don't want to lose out on lower prices and lower interest rates, although nobody knows what could happen to either in the next 6 months. Any advice you can give would be great. Thanks!

Wait until your financial situation is a certainty.

If timing doesn't work out, it just doesn't work out. If you had the cash now, you could do whatever, since you don't, you'll have to assume the risk of a different market when you are ready. Looking now would most certainly cause you no end of frustration, since you can't buy now.

Hope everything works out for you.

[MrRational]

Originally Posted by Jaye0307

I am expecting a large inheritance in July ($80,000) and my family
and I will be putting my father's house... My portion of this sale will be, conservatively, about $40,000.
My current hourly wage is $12/hour...

Do you have any substantial savings or reserve funds? Investment accounts?
Retirement accounts? How about debts? Credit cards? Student loan? Auto loan?

My question is, how long should I wait before actively looking for a condo?
In other words, should I "go for it" on a condo or wait?
Any advice you can give would be great.

Quite frankly... I couldn't recommend that you buy anything any time soon.

Use this windfall to stabilize your finances, start retirement savings,
and to do *something* that will get you eligible for far more than $12-14 an hour jobs.

[Jaye0307]

Thanks, everyone! I am thinking of waiting until I have a better paying job before buying, even if that means renting again for six months to a year after my current lease ends. I know of a city near me that has cheaper rentals and some don't require a year lease. I just wanted to see if the money I will have this fall would help towards getting a smaller mortgage that would fit with my current salary. But the more I think about it, waiting would be best.

The good news is, I only decided to become a homeowner recently. It's not like it's been a life-long dream or even possible. I have time!

[Sky-Blue]

Originally Posted by MrRational

Do you have any substantial savings or reserve funds? Investment accounts? Retirement accounts? How about debts? Credit cards? Student loan? Auto loan?

This is one thing that sours me about condos: the board members (your neighbors) will know your private financial info (salary, sources of income, assets, and debts) when you move-in as a new HOA member.

[MrRational]

Originally Posted by Sky-Blue

This is one thing that sours me about condos...

The only one? Do some more research on them.

[Sky-Blue]

Originally Posted by MrRational

The only one?

Post above it says "one thing"; not "the only one thing."

OP: When you're ready to buy, be sure to hire an inspector to look outside the condo: The building's roof, heating/cooling systems, electrical, plumbing; and check the foundation and for dry rot & termites. Those maintenance issues are still important for you to know (costs will be passed along).

[don1945]

I've always had single family homes and thought I would hate living in a condo, but about 15 years ago I moved out of my house and into my GF condo and absolutely loved it. Everything is done for you, no more Saturdays of mowing the lawn and trimming the shrubs. It freed us up to actually have fun on the weekends.

If you are thinking of buying one don't wait too long, they have bottomed out and are starting to become more costly everyday. Your income shouldn't be much of an issue if you have that kind of money to put in and escrow or secured account at the bank who does the mortgage. As your credit and income improve you can get that amount adjusted.

Don

[KayT15]

Originally Posted by Sky-Blue

This is one thing that sours me about condos: the board members (your neighbors) will know your private financial info (salary, sources of income, assets, and debts) when you move-in as a new HOA member.

WHAT??!! That is wrong on so many levels.