Mortgage Loans

[StrateUp]

....really serious ones. But my road bike was stolen 3 weeks ago. This nearly brings me to tears. Not only do I live, eat and breath for hiking, biking and backpacking but I lost about $2000 worth of bike in this theft. I commute 14 miles a day by bike. I ride 40 to 60 miles every weekend. The house I have in escrow is right next to the River Mountain Trail in Las Vegas and that trail is why I picked this house. Its like a surfer having beach front property.

OK. I'm flat disgusted with both the loss of my bike AND waiting on the sellers bank to approve the short sale. Here's the point...

I want a new bike. It is going to cost me $2000 just to replace my bike. If I keep the cash reserves I should keep in order to close on this house, I'm going to have to put about $1200 on a credit card that I can't immediately pay off. And all I've read here tells me not to make major expenditures until the house closes. But Spring is here and this is my life.

I need this bike. My middle FICO score is somewhere between 690 and 700. My DTI is 19% and 33% without the car. It is 19% and 39% if you count the last 7 car payments. Buying this bike is going to cause the mortgaging bank to see about $3000 in transactions between a credit card and my checking account. What could this mean to the purchase of this house? Right at this moment I'm just about done with the house thing.

Thanks all, in advance.

[boomhower]

What do your reserves look like after you take the $2k out?  If you have enough left then go for it.  It certainly sounds like biking is an integral part to your life but you may have to decide whether missing a couple months of bikiing is worth waiting to have a house right next to a perfect biking location for the next few decades is worth it.  That's not anything we can tell you and you'll have to decide for yourself. Good luck.

[StrateUp]

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boomhower wrote:

What do your reserves look like after you take the $2k out?  If you have enough left then go for it.  It certainly sounds like biking is an integral part to your life but you may have to decide whether missing a couple months of bikiing is worth waiting to have a house right next to a perfect biking location for the next few decades is worth it.  That's not anything we can tell you and you'll have to decide for yourself. Good luck.

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Is that the entire formula? My 401K is worth more than the house. Will that do it? I keep hearing "Don't spend money on anything."

I just an hourly wage earner but I've done some right things with my money in recent years. I didn't even think about the 401K.

[IOBA]

StrateUp - if you can wait, wait.  My friends who are serious bikers usually have 2-3 bikes becuase they always need a back up bike.  Do you have a back up bike you could use until you close?   Can you borrow a bike from someone until you close?

If not, ask a family member or a friend to "borrow" the money from.   Have them pay for the bike and you can pay them back with monthly payments until you close on the house.  After you have signed and are in the house, then give the person a lump sum.

OR

If you definitely have enough in reserves  to pay for down payment, closing, and 2-6 months of reserves, then use some incoming money (don't pull from savings) to get a new bike.

[StrateUp]

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IOBA wrote:

StrateUp - if you can wait, wait.  My friends who are serious bikers usually have 2-3 bikes becuase they always need a back up bike.  Do you have a back up bike you could use until you close?   Can you borrow a bike from someone until you close?

If not, ask a family member or a friend to "borrow" the money from.   Have them pay for the bike and you can pay them back with monthly payments until you close on the house.  After you have signed and are in the house, then give the person a lump sum.

OR

If you definitely have enough in reserves  to pay for down payment, closing, and 2-6 months of reserves, then use some incoming money (don't pull from savings) to get a new bike.

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I've been waiting for months to hear something on this house. Anything. My realtor, if you can call her that, hasn't done a single thing she's said she was going to do and has lied to me on dozens of occasions. Buying this house is one of the mose miserable experiences I've ever experienced outside of death in family or divorce. And I eseriously don't want to move in the summer. I really don't care if this house flops or not. I'll start again in the early fall and with a real realitor. I bought a great new bike this morning and I'm going bike riding. Screw Real Estate. I hope all the banks close tomorrow and we go back the chucking spears for groceries.

[StrateUp]

If 700 scores and more money in the 401K then the house is worth won't get a house financed then I don't need a house, but then if this won't buy a house then nobody qualifies for a house.

[FrugalRican]

Sometimes you have to do what makes you happy, rather than what makes sense.

[StrateUp]

I'm sorry everybody. Probably nobody here thinks I'm a nice guy but I am. I'll be OK in an hour and I still think this house is going to happen.

[FrugalRican]

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StrateUp wrote:

I'm sorry everybody. Probably nobody here thinks I'm a nice guy but I am. I'll be OK in an hour and I still think this house is going to happen.

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I have absolutely no idea why you are apologizing. But I just wanted to remind you, it's Friday.

And I know all about short sales and how annoyingly painful they can be.

[StrateUp]

I bought my new bicycle today and I needed it. I spent all day fine tuning it and getting it ready for a 50 miler tomorrow. I'd much rather go througfh this kind of pain than worry about theives and sour real estate deals. I put in about 10 miles just now and feel like a million bucks.