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Regular Contributor
Cloudlb
Posts: 227
Registered: ‎08-05-2010
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In a panic-being advised to move my timeline up

[ Edited ]

I recently realized that my finances were in good enough shape that I could buy my first house, and was planning on about a year.  I wanted to save up some more money, and let my AaofA and stuff mature a little more.  But my boss, a real estate attorney, whose advice I trust, is telling me that's too long -- that I should buy before the end of the year, because I'll never get another mortgage rate as low as the rates right now, and the rates will go up after the election. 

 

Now I don't know what to do -- I thought I would have more time to decide on what I want (or what I can stand in my price range--a very difficult decision for me).  If I wait, I could get more house (not bigger--I really want something with income potential), and if I do it now, I'd have to take a loan from my 401K, which I didn't want to do.    I'd have to go with a 3% down conventional or a 3.5% FHA. 

 

I'd like you guys' take on this.  FYI, my current FICO scores from this site are 736 and 737 and my reports are clean.  3 active credit cards and one store card, but I pay them off every month so no debt, but a car loan with a balance of around $7000 right now; income of $50,000/year.  My weakest point is the AaofA which is only a few years (not sure exactly off the top of my head.  Newest card is an AMEX which I took out in June (was hoping for a bit more seasoning on this one before applying). 

Regular Contributor
indecison
Posts: 226
Registered: ‎05-24-2012
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Re: In a panic-being advised to move my timeline up

Sounds to me with what you have listed here you should not have an issue getting a mortgage.

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Cloudlb
Posts: 227
Registered: ‎08-05-2010
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Re: In a panic-being advised to move my timeline up

sure, but should I ignore this advice and stick to my original timeline?

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LondonMassey
Posts: 453
Registered: ‎01-03-2012
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Re: In a panic-being advised to move my timeline up

My rate went up .25% in a month because I didn't lock(LO said it wasn't time to). I am also buying a short sale which, from listing (in March) to now, the value has increased by 20k. The home was only 55k, sold for almost 200k in 2006 when it was built... that's a major percentage increase.

I have watched the real estate market since 2006... if you wait, you may regret it.

I'm in Las Vegas, btw. Crazy market, here.
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Cloudlb
Posts: 227
Registered: ‎08-05-2010
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Re: In a panic-being advised to move my timeline up

looks like the feds are determined to keep mortgage rates low for a few more years--good news I think

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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: In a panic-being advised to move my timeline up


Cloudlb wrote:

sure, but should I ignore this advice and stick to my original timeline?


If you wait, you may be forced to buy less house than you could buy at this moment in time.  Inflation and higher interest rates are going to eat you up if you wait.


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Sunshine85
Posts: 367
Registered: ‎01-14-2012
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Re: In a panic-being advised to move my timeline up


Cloudlb wrote:

I recently realized that my finances were in good enough shape that I could buy my first house, and was planning on about a year.  I wanted to save up some more money, and let my AaofA and stuff mature a little more.  But my boss, a real estate attorney, whose advice I trust, is telling me that's too long -- that I should buy before the end of the year, because I'll never get another mortgage rate as low as the rates right now, and the rates will go up after the election. 

 

Now I don't know what to do -- I thought I would have more time to decide on what I want (or what I can stand in my price range--a very difficult decision for me).  If I wait, I could get more house (not bigger--I really want something with income potential), and if I do it now, I'd have to take a loan from my 401K, which I didn't want to do.    I'd have to go with a 3% down conventional or a 3.5% FHA. 

 

I'd like you guys' take on this.  FYI, my current FICO scores from this site are 736 and 737 and my reports are clean.  3 active credit cards and one store card, but I pay them off every month so no debt, but a car loan with a balance of around $7000 right now; income of $50,000/year.  My weakest point is the AaofA which is only a few years (not sure exactly off the top of my head.  Newest card is an AMEX which I took out in June (was hoping for a bit more seasoning on this one before applying). 


If you're not comfortable buying right now, don't. Many people that bought years ago and later found themselves in deep trouble did so on the advice of people telling them they would be priced out of the market, rates would never be that low again, etc, etc. Buying a home is a huge decision and commitment, and should only be done when the timing and circumstances are 100% right for you.

Regular Contributor
acrylic51
Posts: 131
Registered: ‎08-05-2012
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Re: In a panic-being advised to move my timeline up


Sunshine85 wrote:

Cloudlb wrote:

I recently realized that my finances were in good enough shape that I could buy my first house, and was planning on about a year.  I wanted to save up some more money, and let my AaofA and stuff mature a little more.  But my boss, a real estate attorney, whose advice I trust, is telling me that's too long -- that I should buy before the end of the year, because I'll never get another mortgage rate as low as the rates right now, and the rates will go up after the election. 

 

Now I don't know what to do -- I thought I would have more time to decide on what I want (or what I can stand in my price range--a very difficult decision for me).  If I wait, I could get more house (not bigger--I really want something with income potential), and if I do it now, I'd have to take a loan from my 401K, which I didn't want to do.    I'd have to go with a 3% down conventional or a 3.5% FHA. 

 

I'd like you guys' take on this.  FYI, my current FICO scores from this site are 736 and 737 and my reports are clean.  3 active credit cards and one store card, but I pay them off every month so no debt, but a car loan with a balance of around $7000 right now; income of $50,000/year.  My weakest point is the AaofA which is only a few years (not sure exactly off the top of my head.  Newest card is an AMEX which I took out in June (was hoping for a bit more seasoning on this one before applying). 


If you're not comfortable buying right now, don't. Many people that bought years ago and later found themselves in deep trouble did so on the advice of people telling them they would be priced out of the market, rates would never be that low again, etc, etc. Buying a home is a huge decision and commitment, and should only be done when the timing and circumstances are 100% right for you.


Agree!!!!!


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Moderator Emeritus
webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: In a panic-being advised to move my timeline up

If you really do not feel ready; don't buy. However; prices on homes now in some neighborhoods are at prices not seen since 1996. In the last 4 months with the recent volume surge in home buying; ive gained about 80k in equity split between two homes. I'm a risk taker; i feel comfortable taking very calculated risks. Others aren't.

Follow your gut!

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Regular Contributor
Cloudlb
Posts: 227
Registered: ‎08-05-2010
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Re: In a panic-being advised to move my timeline up

ha! I'm trying.  my gut is telling me I don't want anything out there at all, but I really haven't started looking yet.

 

what I really want to do is build a small duplex--very hard to do for a first time buyer with limited fund.s 


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