My daughter getting first home

[Jnbmom]

So excited for my daughter . She lives in Seattle with her fiancé , they are getting married  next July ❤️

I can't believe how high prices are there . They finally found a "little house " 920 square feet with a nice yard though . They haggled a little but now have a contract . Both them make around 100K , she a little higher she is a SLP (speech language pathologist), he works for state under rent relief programs .

The house is 640K 😳, however the in laws both doctors are giving them a huge down payment (400K-500K ) 😳 as they have a lot of money and with the economy they would rather invest in the children . I did ask if either I could marry his twin brother or could be  adopted , I would go either 😂😂.

Their scores are the the low 800's and they have the preapproval in place .

So excited for them but bewildered as well with the home prices . I plan to retire and move there but this scares me not knowing if I could even afford it as their tiny house wouldn't have room.

Any idea what rates are currently ? I believe they are going conventional and she stated estimated mortgage payment is 1600.00 with the huge down payment.

https://www.redfin.com/WA/Seattle/9716-Dayton-Ave-N-98103/home/99783

[Horseshoez]

@Jnbmom, congratulations to your daughter and her intended!

We are more or less in the same boat; our daughter and her fiancé moved to a fairly expensive area outside of Washington DC back in 2023 and they begged us to move down near them.  Last year we found a place only a two minute walk door-to-door and bought it, but wow, money doesn't go terribly far down here.  Had we stayed in New Hampshire, we could have purchased a house in the 2,500 to 3,000 square foot range for what we are paying for a 1,400 square foot condo with a high monthly HOA.  I'm 68 and still working, my wife will be 68 later this year and retired about five years ago; hopefully we can stash enough away over the next four to five years before I retire to allow us to stay in this place.

[FicoMike0]

Congratulations for the daughter!

Property prices in some areas are eye watering. A huge gift down payment makes it reasonable. 

In retirement, with the mortgage paid, I look at my property taxes. I hate to think what taxes are on a $640,000 house.

[Jnbmom]

Thanks @Horseshoez  yes I honestly don't know if I can afford to retire there lol 

@FicoMike0  yes taxes on those high home value yikes 

[ShanetheMortgageMan]

Cute place and wonderful in-laws! 

Conventional rates are around the mid 6's on a 30-year fixed.  Today was a good day for mortgage rates, but for the past week they've been slowly increasing.  Your daughter should ask their loan officer if they lock in a rate today and rates get lower in before they close, are they allowed to 'float down' to a lower rate.  Some lenders offer that.

Most would consider that a very high home price for what you get, but that's just the way it is along the west coast.  Even if market values dip, then if they end up having to move (children, work, etc.) there is so much equity in their home that it wouldn't be difficult to sell at the right price, or rent it out and cover the monthly payment.  

[FicoMike0]

The only time I avoided taxes was when I rented in Torino, I paid 2 million lire a month.

[Jnbmom]

@ShanetheMortgageMan 

Thank you . I will definitely tell her to ask about the rate lock .

[cashorcharge]

Congrats to your daughter!! Cute house....and you were right...little is a great description

[Thomas_Thumb]

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@Jnbmom wrote:

So excited for my daughter . She lives in Seattle with her fiancé , they are getting married  next July ❤️

I can't believe how high prices are there . They finally found a "little house " 920 square feet with a nice yard though . They haggled a little but now have a contract . 

The house is 640K 😳.

Their scores are the the low 800's and they have the preapproval in place .

I plan to retire and move there but this scares me not knowing if I could even afford it as their tiny house wouldn't have room.

Any idea what rates are currently ? 

https://www.redfin.com/WA/Seattle/9716-Dayton-Ave-N-98103/home/99783

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Congratulations to your daughter and future S-I-L. I'll defer to Shane on interest rates.

I can relate to the cost of living concern. We are retired and our daughter & SIL live near San Diego. Not sure we could afford to move out to SD although DW would like to live nearby. 

[Jnbmom]

@Thomas_Thumb 

Yes that's kinda where we are . My daughter wants me out there when I retire and I do want to be close to her she's my baby girl . Hubby doesn't want to but we shall see .

But hoping this is probably their first home and maybe by the time I retire she will have a bigger home with land to build  a little tiny house for her mamma 😂