FundRobot » Equity Funds » Should I buy a house or wait?

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Old   #1 (permalink)
 
Posts: 2,506
Default buy a house or wait

I found a good job about 6 months ago. My new job can allow me to afford a house. My wife also got a new job. After her graduation, she stayed about 3 years taking care of our daughter.
In a nutshell, we are making more than needed to buy a new house. But, I was recently told that the company (I am working for) will move to another state in 18 months.



Should I buy a house now? or Wait for the move to buy a house?

Please help me with your advice.
Another detail is that we've been living in an apartment.
Tech009 is offline   Reply With Quote
Old   #2 (permalink)
 
Posts: 2,526
Default buy a house or wait

Lucky you. First, I would verify with human resources if your company is going to buy your house if you get transferred over, this is a big deal because to sell your house you have to pay a commission and it is usually at least 5%, so unless you could realize 5% appreciation in the house you buy now, better be careful. There is always the mortgage deduction, but if your house should for whatever reason dip in value, you would be in a worse position.
Now, if the company is going to buy your house no matter what, I say that is a factor. Check it out first.
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Old   #3 (permalink)
 
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Default buy a house or wait

To buy a new house you will have mortgage fees, legal fees, closing costs, and perhaps points (percentage of loan). These can add up to thousands of dollars. In 18 months you would then have realtor commissions 2 to 6 % depending upon what type of broker you choose to sell your home and closing costs on the selling side. Unless you anticipate the house you will buy will increase a minimum of 10 to 20 % you are probably better off waiting, saving more money to come up with at least 20% to avoid PMI insurance.

I hope this helps.
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Old   #4 (permalink)
 
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Default buy a house or wait

2 years of employment required to qualify for a mortgage.
20% down payment saves private mortgage insurance.
TvShows3 is offline   Reply With Quote
Old   #5 (permalink)
 
Posts: 2,616
Default buy a house or wait

sure u have to buy now this time
land cost are increasing day by day

buy any house which are on sell
if u didnot like or u see another better sell it in more money u have buy and buy a better house as u like
TvShows3 is offline   Reply With Quote
Old   #6 (permalink)
 
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Default buy a house or wait

If your company is moving with in the next 18 months, it would not financially benefit you to buy a house in your current area.

It would benefit you to start an immediate savings for the purchase of a future house and other emergencies that might come up.

Also you indicated you and your wife just recently were employed. In order to purchase a house, you would need to be employed in the same job or career field for the past two years. Any breaks in the two years would require a letter of explanation. This letter of explanation might satisfy your mortgage underwriter and investor the mortgage lender would use for funding your mortgage loan.

With the move approaching would your wife be moving with you? If not is might be of benefit to purchase a house for her, and you would be planning to move back to this house.

If she is moving then she would be looking for a new job once again, thus the family income would be reduced until she found employment once again.

The cost of buying a house, with the down payment, loan points and fees, as well as other cost would be great.

Selling your newly acquired house would be time consuming, there would be real estate commissions of around 6%. You would not have sufficient equity to offset the cost of selling your house.

The closing cost, down payment, points and fees for obtaining your mortgage loan in your purchase transaction would not be offset if you were required to sell the house.

If you decided to rent the house, you would not be able to count the rent as income. Your monthly mortgage payment would be counted as debt, thus affecting your debt ratio. A no win situation for you.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"
ForexCash10 is offline   Reply With Quote
Old   #7 (permalink)
 
Posts: 2,643
Default buy a house or wait

w a i t

unless you have enough cash ABOVE your living standards
that you can afford to have that asset STUCK.

CAN GUIDE further
Happiness45 is offline   Reply With Quote
Old   #8 (permalink)
 
Posts: 2,586
Default buy a house or wait

You are likely to be unable to be approved for a mortgage loan if both you and your wife have new jobs. You both need 2 years of continuous employment (at or near your current salary levels) to qualify for a mortgage. Keep living in the apartment and wait and see what ends up happening with the company move. If you move with them in 18 months, you will have had 2 years with the same employer and would be in a much better position to get approved in the new location.
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