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Waiting to buy...and market trends
My husband and I were in the process of buying a short sale. We had approval from 1 bank (the home had two mortgages on it) and we were waiting for the 2nd approval. Our contract was actually expiring today, and we haven't heard anything from the 2nd bank...so presumably the house wouldn't have worked out anyway...but in the mean time, last week my husband unexpectedely lost his job.
It really came as a shock. Because he lost his job, yesterday we signed a release on the home, because on my salary alone we don't qualify for the loan..
Tehcnically, we can more than afford it on my salary alone...because in addition to my salary we receive a housing allowance (DH is a Veteran in school full time w the GI bill)... and the reason I don't qualify is because my student loan payments are around $1500 a month- which I don't pay...they are paid from a trust set up in my grandmother's estate. But the underwriters said it doesn't matter the $1500 is still in our debt to income ratio... Sorry this is long just some background. With or without our housing allowance, we'd still be able to afford this home on just my salary, its way under our budget (we are saving 40k being that its a short sale).
Anyway- my husband and I don't know if he finds something else for a job soon, if we should go back in and reoffer on the home. We know the bank accepted our price and think it would move fast. (again, he only needs the job so "on paper" we look. And we know that we have at least a 60-90 day wait meaning we have more time to save up etc for some repairs we want to make.
OR our other option is to wait until he is finished with school (2014..uh) and then has a full time job (he is an accounting student and going to finish his cpa so its a pretty good industry to find a job) and then keep saving and in 2014 start house hunting again. This time around, we'd probably have an entirely different budget and be able to get a home we can "Grow into" (we could grow into the first one, but down the line after 1 child we might want to upgrade since it didint have a garage and the lot is rather small).
I'm torn becuase 1. i love the first home and i imagined raising a child there. ITs a walk to the beach and to the marina where our boat it, there is a pool club and golf course and small restaurants and things all within walking distance. Houses in this neighborhood don't come up for sale often, and they go fast so finding this home was a steal and a great find. 2. I know if we save up i might be able to find something else that is a bigger and perhaps a bit newer that needs less work at a higher price point.
This is so long sorry. but i'm unsure. I don't have a lot of info or experience in real estateso I am just now doing my research on the housing market. Trends say things won't get better until 2016-2019....
Do you think its worth it to wait?... Or do people think the housing market is going to climb and we are going to end up buying a similar home to the one we found for more money 2 years from now....
I HATE renting and i feel like its a waste of money plus I feel like my life is on stand still for the next 2 years. I don't want to have a baby yet, but if I did I feel like I don't want to while renting.. .I feel like a house makes things "permanent" i am longing to have more space, a basement, a yard for the dog.
It's so stressful to rent, and I feel like renting for 2 more years will make me go insane!! But if the housing market is going to stay Down I'd rather wait it out and be in a different price range.
To top it off my husband and I are currently starting a business, so I want to dedicate some time to that right now, knowing that once we have kids I will want to stay at home and run the business rather than working.
It's such a push and pull and tugging. Sorry I guess I'm just venting about how its so hard to make this choice right now
Re: Waiting to buy...and market trends
Generally it's not a sound move to buy a home that you will outgrow in a few years either due to square footage or amenities issues.
The home you buy you should plan on being in for 10 years.
This!
If you buy now, get the house that will work for the next 10 years or so. Not the house that will last you "until we have two kids". The housing market won't go anywhere dramatically anytime soon. Save up every penny you can now in order to bring the loan price down as much as you can and/or build up your emergency fund.
As far as your loan debt....were you not able to show the trust payments as an income source? That should have offset the loan debt.
We are getting a VA loan, or were I should say.
Also I should clarify, In terms of size, I don't think we will out grow ths house. I say it could "fit" two children. But we don't plan to have two children anytime soon or ever. Our goal is one child down the line in a few years.
Plus, we have a home business and I'd like to have an office but there is plenty of space for that in the old dining room (they put on an addition so the "old" living room is now a big dining room). I just mean, we might be able to get something "newer" in 2 years with more money. Ie Granite, stainless etc and save having to do it ourselves and replacing this 1999 house we are looking to buy. Also, the house does not have a garage, so at some point we'd have to invest in that...since there is room to add it on.
But, I am afraid that we won't necessarily find anything in this neighborhood again- and I love the ammenties, its on a culdesac, the golf course, the pool club the beach etc...is really my fear. I mean I am sure someone else in the neighborhood might put their house in the market but who knows.
i really think I got too emotionally invested in this home since it seemed like a "done" deal.
We can't use the money from the trust as income payments, the underwriters won't allow it becase the money is technically in my dad and uncles name and it is distrubuted by my uncle and tey said that at any foreseeable time my dad and uncle could "refuse" to make my student loan payments. The money isn't just delegated to my students loans, its to pay mine and my two cousins loans- plus my brothers rent (since he didn't have any loans left) for 2 years.