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Baby? House? Both?
So my husband and I were extremely blessed by our inlaws who gave us $20K for Christmas. We have been wanting to settle down and buy I home soon and were planning on using the money for a down payment on a home. Babies have been on the brain for me since a few months before we got married but my husband wanted to wait at least a year to make sure we could save some money.
Well he just threw me a curve ball and said he really wants to start a family sooner than later. So this has the wheels in my head turning about the money we received.
I guess my question is if the amount we put down on a house affects interest rates/what we can get approved for? I don't mind looking for a cheaper house and only using 10K for a down payment and then saving the other 10K to start a family.
Please help use out! We aren't in a huge hurry to make a decision right now but would appreciate some direction since we are new to this whole home buying thing! Thanks!
Re: Baby? House? Both?
Yes, the amount you put down on a house can affect the interest rate.
Are you both secure in your jobs? Did you live together prior to marriage? While baby fever is common, you may want to spend some time with just your husband, as a newlywed couple. Also, buying a house can be a stressful process. If you decide to buy now, maybe wait a few months until you're settled to reconsider the topic of children.
Have you talked about what you both like in a future house? That could be a starting point, because finding a home could take time (or just closing on it). Also consider any renovation costs, closing fees, etc. The $20K will not be solely for the down payment (unless you already have money saved for the other expenses).
IMO, it seems like you should put aside the feelings for a baby (I KNOW it can be difficult) and focus on a home if it's what you'd really like right now.
I agree that the two aren't really related. You'll have to look at your income, your debt, your health insurance.
Do read Home Buying for Dummies. It's great for beginners.
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Thanks so much for the input! I do realize that are completely separate things but they do both cost money. The home buying will definitely happen first since where we live now is already too small for just the two of us. I think we will try and put our focus on the home part of it for now.
Thankfully the only debt we have at the moment is a car note so we do feel it is the right time to buy. I know that will be a stressful process that may take several months so I think that in itself will be enough to take my mind off of babies!
Well, I guess it's happy house hunting for now!
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This! Can't tell you how important it is to be aware of the potential bills you might face having a baby so that you can try to prepare for those.
Personally, I think having a baby is a wonderful thing and that would be at the top of my list (houses will always be there). But it can be expensive when you're looking at maternity leave, diapers, medical bills, etc.
Buy a house!
Babies require constant cash flow, not just a down payment. And they are crazy expensive.
Raising kids in apartments sucks. No private yard (if any) to play in. Kids are noisier than you realize, babies scream at the top of their lungs because they just figured out they could, toddlers sound like elephants when they walk, oh and dont forget the kicking and pounding on floors and walls during tantrums. We're constantly worried that our building mates hate us. Plus, I'm worried that my kids won't handle a move to a house well, when it comes.
Get a house, get settled in for a year, then have babies. Delaying kids by a year or two isn't going to matter in the long run, when the trade off is being better prepared.
A few things... it looks like you just got married. I can't tell you how valuable it is to have a some time together without kids. Everyone is different but I can honestly say waiting was one of the best decisions we have ever made. Before you have a kid you really want to make sure you are
1. both emotionally ready
2. you have a safe home to bring a kid into
3. your marriage is in a good place
4. you are financially stable. You can use this as a basic estimate to calculate the cost of a kid: http://www.babycenter.com/baby-cost-calculator
If all four of those are met and a kid is more important than a house to you, then try for a kid. For us, the house came first.
As far as the house goes, it's not a good idea to buy unless you have the down payment + a 6 month emergency savings. I lost my job just as we were closing on a $620,000 house. Believe me, you want a savings in place at all times.
This is just my personal opinion but I think you would be better off to buy the house then start trying. And of course depending on where you live is 20,000 enough to put down on a house or will you have to save another year?
My only real reasoning would be its so much easier to just move 2 people than move 2 people and a baby! Get settled in your new house, you will love and enjoy it so much more!
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I say buy a house first!
My boyfriend and I started looking for a house and ended up getting pregnant (unexpectedly) half-way through the process.
We are closing on one next week, finally!!! But I wouldn't wish doing both at the same time on anyone!
Such a stressful process, it requires so much of your time and energy.. even just the searching and putting in offers, let alone the closing process!
Plus moving, decorating, and doing possible renovations while pregnant is not fun either!
Let me put it this way, we started the process before LO was even a twinkle in our eye.. Now I am about 7 months pregnant and we are just closing on the house after 4 months since putting in the offer.
Get yourself settled first if you can!!
Good luck and a big congrats on everything!! Either way it sounds like such an exciting time for you two!!