Money Matters
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
To buy a house or to not buy a house? Need advice!
Hello All- I need some financial advice as I am not really sure what to do at this point. I have been back and forth on this house buying decision. My husband, 1 year old son and I moved in with my parents last year in order to pay off debt and save money to buy a house. Well we did pay off major loans, but because of unexpected medical costs and car repairs we only have $3, 600 in savings right now. The issue now is that we really love this house that is very inexpensive and is all updated and move in ready. I know we can afford the monthly mortage however my husband would have to take money out his 401k for down payment and we wouldn't be able to pay off debt as quickly or save as much as I would like. I'm worried that if we let this house go we won't find a deal this great. TIA!
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"Peace is a gift from God, but we prepare ourselves to receive this gift as we pray about everything, cultivate gratitude, and refuse to surrender to worry." - Nancy Guthrie
"Peace is a gift from God, but we prepare ourselves to receive this gift as we pray about everything, cultivate gratitude, and refuse to surrender to worry." - Nancy Guthrie
Re: To buy a house or to not buy a house? Need advice!
I will repeat what the other PP's have said just for emphasis. Do not take money out of his 401k to buy a house. Another house will come along when you are truly ready.
Going to agree with everyone so far- do not take money out of a 401K to buy a house. If DH loses his job/ switches jobs all that money from the 401k is due at that time, or you pay a huge fee, plus taxes on all that money. That is a huge mistake that people make.
Wait, another house will come along.
If all you have is $3,600 right now, then you simply can't afford to be a homeowner.
Being a homeowner is SO, SO much more expensive than just the monthly mortgage payments. Are you factoring in homeowners insurance, property taxes, possible PMI? Are you thinking about utility bills - water, sewer, trash, electric, gas, etc? If the hot water heater springs a leak, or the furnace goes out, how do you expect to pay for repairs? What happens when you have more unexpected medical costs? I mean, you are living with your parents and apparently only treading water.........that's not saying much for your readiness to be a homeowner.
Do you even know how much closing costs typically are in your area?
You'll find another home. This one isn't a great deal if you can't afford it.
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Ditto to all pp: Another house will come along.
If you have to take out of retirement just for the down payment, you cannot afford a house right now. Home ownership expenses are so much more than a mortgage, especially at the beginning. So you deplete your savings and already dipped into your retirement when, uh-oh, you have your first emergency or unexpected expense. How are you going to pay for that. Do not do that to yourselves or your child.
I know it's hard to be patient, and this house may seem like a dream, but do yourselves a favor, pass on this one, grow your savings first.