Buying a House

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Posted by ZuzusPetals

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Posted by mtdr1106

borrow from your 401k if you have one.

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I know that sounds like a great idea but before anyone does that they really need to do research. Borrrowing from you 401K should be a LAST resort. There are thousands of articles of why you should NOT borrow from you 401k like paying double tax and if you borrow from 401K accounts and god forbid you get laid off, the loan must be repaid within a month or two. Otherwise, it is considered by IRS as a taxable distribution on which income taxes, and perhaps a 10% early withdrawal penalty, are due.

google it - you will see a lot more information

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I absolutely agree with this...it could cost you an arm and a leg.

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Posted by MissingTheBGene

It's not me who isn't willing to wait

FI is really serious on this, and I told him I would consider it if he did the research on it. We don't live together right now, we're going to need something, and most leases are for a year. FI is adamant about not paying someone else's mortgage, he wants his own, lol.

Borrowing against the 401K really wasn't an option for us, it's something we just don't want to do. We can scrounge together some money, but we'd have to move further out east to afford anything in our price range if we were to buy something. I guess it can't hurt to look and see what we can get.

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My FH was the same way, I was the doubter. He had me convinced though we could do it. One day though he's like we can't do this. I was like ok, didn't think we could! He told me why didn't you tell me this sooner? I told him I did, you weren't listening!

Do what's best for you, there are ways to make it work if it's what you really want to do! We decided to get an apartment for the time being, a little farther from the city so it's a little more affordable and some place we'd consider staying more than a year if we really had to. We are hoping to save a little money too, for the wedding and a house and everything, while we're living in the apartment (although so far we haven't between buying a computer, some furniture we needed and stocking the place with food!)

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Posted by tracy2246

If you borrow from your IRA or 401K for a first time home you do not have to pay back the loan-you need to prove that you purchased a home within a certain time frame of taking out the cash.

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this was my understanding when i looke into it.

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Posted by MissingTheBGene

It's not me who isn't willing to wait

FI is really serious on this, and I told him I would consider it if he did the research on it. We don't live together right now, we're going to need something, and most leases are for a year. FI is adamant about not paying someone else's mortgage, he wants his own, lol.

Borrowing against the 401K really wasn't an option for us, it's something we just don't want to do. We can scrounge together some money, but we'd have to move further out east to afford anything in our price range if we were to buy something. I guess it can't hurt to look and see what we can get.

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we refused to wait until after the wedding because i felt similarly to your FI. we dont live together - and we both still live with our parents - and to rent in queens is insane! for a decent apt your in the $1200-1300 range (@ least in the areas where we were looking to live) so for us it made sense to buy so we didnt spend anytime renting (and in essence paying someone elses mortgage) for a few hundred more a month.
but i also had been saving for a long time and had a huge lump to put down on a co-op ontop of my 401k savings. to me it was an invetsment worth making.

and currently you can get 100% financing on houses (we were not able to do this w/ the co-op because of board requirements)- and the way equity is increasing - who cares how you afford it - invest now in a home. real estate is probably one of the least risky investments you can make. i think it is at least something you should check out with an open mind.

if you ever wait to afford it - you'll never do it - IMO

good luck!

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who cares how you afford it - invest now in a home. real estate is probably one of the least risky investments you can make. i think it is at least something you should check out with an open mind.

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If you can't afford it, I wouldnt! MY FH and I are saving as much as we can, we both currently live at home and don't want to pay someone elses mortgage as well.

However, the thinking that prices will continue to increase at the previous few years' pace is crazy. In the late 80s and early 90s, prices of homes on Long Island did decrease. It can happen again. Real estate can be risky if you buy something you can't afford.

we bought a co-op 2 years ago, thank god. At least it is something. However, we are going to start looking for a house after the wedding. So with the $$ from the sale of the Co-op, $$ from the wedding and contribution from my FFIL. We should be ok.

If you can't afford it, I wouldnt! MY FH and I are saving as much as we can, we both currently live at home and don't want to pay someone elses mortgage as well.

However, the thinking that prices will continue to increase at the previous few years' pace is crazy. In the late 80s and early 90s, prices of homes on Long Island did decrease. It can happen again. Real estate can be risky if you buy something you can't afford.

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for fun- say you buy a house today for $500K- you can barley make the payment- mortgage, utilites- ( for my 1 bedroom apt over $400 per month) oil etc

now the market dips and you house is worth $450- and you need to sell b/c you can't make the payments- you are in big trouble

the market is mostly likely going to dip- it will come back up - but I would wait the 6 months to a year and see- what the worst that would happen- you have more of a down payment

yes you can get 100% finacing- meaning you will have 2 mortgages- one for 80% 1 for 20%- so that's another payment

I would wait

ETS- I am waiting- I want a house so bad- My hubby owns a mortgage business and he wont buy me one b/c everything we like is over priced right now- it's hard but I would rather get a good deal- they buy something just to buy it and get stuck with it

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Posted by Meaghan729

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who cares how you afford it - invest now in a home. real estate is probably one of the least risky investments you can make. i think it is at least something you should check out with an open mind.

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If you can't afford it, I wouldnt! MY FH and I are saving as much as we can, we both currently live at home and don't want to pay someone elses mortgage as well.

However, the thinking that prices will continue to increase at the previous few years' pace is crazy. In the late 80s and early 90s, prices of homes on Long Island did decrease. It can happen again. Real estate can be risky if you buy something you can't afford.

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Definitely, it's risky to possibly owe more than you can get when you turn around to sell your house (FH was looking at that option as well).

It's hard too because on top of mortgage, you have to factor in taxes and insurance as well!

I've seen some prices on homes for sale though dropping and it seems that homes are staying on the market longer than they had been in the past.

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Posted by Meaghan729

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who cares how you afford it - invest now in a home. real estate is probably one of the least risky investments you can make. i think it is at least something you should check out with an open mind.

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If you can't afford it, I wouldnt! MY FH and I are saving as much as we can, we both currently live at home and don't want to pay someone elses mortgage as well.

However, the thinking that prices will continue to increase at the previous few years' pace is crazy. In the late 80s and early 90s, prices of homes on Long Island did decrease. It can happen again. Real estate can be risky if you buy something you can't afford.

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I agree - that if you cant afford it - or are totally working just to pay your mortgage - than yes i agree that buying a home would not be smart.
i am just saying if you think you can swing it - do it.
the market is changing and prices are dropping a bit- but currently mortgage intrest rates are higher than they were this summer. so i guess there never really is a 'good time'.

also - the real estate market will dip - it is inevidable - but it is not like the stock market where it changes from day to day. so it is more of a sound investment.

but in the end - you got to do what works for you. good luck to everyone trying to buy or thinking about buying one day.

[- but currently mortgage intrest rates are higher than they were this summer. so i guess there never really is a 'good time'.

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I asked this of my hubby a few months ago ( trying to trick him into saying yes to a house)- he said that even if the rates go up- you can always re-fiance later

We bought our house this past august and are getting married in Nov. We are probably going to take a small loan out for the wedding and then pay it off after the ceremony. We put a lot of the money into the house but that is where I think the money was best spent

FH and I bought a house in VA in July of last year.

I saved and saved since college, since owning my own home was one of biggest goals in life. FH and I did an 80/20 mortage.