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My situation-31 years old, been employed by same company for 10 years. 85k/year. Wife, kindergarten teacher-45k/year. We bought a home for 435k in 2007, at bubble price. It was a mediocre house, 3 bed, 2 bath, 1610 sqft, small lot. Bubble popped, CA lost a lot of taxes due to housing prices. My wife lost her job, along with 105 other teachers in her district. We short sold on the house with BofA. Had to miss a few payments or they wouldnt SS. We SS in Jan 2012. Since then we've been paying 1500 rent to my dad. He owns 3 houses. My wife got hired in a different district, shes one year from being "tenured." We have 30k in savings and 60k in my 401k.
Ive done calculations....without rent, my DTI is only 8%. We only have one car payment and its got 2 years left. With rent its 22%. I checked my credit about 2 months ago, and it was right at 700. My wife and I would like to buy another house. Problem I see is housing prices in this area are going right back up.
I mean Ive been watching and in some neighborhoods its over 10% in just the last couple months.
What Ive been debating is, renting for a few more years, in a different house with a little bit more rent, and saving up more for an actual 20% down payment. Or buying right now, before prices creep up and Ill have to overpay....again?
Opinions?
Thanks for replying if you do.
I think you should BUY as soon as you can qualify since rates are at historic lows. You can refinance later when your your property value increases AND you save more money. You will get to that magic 20% faster now that the price of the home is locked and will never go up.
Fannie May issued a Desktop Underwriter clarification on3/12/13 for the incorrectly coded credit information. I don't know if this has been helpful for anyone. https://www.fanniemae.com/content/to...osure-sale.pdf
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