About to purchase my first home, Super nervous!!!
Just got to know that my offer was accepted for a new 3 bed SFH in Seattle with 10% down. EMI would come close to 30% of household income which is almost double the amount i pay for rent right now Been living pretty close to SLU, but the new home’s about 40 mins away from the city during peak traffic. Just super tensed about owning and managing a home with the additional debt. Any tips or advice?
TC and NW?
Don’t do it. Why pay double for a shit commute? Also, if you can’t put 20% down && have six months living expenses in savings, you can’t afford it. Instead put your money in vtsax
Little too late for kind of advice. Why even offer it?
Agree to your point about the commute. But I do have savings to manage 6 months of living expenses. Also i’m thinkin i could make a lot better in the market with the remainin 10% down to make up for the increase interest and PMI
Congratulations, first home purchase is always stressful. Make sure to take it slow on other expenses like remodeling appliance purchase etc. Try living a little below your means in other aspects of life for a while, such as car, eating out, vacations. In a short while you will once again start feeling confident financially.
This is helpful, thank you!
If you have a consistent schedule you can van pool into the city. Also, don't feel like you have to change everything about the house, it can really consume your time working on stuff. It can be super fun though, and you'll save a lot by doing it yourself instead of contractors.
Yeah i need to check the feasibility of vanpool in this area. I guess i need to find more people who commute to the same area? Any recommendations on online resources for new homeowners to do DIY projects?
There are a few pretty fast busses from around your area. Look at the 316 and E Line. For DIY, look at the Seattle Tool Library.
Resist the urge to start furnishing everything right away. And grats!
Congrats. Having a home gives you that extra comfort to put roots and settle down. Worth paying the extra. + Long term realestate value will go up so you are not losing any money. As long as you can have reserves to pay emi for 2 years then you are good.
There’s still time to jump
Congrats! It is exciting. For the next few months focus on increasing your liquid savings to 6 months worth of living expenses before you start furnishing the home/yard etc. I am assuming you both are on track to maximizing your annual retirement savings already, but if not, do that too.
Yeah that is exactly our main focus, stocking up on liquid cash before splurging more on the home
No advice, but congrats!
Thank you!