Liquid enough?
I’m in Chicago and am looking to buy a townhome by mid next year. i expect to have $50k for downpayment & closing, $25k for emergency savings. my wife doesnt work and we dont have kids (for a year or two). im thinking of getting something cheap (200k - 250k). Am i rushing into this with regards to my emergency funds? Want to hear what everyone thinks as a sanity check. Note: I have $100K in 401K to fall back on as a last resort. Additional info: Age: 30 TC: $125K NW: $200K
You have enough. I wouldn’t worry. Just go for it.
Go for it. You can also keep just 10% down
Totally have enough, although if your emergency fund is truly that and you don't touch a dime, I'd have $8-12k for upgrades, new furniture, new appliances, etc.
I think I can create that surplus to cover upgrades and furniture, plan to take interior decorations slowly. Also, looking to get a house with almost zero upgrades/repairs needed.
Don't put your wife's name on any of the paperwork and keep a separate account that only you manage for paying the bills. Her not working is a red flag IMO.
You are the purchaser and have the power. A good mortgage broker will tell you the best amount to put down and there is no reason to put your wife on the title because every name on a mortgage is an additional liability financially. Don't worry about red flags, you have the power in this relationship with the lender.
Get a mortgage broker and do 5% down and keep your cash. It so the full 20 if you really think you'll keep it forever then pull the money back out with a heloc when you need it for emergencies or whatever. It pay yourself back the full 20k and refi your heloc into the new mortgage.
HELOC? Teach us..
You're fine man. I never put more than bare minimum down on my house bc I don't trust the market. I'll keep my cash with me and pay some PMI if I have to. Buy the house solely under yourself and not with your wife. If shit hits the fan you can always fall on the sword and your wife's credit will be clean. Your safety net is plenty and your income comfortably supports a purchase in your price range
Why the rush? Age, TC and NW?
I think I’m blowing my money away by renting. Edited original post with Age, TC & NW info, thanks.